Strategic plans should be based on the most current data available. Independent Sector regularly releases Health of the U.S. Nonprofit Sector reports – an evolving and growing resource of data, analysis, and recommendations about key areas powering more than 1.8 million U.S. nonprofits. This data could be very useful in your organization’s planning process.
Since 2020, when Independent Sector launched these reports, the focal points have been: Financial Resources, Human Capital, Governance and Trust, and Public Policy Advocacy. The reports make a broad set of measures easily accessible and present them side-by-side, so stakeholders and key decisionmakers can quickly see the most accurate snapshot of the state of civil society.
This most recent Health of the U.S. Nonprofit Sector: Quarterly Review, for the second half of 2022 and released on March 31, 2023, provides Independent Sector analysis of federal data highlighting the nonprofit sector’s economic contributions, human capital, and advocacy activity. Among its key highlights:
- U.S. nonprofits contributed $1.5 trillion to the economy in the fourth quarter of 2022, but economic uncertainty may impact nonprofit budgeting and revenue;
- The number of donors declined 7% in the third quarter of 2022 and it is visible across all sizes of donations. This downward trend demonstrates the need to reinstate charitable giving incentives for all taxpayers through the Charitable Act.
- In the fourth quarter of 2022, the number of nonprofit sector jobs finally exceeded 2017 employment levels. However, some subsectors, like arts and civic organizations, have yet to fully recover the number of jobs they employed prior to the pandemic.
- Despite reaching pre-pandemic levels of jobs in the fourth quarter of 2022, the nonprofit workforce is whiter compared to 2019.
This report complements data and recommendations in the 2021 Health of the U.S. Nonprofit Sector annual report. As the nonprofit sector continues to be the underpinning of civil society and healthy, equitable communities, our goal is to spur deeper discussions, greater action, and more collaboration so that everyone in the U.S. can thrive.
Key Insights
- Value of Sector – Nonprofits’ gross value added makes up 5.6% of Gross Domestic Product (GDP), within the average range for the sector in recent years.
- Human Capital – The nonprofit sector reached 2017 levels of employment in the fourth quarter of 2022, but some subsectors still have not recovered all jobs lost during the pandemic.
- Financial Resources – U.S. nonprofits contributed $1.5 trillion to the economy in the third quarter of 2022.
- Funding – The number of donors decreased 7% in the third quarter of 2022, with declines across all levels of donors.
- Public Policy & Advocacy – 54% of people report advocating in 2022, but only a subset of those advocates did so through a nonprofit.
- Governance & Trust – 56% of the U.S. public trusted nonprofits to do what is right in 2022, down 3 percentage points from 2020.
Learn more about strategic planning by attending the Sunshine Certificate in Nonprofit Management class on PLANNING: Power Vision and Strategic Thinking on Saturday, June 17 from 1 – 5 pm.
Source: Independent Sector – Health of the U.S. Nonprofit Sector Quarterly Review
Independent Sector brings together a diverse community of nonprofits, foundations, and corporate giving programs. Florida Nonprofits has been a member of Independent Sector since 1991 and they have been a trusted source for us and our members. They are a source for advocacy information.