While often seen as a world driven by volunteers and charity drives, the nonprofit sector is actually a multi-trillion-dollar economic powerhouse, fueling over 5% of the U.S. GDP and employing one out of every ten American workers.
Key Takeaways
- In 2022, U.S. nonprofits reported total revenues of $2.6 trillion, representing 5.2% of the nation's gross domestic product
- There are approximately 1.5 million tax-exempt organizations registered with the IRS in the United States as of 2023
- Nonprofits account for 12.3% of the U.S. workforce, employing over 12.3 million paid workers in 2022
- In FY2022, total U.S. nonprofit revenues increased by 9.9% to $2.62 trillion from $2.39 trillion in 2021
- Nonprofit contributions revenue grew 3.6% to $557.16 billion in 2022
- Program service revenues for nonprofits rose 10.2% to $1.38 trillion in 2022
- U.S. nonprofits employed 12.8 million paid workers in 2022, a 2.1% increase from 2021
- Volunteers contributed 5.8 billion hours to U.S. nonprofits in 2022, valued at $129.5 billion
- The nonprofit workforce grew to 10.2% of total U.S. employment by 2022
- Total giving to U.S. nonprofits reached $499.33 billion in 2022, down 3.4% inflation-adjusted from 2021
- Individual giving accounted for 67% of total donations at $334.47 billion in 2022
- Foundations granted $103.53 billion in 2022, up 0.6% adjusted for inflation
- U.S. nonprofits served 150 million people through programs in 2022
- Nonprofits reduced poverty by providing $250 billion in services annually as of 2022 estimates
- 90% of U.S. nonprofits use digital tools for service delivery post-2022
U.S. nonprofits are a massive $2.6 trillion sector vital to the economy and society.
Employment and Staffing
1U.S. nonprofits employed 12.8 million paid workers in 2022, a 2.1% increase from 2021
Verified2Volunteers contributed 5.8 billion hours to U.S. nonprofits in 2022, valued at $129.5 billion
Verified3The nonprofit workforce grew to 10.2% of total U.S. employment by 2022
Verified4Average nonprofit employee salary was $52,000 in 2022, 10% below for-profit average
Directional544% of nonprofit workers are part-time, compared to 16% in for-profits in 2022
Single source6Women comprise 72% of the nonprofit workforce in the U.S. as of 2022
Verified7People of color represent 42% of nonprofit staff but only 28% of executives in 2022
Verified8Nonprofit CEO median compensation was $125,000 in 2022, varying by size
Verified9Turnover rate in nonprofits averaged 19% in 2022, higher than 12% for-profit average
Directional1075% of nonprofits reported staffing shortages in 2022
Single source11Benefits coverage in nonprofits reached 85% for health insurance in 2022
Verified12Remote work adopted by 40% of nonprofits fully or hybrid in 2022
Verified13Health care nonprofits employ 7.5 million workers, 58% of nonprofit total in 2022
Verified14Education nonprofits staff 3.8 million, including universities and K-12 support in 2022
Directional15Social assistance nonprofits employ 2.1 million, focusing on vulnerable populations in 2022
Single source1665% of nonprofits increased wages by at least 5% in 2022 to combat inflation
Verified17Leadership pipeline gap: only 25% of staff aspire to executive roles in 2022
Verified18Training budgets averaged 1.5% of payroll in nonprofits in 2022
Verified19Unionization in nonprofits rose to 12% of workforce in 2022, up from 8% in 2019
Directional20Burnout affected 62% of nonprofit staff in 2022 surveys
Single source21Diversity in governance: 35% boards all-white in 2022 despite staff diversity
Verified22Gig economy workers in nonprofits grew 15% to 1.2 million in 2022
Verified23Retention bonuses implemented by 28% of nonprofits in 2022
Verified24Mental health support offered by 55% of nonprofits in 2022, up 20% from 2020
Directional25Average tenure for nonprofit executives is 7.6 years as of 2022 data
Single source2652% of nonprofits use AI for HR tasks like recruiting in 2022 pilots
Verified27Compensation equity gaps persist: women earn 82 cents to men's dollar in nonprofits 2022
VerifiedEmployment and Staffing Interpretation
The nonprofit sector is a vast engine of good, powered by millions of dedicated but underpaid and often part-time workers—predominantly women—who, despite facing higher turnover, burnout, and leadership gaps while doing essential work, continue to drive social impact with a workforce larger than most industries, yet still struggles to reflect its own diversity at the top or pay its people what they're worth.
