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
- 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
- Average nonprofit employee salary was $52,000 in 2022, 10% below for-profit average
- 44% of nonprofit workers are part-time, compared to 16% in for-profits in 2022
- Women comprise 72% of the nonprofit workforce in the U.S. as of 2022
- People of color represent 42% of nonprofit staff but only 28% of executives in 2022
- Nonprofit CEO median compensation was $125,000 in 2022, varying by size
- Turnover rate in nonprofits averaged 19% in 2022, higher than 12% for-profit average
- 75% of nonprofits reported staffing shortages in 2022
- Benefits coverage in nonprofits reached 85% for health insurance in 2022
- Remote work adopted by 40% of nonprofits fully or hybrid in 2022
- Health care nonprofits employ 7.5 million workers, 58% of nonprofit total in 2022
- Education nonprofits staff 3.8 million, including universities and K-12 support in 2022
- Social assistance nonprofits employ 2.1 million, focusing on vulnerable populations in 2022
- 65% of nonprofits increased wages by at least 5% in 2022 to combat inflation
- Leadership pipeline gap: only 25% of staff aspire to executive roles in 2022
- Training budgets averaged 1.5% of payroll in nonprofits in 2022
- Unionization in nonprofits rose to 12% of workforce in 2022, up from 8% in 2019
- Burnout affected 62% of nonprofit staff in 2022 surveys
- Diversity in governance: 35% boards all-white in 2022 despite staff diversity
- Gig economy workers in nonprofits grew 15% to 1.2 million in 2022
- Retention bonuses implemented by 28% of nonprofits in 2022
- Mental health support offered by 55% of nonprofits in 2022, up 20% from 2020
- Average tenure for nonprofit executives is 7.6 years as of 2022 data
- 52% of nonprofits use AI for HR tasks like recruiting in 2022 pilots
- Compensation equity gaps persist: women earn 82 cents to men's dollar in nonprofits 2022
Employment 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
- 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
- Government grants to nonprofits increased 14.3% to $367 billion in 2022
- Investment income for U.S. nonprofits surged 21.8% to $167 billion in 2022 due to market gains
- Total nonprofit expenses grew 8.7% to $2.35 trillion in 2022
- The average administrative expense ratio for U.S. nonprofits was 12% of total expenses in 2022
- Fundraising costs averaged 18% of contributed revenues for nonprofits in 2022
- U.S. nonprofits' net assets increased by 7.2% to $6.8 trillion in 2022
- 45% of U.S. nonprofits ended FY2022 with a surplus, up from 42% in 2021
- Deficit operations affected 28% of nonprofits in 2022, primarily small organizations
- Health subsector nonprofits saw 11% revenue growth in 2022, highest among all
- Higher education nonprofits revenues grew 8.4% to $250 billion in 2022
- Human services nonprofits faced 2% revenue decline in fees but grants up 15% in 2022
- Arts nonprofits revenues dropped 1.5% in 2022 despite recovery efforts post-COVID
- Environmental nonprofits investment returns averaged 12% in 2022, boosting finances
- 62% of nonprofits reported increased cash reserves in 2022 compared to 2021
- Debt levels for U.S. nonprofits rose 5% to $350 billion in 2022
- Unrestricted net assets for nonprofits averaged 25% of annual expenses in 2022
- The median nonprofit liquidity ratio was 0.45 months of expenses in 2022, indicating tight cash flows
- 35% of nonprofits borrowed funds in 2022, up from 28% pre-pandemic
- Program expense ratio averaged 82% for top-rated nonprofits in 2022
- Overhead costs (admin + fundraising) averaged under 20% for efficient nonprofits in 2022
- Revenue concentration risk affected 55% of nonprofits, relying on top 3 sources for over 50% revenue in 2022
- Inflation-adjusted nonprofit revenues grew only 1.2% in 2022 despite nominal gains
- Pension liabilities burdened 22% of nonprofits with $100 billion unfunded in 2022
Financial 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
- 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
- Bequests to nonprofits totaled $42.88 billion in 2022, up 8.5% nominally
- Corporate giving rose to $29.48 billion in 2022, a 3.4% increase
- Religion received $132.22 billion in donations, 26% of total giving in 2022
- Human services got $67.32 billion, 13% of donations in 2022
- Education donations reached $61.08 billion in 2022, down 7.3% adjusted
- Health organizations received $46.15 billion in gifts in 2022
- Arts/culture/humanities donations totaled $21.13 billion in 2022, up slightly
- Online giving grew 13.2% to $12.5 billion in 2022 for major nonprofits
- Donor-advised funds distributed $54.77 billion in 2022, up 8%
- Average donor retention rate was 45% for nonprofits in 2022
- Monthly recurring donors increased 25% year-over-year to 15% of base in 2022
- 72% of donors give via mobile in 2022
- Major gifts ($100k+) totaled $75 billion in 2022
- Crowdfunding raised $1.8 billion for U.S. nonprofits in 2022, up 12%
- Planned giving receipts grew 5.2% to $45 billion in 2022
- 41% of donors prefer digital giving methods in 2022 surveys
