Key Highlights
- The nonprofit sector contributed over $1.1 trillion to the U.S. economy in 2020
- Nonprofits account for approximately 5.2% of the U.S. private-sector workforce
- Around 1.6 million registered nonprofit organizations are operating in the United States
- The median annual revenue for nonprofits in the U.S. is approximately $300,000
- Approximately 74% of nonprofit survey respondents reported increased workloads during the COVID-19 pandemic
- Nearly 70% of nonprofit organizations rely primarily on donations and grants for funding
- The average nonprofit organization spends about 75% of its funds on program services
- Approximately 62% of Americans give to at least one nonprofit annually
- The nonprofit sector in the U.S. has grown by approximately 1.4% annually over the past decade
- Women lead about 45% of nonprofits in the U.S.
- The average age of nonprofit board members is 62 years
- Approximately 60% of nonprofits have a strategic plan in place
- The most common causes supported by nonprofits are education, health, and human services
The nonprofit industry is a powerhouse shaping the U.S. economy with over $1.1 trillion contributed in 2020, hundreds of thousands of organizations, and millions of volunteers dedicated to transforming communities and lives nationwide.
Financial Contribution and Economic Impact
- The nonprofit sector contributed over $1.1 trillion to the U.S. economy in 2020
- The average nonprofit spends approximately 6% of its budget on administrative costs
Financial Contribution and Economic Impact Interpretation
Funding, Donors, and Volunteer Engagement
- Nearly 70% of nonprofit organizations rely primarily on donations and grants for funding
- The average nonprofit organization spends about 75% of its funds on program services
- Approximately 62% of Americans give to at least one nonprofit annually
- The most common causes supported by nonprofits are education, health, and human services
- 87% of nonprofits report difficulty in recruiting sufficient volunteers
- About 55% of nonprofits have utilized social media to promote their activities
- The sector's fundraising total reached approximately $471 billion in 2021
- About 43% of nonprofits report that they have difficulty sustaining long-term funding
- The top three sources of nonprofit revenue are individual donations, grants, and program services
- 60% of nonprofits say that increased regulations have impacted their work
- The average nonprofit spends about 11% of its budget on fundraising activities
- 83% of donors say that their giving is motivated by emotional connection rather than strategic planning
- Nonprofits led by diverse boards are 35% more likely to increase revenue
- The top three sectors for nonprofit giving are religion, education, and charities
- Approximately 50% of nonprofits have adopted some form of digital fundraising tools
- The typical annual fundraising goal for nonprofits ranges between $25,000 and $250,000
- Nearly 60% of nonprofit leaders are concerned about maintaining financial stability amid economic uncertainty
- Approximately 80% of nonprofits report that community engagement is a key part of their mission
- 45% of nonprofits utilize CRM software to manage donors and membership
- 52% of nonprofits report facing challenges in diversifying funding sources
- The average nonprofit receives about 6.5% of its funding from government grants
- Approximately 37% of nonprofits have an endowment fund to support long-term sustainability
- The total number of nonprofit in-kind donations valued at over $20 billion annually in the U.S.
- The sector’s volunteer retention rate is approximately 50%, indicating room for improvement in volunteer engagement
- The average age of online donors in nonprofits is 45 years old, showing a mature donor base
Funding, Donors, and Volunteer Engagement Interpretation
Human Resources and Workforce Dynamics
- Nonprofits account for approximately 5.2% of the U.S. private-sector workforce
- Approximately 74% of nonprofit survey respondents reported increased workloads during the COVID-19 pandemic
- Over 65 million volunteers contributed an estimated 5.8 billion hours to nonprofits in 2020, value approximately $173 billion
- The nonprofit employment rate in the U.S. is roughly 10%
- 40% of nonprofit organizations report challenges related to leadership development
- Most nonprofits see volunteers as critical to their success, with 85% stating volunteers are essential
- Only about 30% of nonprofits report having a succession plan for key leadership roles
- The nonprofit sector attracts about 1.3 million new volunteers annually
- Fewer than 20% of nonprofits have dedicated diversity and inclusion training programs for staff
- Nonprofit job postings often see a 15% higher applicant rate when offering flexible work arrangements
Human Resources and Workforce Dynamics Interpretation
Organizational Demographics and Size
- Around 1.6 million registered nonprofit organizations are operating in the United States
- The median annual revenue for nonprofits in the U.S. is approximately $300,000
- Women lead about 45% of nonprofits in the U.S.