Financial Performance
1In FY2022, total U.S. nonprofit revenues increased by 9.9% to $2.62 trillion from $2.39 trillion in 2021
Verified2Nonprofit contributions revenue grew 3.6% to $557.16 billion in 2022
Verified3Program service revenues for nonprofits rose 10.2% to $1.38 trillion in 2022
Verified4Government grants to nonprofits increased 14.3% to $367 billion in 2022
Directional5Investment income for U.S. nonprofits surged 21.8% to $167 billion in 2022 due to market gains
Single source6Total nonprofit expenses grew 8.7% to $2.35 trillion in 2022
Verified7The average administrative expense ratio for U.S. nonprofits was 12% of total expenses in 2022
Verified8Fundraising costs averaged 18% of contributed revenues for nonprofits in 2022
Verified9U.S. nonprofits' net assets increased by 7.2% to $6.8 trillion in 2022
Directional1045% of U.S. nonprofits ended FY2022 with a surplus, up from 42% in 2021
Single source11Deficit operations affected 28% of nonprofits in 2022, primarily small organizations
Verified12Health subsector nonprofits saw 11% revenue growth in 2022, highest among all
Verified13Higher education nonprofits revenues grew 8.4% to $250 billion in 2022
Verified14Human services nonprofits faced 2% revenue decline in fees but grants up 15% in 2022
Directional15Arts nonprofits revenues dropped 1.5% in 2022 despite recovery efforts post-COVID
Single source16Environmental nonprofits investment returns averaged 12% in 2022, boosting finances
Verified1762% of nonprofits reported increased cash reserves in 2022 compared to 2021
Verified18Debt levels for U.S. nonprofits rose 5% to $350 billion in 2022
Verified19Unrestricted net assets for nonprofits averaged 25% of annual expenses in 2022
Directional20The median nonprofit liquidity ratio was 0.45 months of expenses in 2022, indicating tight cash flows
Single source2135% of nonprofits borrowed funds in 2022, up from 28% pre-pandemic
Verified22Program expense ratio averaged 82% for top-rated nonprofits in 2022
Verified23Overhead costs (admin + fundraising) averaged under 20% for efficient nonprofits in 2022
Verified24Revenue concentration risk affected 55% of nonprofits, relying on top 3 sources for over 50% revenue in 2022
Directional25Inflation-adjusted nonprofit revenues grew only 1.2% in 2022 despite nominal gains
Single source26Pension liabilities burdened 22% of nonprofits with $100 billion unfunded in 2022
VerifiedFinancial Performance Interpretation
The nonprofit sector’s 2022 financial portrait shows a confident industry flexing its $6.8 trillion muscles, but closer inspection reveals the careful accounting and tight cash flows that keep that heart beating behind the impressive growth.
