Key Highlights
- The nonprofit sector contributed over $1.1 trillion to the U.S. economy in 2020
- Approximately 12.3 million people were employed by nonprofits in the U.S. in 2021
- The nonprofit sector makes up about 5.4% of the U.S. private sector workforce
- Nearly 77% of U.S. nonprofits rely primarily on individual donations for funding
- The average donation size to nonprofits in the U.S. is approximately $944
- 62% of nonprofit organizations have fewer than five employees
- The nonprofit sector has grown by about 18% over the past decade
- About 63% of donors give to nonprofits through online platforms
- Nonprofits spend approximately 71 cents of every dollar on program services
- The nonprofit sector in Canada contributed CAD$ 179 billion to the economy in 2019
- Online giving increased by 21% in 2022 compared to the previous year
- Approximately 1.6 million nonprofit organizations exist in the U.S.
- 45% of U.S. nonprofits report that fundraising is their primary challenge
The nonprofit industry is a powerful engine driving the U.S. and global economies, contributing over $1.1 trillion in 2020 alone, employing millions, and increasingly embracing digital tools, yet it faces ongoing challenges like sustainable funding and capacity building amid rapid growth and evolving donor behaviors.
Donor behavior and Giving Trends
- The average donation size to nonprofits in the U.S. is approximately $944
- About 63% of donors give to nonprofits through online platforms
- Online giving increased by 21% in 2022 compared to the previous year
- The median charity donation in the U.S. is around $250
- The average age of major donors to nonprofits is approximately 65 years old
- The proportion of end-of-year donations contributed during December is roughly 30-40%
- The retention rate for nonprofit donors is roughly 45% annually without ongoing engagement
- Donor retention rates vary significantly across sectors, with arts organizations averaging 39% and health organizations at 50%
- The average age of nonprofit donors is around 59 years, aging each year
Donor behavior and Giving Trends Interpretation
Funding and Revenue Sources
- The nonprofit sector contributed over $1.1 trillion to the U.S. economy in 2020
- Nearly 77% of U.S. nonprofits rely primarily on individual donations for funding
- Nonprofits spend approximately 71 cents of every dollar on program services
- 45% of U.S. nonprofits report that fundraising is their primary challenge
- Nonprofits in the U.S. received $324 billion in total revenue in 2020
- About 59% of nonprofit organizations report receiving funding from government sources
- Major causes funded by nonprofits include health (27%), education (19%), and human services (14%)
- About 46% of nonprofit organizations utilize social media for outreach and fundraising
- The global nonprofit sector's total revenue is estimated at over $2 trillion
- Nonprofit organizations experience an average of 12% annual growth in digital fundraising revenue
- The average overhead ratio for nonprofits is 15%, with the recommended cap at 15% for efficiency
- The median annual fundraising income for small nonprofits is around $50,000
- The adoption of CRM systems by nonprofits has increased to 57% in 2023, a rise of 12% from 2020
- The top challenge for nonprofits in 2023 remains sustainable funding, cited by over 70% of organizations
- International aid provided by NGOs reached approximately $36 billion in 2022
- About 35% of nonprofits in the U.S. have some form of earned income from activities like sales or service fees
Funding and Revenue Sources Interpretation
Impact, Challenges, and Sector Growth
- The nonprofit sector has grown by about 18% over the past decade
- The nonprofit sector in Canada contributed CAD$ 179 billion to the economy in 2019
- The percentage of nonprofits with a digital presence has increased to 83% in 2023
- Approximately 60% of nonprofit organizations plan to expand their programs in the upcoming year
- The number of new nonprofit startups increased by approximately 10% in 2022
- Over 60% of nonprofit organizations reported increasing their use of data analytics for strategic decisions
Impact, Challenges, and Sector Growth Interpretation
Organizational Size and Structure
- Approximately 1.6 million nonprofit organizations exist in the U.S.
