Nonprofit Network Study

SIGNALS AND TRENDS

Nonprofit Network Study October 2025

Summary A deeper look at nonprofit formation, longevity and revenue reveals important trends and informs

how United Way of the Midlands supports a strong and sustainable network of essential services. Today’s tightening financial landscape is marked by funding uncertainty, rising service demand and sunsetting of major foundations. In fact, 61% of nonprofits report increased demand and 1 in 4 have reduced staff or

services due to funding shifts. i National analysis estimates private philanthropy would need to increase 282% to make up for the loss of government grants. ii This is clearly not practical or realistic. As United

Way of the Midlands begins another investment cycle, supporting a healthy ecosystem of partners that are sustainable, collaborative and focused on delivering measurable results at scale is even more

important.

Across the Omaha–Council Bluffs metro, the nonprofit sector continues to grow, with nearly 6,000

registered nonprofits, including more than 4,400 501(c)(3) charitable organizations. Of these, nearly 40% are under 10 years old and a majority report no revenue; among those that do, the median is just

$249,000, which is often insufficient for sustained service delivery at scale. UWM-funded partners reflect a more mature profile, with a median of 29 years in operation and revenue of $2.7 million — a signal of greater financial resilience and operational capacity to deliver critical supports at greater volume. Our

annual report details the significant impacts of the 2024-2025 portfolio.

Formation, Revenue and Government Support Data Among Local 501(c)(3) Charitable Organizations

Metric

Metro Area 501(c)(3)

UWM-Funded

UWM

Median Years in Operation

13

29

102

Percentage Under 10 Years Old Median Revenue

Percentage Under $1M Revenue

Percentage Receiving Government Grants

Government Support As Percentage of Revenue

40%

$249,000 88%

30%* 29%*

14%

$2.7 Million 22%

70% 22%

N/A

$30.1 Million N/A Yes

26%

Source: IRS Exempt Organizations Master File. N=4,423, Urban Institute, Candid and UWM partner 990 financial reports. Percentage

Receiving Governent Grants and Government Support as a Percentage of Revenue reflects U.S. data. Reaching 10 years and $1 million in revenue are key benchmarks in the nonprofit lifecycle, with 30% failing within 10 years.

While no single data point tells the full story, these patterns help us better understand how to support

nonprofits at every stage — from emerging organizations with niche expertise to long-standing

institutions with multiple service offerings. United Way of the Midlands remains focused on delivering

strong impact and value for the community by investing in sustainable, effective programs and opening doors for innovation where it’s most needed.

Formation and Focus The nonprofit sector plays a vital role in addressing pressing challenges, advancing opportunity and enhancing quality of life. The nonprofit sector has grown from 1.5 million organizations in 2010 to nearly 2 million nonprofit organizations nationally iii, ranging from educational institutions and hospitals to afterschool programs, sports clubs, churches and countless other community-based efforts. Together, these organizations form an essential framework of care and support for individuals and families.

Unsurprisingly, across all nonprofit subsections, Washington, D.C., has the highest concentration of nonprofits in the country, followed by several Western and Midwestern states. iv By our calculations, Nebraska ranks 10th in the nation for nonprofits per capita, reinforcing the perception that our region has a particularly high volume of organizations compared to its population size. v This a testament to both the civic engagement characteristics of the Midwest and the mathematical impact of population density.

Geographical Comparison of Nonprofit Organizations Across All IRS Subsections Geography

Nonprofits

Nonprofits per 1,000

Rank

Washington, D.C.

13,665

20.13

1

Montana

11,868

10.48

2

Iowa

29,649

9.25

5

North Dakota

6,419

8.19

7

South Dakota

7,157

7.79

8

Nebraska

14,501

7.33

10

Source: IRS Exempt Organizations Master File, U.S. Census ACS 1-Year Table DP05

Looking specifically at 501(c)(3) charitable organizations, the sector experienced significant growth locally, with nearly twice the number of new nonprofits forming in the 2010s compared to the previous decade. vi This increase is at least in part a reflection of how easy it has become to establish new entities, fueled by technological advances, lower barriers to entry and community urgency during times of crisis such as the Great Recession. While these factors have made the nonprofit sector more nimble, it also risks fragmenting resources in ways that can weaken overall impact.

