The State of American Nonprofits in 2025

The American nonprofit sector has grown into one of the most consequential forces in the U.S. economy. As of 2025, there are approximately 1,930,252 tax-exempt organizations registered with the IRS, collectively generating $4.09 trillion in annual revenue and holding $10.5 trillion in assets. To put this in perspective, if the nonprofit sector were a country, its revenue would make it the fourth-largest economy in the world — behind only the United States itself, China, and Germany, and ahead of Japan.

This is not your grandmother's charity sector. The American nonprofit world includes everything from a neighborhood food pantry run by volunteers to Kaiser Permanente, a $120 billion healthcare empire. It employs roughly 12.3 million people — about 10% of the private workforce — making it the third-largest employment sector in the country behind retail and manufacturing.

How We Got Here: A Decade of Explosive Growth

Ten years ago, in 2015, the nonprofit sector looked dramatically different. There were roughly 1.5 million registered organizations generating approximately $2.5 trillion in revenue with $6.2 trillion in assets. The growth since then has been staggering:

• Organization count: Up ~28%, from 1.5M to 1.93M
• Total revenue: Up ~64%, from $2.5T to $4.09T
• Total assets: Up ~69%, from $6.2T to $10.5T

What drove this growth? Several converging forces. Healthcare consolidation created larger and larger hospital systems. Donor-advised funds exploded from a niche product to the dominant giving vehicle. The pandemic triggered a massive surge in charitable giving — and in government grants flowing through nonprofits. University endowments benefited from a historic bull market. And the sheer number of new nonprofits being formed continued to outpace dissolutions.

But this growth hasn't been evenly distributed. The top 1% of nonprofits by revenue — roughly 19,000 organizations — control an estimated 85-90% of total sector revenue. The bottom 50% of nonprofits, nearly a million organizations, collectively account for less than 2% of revenue. This concentration rivals that of wealth inequality in the broader economy.

Sector-by-Sector Breakdown

The nonprofit world is classified by NTEE (National Taxonomy of Exempt Entities) codes — 26 major categories plus several subcategories. Here's how the landscape breaks down:

Tier 1: The Trillion-Dollar Category

Health (NTEE E) — $1.81 Trillion in Revenue

With just 45,164 organizations, health nonprofits account for a staggering 44% of all nonprofit revenue. The average health nonprofit generates $40.1 million in annual revenue — more than 275 times the average religious nonprofit. This category is dominated by hospital systems, health plans, and community health centers. Kaiser Foundation Health Plan alone brings in $82.5 billion annually, and the combined Kaiser system exceeds $120 billion. Health nonprofits hold $2.59 trillion in assets, making this the single wealthiest category.

Tier 2: The Hundred-Billion-Dollar Categories

Unclassified (NTEE Z) — $768.0 Billion in Revenue

A surprising runner-up: 582,804 organizations that haven't been properly categorized in the NTEE system. These generate $768 billion in revenue and hold $2.58 trillion in assets. This data quality issue is one of the sector's most significant analytical challenges — nearly a third of all organizations lack proper classification.

Education (NTEE B) — $517.7 Billion in Revenue

The 181,546 education nonprofits span everything from preschools to research universities. The top institutions are financial powerhouses: New York University ($11.6B), University of Pennsylvania ($10.7B), Johns Hopkins University ($10.5B), and Stanford University ($9.5B). Education nonprofits hold $1.84 trillion in assets, driven largely by university endowments — Harvard alone holds $74.4 billion.

Human Services (NTEE P) — $198.8 Billion in Revenue

At 151,753 organizations, this is the third-largest category by count. These nonprofits provide direct services to individuals and families: food banks, shelters, counseling, job training, disaster relief, and more. Despite the large number of organizations, average revenue is just $1.31 million — reflecting the grassroots nature of much human services work.

Philanthropy & Grantmaking (NTEE T) — $136.7 Billion in Revenue

The 104,351 organizations in this category include private foundations (Gates, Lilly, Ford), community foundations, and the booming donor-advised fund industry. They hold a massive $1.48 trillion in assets. Fidelity Charitable alone processes $19 billion in annual contributions.

