The nonprofit industry includes all sorts of organizations operating on a non-profit basis for the common good, offering vital services often not covered by the public or private sector. It deals with a wide range of activities, from social services to education, from healthcare to environmental protection, and represents an essential part of society. It helps to fill the gaps left by the government and the commercial sector and supports communities and individuals in difficulty.
While commercial companies exist to generate profit for their owners or shareholders, non-profit organizations exist to advance social, environmental, or cultural causes. Profits a nonprofit generates are reinvested in the programs and services offered rather than distributed as dividends. Nonprofits often enjoy tax exemptions and rely heavily on donations, grants, and volunteerism rather than selling goods or services.
In 2024, the nonprofit sector in the United States continues to manage significant sums of money. According to Candid, as of January 2, 2024, the nonprofit sector encompasses approximately 1.8 million organizations. These organizations employ around 12.5 million people and collectively generate an annual revenue of $3.7 trillion.
A report about the nonprofit industry could be important for both industry experts and everyday people. Understanding the performance of the nonprofit sector provides valuable information for anyone involved in volunteering, donating, or simply interested in improving their community. This report could help you understand how donated funds are used, what major challenges nonprofits face, and what opportunities exist for you to contribute more effectively.
Nonprofit organizations play a vital role in filling gaps in the system that the public and commercial sectors cannot fill. For example, they offer health care services to uninsured individuals, educational programs for children in disadvantaged communities, food support for struggling families, and environmental protection. Many vulnerable people would not have access to essential services without these organizations, increasing social and economic disparities.
State of the Nonprofit Sector Now
Top 5 Largest Grants and Their Impact
In 2024, the nonprofit sector in the United States experienced several notable changes. There was a big push towards using technology to make nonprofit operations more efficient and impactful. Organizations of all sizes started using digital tools for fundraising, managing volunteers, and analyzing data. This shift has helped them reach more people and improve transparency and reporting.
There was a rise in partnerships between nonprofits and commercial companies. Many businesses began incorporating social responsibility into their daily activities, partnering with nonprofits to tackle social and environmental issues. These collaborations have amplified the impact of nonprofit efforts.
The nonprofit industry often depends on large grants to support important projects that the private sector doesn’t typically fund. Here are the top five largest grants and how they address these needs.
| Grant | Amount | Recipient | Focus | Fills Gap |
| Bloomberg Philanthropies | $1,275,749,395 | Johns Hopkins University | Long-term research funding, higher education support | Funding for extensive research and education initiatives |
| Open Society Institute | $632,500,000 | Central European University | Educational institutions in politically/economically unstable regions | Support for institutions in less stable regions |
| The Pyramid Peak Foundation | $404,932,686 | Community Foundation of Greater Memphis | Community-based programs | Funding for programs with low commercial profitability |
| Bill & Melinda Gates Foundation | $300,000,000 | Rotary Foundation of Rotary International | Global polio eradication | Support for public health initiatives in low-income regions |
| Foundation to Promote Open Society | $175,950,000 | Central European University | Educational reforms, academic independence | Support for educational reforms and independence in sensitive regions |
The non-profit sector also provides a lot of jobs. Here is the information about the major nonprofit sectors in the United States based on the data from the Council of Nonprofits:
| Sector | Percentage of Nonprofit Jobs | Estimated Number of Jobs | Examples of Organizations |
| Health and Social Assistance | 67% | 8,306,650 | Hospitals, clinics, nursing homes |
| Educational Services | 16% | 2,003,634 | Universities, schools, training institutes |
| Other Services | 7% | 837,662 | Religious organizations, grantmaking entities |
| Arts, Entertainment, and Recreation | 3% | 355,965 | Museums, galleries, recreational centers |
Other Charitable Giving Statistics
Charitable giving can feel like a guessing game, but these statistics will provide some clarity to our readers:
- Donations:
| Statistic | Value |
| Individual donations (2023) | $499.33 billion |
| Donor-advised funds | $23 billion and 3.5 million grants |
- State-wise Generosity:
| Top Charitable States | |
| 1. Utah | 6. South Carolina |
| 2. Mississippi | 7. Idaho |
| 3. Alabama | 8. Oklahoma |
| 4. Tennessee | 9. Arkansas |
| 5. Georgia | 10. North Carolina |
| Statistic | Value |
| Average monthly donation | $52 |
| Increase in giving by monthly donors | 42% more than one-time donors |
Income (AGI Based) Statistics
The breakdown of how individuals are giving according to their income provides crucial insights:
| Income Level | Percentage Claiming Deductions | Average Donation | Percentage of AGI |
| Less than $50,000 | 7.5% | $2,588 | 8.45% |
| $100,000-$500,000 | 35% | $3,305 | 2.9% |
| $10 million or more | 94.6% | $2,813,343 | 9.3% |
People earning less than $15,000 made an average charitable donation of $1,471.