Formation of 501(c)(3) Charitable Organizations in Omaha-Council Bluffs Over Time 1400 1200

1199

1179

2010s

2020s

1000 800

662

600 400 200 0

220 1

12

1920s

1930s

121

74 1940s

1950s

1960s

217

1970s

318

1980s

420

1990s

2000s

Source: IRS Exempt Organizations Master File. N=4,423

United Way’s 211 database provides a unique lens into the local nonprofit landscape. Across the Omaha–Council Bluffs metro, the 211 database identifies 544 organizations offering more than 1,500 programs and more than 3,500 services. On average, each organization in the database has three program and six service listings, although there is significant variation therein. For example, 314 organizations (58%) have only one program listed and 29 organizations (5%) have more than 10 programs listed. Similarly, more than 130 organizations (25%) have only a single service listed.

There is also some concentration among service categories. Specialized counseling, paratransit program and food pantries are among the largest categories in 211 — meaning the database has the highest number of listings for these services. Other frequently listed services include support groups (40), case management (37) and crisis hotlines (38).

This distribution may reflect differences in organizational size, specialization, how services are categorized or limitations in how information is reported and tracked. It also provides cues into how organizations structure and deliver their work and can serve as a directional benchmark for nonprofits considering expansion, specialization or strategic refinement. For example, an organization with 10 or more services is operating well above the metro average and may benefit from assessing whether their program mix aligns with their capacity and revenue model. Conversely, smaller or more focused organizations may find strength in specialization, especially if supported by stable funding and clear outcomes.

Longevity and Revenue National research suggests that roughly 30% of nonprofits cease operations within their first 10 years vii and according to Forbes, more than half of nonprofits chartered are destined to fail or stall due to leadership issues and lack of a strategic plan. viii Within the Omaha-Council Bluffs metro, approximately 40% of 501(c)(3) organizations are less than 10 years old and the median age is 13 years old ix, reflecting the relatively young profile of many local nonprofits.

Percentage of 501(c)(3) Organizations Operating Less Than 10 Years 45% 40% 35%

40% 33%

30% 25% 20%

14%

15% 10% 5% 0% All NE + IA 501c(3) Orgs

All Omaha-Council Bluffs 501c(3)

UWM Funded

Source: IRS Exempt Organizations Master File.

N= 28,166 among all Nebraska and Iowa 501(c)(3) N=4,423 among Metro Orgs N=79 UWM Funded Organizations

This may reflect a responsive and innovative sector, but also presents real challenges related to scale and sustainability. More than half of 501(c)(3) organizations across Nebraska, Iowa and the Omaha– Council Bluffs metro report no revenue at all. In Nebraska and Iowa, 91% of nonprofits fall under the $1 million revenue threshold; in the metro, the figure is slightly lower at 88%.

Still, there are notable exceptions. The average revenue among 501(c)(3) organizations in the Omaha– Council Bluffs metro is $4.1 million—a figure that may seem surprising given that nearly half of local nonprofits report no revenue and 88% fall below the $1 million threshold. This is due to the outsized impact of a small number of large organizations with budgets over $50 million, which significantly pull the average upward. These large, often multi-service institutions, account for a disproportionate share of total nonprofit revenue in the region. In contrast, the median revenue of $249,000 among metro 501(c)(3) organizations reporting positive revenue offers a clearer view of a typical organization’s financial footprint and falls significantly below the metro average.

Percentage of 501(c)(3) Organizations Reporting Zero or Under $1M Revenue 91%

100% 80% 60%

59%

88%

57%

40%

22%

20%

0%

0%

Zero Revenue Reported

All NE + IA 501c(3) Organizations

All Omaha-Council Bluffs

Metro 501(c)(3) Organizations

Under $1M

UWM-Funded Organizations

Source: IRS Exempt Organizations Master File. Includes organizations reporting zero revenues. Excludes organizations

with negative or unknown revenue. N=19,834 Nebraska and Iowa 501(c)(3) organizations. N=3,131 Omaha Council Bluffs 501(c)(3) organizations. N=79 UWM Funded Organizations.

