Einar H. Dyvik
Research expert covering Nordics and global data for society, economy, and politics
Nonprofit organizations in the U.S. - statistics & facts
Spanning from small private foundations to large public charities, nonprofit organizations in the U.S. are deeply embedded in the country’s society and economy. They are entities that operate by providing services with a particular mission or cause that benefit the public good instead of generating profits for owners or shareholders. Nonprofit organizations offer a variety of services, ranging from areas such as education, healthcare, social services, arts and humanities, or religion. They also vary significantly in size and scope, from small local charities to large international organizations.
Through providing such services, nonprofit organizations are qualified for tax-exempt status in the U.S., which enables them to avoid paying federal income tax on their revenue. n order to qualify for tax-exempt status, nonprofits must meet certain requirements defined by the Internal Revenue Service (IRS). Such requirements include operating exclusively for charitable, religious, scientific or educational purposes. Once deemed qualified by the IRS, nonprofit organizations are then sorted into different 501(c) categories depending on the IRS tax-exempt codes under which they are registered, depending on the services they provide and areas of focus.
Donor relations and funding
Nonprofit organizations use a variety of fundraising methods to secure donations and remain operable. Cultivating and maintaining donors is a priority for many nonprofits, which results in organizations regularly seeking ways in which to broaden their donor base. In 2025, Feeding America received the most private donations of any U.S. charity by a significant margin, with nearly five billion dollars in private donations reported that year. The average single donation across all NGOs in the U.S. was 807 U.S. dollars in. Among the varying sectors, there were significant differences in average donations. For example, the religious sector received the most money donations in 2024.
Recently, NGOs have been shifting toward digital fundraising as a contemporary and accessible way to boost donor engagement and subsequent revenue. Online giving has been one area through which nonprofits have attempted to broaden their donor base. Another way in which nonprofits in the U.S. are trying to promote themselves and boost donations is through social media. Instagram was the fastest growing platform in terms of following for NGOs.
Employment and volunteering
As with other industries in the U.S., the sector has struggled with staffing shortages in recent years. With staffing shortages being at the forefront of organizational agendas, nonprofits across the U.S. have been implementing an assortment of recruitment strategies in an attempt to attract new employees and retain current employees. Many nonprofit employees are motivated by not only their salaries but also by the mission of their organizations. However, nonprofit employees often receive lower wages than for-profit companies, and high rates of inflation and costs of living may be forcing workers to seek employment elsewhere.
Many nonprofit organizations in the U.S. rely heavily on volunteers to remain operable and to supplement staffing shortages. The state of Utah has consistently had the highest volunteer rates in the country, with almost half of the population having formally volunteered with at least one organization in 2023. The volunteer rate among Americans aged 16 to 17 was over 34 percent, more than any other age group. Additionally, data suggests a correlation between levels of education and a propensity to volunteer. Almost half of graduate degree holders volunteered formally in the U.S. in 2023, which was twice the rate as those who attained some college.