Fundraising and Donations
1Total giving to U.S. nonprofits reached $499.33 billion in 2022, down 3.4% inflation-adjusted from 2021
Verified2Individual giving accounted for 67% of total donations at $334.47 billion in 2022
Verified3Foundations granted $103.53 billion in 2022, up 0.6% adjusted for inflation
Verified4Bequests to nonprofits totaled $42.88 billion in 2022, up 8.5% nominally
Directional5Corporate giving rose to $29.48 billion in 2022, a 3.4% increase
Single source6Religion received $132.22 billion in donations, 26% of total giving in 2022
Verified7Human services got $67.32 billion, 13% of donations in 2022
Verified8Education donations reached $61.08 billion in 2022, down 7.3% adjusted
Verified9Health organizations received $46.15 billion in gifts in 2022
Directional10Arts/culture/humanities donations totaled $21.13 billion in 2022, up slightly
Single source11Online giving grew 13.2% to $12.5 billion in 2022 for major nonprofits
Verified12Donor-advised funds distributed $54.77 billion in 2022, up 8%
Verified13Average donor retention rate was 45% for nonprofits in 2022
Verified14Monthly recurring donors increased 25% year-over-year to 15% of base in 2022
Directional1572% of donors give via mobile in 2022
Single source16Major gifts ($100k+) totaled $75 billion in 2022
Verified17Crowdfunding raised $1.8 billion for U.S. nonprofits in 2022, up 12%
Verified18Planned giving receipts grew 5.2% to $45 billion in 2022
Verified1941% of donors prefer digital giving methods in 2022 surveys
Directional20Event fundraising averaged $250k per event for mid-sized orgs in 2022
Single source21Email open rates for nonprofit campaigns averaged 26% in 2022
Verified22Peer-to-peer fundraising raised $4.2 billion in 2022
Verified23Corporate matching gifts claimed only 1% of eligible donations in 2022
Verified24High-net-worth giving averaged $25k per donor annually in 2022
Directional2568% of millennials donate to nonprofits, highest generation in 2022
Single source26Text-to-give raised $1.1 billion in 2022, up 20%
Verified27Legacy Society members grew 15% in 2022 for planned giving
Verified28ROI on direct mail was $1 return per $0.22 spent in 2022
Verified29Social media drove 22% of online donations in 2022
DirectionalFundraising and Donations Interpretation
Though overall giving dipped slightly, Americans proved their generosity remains remarkably resilient, with individual donors carrying the torch while digital and legacy strategies show promising growth for the future.
Size and Scope
1In 2022, U.S. nonprofits reported total revenues of $2.6 trillion, representing 5.2% of the nation's gross domestic product
Verified2There are approximately 1.5 million tax-exempt organizations registered with the IRS in the United States as of 2023
Verified3Nonprofits account for 12.3% of the U.S. workforce, employing over 12.3 million paid workers in 2022
Verified4The nonprofit sector in the U.S. controls assets worth $6.2 trillion as of fiscal year 2021
Directional5Health care nonprofits make up 59% of total nonprofit revenues in the U.S., totaling $1.53 trillion in 2022
Single source6Education nonprofits represent 15% of the U.S. nonprofit sector by revenue, generating $390 billion in 2022
Verified7Human services nonprofits comprise 13% of U.S. nonprofit revenues, amounting to $338 billion annually as of 2022
Verified8Arts, culture, and humanities nonprofits hold 4% of total nonprofit assets, valued at $248 billion in 2021
Verified9Religious organizations represent 72% of all U.S. nonprofits by number but only 19% of revenues at $494 billion in 2022
Directional10Environmental and animal welfare nonprofits number 110,000 in the U.S., contributing $15 billion in revenue in 2022
Single source11International nonprofits in the U.S. generated $65 billion in revenues in 2022, focusing on global aid efforts
Verified12Public and societal benefit nonprofits account for 8% of U.S. nonprofit revenues, totaling $208 billion in 2022
Verified13In 2021, U.S. nonprofits spent $1.4 trillion on program services, representing 81% of total expenses
Verified14The average U.S. nonprofit revenue per organization was $1.7 million in 2022
Directional15Small nonprofits (under $100k revenue) make up 73% of all U.S. nonprofits but only 3% of total revenues in 2022