Generational Statistics
Understanding generational differences is key to targeting the right audience:
| Generation | Population % | Key Statistics |
| Gen Z | N/A | 82 million by 2026; 93% plan to donate in 2024; 91% plan to volunteer in 2024 |
| Millennials | 25.9% | 84% donate an average of $481; 60% plan to increase donations in 2024; 40% in monthly giving; 46% in crowdfunding |
| Gen X | 20.4% | 59% donated; 49% in monthly giving, effective through text, phone, and email |
| Baby Boomers | 23.6% | 72% donate annually ($1,212 avg.); high participation in monthly giving (49%) and volunteering (71%) |
| Silent Generation | 11.8% | 88% donate ($1,367 avg.); prefer phone calls and direct mail |
Industry-Based Fundraising & Giving Statistics
Donors’ preferences vary by industry:
| Industry | Key Statistics |
| Religious | 49% of church donations via credit card; 60% willing to give digitally; Religion accounted for 27% of all charitable giving |
| Human Services | 8% decrease in donations (inflation-adjusted); Received 14% of all US donations; Top priority in 16 cities |
| Education | Received 13% of all US donations in 2022; $58 billion given to higher education in 2023 despite an overall decline |
Online & Mobile Giving Statistics
Trends in online and mobile giving show significant changes:
| Statistic | Value |
| Use of QR codes for donations (Gen Z & Millennials) | 46%-47% |
| Increase in monthly giving | 11% |
| Donations at checkout | 71% of Americans |
Volunteering Statistics
Since the COVID-19 pandemic, volunteer statistics have changed:
| Demographic | Percentage |
| Women | 64% |
| Men | 36% |
| Average Age | 42 |
| Parents | 39.9% |
| Corporate Volunteer Rate | 33% |
| Regularly Attend Events | 56% |
Corporate Giving Statistics
Corporations play a vital role in nonprofit funding:
| Statistic | Value |
| Total corporate giving | $29.48 billion |
| Corporate contribution to charitable revenue | 21% |
Demographics, religion, and annual income significantly influence donor behaviors. These statistics provide insights to help nonprofits tailor their effective fundraising and donor engagement strategies.
Join us in shaping a better tomorrow for Miami County. Your support is more than just a donation. It’s an investment in our community.
Nonprofit Trends That Will Dominate 2024
Much like the for-profit industry, the nonprofit sector is heavily influenced by emerging nonprofit trends that shape its strategies, operations, and impact. Understanding these trends is crucial for nonprofits to remain relevant, effective, and sustainable.
The nonprofit industry follows trends to stay competitive and maximize its impact. As businesses must innovate to meet consumer demands, nonprofits must adapt to changing donor behaviors, technological advancements, and societal shifts. Trends provide a roadmap for organizations to align their strategies with current and future landscapes, ensuring they can continue to fulfill their missions effectively.
Adopting new trends can be challenging for nonprofit companies due to limited resources, resistance to change, and the need for staff training. Unlike for-profit entities, nonprofits often have tighter budgets and rely heavily on donations and grants. Implementing new technologies or strategies requires financial investment and a cultural shift within the organization.
Major Trends for 2024
1. AI and Automation: Artificial Intelligence (AI) transforms nonprofit operations by enhancing data analysis, donor engagement, and operational efficiency. Chatbots handle inquiries, streamline donation processes, and provide personalized donor experiences. However, nonprofits must navigate privacy concerns and ethical implications associated with AI adoption.
2. Personalized Donor Engagement: Donors seek more personalized experiences than generic communication. Leveraging data analytics, nonprofits can tailor their messages, donation options, and engagement opportunities to align with individual donor preferences and behaviors. This approach helps build stronger relationships and increases donor retention.