Tier 3: The Tens-of-Billions Categories

• Mutual & Membership Benefit (NTEE Y): 17,181 orgs, $64.4B revenue — includes fraternal organizations, labor unions, and insurance cooperatives
• Arts, Culture & Humanities (NTEE A): 116,006 orgs, $54.8B revenue — museums, theaters, symphonies, public media
• International Affairs (NTEE Q): 21,330 orgs, $51.3B revenue — global relief, development, foreign affairs
• Science & Technology (NTEE U): 6,609 orgs, $41.8B revenue — research institutes, technology consortia
• Recreation & Sports (NTEE N): 110,150 orgs, $31.9B revenue — YMCAs, sports leagues, parks
• Religion (NTEE X): 199,983 orgs, $28.9B revenue — churches, mosques, synagogues, temples
• Community Improvement (NTEE S): 46,513 orgs, $28.3B revenue — community development, neighborhood associations
• Food, Agriculture & Nutrition (NTEE K): 19,794 orgs, $25.0B revenue — food banks, agricultural research
• Environment (NTEE C): 28,453 orgs, $23.0B revenue — conservation, land trusts, environmental advocacy

Tier 4: Smaller but Essential Categories

• Housing & Shelter (NTEE L): 34,938 orgs, $19.4B revenue
• Animals (NTEE D): 40,562 orgs, $16.1B revenue
• Medical Research (NTEE H): 4,268 orgs, $15.9B revenue
• Youth Development (NTEE O): 56,946 orgs, $14.3B revenue
• Public Safety & Disaster Relief (NTEE M): 30,989 orgs, $13.9B revenue
• Mental Health & Crisis (NTEE F): 12,618 orgs, $20.9B revenue
• Employment & Jobs (NTEE J): 11,041 orgs, $19.4B revenue
• Civil Rights & Advocacy (NTEE R): 12,363 orgs, $22.3B revenue
• Public & Societal Benefit (NTEE W): 19,619 orgs, $11.4B revenue
• Crime & Legal (NTEE I): 11,459 orgs, $7.3B revenue
• Diseases & Conditions (NTEE G): 16,949 orgs, $11.3B revenue
• Voluntarism & Philanthropy Support (NTEE V): 3,184 orgs, $1.5B revenue

Geographic Distribution Across 62 States and Territories

Nonprofits are registered across all 50 states, the District of Columbia, and 11 U.S. territories — 62 jurisdictions in total. But the distribution is far from even.

California leads with the most registered nonprofits, followed by New York, Texas, Florida, and Pennsylvania. These five states account for roughly a third of all registered organizations. But when measured by revenue per capita, states with major healthcare systems and university clusters — like Massachusetts (home to Mass General Brigham, Harvard, MIT), Minnesota (Mayo Clinic, UnitedHealth-adjacent nonprofits), and Pennsylvania (UPMC, University of Pennsylvania) — punch well above their weight.

Rural states and territories have fewer nonprofits per capita, and those they do have tend to be smaller. This creates a nonprofit "desert" effect in some regions — communities where the safety net of social services, cultural institutions, and community organizations is significantly thinner than in urban areas.

The Revenue Giants: Top 25 Nonprofits

The top nonprofit by revenue is Kaiser Foundation Health Plan at $82.5 billion — more than the GDP of over 120 countries. Here are the 25 largest nonprofits by annual revenue:

1. Kaiser Foundation Health Plan — $82.5B
2. Kaiser Foundation Hospitals — $38.2B
3. UPMC — $24.3B
4. Mass General Brigham — $23.5B
5. Fidelity Investments Charitable Gift Fund — $19.0B
6. Cleveland Clinic Foundation — $17.2B
7. National Philanthropic Trust — $15.9B
8. Mayo Clinic Group — $14.9B
9. Battelle Memorial Institute — $13.3B
10. Healthfirst PHSP — $12.2B
11. Thrivent Financial for Lutherans — $11.8B
12. New York University — $11.6B
13. Bon Secours Mercy Health — $11.5B
14. Corewell Health — $11.5B
15. Dignity Health — $11.3B
16. BJC Health System — $11.3B
17. University of Pennsylvania — $10.7B
18. Johns Hopkins University — $10.5B
19. Stanford University — $9.5B
20. Memorial Sloan Kettering — $8.5B
21. Providence St. Joseph Health — $8.3B
22. Harvard University — $7.7B
23. Columbia University — $7.3B
24. Emory University — $7.3B
25. Yale University — $6.8B

Of the top 25, 16 are healthcare organizations, 7 are universities, and 2 are donor-advised fund sponsors. Not a single human services organization, environmental group, or arts organization makes the list. This revenue concentration is one of the defining features of the modern nonprofit sector.