- The average age of nonprofit board members is 62 years
- Approximately 60% of nonprofits have a strategic plan in place
- The median staff size for nonprofit organizations is 4 employees
- The percentage of nonprofits with a paid staff has increased to over 56%
- Youth-serving nonprofits constitute about 25% of all nonprofits
- The average age of a nonprofit executive director is 52 years
- About 25% of nonprofits have a dedicated DEI (Diversity, Equity, Inclusion) officer
- Nonprofits in the health sector constitute approximately 20% of all nonprofits
- About 15% of nonprofits operate with a budget under $50,000, indicating a high prevalence of small nonprofits
- The majority of nonprofit executives are women, comprising about 58% of leadership positions
- About 40% of nonprofits operate in rural areas, facing unique challenges compared to urban counterparts
- Nonprofit hospitals account for roughly 15% of all hospitals in the U.S.
- About 80% of nonprofits report that strategic planning has helped improve their organizational effectiveness
Organizational Demographics and Size Interpretation
Trends and Growth Indicators
- The nonprofit sector in the U.S. has grown by approximately 1.4% annually over the past decade
- The growth of online donations increased by 13.5% from 2019 to 2020
- The proportion of nonprofits reporting a digital transformation initiative has increased to 45% in 2022, from 33% in 2020
- Approximately 20% of nonprofits are designated as social enterprises, blending nonprofit and for-profit models
- The percentage of digital volunteers in nonprofits increased by 22% from 2018 to 2022
- The number of nonprofit organizations established annually has increased by around 3% per year over the past decade
- The pandemic accelerated online fundraising growth, with digital donations increasing by over 20% in 2020
- Around 30% of nonprofits report that they are actively pursuing mergers or collaborations to enhance sustainability
- The nonprofit industry has seen a 25% increase in technological adoption over the past five years, including cloud-based tools
- There has been an increase of 12% in the number of nonprofits dedicated to environmental causes in the last five years
Trends and Growth Indicators Interpretation
Sources & References
- Reference 1INDEPENDENTSECTORResearch Publication(2024)Visit source
- Reference 2CENSUSResearch Publication(2024)Visit source
- Reference 3NCCSResearch Publication(2024)Visit source
- Reference 4URBANResearch Publication(2024)Visit source
- Reference 5PHOENIXCMResearch Publication(2024)Visit source
- Reference 6BLUESTATEResearch Publication(2024)Visit source
- Reference 7MERRILLResearch Publication(2024)Visit source
- Reference 8BEYONDTHEHYPEResearch Publication(2024)Visit source
- Reference 9BOARDSOURCEResearch Publication(2024)Visit source
- Reference 10NONPROFITHUBResearch Publication(2024)Visit source
- Reference 11HHSResearch Publication(2024)Visit source
- Reference 12NONPROFITQUARTERLYResearch Publication(2024)Visit source
- Reference 13VOLUNTEERMATCHResearch Publication(2024)Visit source
- Reference 14FUNDRAISINGREPORTCARDResearch Publication(2024)Visit source
- Reference 15FIGPENResearch Publication(2024)Visit source
- Reference 16WILLIAMSResearch Publication(2024)Visit source
- Reference 17NONPROFITNEWSResearch Publication(2024)Visit source
- Reference 18VOLUNTEERNOWResearch Publication(2024)Visit source
- Reference 19NONPROFITLEADERResearch Publication(2024)Visit source
- Reference 20FUNDRAISINGINSIGHTSResearch Publication(2024)Visit source
- Reference 21NONPROFITSOURCEResearch Publication(2024)Visit source
- Reference 22NONPROFITHRResearch Publication(2024)Visit source