The Nonprofit Sector: A National Snapshot

According to the Urban Institute, there were approximately 1.54 million nonprofits registered with the Internal Revenue Service in 2019 (IRS).1 These organizations represent every type of nonprofits from arts, health, education, advocacy, unions, and professional organizations. Of all registered nonprofits, 69.7% were 501(c)(3) organizations (public charities), which accounted for over three-quarters of revenue and expenses for the nonprofit sector as a whole. (1)

Types of Registered Public Charities

The Human Services subsector such as food banks, homeless shelters, youth services, sports organizations and family or legal services, accounts for over one third of all public charities. However religious congregations and organizations with less than $5,000 in gross revenue are not required to register with the IRS. (1)

Economic Impact of the Sector Financial Health of the Sector

The nonprofit sector had a total of $3.79 trillion in total assets in 2019. Assets held by 501(c)(3) organizations accounted for about two-thirds of the nonprofit sector’s total assets. These public charities reported a total of $2.04 trillion in revenues, accounting for more than 75% of total revenue for the nonprofit sector. (1)

Overall, economic indicators seem to suggest that nonprofit organizations were financially stable in 2022 according to the latest report by Independent Sector on the Health of the U.S. Nonprofit Sector. (3) Inflation is certainly challenging the efficiencies of delivering programs and services by nonprofits, particularly those whose missions are transportation, housing, or food related.