The State of the Nonprofit Sector (2026): 150+ Nonprofit & Fundraising Statistics for U.S. Organizations

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Erin Booker

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February 13, 2026

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8 minutes

Nonprofit Trends

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If you’re searching for the most current nonprofit statistics and fundraising statistics in the United States, this is your benchmark hub, so bookmark it, bud.

This report compiles the most recent available data (primarily 2022–2025) from trusted sources including:

Funraise
Giving USA
Independent Sector
Bureau of Labor Statistics (BLS)
IRS / National Center for Charitable Statistics (NCCS)
M+R Benchmarks
AFP Fundraising Effectiveness Project (FEP)
U.S. Census Bureau
Federal Reserve (Survey of Consumer Finances)
Major digital platform and payments data sources (bibliography below)

We’ve separated verified sector data from clearly labeled analysis to help nonprofit leaders understand not just what is happening, but what it signals for 2026 and beyond.

Executive Summary: 2026 at a glance

Here’s what the data shows about U.S. nonprofits and fundraising right now:

There are approximately 1.8 million registered nonprofit organizations in the U.S., including roughly 1.3 million 501(c)(3)s.
Charitable giving in the U.S. remains above $550 billion annually, though growth has slowed and inflation-adjusted giving has experienced pressure.
Individuals contribute roughly two-thirds of all charitable giving.
Donor retention rates remain low—hovering near or below 45% overall, with first-time donor retention dramatically lower.
Digital revenue continues to grow, but acquisition costs are rising.
Fewer donors are giving overall, even as total dollars remain resilient.
Wealth concentration is increasing, shifting long-term major gift strategy.
Labor costs and staffing shortages remain significant pressure points.

Funraise Analysis: The sector is not contracting—but it is consolidating. Donor participation is down, operational costs are up, and the nonprofits that win in 2026 will be those that combine digital maturity with disciplined retention and lifetime value strategy.

Section 1: U.S. Nonprofit Sector Statistics

How many nonprofits are in the United States?

~1.8 million registered nonprofit organizations in the U.S.
~1.3 million 501(c)(3) public charities
Public charities make up roughly 70%+ of the nonprofit universe

Nonprofit Employment & Economic Impact

The nonprofit sector represents roughly 10% of the private workforce in the United States (BLS data).
Nonprofits account for approximately 5–6% of U.S. GDP.
Health and education dominate nonprofit employment share.

Funraise Analysis: While fundraising often feels like a narrow operational concern, the nonprofit sector is a macroeconomic force. Funding headwinds affect employment, services, and local economies—raising the stakes for sustainable revenue models.

Section 2: Charitable Giving Statistics in the U.S.

Total U.S. charitable giving

Annual charitable giving in the U.S. exceeds $550 billion (Giving USA recent reports).
Inflation-adjusted giving saw declines in 2022 but partial recovery in 2023–2024.
Real (inflation-adjusted) growth remains volatile.

Giving by source (Typical distribution)

Individuals: ~65–67%
Foundations: ~20%
Bequests: ~8–10%
Corporations: ~5%

Key Insight: Individual donors remain the backbone of the nonprofit economy. Even with foundation growth, fundraising strategy must prioritize individual acquisition and retention.

Giving by sector (Selected highlights)

The largest recipient categories typically include:

Religion
Education
Human Services
Foundations
Health

Human services and public-society benefit categories experienced notable pandemic-era fluctuations but remain high-need areas.

Section 3: Donor Behavior Statistics

Number of donors is declining

AFP’s Fundraising Effectiveness Project (FEP) shows:

Total dollars may hold steady or grow modestly.
Total number of donors continues to decline year over year in recent reporting cycles.
Small-dollar donor participation has experienced the steepest decline.

Why this matters: Revenue resilience is masking participation erosion.

Donor retention rates

Typical retention benchmarks:

Overall donor retention: ~40–45%
First-time donor retention: often below 25%
Multi-year donor retention significantly higher

This means:

More than half of donors do not give again the following year.
Acquisition costs must be weighed against lifetime value.

Funraise Analysis: If acquisition costs rise while retention stays flat, long-term revenue sustainability declines—even if annual totals appear stable.

Generational giving trends

Millennials and Gen Z increasingly prefer digital-first engagement.
Younger donors are more likely to give through:
- Mobile
- Peer-to-peer
- Social platforms
Older donors continue to drive the majority of total giving dollars (by far!)

Federal Reserve data shows rising wealth concentration among older households. Combined with declining donor participation, this signals:

Increased importance of major gift cultivation
Increased need for planned giving strategies
Risk exposure if generational transfer strategies lag

Funraise Insight: This means that donor prospecting, wealth screening, and relationship building are key to successful fundraising strategies.

Section 4: Digital Fundraising Statistics

Growth in online giving

Recent M+R Benchmarks data shows:

Digital revenue continues multi-year growth.
Email remains a high-ROI channel.
SMS revenue is growing rapidly year over year.
Paid digital acquisition costs are increasing.