Assets and Wealth: Where $10.5 Trillion Lives

The asset distribution tells a somewhat different story than revenue. Thrivent Financial for Lutherans leads with $118 billion in assets — a Lutheran fraternal benefit society that functions essentially as an insurance and financial services company. The top 10 by assets:

1. Thrivent Financial for Lutherans — $118.0B
2. Kaiser Foundation Hospitals — $87.4B
3. Lilly Endowment — $79.9B
4. Bill & Melinda Gates Foundation — $78.7B
5. Harvard University — $74.4B
6. Fidelity Investments Charitable Gift Fund — $66.8B
7. Stanford University — $63.3B
8. Yale University — $55.2B
9. Kaiser Foundation Health Plan — $53.9B
10. Princeton University — $42.8B

The wealth of the sector is concentrated in three categories: Health ($2.59T in assets), Unclassified ($2.58T), Education ($1.84T), and Philanthropy & Grantmaking ($1.48T). Together, these four categories hold roughly $8.5 trillion of the sector's $10.5 trillion in assets — over 80%.

Religion: Big by Count, Small by Revenue

An interesting asymmetry exists in the Religion category (NTEE X). With 199,983 organizations, it's the second-largest category by count. Yet its total revenue is just $28.9 billion — less than what Kaiser Foundation Hospitals generates alone. Most religious organizations are small local congregations with modest budgets. The average religious nonprofit generates about $144,000 in annual revenue, compared to $40.1 million for the average health nonprofit — a 278x difference.

And these numbers likely understate the gap. Churches are exempt from filing Form 990, so the 199,983 figure represents only those religious organizations that voluntarily file or are required to (like religious schools and affiliated charities). The true number of religious nonprofits in America may be significantly higher.

The Philanthropy Pipeline

The Philanthropy & Grantmaking category (NTEE T) includes 104,351 organizations with $136.7 billion in revenue and a massive $1.48 trillion in assets. This category has been transformed by the rise of donor-advised funds. Fidelity Charitable ($66.8B assets), National Philanthropic Trust ($42.2B assets), Schwab Charitable ($41.1B assets), and Vanguard Charitable ($22.2B assets) now collectively hold more assets than most private foundations.

Traditional private foundations remain powerful. The Lilly Endowment ($79.9B assets), Bill & Melinda Gates Foundation ($78.7B), Howard Hughes Medical Institute ($29.5B), Ford Foundation ($17.5B), and Robert Wood Johnson Foundation ($13.4B) direct billions in grants annually. The Silicon Valley Community Foundation ($12.3B assets) reflects the growing influence of tech wealth in philanthropy.

Key Challenges Facing the Sector in 2025

1. DOGE Scrutiny and Government Oversight

The Department of Government Efficiency (DOGE) has turned its attention to nonprofits that receive federal funding, subjecting grants and contracts to unprecedented scrutiny. Organizations that depend on government revenue — particularly in health, education, international development, and scientific research — face potential funding disruptions. This has created anxiety across the sector, especially for organizations where federal grants make up 30-50% or more of their revenue.

"The nonprofit sector has never faced this level of federal scrutiny. Organizations that built their models around government funding are now scrambling to diversify." — National Council of Nonprofits, 2025

2. Donor Fatigue and Giving Trends

After a pandemic-era surge in charitable giving, donations have plateaued. Adjusted for inflation, individual giving has actually declined slightly. The number of American households that give to charity has been falling for over a decade — from 66% in 2000 to roughly 50% today. Giving is increasingly concentrated among wealthy donors, with donor-advised funds absorbing a growing share. This means fewer donors giving larger amounts, often through intermediaries rather than directly to operating charities.

3. Inflation and Operating Costs

While inflation has moderated from its 2022 peak, cumulative price increases have permanently raised operating costs for nonprofits. Salaries, rent, supplies, and insurance are all significantly higher than they were five years ago. For organizations whose revenue comes from fixed grants or slowly growing donations, this creates a persistent squeeze. Food banks report that the cost of purchasing and distributing food has risen 25-35% since 2020, while demand remains elevated.

