When most people think of nonprofits, they think of food banks, animal shelters, or medical clinics. However, the nonprofit sector is far more encompassing than people in may realize. Greater awareness leads to stronger community involvement, better funding decisions, and more effective partnerships. Whether you’re a donor, volunteer, or curious community member, it pays to be informed.
10 Things You Didn’t Know About Nonprofits in the U.S.
Nonprofits play a vital role in shaping our communities, policies, and daily lives. Nonprofits operate exclusively for charitable, educational, religious, or other approved purposes. Their IRS filings are public to ensure transparency and accountability. In truth, nonprofits fuel the economy, provide millions of jobs, and lead the way in tackling social challenges. Because of this, we have listed 10 surprising things you might not know about nonprofits in the U.S to help you navigate the world of nonprofits.
- Nonprofits Are Highly Regulated
To maintain tax-exempt status, nonprofits must adhere to strict IRS rules, file annual reports, and avoid political campaigning. Nonprofits are also prohibited from engaging in political campaigning or endorsing candidates for public office, though they may engage in limited lobbying. Failing to comply with these rules can result in penalties or the loss of tax-exempt status. Because of this, nonprofits are held to higher standards than for-profit businesses when it comes to transparency, ethical operations, and use of funds. -
Nonprofits Contribute Over $1 Trillion to the Economy
Despite being mission-driven, the nonprofit sector contributes about 5.6% of the U.S. GDP—more than the construction or transportation industries. -
One in 10 U.S. Workers Is Employed by a Nonprofit
Nonprofits are a major employer in the U.S., with over 12 million people working in the sector, more than in manufacturing. -
Nonprofits Are Not Just Charities
Many people assume all nonprofits are charities, but the sector also includes hospitals, universities, credit unions, foundations, and even some trade associations. -
Nonprofits Can Earn a Profit
Nonprofits can and do generate revenue. The key difference is that surplus income must be reinvested in their mission, not paid out to shareholders. -
There Are More Than 1.5 Million Nonprofits in the U.S.
That includes public charities, private foundations, and a wide range of 501(c) organizations—each with different rules and tax structures. -
Volunteers Add Billions in Unpaid Labor
In 2023 alone, volunteers contributed an estimated $187 billion worth of service to nonprofits. That’s equivalent to millions of full-time jobs. -
Many Nonprofits Operate Internationally
Though based in the U.S., thousands of nonprofits run programs around the world, focusing on issues like disaster relief, education, public health, and human rights. -
Grant Funding Is Just One Part of the Puzzle
While grants are important, many nonprofits rely heavily on donations, program service revenue, memberships, sponsorships, and social enterprise models to stay afloat.
How to Find Grants for Nonprofits
If you’re a grant writer or you’ve hired a professional grant writer, GrantWatch is waiting to help you. Visit GrantWatch.com and locate grants with the SMART Advanced Search filter. In short, this tool allows you to search by recipient type, location, category interests, funding source type, and deadline date. Each grant listing includes eligibility criteria, application details, deadlines, and additional resources. About GrantWriterTeam
About GrantWriterTeam
Are you a nonprofit or small business in need of some help? If you are searching for grants but are feeling overwhelmed, hiring a grant writer may be the perfect choice for you! Grant writers thoughtfully grant opportunities and consider the pros and cons of applying and the chance of success. Consider your writer an extension of your organization. They will coach you throughout the entire process and curate the project to fit your needs. Your grant-seeking success is our priority at GrantWriterTeam.
Disclaimer: There is no guarantee that grants will be awarded as a result of this information.
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