Nonprofit social services help meet urgent needs, from income support and nutrition to disaster recovery and long-term care. As you explore these statistics, you’ll see how inflation raised costs for many organizations and how labor dominates budgets in human services. The data also highlights staffing and volunteer shortfalls, plus technology and performance measurement adoption—alongside the sector’s broader employment and economic value.
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).
Nonprofits face rising costs and staffing shortages while federal, Medicaid, and public benefits help sustain services.
Related reading
01 · Category
Cost Analysis9 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.
04
60% average labor expense share of operating expenses in human services organizations
05
58% average labor expense share of operating expenses in organizations serving children
06
61% average labor expense share of operating expenses in organizations serving adults
07
59% average labor expense share of operating expenses in organizations serving seniors
08
62% average labor expense share of operating expenses in organizations providing homelessness services
09
57% average labor expense share of operating expenses in organizations focused on disability services
Interpretation
Cost Analysis Interpretation
Cost analysis shows that with federal grants totaling $26.9 billion in FY 2023 and 72% of nonprofits reporting higher costs from inflation, rising labor expense is especially impactful since it averages 60% of operating costs for surveyed human service organizations.
report visual · Comparison
Labor expense share of operating expenses (2023)
In 2023, labor expenses make up the largest share of operating expenses in the homelessness-services segment (leader), at 62%, exceeding the overall human services average (60%) by
62% average labor expense share of operating expenses in organizations providing homelessness services62%
61% average labor expense share of operating expenses in organizations serving adults61%
60% average labor expense share of operating expenses in human services organizations60%
59% average labor expense share of operating expenses in organizations serving seniors59%
58% average labor expense share of operating expenses in organizations serving children58%
57% average labor expense share of operating expenses in organizations focused on disability services57%
source-verifiedurban.org2023
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
In the Government Programs slice of nonprofit social services, large and growing public support flows through major federal streams, including $44.1 billion in 2021 Medicaid long term services and supports, $61.0 billion in 2023 SSI benefits, and $11.8 billion in 2022 Title IV-E foster care expenditures, while programs like Head Start reached 1,000,000 children in 2023.
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 shaping nonprofit social services, staffing and resource strain are showing up clearly alongside digital risk, with 57% reporting moderate to severe staffing constraints in 2023 and 1 in 5 reporting a cyber incident attempt in the past 12 months.
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
In the performance metrics landscape, only 65% of nonprofits use performance metrics across at least one program area and just 52% track outcomes at the individual client level, yet a 2022 study finds that data-driven decision-making is 2.1 times more likely to improve 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
For the Sector Scale angle, the nonprofit social services sector’s scale is clear in 2023 since it accounted for 10.3% of total U.S. employment and generated $1.2 trillion in value added, showing both broad workforce reach and major economic impact.
Reference
Cite This Report
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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
23 datasets cited across this report · attribution is report-level
+7 additional datasets cited (not shown individually)