Additionally, a small but striking subset of newer 501(c)(3) organizations demonstrate how quickly growth can occur under the right conditions. Of the organizations reporting between $1 million and $50 million in revenue, only 50 have been operating less than 10 years and just 16 have been operating for less than five years. Many of these reflect either the infusion of a large single revenue source or the ability to rapidly generate broad-based support. This pattern underscores both the potential and challenge of nurturing new organizations. Many young nonprofits remain in early stages of financial growth, and it can be difficult to predict which will evolve into long-standing, stable institutions. Success often depends not only on revenue but also on intangible factors such as strong leadership, engaged boards, sound governance and the ability to adapt programs to shifting community needs. Incubating new programs requires more than financial investment — it also requires mentorship, trust and community buy-in.

The average United Way of the Midlands-funded organization has operated for more than 40 years with a median age of 29 — offering a level of institutional stability that supports long-term impact. And 11 of UWM’s current funded partners are under 10 years old, showing that we continue to invest in both experience and potential. Collectively, UWM-funded organizations represent more than $1 billion in total revenue, with 40% operating above $5 million annually. Excluding large outliers, the average revenue among UWM-funded organizations is approximately $6.3 million, with a median of $2.7 million. This combination of scale and longevity underscores UWM’s focus on investing for impact — supporting partners with both the capacity and stability to deliver measurable results.

Revenue alone does not guarantee impact, but it does provide essential operational footing. When viewed alongside organizational age and service complexity, revenue patterns can offer valuable insight into sustainability. For instance, a nonprofit operating multiple service lines with limited revenue may face challenges in maintaining quality and consistency, signaling a potential need to refocus or recalibrate operations.

At the same, time, nonprofits are navigating an uncertain landscape while responding to increased demand for services. Our portfolio is particularly and significantly impacted. For instance, while approximately 1/3 of nonprofits nation-wide have government grants, 70% of United Way of the Midlands partners receive some type of government grant. This is a byproduct both of our focus on impactful programs with the capacity to deliver results, as well as United Way of the Midlands serving as a match to securing such dollars. Government grants among UWM partners totaled $135M in 2022 – including two large organizations each receiving more than $20M. While federal grant amounts vary widely, this represents about 14% of all revenue secured by UWM partners in a given year.

Percentage of 501(c)(3) Organizations Reporting Government Revenue 35% 30%

29%

25%

26% 22%

20% 15% 10% 5% 0%

All U.S. 501(c)(3)

UWM-Funded Organizations

United Way of the Midlands

Source: Source: Urban Institute Nonprofit Trends and Impacts, and UWM analysis based on custom Urban Institute data file

Here it is important to note that while a large share of UWM-funded organizations receive government funding, it typically represents a smaller portion of their total revenue compared to national averages. Nationally, 40% of nonprofits report government as their primary revenue source x, and public funds account for about 29% of total nonprofit revenue. xi Locally, government revenue represents an

average of 22% of organizational revenue among UWM partners. At United Way of the Midlands itself, that figure is slightly higher at 26%, yet still under the national average.

This distinction matters. Lower reliance on public dollars can signal stronger financial diversification and is often a marker of long-term sustainability. xii However, even when government funding is not an organization’s primary revenue source, cuts or delays can still have a significant impact on specific programs or service areas. Several organizations in our network remain heavily dependent on government contracts for core functions and many are actively working to diversify their revenue streams to increase flexibility and resilience.

While public dollars remain essential to the nonprofit sector, they are also proving increasingly volatile and unpredictable. Approximately 50% of organizations reported cancelled, frozen or other lost dollars resulting from changes in government funding. In addition to frozen funding or direct cuts, nonprofits are bracing for the ripple effects of changes to federal programs including SNAP, Medicaid and childcare subsidies. Increased pressures on families puts increased pressure on our system of supports.

In a poll from the Nonprofit Association of the Midlands 61% of nonprofits reported increased demand for services and about 1 in 4 reported reduced staff or programmatic changes. xiii We also know that private philanthropy alone can’t close the gap. Recent analysis from the Urban Institute shows that while private philanthropy donated more than $107 billion last year, it would need to increase giving 282% to make up for the loss of federal funding.

