How Many Non-Profits Are in the United States?
The United States is home to a significant number of non-profit organizations that make a substantial impact on society and the economy. According to recent data, there are about 1.8 million non-profit organizations nationwide. These organizations range from charities and foundations to social welfare groups, each playing an important role in community support, development, and advocacy. This article will cover how many non-profits there are, what types exist, how they’ve grown, their economic impact, and how they are regulated in the US. We will also explain how individuals can support these groups and what kind of effect they have on American communities.
Total Number of Non-Profits in the United States
Based on data from sources like the Internal Revenue Service (IRS) and the Urban Institute, about 1.8 million non-profit organizations are registered in the US. These organizations range from large, well-known charities to smaller, local community groups. The numbers are based on credible sources like government records and research institutions, giving us a reliable look at the non-profit landscape. The diversity of these organizations shows their importance in addressing a wide range of needs across the country.
Non-profits include many different types of organizations, each with its mission. From helping people in emergencies to promoting the arts, non-profits fill the gaps neither businesses nor the government can cover, making them an important part of our communities. For example, organizations like Feeding America work on fighting hunger, while Habitat for Humanity focuses on building affordable housing. The American Cancer Society helps fund research and support for cancer patients, and the YMCA promotes youth development and community well-being.
Types of Non-Profit Organizations in the USA
Non-profits in the US can be grouped into several types, each serving a different purpose. Here is a summary of the main types of non-profits and how many there are (source: USA Facts):
Type | Description | Count |
Charities | Provide services for public benefit. | 1,000,000 |
Foundations | Give grants to other non-profits. | 86,000 |
Social Welfare Organizations | Work for social causes. | 70,000 |
Charities
Charities are the most common type of non-profit in the US, mainly providing support and services to the public. There are roughly 1 million registered charities, including those that work in healthcare, education, and poverty relief. Charities focus on meeting immediate needs like food, medical care, and shelter but also work on long-term projects to improve communities. These organizations range from small local groups to big national ones like the American Red Cross and United Way.
Foundations
Foundations focus on giving grants to support other non-profits and community projects. There are about 86,000 foundations in the US. They often support efforts in education, medical research, and social justice. Some of the biggest foundations, such as the Bill & Melinda Gates Foundation and the Ford Foundation, work on global health, education, and poverty reduction, among other causes.
Social Welfare Organizations
Social welfare organizations focus on advocating for social causes or specific groups of people. The latest numbers show there are about 70,000 such organizations in the US. These groups work to create social change and often do a mix of community service and advocacy. They deal with topics like civil rights, the environment, and community development. For example, the NAACP works on civil rights, and the Sierra Club focuses on environmental issues.
Trends Over Time: Growth in Non-Profit Sector
The non-profit sector in the US has been growing steadily over the past ten years, which reflects increasing needs and public interest in making a difference. Data from the National Center for Charitable Statistics shows a rising trend in non-profits, driven by higher social needs, more community engagement, and increased philanthropy.
This growth is partly due to more awareness of social issues, better digital fundraising, and more corporate giving. For example, platforms like GoFundMe and campaigns such as the Ice Bucket Challenge have shown how effective digital fundraising can be in reaching large audiences and raising significant amounts of money. Social changes like a focus on sustainability and fair distribution of resources have also encouraged more people to start or support non-profits.
Number of Non-Profits by Year
Year | Number of Non-Profits |
|---|---|
2013 | |
2014 | |
2015 | |
2016 | |
2017 | |
2018 | |
2019 | |
2020 | |
2021 | |
2023 |
The table above shows a steady increase in non-profits each year. This trend highlights how more people rely on these organizations to meet social needs that the government or private businesses don’t fully handle.
Economic Impact of Non-Profits in the US
Non-profits play an important role in the US economy by creating jobs, generating revenue, and holding assets. This sector employs millions of Americans and brings in a lot of money every year. Non-profits also attract funding from private donors, corporations, and government grants, which helps them grow and expand their services.
Non-Profit Employment Figures
Non-profits employ about 12 million people, nearly 10% of the US workforce. This makes them one of the most significant employment sectors in the country. They provide jobs in many fields, like healthcare, education, social work, and the arts. Non-profits need people for a wide variety of roles, including highly skilled positions like doctors and researchers and administrative and community support jobs.
Revenue and Assets of Non-Profits
Non-profits in the US bring in about $2 trillion in revenue annually. They also hold assets worth $5.5 trillion, showing their financial importance. Non-profits get their money from different sources, like donations, grants, membership fees, and services they provide. Their financial activity supports their operations and helps the wider economy by creating jobs and supporting community projects.
Geographical Distribution of Non-Profits
The number of non-profits differs a lot by state. California, New York, and Texas have the highest numbers, mostly because they have large populations and diverse economies. California, for example, has many non-profits focused on issues like homelessness and the environment.
The distribution also shows where needs are greatest. Urban areas often have more non-profits dealing with homelessness and food security, while rural areas might be more focused on healthcare and farming support.
Key Trends in the Non-Profit Sector
The non-profit sector is changing, with several trends reshaping how it works. These include a shift towards digital fundraising, an increased focus on transparency, and regulatory changes that affect their tax-exempt status, such as stricter reporting requirements and rules regarding political activities. These changes are significant because they influence how non-profits operate and maintain their eligibility for tax benefits. The COVID-19 pandemic also led to more digital adoption, making online events and fundraising more common. Additionally, more non-profits collaborate with businesses and government agencies to make a bigger impact and tackle complex social problems.
How Are Non-Profits Regulated in the US?
Both federal and state laws regulate non-profits in the US. The IRS handles its tax-exempt status under Section 501(c) of the Internal Revenue Code, while each state has its rules for things like fundraising and reporting. Staying compliant is essential for non-profits to keep their tax benefits and to receive funding. These regulations help ensure non-profits operate ethically and remain focused on their mission.
Get Involved: Supporting Non-Profit Organizations
You can support non—profits in many ways— donating, volunteering, or advocating for a cause you care about. Your support helps these organizations continue their work and make a positive difference. Donations, whether money or supplies, help fund their projects, while volunteering provides essential support that non-profits often need. Raising awareness is also important, as it helps more people learn about the issues non-profits tackle. Even small efforts can greatly impact these groups and the communities they serve.
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FAQs
How many non-profit organizations are currently registered in the US?
As of the latest data, approximately 1.8 million non-profits are registered in the US. These organizations have different missions and vary in size, reflecting the many needs they address.
What are the main types of non-profit organizations in the United States?
The main types of non-profits include charities, foundations, and social welfare organizations. Each serves a different role, from direct services to grantmaking and advocacy.
How has the number of non-profits changed over the past decade?
The number of non-profits has grown steadily, from 1.4 million in 2013 to 1.8 million in 2023. This shows the increased public interest in helping with social causes.
How do non-profits contribute to the US economy?
Non-profits contribute by generating $2 trillion in revenue, employing 12 million people, and holding assets worth $5.5 trillion. They are a vital part of the country’s economy and provide essential services to communities.