Nonprofit Accounting Statistics


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Nonprofit Accounting Statistics 2023: Facts about Nonprofit Accounting outlines the context of what’s happening in the tech world.

LLCBuddy editorial team did hours of research, collected all important statistics on Nonprofit Accounting, and shared those on this page. Our editorial team proofread these to make the data as accurate as possible. We believe you don’t need to check any other resources on the web for the same. You should get everything here only 🙂

Are you planning to form an LLC? Maybe for educational purposes, business research, or personal curiosity, whatever the reason is – it’s always a good idea to gather more information about tech topics like this.

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Top Nonprofit Accounting Statistics 2023

☰ Use “CTRL+F” to quickly find statistics. There are total 21 Nonprofit Accounting Statistics on this page 🙂

Nonprofit Accounting “Latest” Statistics

  • The next highest percentage of volunteer time was spent on administrative and support tasks, which accounted for 24.8% of all volunteer hours.[1]
  • Public charities made up almost three-quarters of all nonprofits that filed tax returns with the IRS at 59.7%.[1]
  • About 35% of organizations registered with the IRS had to submit a Form 990, Form 990-EZ, or Form 990-PF.[1]
  • Both revenue growth rates were much higher than the growth rate for companies providing human services, which was the lowest for any sector during that time period at 12.8%.[1]
  • Just under a third of all charitable donations—29.6%—were made to congregations and religious organizations in 2018, a lower percentage than the 32.2% they got in 2013.[1]
  • Public charities represented a greater percentage of the nonprofit sector at 69.7%.[1]
  • In comparison to 53.5%, these businesses represented a significantly smaller percentage of the whole sector at 50.7%.[1]
  • Human services, although more prevalent, accounted for comparably less money, with 17.3% of revenues coming from education organizations and 16.9% coming from costs.[1]
  • Education-related nonprofits earned the second-highest percentage of private charity gifts (13.9%), which is exactly the same percentage as all donations (13%).[1]
  • People who are economically disadvantaged directly benefit from 29% of Private Foundation financing.[2]
  • Around 80% of the money that school organizations utilize to offer extras for their schools comes from traditional product fundraising, which generates 3% of public charities’ yearly income, according to the IRS.[2]
  • 15% of organizations participate in traditional civic, social, and commercial activities, such as minor leagues, chambers of commerce, and fraternal groups.[2]
  • 63 million Americans, roughly 25% of adults give their time, skill, and effort to make a difference.[2]
  • Nearly 40% of all NGOs in the U.S. are churches, schools, and foundations, which dominate the nonprofit industry.[2]
  • 31% of global contributors support charities outside of their own countries.[2]
  • Americans who identify as Christians give 25% of their net income to the church on average.[3]
  • 63% of donors got updates on their crowdfunding project, whereas 12.6% of donors received updates.[3]
  • Credit card-accepting churches experienced a 32% increase in contributions.[3]
  • It’s difficult to generalize about the proportion of individuals that contribute, however in 2022, 77% of regular tithers gave 11% –20% more than baseline tithers at 10%.[3]
  • Non-religious persons also provide time and money to a variety of charity organizations, with 75% of those who don’t attend any kind of worship group still making at least one annual donation.[3]
  • Less than 6.0% of private employment in non-profit organizations was present in Texas, Alabama, and South Carolina.[4]

Also Read

How Useful is Nonprofit Accounting

One of the key purposes of nonprofit accounting is to ensure that donors, funders, and stakeholders have a clear understanding of how their contributions are being utilized by the organization. By maintaining detailed financial records and reporting on how funds are raised, spent, and allocated, nonprofit accounting fosters trust and credibility among supporters. This transparency is essential for maintaining donor confidence and attracting new sources of funding. Without accurate and reliable financial information, nonprofits may find it challenging to secure grants, donations, and other forms of support that are vital to their mission and impact.

Moreover, effective nonprofit accounting helps organizations identify potential areas for improvement and increase efficiency in their operations. By analyzing financial data, nonprofits can pinpoint areas of overspending, cost inefficiencies, or inadequate revenue streams. This information allows nonprofits to make informed decisions about budgeting, fundraising strategies, and program implementation. Without a clear understanding of their financial status, nonprofits risk making decisions that could jeopardize their long-term sustainability and ability to fulfill their mission.

Another benefit of nonprofit accounting is its role in ensuring compliance with regulatory requirements and maintaining the public trust. Nonprofit organizations are subject to specific reporting standards set forth by governing bodies, such as the Internal Revenue Service (IRS) or the Financial Accounting Standards Board (FASB). Staying in compliance with these regulations is imperative for nonprofits to maintain their tax-exempt status and preserve their reputation as transparent and accountable entities. Nonprofit accounting helps organizations navigate complex financial rules and guidelines, reducing the risk of legal repercussions and preserving the trust of donors and the general public.

Furthermore, effective nonprofit accounting enables organizations to measure their impact and demonstrate the outcomes of their work. By tracking financial and programmatic data, nonprofit organizations can assess the effectiveness of their initiatives, identify areas of success, and make adjustments to achieve greater impact. This information is invaluable for both internal management decisions and external communications with stakeholders. Without accurate data and reporting mechanisms, nonprofits may struggle to evaluate their progress, secure funding for future projects, and communicate their achievements to the broader community.

In conclusion, nonprofit accounting is a valuable tool that underpins the financial health and credibility of nonprofit organizations. By maintaining transparent financial records, analyzing data to inform decision-making, ensuring compliance with regulations, and measuring impact, nonprofit accounting plays a critical role in supporting the mission and sustainability of nonprofits. While the complexities of nonprofit accounting can be daunting, its usefulness in promoting transparency, accountability, and efficiency far outweighs the challenges. Nonprofit organizations that prioritize effective accounting practices are better positioned to thrive and make a difference in the communities they serve.

Reference


  1. urban – https://nccs.urban.org/publication/nonprofit-sector-brief-2019
  2. 501c3 – https://www.501c3.org/50-nonprofit-facts-and-statistics/
  3. aplos – https://www.aplos.com/academy/church-management/church-giving-statistics-what-does-the-research-say/
  4. bls – https://www.bls.gov/opub/ted/2018/nonprofits-account-for-12-3-million-jobs-10-2-percent-of-private-sector-employment-in-2016.htm

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