While the current funding environment is creating new headwinds and pressures on our support systems, it’s important to recognize the situation remains very fluid. Some funding streams remain intact, others have already been reduced and many are still in limbo. This inconsistency complicates planning and places added pressure on already stretched systems of support.

Conclusion As the number of nonprofits continues to grow, it is increasingly important to ensure that limited resources are deployed strategically, used effectively and services reach those who need them most. This priority is amplified by growing uncertainty in government funding, the sunsetting of several regional foundations and increased service demands across nearly every sector. In this tight fiscal environment, UWM remains committed to strong stewardship and thoughtful evaluation -- investing where the return for our community is greatest.

UWM-funded partners already reflect above-average stability and capacity: the average funded organization has operated for more than 40 years, and over three-quarters report annual revenues between $1 million and $50 million. In addition to size and scale, these organizations also receive higher third-party ratings and demonstrate the financial and operational maturity needed to leverage UWM support effectively. Notably, 70% of UWM partners receive government funding, and nearly half report using UWM dollars as a match — unlocking critical public resources that otherwise may not reach our community.

At the same time, UWM continues to invest in select emerging organizations with strong leadership, promising practices and clear alignment to community needs. Our model is trusted not only to scale what works but also to ensure the most efficient and effective use of resources — delivering strong outcomes and a high return on investment. We prioritize organizations with deep roots in the community, demonstrated expertise in their mission area and the focus needed to deliver results.

Non-Profit Organizational Lifecycle

RENEW

IDEA

STARTUP

GROWTH

SUSTAIN

Source: The Nonprofit Lifecycle, Adapted from Susan K. Stevens

DECLINE

DISSOLVE

CLOSURE

Looking ahead, our investment strategy will continue to reflect both community priorities and the realities of nonprofit lifecycles. While newer organizations can bring innovation and community responsiveness, they often face financial limitations and challenges with delivering proven results at scale. In these cases, specialization, mission clarity, initial results or evidence basis and thoughtful stewardship are key indicators of readiness for investment. Similarly, emerging organizations serving niche populations or unmet needs may be considered based on the depth of their community ties and collaborations, cultural relevance and alignment with UWM’s focus areas.

Conversely, as organizations pass startup and begin to grow or sustain operations, they often reach a critical inflection point at around 25 to 40 years in operation. At this stage, decisions about whether to innovate, consolidate or evolve through partnership become especially important. These and other midsized organizations that find themselves stretched between specialization and scale must balance ambition with financial resilience, mission alignment and a realistic capacity to grow without overextension.

As we prepare for the upcoming investment cycle, United Way of the Midlands will continue to prioritize programs that deliver measurable impact, financial sustainability and value to stakeholders and the community. While we remain open to structured innovation where it is warranted, our focus will remain on funding the strongest programs — those that deliver outcomes, steward resources wisely and help our community thrive. i

Nonprofit Association of the Midlands, 2025 Federal Impacts Pulse Poll.

ii

Candid, How reliant are nonprofits on government grants?

iii

IRS Exempt Organizations 1998 to 2023

iv

IRS Exempt Organizations Master File, U.S. Census ACS 1-Year Table DP05

v

IRS Exempt Organizations Master File, U.S. Census ACS 1-Year Table DP05

vi

IRS Exempt Organizations Master File, 8.12.25. Reflects organizations still in operation.

vii

National Center for Charitable Statistics, cited by NonProfitPRO, National Association of Nonprofit Organizations & Executives, and others.

viii

Forbes: Half Of Nonprofits Are Set Up To Fail -- How About Your Favorite? (2016)

The average age of 501(c)(3) organizations in the Omaha-Council Bluffs metro is 22. The 575 organizations 50 years or older skew the

ix

average making the median value more reflective of the sector, x

Candid, How reliant are nonprofits on government grants?

xi

Urban Institute, Nonprofit Trends and Impacts 2021–2023

xii

Why Do Nonprofits Fail? A Quantitative Study of Form 990 Information in the Years Preceding Closure “ from Old Dominion University,

Summer 2020 and How reliant are nonprofits on government grants? “ Candid Research, Feb 2025 xiii

Nonprofit Association of the Midlands, 2025 Federal Impacts Pulse Poll.