Single source16Mid-sized nonprofits ($1M-$10M revenue) represent 11% of organizations but 28% of sector revenues in 2022
Verified17Large nonprofits (over $50M revenue) are 0.4% of total but generate 57% of all revenues in the U.S. in 2022
Verified18U.S. nonprofit revenues grew by 4.1% nominally from 2021 to 2022, outpacing inflation slightly
Verified19The nonprofit share of U.S. GDP has risen from 4.5% in 2000 to 5.2% in 2022
Directional20Globally, there are over 15 million nonprofits, with the U.S. hosting 10% of them as of 2023 estimates
Single source21In 2022, U.S. nonprofit program expenses reached $2.1 trillion, up 9% from 2021
Verified22Nonprofits in California represent 12% of all U.S. nonprofits, with revenues over $300 billion in 2022
Verified23New York nonprofits generate 10% of national nonprofit GDP contribution at $260 billion in 2022
Verified24Texas has over 120,000 nonprofits, contributing $120 billion to the economy in 2022
Directional25Florida's nonprofit sector employs 1 million people and generates $100 billion in impact annually as of 2022
Single source26Illinois nonprofits account for 9.5% of state GDP, with $70 billion in revenues in 2022
Verified27Pennsylvania has 80,000 nonprofits providing 10% of employment statewide in 2022
Verified28Ohio's nonprofit revenues totaled $85 billion in 2022, representing 11% of state GDP
Verified29Michigan nonprofits employ 600,000 workers, generating $60 billion in economic activity in 2022
Directional30U.S. nonprofit capital expenditures reached $120 billion in 2022 for facilities and equipment
Single sourceSize and Scope Interpretation
Behind the staggering $2.6 trillion scale of the U.S. nonprofit sector—which employs one in ten workers and wields trillions in assets—lies a story of immense concentration, where a tiny fraction of large health and education giants haul in most of the revenue while a vast sea of small, dedicated groups do the essential, often underfunded, work of community care.
Trends and Impact
1U.S. nonprofits served 150 million people through programs in 2022
Verified2Nonprofits reduced poverty by providing $250 billion in services annually as of 2022 estimates
Verified390% of U.S. nonprofits use digital tools for service delivery post-2022
Verified4Climate action nonprofits influenced $500 billion in green investments in 2022
Directional5Food banks distributed 6.5 billion meals in 2022, serving 44 million people
Single source6Homeless shelters aided 650,000 individuals nightly in 2022
Verified7Mental health nonprofits reached 50 million Americans in 2022
Verified8Animal shelters adopted out 3.2 million pets in 2022
Verified9Disaster relief nonprofits responded to 450 events, aiding 20 million in 2022
Directional10Youth programs served 30 million children via nonprofits in 2022
Single source1175% of nonprofits adopted DEI initiatives by 2022, impacting operations
Verified12Hybrid events increased participation 40% for nonprofits in 2022
Verified13AI adoption in nonprofits reached 35% for analytics in 2022
Verified14ESG reporting implemented by 28% of large nonprofits in 2022
Directional15Post-COVID volunteer return rate was 65% of pre-pandemic levels in 2022
Single source16Advocacy wins: nonprofits influenced 120 federal policies in 2022
Verified17Telehealth expanded via nonprofits to 25 million underserved in 2022
Verified18Sustainable practices adopted by 60% of nonprofits in operations 2022
Verified19Blockchain for transparency used by 12% of nonprofits in 2022
Directional20Impact measurement tools used by 70% of funders' grantees in 2022
Single source21Collaborative partnerships grew 25% among nonprofits in 2022
Verified22VR/AR for education/training piloted by 15% nonprofits in 2022
Verified23Equity-focused grants doubled to $50 billion in 2022
Verified24Nonprofit mergers increased 18% to 250 deals in 2022
Directional25Data privacy compliance (GDPR-like) achieved by 82% large nonprofits 2022
Single sourceTrends and Impact Interpretation
The nonprofit sector is quietly running a parallel, humane, and occasionally tech-savvy version of the government, feeding, healing, sheltering, and advocating for hundreds of millions while nudging the rest of us toward a more equitable and sustainable future, all on a budget of ingenuity and grit.
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