There are many types of nonprofits worldwide that serve different purposes, such as scientific, charitable, religious, educational, environmental, etc. Nonprofits mostly rely on volunteers and are exempt from paying taxes if they meet specific requirements.
In this article, we’ll dive into some nonprofit organizations statistics to learn about the demographics, finances, and proliferation of nonprofits in the US and other parts of the world.
While the US has the largest number of nonprofit organizations in the world, countries like the UK don’t lag behind. So, how many nonprofits are there in the United States and the rest of the world? What type of nonprofits are they? How much revenue do they generate annually? Let’s look at some stats to find out.
The number of nonprofits in the US in 2021 was close to 2 million. Of those, most were registered in California, Texas, and New York. Texas has about one nonprofit for every 4,000 people. The US nonprofit sector employs 11.9 million people, making it the third-largest industry by employment in the country.
According to nonprofit facts, religious organizations account for the largest percentage of nonprofits in the US, together with schools and foundations. The next 15% of US nonprofits are civil, business, and social organizations, followed by human services organizations and cultural and humanities nonprofits with 7% each.
73% of nonprofits think that donations from individuals are essential to their work. Small nonprofits, defined as any nonprofit with expenses under $500,000, depend on them even more than larger nonprofits. Small nonprofits report that 30% of their income comes from individual donors, compared to 18% for larger organizations.
501(c)(3) organizations include public charities, private foundations, and private operating foundations. According to facts about nonprofit organizations, they account for 75% of the revenue and expenses in the sector. The majority of public charities (76%) have annual revenue of up to $99,000, 13% make between $100,000 and $499,000, and 8% generate revenue of between $500,000 and $4.9 million. Only 3% of public charities have annual revenue of over $5 million.
The US has nearly 1.8 million nonprofits, while the UK has just over 185,000. In other words, there’s about one charity for every 183 people in the United States and about one charity for every 378 people in the UK.
Like many of us, nonprofit professionals have had a difficult time in the last couple of years. COVID-19 has significantly impacted volunteering work and the money people donate. So, what is the current state of nonprofits? Is there a silver lining? Read on to find out.
According to nonprofit fundraising statistics, December is known as “the Giving Season.” It’s the time of year when people are most likely to donate to charity. In fact, 10% of total annual giving happens on the last three days of the year. It’s also the time of year when people are most likely to volunteer.
The average donor in the US is a Baby Boomer who makes two donations annually. Online giving statistics show that around 54.6% of Baby Boomers, Millennials, and Gen Zers prefer to donate via a credit or debit card. On average, 35% are most inspired to give by social media.
Between 2015 and 2019, 58% of nonprofits saw growth in donations, while 32% saw stable donations and only 10% saw a decrease in donations. In 2020, however, 37% of organizations of all types and sizes reported a decrease in donations.
According to nonprofit industry analysis, online donations to human rights organizations saw the most growth, with a 37% increase, closely followed by environmental organizations, at 34%. Recurring online donation options became more popular with donors, causing a 40% increase in monthly online donation revenue.
Since the beginning of the COVID-19 pandemic, the average online donation amount has increased. Nearly 30% of all online donations came from mobile devices. Most donors say they would give more if the donation was being matched. The average recurring donation amount is $326 per monthly donor per year.
Volunteers are the lifeblood of many nonprofits. They are brand ambassadors, administrators, laborers, and one of a nonprofit’s most valuable resources, saving most organizations about $24 per hour. What’s the typical demographic makeup of volunteers? Are some generations more likely to volunteer than others? We’ll have to take a look at some volunteering statistics to find out.
Organizations that see the most help from volunteers are religious, with 34% reporting they get help from volunteers, followed by educational (26%), social service (15%), and health organizations (7%). According to volunteer facts and statistics, people volunteer for about 52 hours a year.
Only 21% of nonprofit supporters and volunteers say that they don’t notice whether or not their nonprofit organization contacts them. Additionally, 70% of nonprofit supporters prefer to communicate with their nonprofit via email, while just 7% prefer physical mail, and only 6% prefer social media.
Donors are a source of revenue for nonprofits. Did you know that nearly 70% of all people who donate also choose to volunteer in their local communities, and 56% attend regular fundraising events? Unfortunately, volunteer hours have decreased due to the pandemic, with two out of three volunteers reducing their hours or stopping their volunteer work altogether.
About 47% of people who volunteer said that their volunteering time would decrease or stop entirely due to the pandemic. Fortunately, 17% said their volunteering time would increase. In addition, 54% of donors said their donation amount would not decrease due to the pandemic, while 25% planned to donate more. Looking at the average donor retention rate, 2022 could be a better year for nonprofits compared to previous years.
Approximately 31% of Baby Boomers volunteer every year, compared to 28% of Millennials. According to nonprofit statistics, three-quarters of Millennials said they would volunteer more if they had a better understanding of the impact they were making.
Nonprofit organizations worldwide play a vital role in strengthening communities and generating revenue for the industries they serve. They largely depend on donations, particularly individual donations. Unfortunately, many nonprofits leave money on the table due to a lack of organization or resources, particularly in recent years when COVID-19 has become a major concern.
According to nonprofit organizations statistics, many nonprofits have benefitted from embracing online technology like email and social media and should continue to explore online options as the world is recovering from the pandemic and getting back to regular activities like volunteering. Nonprofits could also benefit from helping younger generations understand the impact their effort and money would make.
In the United States, there are about 1.8 million nonprofits and 1.5 million 501(c)(3) organizations. These organizations employ about 11.9 million people, making them the third-largest employment industry in the country. Total revenue from all nonprofits in the United States accounts for about 6% of the country’s GDP. In the United Kingdom, there are over 185,000 nonprofits that generate billions in revenue.
According to the NCCS, over 1.5 million nonprofit organizations are registered in the United States, including public foundations, private charities, and other nonprofit organizations. These include fraternal organizations (i.e., social clubs or membership organizations formed around a common bond), chambers of commerce, and civic leagues.
It’s difficult to say exactly how many nonprofits in the United States fail, but it’s known that many nonprofits fail within their first year. We also know that about 20% of small businesses fail within the first year, and almost 50% of businesses fail within five years. According to nonprofit statistics, 33% of nonprofits faced potential closure during the COVID-19 pandemic.
The main reasons nonprofits fail are not keeping up with technology, aiming high without adequate planning to achieve those dreams, failing to recruit the right people or hire the right board, and failing to establish clear ethical standards from the get-go.
Nonprofits generate about 5.6% of the American GDP. The industry accounts for about 33% of all employment in the US, and about 10% of people in the States work for nonprofits. According to nonprofit organizations statistics, about 10% of small businesses are nonprofits.