3. Digital and Virtual Fundraising: The shift towards digital fundraising continues to grow. Virtual events, crowdfunding platforms, and social media campaigns are essential for reaching wider audiences and raising funds. The nonprofit sector combines virtual events’ reach with the personal touch of in-person gatherings to maximize engagement.
4. Video Content and Storytelling: Video marketing is a powerful way for nonprofits to tell their stories and connect with audiences. From short social media clips to longer documentary-style pieces, videos can effectively showcase the impact of programs, share beneficiary testimonials, and highlight volunteer experiences. This visual medium is crucial for conveying the human element behind the work.
5. Influencer Collaborations: Partnering with influencers who align with their cause allows nonprofits to tap into new supporter bases and raise awareness more effectively. Influencers bring authenticity and can help amplify the nonprofit’s message to a broader audience.
6. Collaboration and Mergers: Many nonprofits collaborate or merge with organizations with similar missions to amplify impact and avoid duplication of efforts. This strategy helps pool resources, expertise, and networks, enhancing their efforts’ overall effectiveness and reach.
7. Generational Wealth Transfer and Planned Giving: The ongoing wealth transfer from baby boomers to younger generations presents a significant opportunity for nonprofits. Planned giving and legacy gifts are essential to secure long-term financial stability and donor engagement .
8. Focus on Diversity, Equity, and Inclusion (DEI): DEI remains a crucial focus area, with nonprofits striving to address inequities within their nonprofit organizations and communities. Initiatives to support leadership diversity, inclusive programming, and equitable resource distribution are gaining momentum.
Navigating these trends requires nonprofits to be flexible, creative, and forward-thinking. By learning about and using these new trends, nonprofits can improve their work, connect better with their supporters, and make a bigger impact on their missions. Even though there are some challenges, the benefits of following these trends are much greater. This sets the stage for a more energetic and strong nonprofit sector in 2024.
Nonprofit Industry: How to Donate Effectively in 2024
How to Choose the Cause Dear to You Easily
Donating to a cause can be a deeply rewarding act, but choosing the right cause can seem like a daunting task. First of all, reflect on your personal values. What are you passionate about? It could be education, health, the environment, human rights, or animal welfare. Identify the issues that matter most to you. Next, consider the impact you want to have. Do you want to contribute to local or global change? Finally, evaluate your available resources: how much time and money will you dedicate to the cause?
How do you proceed to find the perfect non-profit for you
Once you have chosen your cause, the next step is to find the nonprofit that best represents your values. Start with an online search to identify organizations in your field of interest. Use nonprofit rating websites like Charity Navigator or GuideStar to verify their transparency and impact. Read reviews and testimonials from donors and volunteers. Talk to people who share your passion and ask for advice. Finally, contact the organizations that interest you directly to learn more about their projects and ways of operating.
Which Donation Methods You Can Choose
There are several ways to donate, depending on your preferences and financial possibilities. Here are some options:
- Donor-Advised Fund (DAF): If you can make significant donations, you can set up a charitable fund. This tool allows you to make immediate or planned donations and benefit from tax advantages.
- Corporate Matching Gifts: If you work for a large corporation, explore corporate giving opportunities. Many companies offer matching gift programs in which employees’ donations are doubled.
- Corporate Fundraising Campaigns: Organize corporate fundraising campaigns or charity events.
- Automatic Monthly Donations: Automatic monthly donation options exist for those who prefer smaller but regular donations. This method allows you to constantly support your chosen organization without making large outlays at once.
- In-Kind Goods Donations: You can donate in-kind goods, such as clothing, food, or equipment, which can be just as valuable as monetary donations.
Our Example: Miami County Foundation
At the Miami County Foundation, we have helped countless people meaningfully invest in their community. Our mission is to support local projects that improve residents’ quality of life. We have facilitated grants that have funded educational programs, public health initiatives, environmental projects, and more. If you want to make a difference in your community, we’re here to help you navigate the donation process and ensure your contribution has the impact you want.
Are you interested in learning more or contributing to our cause? Reach out with any questions you may have. With just one click, you can transform lives. Your donation has the power to create a significant change.