The nonprofit field has been growing in popularity over the last 30 years. As of 2015, there are 1.5 million registered nonprofit organizations in the United States, dealing with issues of all sorts—from animal rights to diseases overseas. Of that 1.5 million, about a third are functioning on less than one million dollars in annual revenue. And just like the general population, there is actually a huge divide in who is receiving the bulk of the funding within the nonprofit field in the US. About 2.25 percent of registered nonprofits make up for 90 total percent of the total financial support and donations made. This means that the nonprofits we constantly hear about are the ones who are receiving the bulk of our donations, but represent only a fraction of the total number of nonprofits out there.
There is a lot of money running through the nonprofit sector. In 2013, more than 330 billion dollars were donated to charitable causes in the United States alone. For the top two percent of nonprofits who are seeing 90% of this funding, times are good. For the remaining 98% of nonprofits, fundraising and financial management is absolutely key to maintaining the cause.
Here is another statistic that can make any nonprofit organizer feel pretty good: about two-thirds (72% according to Giving USA) of donations come from average individuals. This means that fundraising does work. It is up to the nonprofit to find creative solutions to fundraising issues and to create an environment that people want to actively become a part of and make donations to.
If a small to mid sized nonprofits is to get, and keep, their hands on a piece of this pie they need a sound system of accounting and financial oversight. Without this they risk, at the very least losing the funds, and at the very worst… jail time.
Of the organizations who are bringing in the most money, faith-based, education and health care services are the biggest winners. When it comes to your fundraising and marketing goals, it is a good idea to know what people are looking for in making their donations.
There are 1.5 million nonprofit organizations in the United States, and each are doing some slice of good for the country as a whole. If you are involved in a nonprofit organization, this should be inspiring news for you. One last number to help you move forward: in the past year, donations have gone up by over 2%. With donations on the rise, it is a good time to think about how you can raise money for your charitable cause.