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Small Business Facts
SPOTLIGHT ON NONPROFITS
July 2019, Brian Headd, Economist
At A Glance Chart 1. Small Nonprofit Employers by Industry, 2016
Nonprofits, tax-exempt organizations that further a mission instead of earning profits for their owners, are a
big part of the small business sector and economy in general. Arts Other
Nonprofits are around 10 percent of businesses and employment. 6% 9%
In 2016, nonprofits made up 7.2 percent of employers and employed 12.7 percent of private-sector workers. Educational
The average nonprofit employer has more employees than the average for-profit business (37 vs. 20 Services Other
employees, respectively). (Source: U.S. Census Bureau, Statistics of U.S. Businesses) 7% Services
The total business share of nonprofits and their employment has stayed relatively Health
constant over the last decade or so. 15%
In 2008, nonprofits represented 7.2 percent of employers and 12.4 percent of employment, which was very
similar to the 2016 figures. (Source: U.S. Census Bureau, Statistics of U.S. Businesses)
Like for-profit businesses, the bulk of nonprofits are small. And small nonprofits employ
about half of all nonprofit workers.
Over 99 percent of nonprofits have fewer than 500 employees, and these firms represent 45 percent of
nonprofit employment. The median employment of a nonprofit employer business is about 4 employees.
(Source: U.S. Census Bureau, Statistics of U.S. Businesses) Source: U.S. Census Bureau, Statistics of U.S. Businesses.
Not surprisingly, nonprofits tend toward service industries. Chart 2. Number of 501(c)(3) Nonprofit Employers
Health, education, art, and other services represented over 90 percent of all nonprofits with employees and 2017
over 90 percent of small nonprofits. (See Chart 1.) (Source: U.S. Census Bureau, Statistics of U.S. Businesses)
Charitable nonprofits are growing in numbers. 2015
The number of 501(c)(3) nonprofit employers is up about 30 percent over the last decade, with largely
uninterrupted growth during the Great Recession. (See Chart 2.) (Source: U.S. Bureau of Labor Statistics, Business 2013
Pay from charitable nonprofits is similar to for-profits. 2011
In 2017, employees of 501(c)(3) nonprofit establishments averaged pay of $53,700 vs. $55,500 in for-profit
business locations, and the pay was higher for nonprofits in just over half of the states. The District of
Columbia and Alaska had the highest share of 501(c)(3) nonprofit establishments relative to total 2009
establishments. Idaho and South Dakota had the highest nonprofit pay premiums. (Source: U.S. Bureau of Labor
Statistics, Business Employment Dynamics) 2007
Small Business Facts are produced in the Office of Economic Research of the SBA Office of Advocacy.
Questions? Email Advocacy@sba.gov. 150,000 200,000 250,000 300,000
Source: U.S. Bureau of Labor Statistics, Business Employment Dynamics.
What stores donate to nonprofits? Online Stores by Nonprofits. 1) ACLU Store :: shop.aclu.org Proceeds benefit the American Civil Liberties Union, a nonprofit that works to defend the rights and liberties guaranteed by the Constitution ... Clothing. ... Food & Drink. ... Health & Beauty. ... Home Goods. ... Jewelry & Accessories. ...
Title: Spotlight on Nonprofits
Subject: statistics on small nonprofit organizations
Keywords: small nonprofit organizations, statistics, Census Bureau, Bureau of Labor Statistics
Author: Brian Headd, U.S. Small Business Administration Office of Advocacy
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