The nonprofit organization industry is one that is constantly growing, with new organizations cropping up every day. In order to stay ahead of the curve, it’s important for entrepreneurs to understand the latest statistics and trends in this sector. In this article, we’ll take a look at some key nonprofit statistics, including the number of nonprofit organizations in the United States, the growth of the industry, and future market trends.
General Nonprofit Statistics
-There are over 1.6 million nonprofit organizations in the United States.
-The nonprofit sector employs over 18.5M of the American workforce.
-The nonprofit sector contributes over $956 billion to the economy each year.
-The nonprofit sector takes up a little over 2% of the GDP.
-The nonprofit sector has seen a steady annual growth rate of over 6% during the past decade, with the exception of the pandemic cycle.
Nonprofit Niche Statistics
-There are many types of nonprofit organizations in the U.S., but the top 5 nonprofit 501(c)3 niches are health, education, human services, religion, and arts & culture.
-Healthcare and social assistance nonprofit organizations make up the largest portion of the nonprofit sector, accounting for 29% of all organizations.
-The next two largest portions are educational (15%) and religious (10%) organizations.
-The fastest-growing portion of the nonprofit sector are environmental and animal organizations, which have seen a 5% annual growth rate over the past decade.
-There are over 55,000 animal nonprofit organizations in the United States
-The nonprofit sector is expected to grow by 4-6% in the next year.
Nonprofit Revenue Statistics
-The average revenue for a nonprofit organization is $1.2 million.
-The median revenue for a nonprofit organization is $60,000.
-The top 20% of nonprofits account for 80% of all nonprofit revenue.
-The average expenses for a nonprofit organization are $1 million.
-The median expenses for a nonprofit organization are $50,000.
-Donations make up the largest portion of nonprofit revenue, accounting for 76% of all income.
-The average donation amount is $100.
Nonprofit Volunteer Statistics
-There are over 68 million volunteers in the United States.
-The average number of hours volunteered per year is 50.
-Volunteers contribute an estimated $184 billion to the economy each year.
-The average volunteer contributes about $500 worth of labor each year.
-The most popular volunteering activities include fundraising, event planning, and administrative work.
Future Market Trends For Nonprofits
If you’re considering founding a nonprofit organization, it’s important to be aware of future market trends. Here are the expected future trends for the nonprofit industry.
-The non-profit sector is expected to continue its steady growth, with an average annual growth rate of 3.5%.
-The healthcare and social assistance nonprofits are expected to remain the largest portion of the nonprofit sector, accounting for 29% of all organizations.
-However, the fastest-growing portion of the nonprofit sector is expected to be environmental and animal organizations, which have seen a 5% annual growth rate over the past decade.
-The nonprofit sector is expected to grow by 4% in the next year.
-The market value is projected to reach almost 1.9 trillion dollars by 2025.
-There is an expected increase in online and grassroots donations.
-Nonprofits are projected to use more technology in order to connect with Millennials and Generation Z.
-There is also a trend of increased cooperation between nonprofits as they try to pool resources and make the most impact.
As you can see, the nonprofit industry is booming and there are plenty of opportunities for entrepreneurs to get involved. If you’re thinking of starting a nonprofit, be sure to do your research and stay up-to-date on the latest trends.