"With few exceptions, the nonprofit sector has been on a growth trajectory since its inception. By some estimates, we have been steadily growing by about 5 percent each year since 2013. Even in periods of recession or crisis, when leaders predicted we'd see the sector shrink, we sometimes grew faster-resource constraints be damned! In 2020, during the height of the COVID pandemic we grew by a record 70,000 nonprofits."
"Our origins go back to the Tariff Act of 1894 and Revenue Acts of 1909, 1913, and 1917, in particular, which created a tax-exempt status for entities that serve the public good. In 1940, on a per capita basis, we had about one nonprofit per 2,590 people in the United States. By the 1970s, there was one nonprofit per 848 people."
The nonprofit sector has expanded steadily, growing about 5 percent annually since 2013 and adding a record 70,000 organizations in 2020, with projections exceeding two million organizations within three years. Origins of tax-exempt status trace back to the late 19th and early 20th centuries, and per-capita presence rose from one per 2,590 people in 1940 to one per 100 today. The increase in organizations has not translated into proportional increases in resources. Philanthropy, government funding, fees, and volunteerism have remained static or declined (adjusted for inflation). Gaps in cross-organization coordination further limit collective impact on systemic social issues.
Read at Nonprofit Quarterly | Civic News. Empowering Nonprofits. Advancing Justice.
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