nonprofit statistics

As of 2024, the number of small nonprofit organizations in the U.S. is quite significant. The majority of these nonprofits are smaller organizations, with nearly one million organizations having annual revenues below $50,000. In contrast, there are approximately 63,118 nonprofits with annual revenues between one and 4.9 million U.S. dollars1. These figures underscore the vast number of small nonprofits that contribute to various sectors such as education, healthcare, social services, and more, each playing a vital role in serving the public good. 

Small community-based nonprofit organizations play a crucial role in the U.S. Here are some interesting statistics from 2024 that shed light on their current state:

Job Vacancies: Nearly three out of four (74%) nonprofits have job vacancies, indicating a significant workforce challenge in the sector1.

Demand for Services: 71% of nonprofit professionals reported an increase in demand for programs and services1.

Small nonprofit organizations face a variety of challenges in 2024, many of which have been exacerbated by recent global events and economic uncertainties. Here are some of the key challenges they are dealing with:

Financial Strain: Securing funding remains a huge hurdle, with many organizations anticipating a decline or stagnation in charitable donations and governmental funding1.

Workforce Challenges: A tight job market has made it difficult for nonprofits to fill positions, with 75% of organizations reporting difficulty in hiring1.

Operational Costs: Rising operating expenses are a top concern, with nearly half of nonprofits reporting this as a challenge2.

Staffing Shortages: Limited staff capacity and difficulty in recruiting and retaining quality staff are significant issues, affecting the effectiveness of programs2.

Economic Downturn and Inflation: The economic downturn and inflation are impacting nearly 30% of nonprofits, affecting their ability to provide services2.

Program Cuts: More than two-thirds of nonprofits plan to cut programs and services in the next one to two years due to financial constraints2.

Adapting to Change: Nonprofits must confront emerging risks while navigating ongoing uncertainties, requiring organizational resilience and proactive crisis management1.

These challenges require innovative solutions and strategic planning.

The adoption of business intelligence (BI) data among small nonprofit organizations for long-term strategic planning has been on the rise. According to the 2024 Nonprofit Technology Trends Survey, there has been a significant increase in the use of budgeting and planning software, which is a key component of BI. The percentage of nonprofits using such software increased from 18% in 2022 to 28% in 20241. This indicates a growing recognition of the value of BI tools in enhancing mission impact and identifying opportunities in an increasingly digital world.

Moreover, nonprofits that are considered “digitally mature” are four times more likely to meet their mission goals, suggesting that the use of AI and analytics, which are integral to BI, can lead to greater organizational success2.

These statistics suggest that while not all small nonprofits may be leveraging BI data yet, there is a clear trend towards increased adoption, which is likely to continue as the benefits become more evident.