This report was designed to be a resource for all nonprofits, so we made downloadable versions of many of the charts and images. We encourage you to use and share this information with others (with attribution). Click on any of the graphics below to download an image you can use in presentations or on social media.
America’s 1.3 million charitable nonprofits feed, heal, shelter, educate, nurture, and inspire people of every age, gender, race, and socioeconomic status, from coast to coast, border to border, and beyond.
Nonprofits are where Americans come together to solve problems.
Nonprofits are promoters of civic engagement.
Nonprofits are building blocks of democracy.
Nonprofits are laboratories where people learn leadership.
Nonprofits are economic engines
Nonprofits by the Numbers
97 percent of nonprofits have budgets of less than $5 million annually, 92 percent operate with less than $1 million a year, and 88 percent spend less than $500,000 annually for their work. The “typical” nonprofit is community-based, serving local needs.
Revenue Sources for Charitable Nonprofits
The entire nonprofit sector earns more than 80% of its revenue via private fees for services and performing government grants and contracts (although each individual nonprofit has its own revenue mix—there is no standard one-size-fits-all).
Foundations Can’t Replace Government Cuts
(even if they wanted to)
Consider: The White House proposed cutting $193 billion from the Supplemental Nutrition Assistance Program (SNAP). It didn’t happen, but if it had, the amount of money needed to replace such a large funding gap would have required the equivalent of the 15 largest foundations in the country (such as the Gates Foundation and Ford Foundation) to cash out all their assets and permanently close their doors.
Most Policy Action Occurs in the States
Changes in a state’s laws can be just as consequential as changes in federal law for charitable nonprofits in that state. As this chart reveals, the likelihood of changes in state laws are significantly higher than changes at the federal level.
A Call to Action: What You Can Do
Nonprofits face challenges that are larger and more complex than any one individual or organization can solve alone. You can help by taking action:
Share the report with nonprofit staff and board members, volunteers, and donors.
Join the state association of nonprofits in your state. There is power in numbers.
Be a champion for nonprofits by spreading information about how advocacy can advance nonprofit missions.
Support this work by donating to the National Council of Nonprofits. (Link will open up a new window, taking you to the National Council of Nonprofits' website.)
FAQs
Your nonprofit impact report should tell the story of how you've achieved (or tried to achieve) your program goal, so it's essential to highlight this in your report. Clearly outline your program or initiative goal, so your supporters have the context they need to understand your impact.
What is the number one reason nonprofits fail? ›
Even with the best intentions, a lack of funding will lead most nonprofits to fail. Not having a clear fundraising strategy will result in exhausting the limited resources and causing stress to the organization.
How can nonprofits measure impact? ›
Nonprofits need to gather relevant data to assess their impact accurately. This can include both qualitative and quantitative data, such as surveys, interviews, program evaluations, and financial records.
What is an example of a nonprofit impact? ›
It's easy to see a nonprofit's mission in action when our families or neighbors are direct beneficiaries—such as when nonprofits provide food for the hungry, life-saving trauma care to someone in a car wreck, or rescue relief to hurricane survivors.
What are good impact statements? ›
Your impact statement should include a description of: The issue or problem. Why it is important to address this issue or problem. The action you have taken, are taking, or intend to take to make a difference.
What percentage of nonprofits survive the first 5 years? ›
Dr. Ben Carson claimed during his Presidential run a few years ago that the failure rate was greater than 90% in the first 5 years. The organization tasked with actually keeping up with the data, the National Center on Charitable Statistics says the failure rate is over 30% within the first 10 years.
What is the average lifespan of a nonprofit? ›
The real data from National Center on Charitable Statistics reveals that approximately 30% of nonprofits fail to exist after 10 years, and according to Forbes, over half of all nonprofits that are chartered are destined to fail or stall within a few years due to leadership issues and the lack of a strategic plan, among ...
What is the most important to a non profit organization? ›
Clear mission and purpose.
The most fundamental quality of an effective nonprofit is clarity about its mission—both what it seeks to accomplish and why this purpose is important.
What is a high impact nonprofit? ›
High-impact nonprofits don't just build organizations— they build movements. Crutchfield and Grant seek to analyze nonprofit success using a dual lens: idealism and substantial experience in the social sector on one side and the pragmatism and rigor associated with MBA training on the other.
What can be measures of impact? ›
To measure impact you need to collect data. Data can include numbers, reports, notes from post program evaluation meetings, reflections, interviews, and feedback. Some impacts are easier to measure than others, mostly because some data is easier to obtain than other types of data.
The easiest – and arguably most valid – way to calculate bang-for-the-buck is to divide the total donor money spent by the total impact. In organizations that do more than one kind of project, it is often possible to split out what they spent for their various impacts.
What types of nonprofits make the most money? ›
Many of the nonprofits that raised the most money in a year when so much changed are among the nation's most prominent institutions in education, health care and international development.
Where do nonprofits get most money? ›
Top 9 Nonprofit Funding Sources for Any Organization
- Grants from local, state, and federal governments. ...
- Individuals. ...
- Membership fees. ...
- Charity crowdfunding. ...
- Foundations. ...
- Earned income. ...
- Corporate sponsorships. ...
- Planned giving programs.
With revenues of $23 billion in 2022, Lutheran Services in America tops the list of the highest-earning nonprofits in the United States, according to an analysis by Forbes. The network of 300 Lutheran organizations is one of only three nonprofits bringing in more than $10 billion annually, as our chart shows.
How to write an impact report for a nonprofit? ›
How to Write an Effective Nonprofit Impact Report
- Identify the goals and objectives of your nonprofit organization.
- Determine what data you need to measure progress toward those goals and objectives.
- Collect data from various sources, such as surveys, interviews, and program evaluations.
A victim's impact statement letter should include:
A concise statement of what outcome the victim would like and the reasons to support this opinion, including support for or opposition to treatment or community service programs.
What is the impact statement of a charity? ›
Your impact statement is your charity's short story – what you do and why you do it in 80 characters. It's your chance to tell your supporters why your charity exists so they know the impact of their donation. It's short and snappy so it's easy to share on social media and mobile phones where space is tight.
What is the impact report for 501c3? ›
An impact report is a document that nonprofits use to show the results of their work. It explains what the organization achieved with its resources, how it met its goals, and the difference it made. It also helps supporters see the value of their contributions and guides the nonprofit in improving its efforts.
Changes in a state’s laws can be just as consequential as changes in federal law for charitable nonprofits in that state. As this chart reveals, the likelihood of changes in state laws are significantly higher than changes at the federal level.
Share the report with nonprofit staff and board members, volunteers, and donors.