- Event fundraising averaged $250k per event for mid-sized orgs in 2022
- Email open rates for nonprofit campaigns averaged 26% in 2022
- Peer-to-peer fundraising raised $4.2 billion in 2022
- Corporate matching gifts claimed only 1% of eligible donations in 2022
- High-net-worth giving averaged $25k per donor annually in 2022
- 68% of millennials donate to nonprofits, highest generation in 2022
- Text-to-give raised $1.1 billion in 2022, up 20%
- Legacy Society members grew 15% in 2022 for planned giving
- ROI on direct mail was $1 return per $0.22 spent in 2022
- Social media drove 22% of online donations in 2022
Fundraising 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
- 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
- The nonprofit sector in the U.S. controls assets worth $6.2 trillion as of fiscal year 2021
- Health care nonprofits make up 59% of total nonprofit revenues in the U.S., totaling $1.53 trillion in 2022
- Education nonprofits represent 15% of the U.S. nonprofit sector by revenue, generating $390 billion in 2022
- Human services nonprofits comprise 13% of U.S. nonprofit revenues, amounting to $338 billion annually as of 2022
- Arts, culture, and humanities nonprofits hold 4% of total nonprofit assets, valued at $248 billion in 2021
- Religious organizations represent 72% of all U.S. nonprofits by number but only 19% of revenues at $494 billion in 2022
- Environmental and animal welfare nonprofits number 110,000 in the U.S., contributing $15 billion in revenue in 2022
- International nonprofits in the U.S. generated $65 billion in revenues in 2022, focusing on global aid efforts
- Public and societal benefit nonprofits account for 8% of U.S. nonprofit revenues, totaling $208 billion in 2022
- In 2021, U.S. nonprofits spent $1.4 trillion on program services, representing 81% of total expenses
- The average U.S. nonprofit revenue per organization was $1.7 million in 2022
- Small nonprofits (under $100k revenue) make up 73% of all U.S. nonprofits but only 3% of total revenues in 2022
- Mid-sized nonprofits ($1M-$10M revenue) represent 11% of organizations but 28% of sector revenues in 2022
- Large nonprofits (over $50M revenue) are 0.4% of total but generate 57% of all revenues in the U.S. in 2022
- U.S. nonprofit revenues grew by 4.1% nominally from 2021 to 2022, outpacing inflation slightly
- The nonprofit share of U.S. GDP has risen from 4.5% in 2000 to 5.2% in 2022
- Globally, there are over 15 million nonprofits, with the U.S. hosting 10% of them as of 2023 estimates
- In 2022, U.S. nonprofit program expenses reached $2.1 trillion, up 9% from 2021
- Nonprofits in California represent 12% of all U.S. nonprofits, with revenues over $300 billion in 2022
- New York nonprofits generate 10% of national nonprofit GDP contribution at $260 billion in 2022
- Texas has over 120,000 nonprofits, contributing $120 billion to the economy in 2022
- Florida's nonprofit sector employs 1 million people and generates $100 billion in impact annually as of 2022
- Illinois nonprofits account for 9.5% of state GDP, with $70 billion in revenues in 2022
- Pennsylvania has 80,000 nonprofits providing 10% of employment statewide in 2022
- Ohio's nonprofit revenues totaled $85 billion in 2022, representing 11% of state GDP
- Michigan nonprofits employ 600,000 workers, generating $60 billion in economic activity in 2022
- U.S. nonprofit capital expenditures reached $120 billion in 2022 for facilities and equipment
Size 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
- 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
- Climate action nonprofits influenced $500 billion in green investments in 2022
- Food banks distributed 6.5 billion meals in 2022, serving 44 million people
- Homeless shelters aided 650,000 individuals nightly in 2022
- Mental health nonprofits reached 50 million Americans in 2022
- Animal shelters adopted out 3.2 million pets in 2022
- Disaster relief nonprofits responded to 450 events, aiding 20 million in 2022
- Youth programs served 30 million children via nonprofits in 2022
- 75% of nonprofits adopted DEI initiatives by 2022, impacting operations
- Hybrid events increased participation 40% for nonprofits in 2022
- AI adoption in nonprofits reached 35% for analytics in 2022
- ESG reporting implemented by 28% of large nonprofits in 2022
- Post-COVID volunteer return rate was 65% of pre-pandemic levels in 2022
- Advocacy wins: nonprofits influenced 120 federal policies in 2022
- Telehealth expanded via nonprofits to 25 million underserved in 2022
- Sustainable practices adopted by 60% of nonprofits in operations 2022
- Blockchain for transparency used by 12% of nonprofits in 2022
- Impact measurement tools used by 70% of funders' grantees in 2022
- Collaborative partnerships grew 25% among nonprofits in 2022
- VR/AR for education/training piloted by 15% nonprofits in 2022
- Equity-focused grants doubled to $50 billion in 2022
- Nonprofit mergers increased 18% to 250 deals in 2022
- Data privacy compliance (GDPR-like) achieved by 82% large nonprofits 2022
Trends 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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