4. Workforce Challenges

Nonprofits have long struggled to compete for talent. The average nonprofit worker earns less than their counterpart in the for-profit sector, and the gap widens for specialized roles. Burnout rates are high, particularly in human services and healthcare. Many organizations report difficulty filling positions, leading to reduced services and longer wait times for the people they serve.

5. The Consolidation Wave

In healthcare, education, and philanthropy, larger organizations continue to absorb smaller ones. Hospital mergers create systems with $10-80 billion in revenue. University partnerships and acquisitions are increasing. Even in human services, larger regional organizations are expanding into areas previously served by local groups. This consolidation can create efficiencies but also reduces diversity and local responsiveness.

Comparison: 2015 vs. 2025

Growth Trends by Category

Not all categories are growing at the same rate. Here's where the momentum lies:

Fastest growing by revenue:

• Health: Driven by consolidation, aging demographics, and rising healthcare costs. The category has grown from ~$1.1T to $1.81T in a decade.
• Philanthropy & Grantmaking: DAF growth has been explosive. Fidelity Charitable didn't exist 30 years ago; now it processes more money than most countries' entire charitable sectors.
• Science & Technology: Just 6,609 organizations but $41.8B in revenue. Growth driven by federal research funding flowing through nonprofit intermediaries and the rise of AI/tech research nonprofits.
• Food & Nutrition: Post-pandemic demand hasn't receded. Feeding America ($5.0B) and regional food banks have permanently expanded operations.

Slower growth or headwinds:

• Religion: Declining church attendance and the rise of "nones" (religiously unaffiliated Americans) have put pressure on religious organizations' revenue.
• Youth Development: Demographic shifts and competition from school-based programs challenge traditional youth organizations.
• Mutual & Membership Benefit: Declining union membership and changing social patterns reduce this category's base.

Emerging Trends to Watch

Science & Technology (NTEE U) is a relatively small but powerful category with just 6,609 organizations generating $41.8 billion in revenue. Battelle Memorial Institute alone accounts for $13.3 billion. As government and private sector research funding continues to flow through nonprofit intermediaries — and as AI safety organizations, open-source foundations, and climate tech nonprofits proliferate — this category is poised for the fastest growth rate in the sector.

International Affairs (NTEE Q) encompasses 21,330 organizations with $51.3 billion in revenue, reflecting the global reach of American charitable organizations. From disaster relief to development aid to democracy promotion, these nonprofits represent a significant channel of international engagement — though they face increasing scrutiny from both political parties.

Climate and Environment (NTEE C) with 28,453 organizations and $23.0 billion in revenue, is attracting unprecedented philanthropic attention. Major foundations have pledged billions for climate work, and new climate-focused nonprofits are forming at record rates.

The Transparency Revolution

One of the most significant changes in the past decade has been the dramatic increase in nonprofit transparency. The IRS began releasing machine-readable Form 990 data in 2016, enabling platforms like GiveScope to make financial data accessible to anyone. Before this, analyzing nonprofit finances required requesting individual paper returns.

Today, anyone can look up the revenue, assets, executive compensation, and program spending of nearly any nonprofit in seconds. This transparency has empowered donors, journalists, researchers, and policymakers to hold organizations accountable in ways that were simply impossible a decade ago.

Looking Ahead

The nonprofit sector enters 2025 at a crossroads. It has never been larger or wealthier — $4.09 trillion in revenue, $10.5 trillion in assets, 1.93 million organizations across 62 states and territories. But it also faces a unique convergence of challenges: unprecedented government scrutiny, a narrowing donor base, persistent inflation, workforce shortages, and deep questions about whether the sector's enormous wealth is being deployed effectively.

Healthcare consolidation will continue to create ever-larger systems. Donor-advised funds will likely surpass private foundations as the dominant philanthropic vehicle. Technology will reshape how nonprofits operate and deliver services. And the fundamental tension between the sector's largest institutions — which look and operate like Fortune 500 companies — and its smallest, most community-rooted organizations will only intensify.

The American nonprofit sector is not just a complement to the economy — it is a fundamental pillar of it. Understanding its scale, structure, and trends is essential for anyone who cares about the future of American communities, healthcare, education, and civil society.