The nonprofit industry has many surprising statistics that may open people’s eyes to the growth of specific industries, giving tendencies of generations, and where the future of nonprofits is headed. The following important statistics may help your nonprofit find the right target market and the best way to reach them.
The nonprofit sector is said to be the third-largest employer in the United States. Many people may be surprised that an industry of charities could make enough to employ that many people. However, with over 1.48 million active 501(c)(3) nonprofit organizations, the number of employees shouldn’t be a surprise.
The nonprofit industry has many surprising statistics that may open people’s eyes to the growth of specific industries, giving tendencies of generations, and where the future of nonprofits is headed.
The following important stats may help your organization find the right target market and the best way to reach them.
Charitable giving can feel like a guessing game, and too often, that is precisely what nonprofits do when developing campaigns and communicating with donors.
1.1 These statistics can help your nonprofit develop a roadmap and fundraising plan.
1.2 The following statistics show how unaware people in the US are of nonprofit organizations.
1.3 Some other interesting charitable giving stats include –
So, if you’re concerned about whether people are still giving, rest assured they are.
The breakdown of how individuals are giving according to their income can be fascinating. The average donation in the US in 2020 was $737. The following statistics can help give your organization an overview of who you should target and how much you can solicit from your donors.
2.1 When it comes to Average Gross Income (AGI) –
2.2 Charitable deduction as a percentage of AGI:
Now that we know what people give according to income, we also need to address generational differences. Once again, the statistics may surprise you.
Gen Zs will represent 82 million people in the US by 2026 (the largest generation) and they’re considered the tech-addicted social justice warriors. Some interesting facts about them include –
A nonprofit should target this generation because of potential success in finding passionate advocates, volunteers, influencers, and donors.
Millennials now account for 25.9% of the US population. You’ve likely heard that younger generations give less, but that depends on how you look at it.
The amount of gifts for this generation is lower than for older generations, but the number of donors coming from this age group is significant.
Millennial donors are more likely to use mobile devices for research, donating, and advocating for a cause. To reach this generation, you’ll want to look at including digital wallet apps like Venmo, Apple Pay, Google Pay, etc.
Donorbox UltraSwift™ Pay makes giving a breeze for your donors. It eliminates the need for them to input their personal details and lets you use the power of digital wallets to make the donation process fast, secure, and convenient.
The Gen X generation is 20.4% of the US population and 59% of them donate. This may discourage you from focusing on this population, but that would be a mistake.
This generation of donors should be your best choice for crowdfunding and peer-to-peer fundraising. Convince 1 donor to start a campaign that reaches 10 of their friends and you could raise over $7,000.
It’s best to contact Gen X via text message or phone. They are also likely to check their emails, and 59% are inspired to donate in response to messages and images on social media.
In the past, the Boomer generation has dominated most industries for years due to their size. Boomers have dropped from the largest demographic to 23.6% of the US population. While this demographic has gotten smaller, it still consists of a large donor block.
Boomers are more likely to answer phone calls, check email, and use text messages, and social media.
The silent generation makes up only 11.8% of the US population, but their average annual gift of $1,367 still significantly impacts the nonprofit sector.
Silent Generation donors respond best to phone calls and direct mail. Your organization can strengthen relations with these donors by incorporating planned giving.
Next, we’ll take a closer look at how donors are giving to different nonprofit industries such as religious, school, homeless, food-related, etc.
Some interesting facts and data about human services giving include –
In 2022, education received 13% of all US donor funds and saw a 10.7% decrease in donations when adjusted for inflation. But Donors gave $58 billion to higher ed in the 2023 academic year, with mega gifts up despite an overall decline in education-related giving.
Every demographic other than the Silent Generation has shown a great interest in online giving. Online giving from individuals for one-time donations declined 12% in 2023. Still, there are various online giving types and campaigns that have increased their effectiveness. Other forms of online campaigning have grown in popularity within and across demographics.
With this increase, nonprofits averaged 21 texts per subscriber (primarily advocacy messaging).
Since the Covid-19 pandemic, volunteer statistics have changed. The following details can help nonprofits plan and recruit for their volunteer needs.
Despite these statistics, volunteer leaders rate recruiting volunteers as one of the top challenges in 2023.
In 2022, corporate giving grew by 3.4% totaling $29.48 billion. Corporations give to nonprofit organizations in many ways and for many reasons. When soliciting corporate donations, it’s best to take time to build partnerships with these organizations to ensure healthy, long-term results.
Corporations have increased their interest in giving to nonprofits due to a strong influence from younger employees. Companies have started to offer more matching gifts and volunteer opportunities.
70% of nonprofits cite board involvement in fundraising as a significant challenge. Building corporate partnerships that can increase the revenue of the organization can be an excellent way to increase the involvement and effectiveness of your board.
Demographics, religion, and annual income can all play a part in why donors give. These statistics can help nonprofits determine which groups best fit their donor base, how they should be communicating, and what are the best ways to fundraise. We also have another article discussing year-end giving statistics to help you make smart and informed strategies for the giving season!
For more blogs, guides, tips, and free resources, check the Donorbox Nonprofit Blog. Subscribe to our newsletter to have a list of our best resources delivered to your inbox every month.
Donorbox can help nonprofits collect donor information, segment their donors, and note communication details to create donor management plans for each type of donor. Learn more about our Donor Management feature here.
Donorbox also helps nonprofits of all types raise funds online with simple-to-use, affordable, and powerful fundraising features including Crowdfunding, Peer-to-Peer fundraising, Text-to-Give, Memberships, Events, Recurring Donation Forms, Customizable Donation Pages, and more.
Kristine Ensor is a freelance writer with over a decade of experience working with local and international nonprofits. As a nonprofit professional she has specialized in fundraising, marketing, event planning, volunteer management, and board development.
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Kristine Ensor