Channel performance highlights

Email open rates have fluctuated but remain a core revenue driver.
SMS response rates significantly exceed email engagement rates.
Peer-to-peer fundraising continues strong performance in event-driven models.
Monthly giving programs outperform one-time giving in retention and lifetime value.

Funraise Analysis: Digital maturity is no longer optional. Dare we say it: table stakes. But digital acquisition without retention optimization is not a long-term strategy.

Section 5: Economic Headwinds & Funding Pressure

Inflation and cost pressure

Inflation in 2022–2023 eroded purchasing power.
Wage growth in the nonprofit sector has struggled to keep pace with private sector competition.
Donor households face increased consumer cost burdens.

Wealth concentration

Federal Reserve Survey of Consumer Finances shows:

The top 10% of households control a disproportionate share of total wealth.
Wealth concentration has increased over the past decade.

When fewer households control more wealth and fewer donors give overall, fundraising strategy shifts toward:

Major gifts
Data-driven segmentation
Personalized engagement
Stewardship intensity

Section 6: Corporate & Foundation Giving Trends

Foundation giving

Foundation giving has grown faster than individual giving in recent cycles.
Donor-advised funds (DAFs) continue to hold significant assets.

Corporate giving

Corporate giving remains a small percentage of total U.S. giving (~5%).
Matching gift programs remain underutilized by nonprofits.

Section 7: Technology Adoption & Nonprofit Infrastructure

While many nonprofits report that:

Video is effective in communications,
Digital storytelling drives engagement,

Adoption of advertising tools, automation, and data systems often lags.

Historical Context Note:
Pre-pandemic tech adoption gaps (as highlighted in prior sector reports) suggested underutilization of digital tools relative to consumer behavior trends. While adoption has improved post-2020, gaps persist in CRM integration, marketing automation, and attribution modeling.

Funraise Analysis: The competitive gap in 2026 is not about whether an organization accepts online donations. It’s about:

Integrated CRM systems
Automated personalized stewardship
Real-time reporting
Attribution visibility
Lifetime value modeling

Section 8: What the Data Signals for 2026–2030

1. The participation gap will continue

If donor counts decline while dollars consolidate among high-net-worth households, organizations must:

Invest in mid-level donor pipelines
Develop recurring giving programs
Improve retention metrics

2. Retention will become the primary KPI

Acquisition-only growth models are fragile.

Expect to see:

Increased focus on donor lifetime value (LTV)
CRM-driven segmentation
Automated, behavior-based stewardship journeys

3. Digital and major gifts will converge

Major donors expect:

Seamless digital experiences
Frictionless payment options
Immediate impact reporting

Digital sophistication now affects high-dollar philanthropy.

4. AI & automation will reshape fundraising operations

While sector-wide AI adoption varies:

Marketing automation
Predictive modeling
Personalization at scale
Workflow automation

will become competitive differentiators.

Frequently Asked Questions

How many nonprofits are in the U.S.?

Approximately 1.8 million registered nonprofit organizations, including about 1.3 million 501(c)(3)s.

How much do Americans donate each year?

Annual charitable giving exceeds $550 billion.

What percentage of charitable giving comes from individuals?

Roughly two-thirds (around 65–67%) comes from individual donors.

What is the average donor retention rate?

Overall donor retention typically falls between 40–45%, with first-time donor retention often below 25%.

Is online giving increasing?

Yes. Digital revenue continues multi-year growth, though acquisition costs are rising.

What This Means for Nonprofit Leaders in 2026

The sector is not shrinking. It is evolving.

Fewer donors.
Higher expectations.
Greater wealth concentration.
Rising operational costs.
Increasing digital sophistication requirements.

Organizations that:

Invest in retention
Build recurring revenue
Modernize CRM infrastructure
Integrate digital acquisition with long-term stewardship

will outperform peers over the next five years.

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Sources

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Independent Sector. Health of the U.S. Nonprofit Sector: Annual Review. Washington, DC: Independent Sector, 2024.
Bureau of Labor Statistics. Industries at a Glance: Private Nonprofit Sector; Employment and Wage Data. U.S. Department of Labor, 2024.
Internal Revenue Service. Tax-Exempt Organization Statistics of Income Data. U.S. Department of the Treasury, 2024.
National Center for Charitable Statistics (NCCS). Nonprofit Sector Data and Statistics. Urban Institute, 2024.
M+R and NTEN. M+R Benchmarks Study 2025. Washington, DC: M+R, 2025.
AFP Fundraising Effectiveness Project (FEP). Quarterly Fundraising Report: Q4 2024 Results. Fundraising Effectiveness Project, 2024.
U.S. Census Bureau. American Community Survey and Nonemployer Statistics Data on the Nonprofit Sector. U.S. Department of Commerce, 2024.
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