State-funded Nonprofit Spotlight: Peer Services

Peer Services, a tax-exempt nonprofit that receives significant public funding to perform services also offered by the state, was approved to receive two grants totaling $350,000 in FY2024, according to passed legislation data extracted from the Illinois General Assembly’s FY2024 budget (Public Act 102-6 0698).

The listed appropriations included grants of $250,000 and $100,000 if two, each designated for programs or services funded by the State of Illinois.

These appropriations represent state-level funding authorized by lawmakers, reflecting what was approved in the budget, not necessarily disbursed. The funds cover only State of Illinois support and exclude federal, local, or other public sources.

Founded in 1975, Peer Services states that its mission is: “PEER Services reduces the harms of substance use, addiction and stigma by engaging youth and adults with innovative prevention programming and by supporting people on their path to recovery through holistic, evidence-based treatment. We provide affirming services to all in need, regardless of their ability to pay.”

You can learn more about the organization at its website.

In its most recent IRS Form 990 filing filing for tax year 2024, the organization reported $2,121,660 in total revenue. Of that, $1,042,190 came from government grants including federal, state, or local sources, making up 49.1% of total revenue.

The nonprofit listed $1,265,810 in contributions overall. It also reported $149,113 categorized under other contributions, which may include restricted donations, pledges, or bequests.

At the beginning of 2024, Peer Services had $1,258,600 in assets. By the end of 2024, that figure had changed to $1,182,140, indicating a 6.1% decline in overall holdings.

According to its filing, public funding remained fairly steady year-over-year, changing from $1,083,750 in 2023 to $1,042,190 in 2024 (a difference of 3.8%).

However, a Chicago City Wire analysis found that IRS filings frequently contain discrepancies when compared with publicly disclosed government grant reports and budgets.

Peer Services is one of hundreds of nonprofits across Illinois that receive substantial support from state taxpayers while also fundraising privately.

In 2025, Illinois lawmakers introduced House Bill 1266, also known as the Department of Government Efficiency (DOGE) Act. The proposal would create a new oversight body within the Office of the Auditor General tasked with identifying cost-saving measures, reviewing agency performance, and advising on audit priorities. If passed, DOGE could bring additional scrutiny and performance evaluation to taxpayer-funded organizations.

According to ProPublica, Illinois has more than 78,000 active tax-exempt organizations, including nearly 60,000 classified as charitable nonprofits. In their most recent IRS filings, these groups reported a combined revenue exceeding $156 billion.