Federal grants to social service agencies reached 26.9 billion dollars. Inflation drove higher costs for 72 percent of nonprofits while labor averaged 60 percent of operating expenses. Staffing constraints affected 57 percent of organizations and volunteer numbers declined at 31 percent of them.
Key Takeaways
- $26.9 billion federal grants to social service agencies in FY 2023 (federal grant spending estimate for social services category)
- In 2023, 72% of nonprofits reported higher costs due to inflation affecting labor and program expenses.
- In 2023, labor costs represented the largest expense category for nonprofits, averaging 60% of operating expenses in surveyed human services organizations.
- $44.1 billion in Medicaid spending was attributable to long-term services and supports in 2021 (major downstream support for nonprofit social services).
- $2.5 billion was provided by FEMA to eligible applicants for humanitarian assistance after disasters in 2023 (in many cases routed through nonprofit social service organizations).
- The average SNAP household benefit was $137 per month in FY 2023.
- Nonprofit organizations with revenue under $1 million were more likely to report financial vulnerability, with 46% citing difficulty covering operating expenses in 2022.
- Nonprofits reported that staffing shortages affected service delivery: 57% reported moderate to severe staffing constraints in 2023.
- In 2022, 31% of nonprofit organizations reported that they had fewer volunteers than the year before (volunteer trend).
- In a 2022 study, nonprofits using data-driven decision-making were 2.1x more likely to report improved program outcomes.
- In 2023, 65% of nonprofits reported using performance metrics for at least 1 program area (measurement adoption).
- In 2023, 52% of nonprofits reported that they track outcomes at the individual client level (granular measurement).
- In 2023, the nonprofit sector’s share of total U.S. employment was 10.3% when including volunteers expressed in full-time equivalents (volunteer-adjusted measure).
- In 2023, the nonprofit sector contributed $1.2 trillion to the U.S. economy in value added (satellite account measure).
Federal and nonprofit spending supports millions, but nonprofits face staffing shortages, rising costs, and growing cybersecurity risks.
Related reading
01 · Category
Cost Analysis3 stats
01
$26.9 billion federal grants to social service agencies in FY 2023 (federal grant spending estimate for social services category)
02
In 2023, 72% of nonprofits reported higher costs due to inflation affecting labor and program expenses.
03
In 2023, labor costs represented the largest expense category for nonprofits, averaging 60% of operating expenses in surveyed human services organizations.
Interpretation
Cost Analysis Interpretation
In the cost analysis of the nonprofit social services sector, 72% of nonprofits reported rising costs in 2023 as inflation hit labor and program expenses, and with labor averaging 60% of operating expenses, this pressure is most acute where the largest cost sits.
02 · Category
Government Programs8 stats
01
$44.1 billion in Medicaid spending was attributable to long-term services and supports in 2021 (major downstream support for nonprofit social services).
02
$2.5 billion was provided by FEMA to eligible applicants for humanitarian assistance after disasters in 2023 (in many cases routed through nonprofit social service organizations).
03
The average SNAP household benefit was $137per month in FY 2023.
04
SSI (Supplemental Security Income) paid $61.0 billion in benefits in 2023 to eligible individuals, supporting income for people served by social service nonprofits.
05
Title IV-E foster care expenditures totaled $11.8 billion in federal FY 2022, supporting services often delivered by nonprofits.
06
Head Start programs served 1,000,000 children in 2023, many through nonprofit grantees and delegate agencies.
07
The Community Services Block Grant (CSBG) provided $810 million in FY 2023 to states and local entities for poverty alleviation services.
08
The Older Americans Act funded $2.6 billion in FY 2023 for aging services supported by nonprofit providers.
Interpretation
Government Programs Interpretation
Government Programs are a major funding engine for nonprofit social services, with 2023 alone featuring $61.0 billion in SSI benefits and $2.6 billion in Older Americans Act support alongside other large streams such as $810 million in CSBG, showing how deeply nonprofits depend on federal and state safety net and service budgets.
03 · Category
Industry Trends6 stats
01
Nonprofit organizations with revenue under $1 million were more likely to report financial vulnerability, with 46% citing difficulty covering operating expenses in 2022.
02
Nonprofits reported that staffing shortages affected service delivery: 57% reported moderate to severe staffing constraints in 2023.
03
In 2022, 31% of nonprofit organizations reported that they had fewer volunteers than the year before (volunteer trend).
04
In 2023, 63% of nonprofits reported that they use cloud services for at least one operational function (survey).
05
In 2024, 73% of nonprofit executives reported that collaboration/partnerships are a key strategy for scaling impact.
06
In 2023, 1 in 5 nonprofit organizations reported a cyber incident attempt (phishing or malware) within the past 12 months (security threat prevalence).
Interpretation
Industry Trends Interpretation
Across the Industry Trends in nonprofit social services, staffing shortages remain a major pressure point with 57% reporting moderate to severe constraints in 2023, even as 63% adopt cloud services and 73% of executives prioritize collaboration to scale impact.
More related reading
04 · Category
Performance Metrics3 stats
01
In a 2022 study, nonprofits using data-driven decision-making were 2.1x more likely to report improved program outcomes.
02
In 2023, 65% of nonprofits reported using performance metrics for at least 1 program area (measurement adoption).
03
In 2023, 52% of nonprofits reported that they track outcomes at the individual client level (granular measurement).
Interpretation
Performance Metrics Interpretation
Performance Metrics adoption is rising but remains uneven, with 65% of nonprofits using performance metrics in at least one program area in 2023 while only 52% track outcomes at the individual client level and data-driven decision-making is linked to 2.1 times higher odds of improved program outcomes.
05 · Category
Sector Scale2 stats
01
In 2023, the nonprofit sector’s share of total U.S. employment was 10.3% when including volunteers expressed in full-time equivalents (volunteer-adjusted measure).
02
In 2023, the nonprofit sector contributed $1.2 trillion to the U.S. economy in value added (satellite account measure).
Interpretation
Sector Scale Interpretation
In the Sector Scale category, the nonprofit social services industry reached a major footprint in 2023, accounting for 10.3% of total U.S. employment on a volunteer-adjusted basis and adding $1.2 trillion in value to the economy.
report visual · Comparison
Key funding streams supporting nonprofit social services
Federal and program-level funding flows support services commonly delivered by nonprofit social service organizations.
SSI benefits paid (2023)$61.0 billion
Medicaid spending for long-term services & supports (2021)$44.1 billion
Federal grants to social service agencies (FY 2023)$26.9 billion
Title IV-E foster care expenditures (FY 2022)$11.8 billion
CSBG funding (FY 2023)$810 million
source-verifiedacf.hhs.gov · medicaid.gov · ssa.gov2023
Reference
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
Lukas Bauer. (2026, February 13). Nonprofit Social Services Industry Statistics. Gitnux. https://gitnux.org/nonprofit-social-services-industry-statistics
MLA
Lukas Bauer. "Nonprofit Social Services Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/nonprofit-social-services-industry-statistics.
Chicago
Lukas Bauer. 2026. "Nonprofit Social Services Industry Statistics." Gitnux. https://gitnux.org/nonprofit-social-services-industry-statistics.
Sources & references
22 datasets cited across this report · attribution is report-level
+6 additional datasets cited (not shown individually)