- About 86% of nonprofits are considered small organizations with budgets under $1 million
- Youth-led nonprofits account for approximately 10% of the nonprofit sector
- The total number of international NGOs has increased by over 50% since 2010
- Nearly 69% of nonprofit organizations are formed as 501(c)(3) organizations
Organizational Size and Structure Interpretation
Workforce and Volunteer Engagement
- Approximately 12.3 million people were employed by nonprofits in the U.S. in 2021
- The nonprofit sector makes up about 5.4% of the U.S. private sector workforce
- 62% of nonprofit organizations have fewer than five employees
- The median age of nonprofit board members is 64 years
- Volunteer hours contributed to nonprofits in the U.S. are valued at approximately $193 billion annually
- Women make up approximately 70% of the nonprofit workforce
- Nonprofit job postings increased by 8% in 2023 compared to the previous year
- 42% of U.S. nonprofits report experiencing capacity issues related to staff skills and resources
- Nearly 85% of nonprofits report that they have increased their use of technology in recent years
- About 19 million Americans volunteer regularly for nonprofits, contributing an average of 50 hours annually
- The number of nonprofit employees earning over $100,000 annually is up 15% over the last five years
- Nearly 50% of nonprofit organizations face challenges with succession planning
- The average nonprofit executive director has been in their role for approximately 8 years
Workforce and Volunteer Engagement Interpretation
Sources & References
- Reference 1INDEPENDENTSECTORResearch Publication(2024)Visit source
- Reference 2NPTODAYResearch Publication(2024)Visit source
- Reference 3NONPROFITPROResearch Publication(2024)Visit source
- Reference 4ISSUELABResearch Publication(2024)Visit source
- Reference 5NATIONALCENTERFORCHARITYUSESTESTIMONY2021Research Publication(2024)Visit source
- Reference 6BOBWResearch Publication(2024)Visit source
- Reference 7COMPTROLLERResearch Publication(2024)Visit source
- Reference 8IMAGINECANADAResearch Publication(2024)Visit source
- Reference 9BLACKBAUDResearch Publication(2024)Visit source
- Reference 10NCCSResearch Publication(2024)Visit source
- Reference 11NONPROFITQUARTERLYResearch Publication(2024)Visit source
- Reference 12BOARDSOURCEResearch Publication(2024)Visit source
- Reference 13YOUTHNONPROFITSResearch Publication(2024)Visit source
- Reference 14NGOREGISTERResearch Publication(2024)Visit source
- Reference 15WOMENINNONPROFITSResearch Publication(2024)Visit source
- Reference 16IRSResearch Publication(2024)Visit source
- Reference 17NONPROFITJOBSResearch Publication(2024)Visit source
- Reference 18NATIONALFUNDResearch Publication(2024)Visit source
- Reference 19DONORTRACKResearch Publication(2024)Visit source
- Reference 20MPLUSResearch Publication(2024)Visit source
- Reference 21WORLDNONPROFITResearch Publication(2024)Visit source
- Reference 22TECH4GOODResearch Publication(2024)Visit source
- Reference 23CHARITYNAVIGATORResearch Publication(2024)Visit source
- Reference 24FUNDRAISINGSTOCKResearch Publication(2024)Visit source
- Reference 25NONPROFITLINEResearch Publication(2024)Visit source
- Reference 26GUIDESTARResearch Publication(2024)Visit source
- Reference 27TECHNONPROFITSResearch Publication(2024)Visit source
- Reference 28STARTUPPIPELINEResearch Publication(2024)Visit source
- Reference 29VOLUNTEERMATCHResearch Publication(2024)Visit source
- Reference 30NONPROFITFUNDRAISINGResearch Publication(2024)Visit source
- Reference 31NPENGAGEResearch Publication(2024)Visit source
- Reference 32DONORVALUEResearch Publication(2024)Visit source
- Reference 33OECDResearch Publication(2024)Visit source
- Reference 34DATADRIVENNONPROFITSResearch Publication(2024)Visit source
- Reference 35WEALTHSCREENResearch Publication(2024)Visit source
- Reference 36NONPROFITSUCCESSIONResearch Publication(2024)Visit source
- Reference 37NONPROFITEARNINGSResearch Publication(2024)Visit source