Nonprofit Accounting Statistics

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

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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 🙂

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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]

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How Useful is Nonprofit Accounting

At its core, nonprofit accounting serves the same purpose as any other form of accounting: to provide financial insight, transparency, and accountability. In order to fulfill their mission and serve their communities effectively, nonprofit organizations must be able to track and report on their revenues, expenses, assets, liabilities, and overall financial health. This information is not only crucial for internal decision-making but also for maintaining the trust and support of donors, grantors, and the public at large.

Nonprofit accounting also plays a critical role in ensuring compliance with regulatory requirements. Nonprofit organizations are subject to various laws and regulations, both at the federal and state levels, that dictate how they are required to manage their finances. By following sound accounting practices, nonprofits can avoid the risk of penalties, fines, or even revocation of their tax-exempt status.

But nonprofit accounting is about more than just compliance and financial management. It also enables nonprofits to demonstrate their impact and effectiveness. By tracking and analyzing financial data, organizations can measure their success in achieving their mission, evaluate the outcomes of their programs and services, and make informed decisions about how to best use their resources.

In addition, nonprofit accounting is crucial for establishing and maintaining long-term sustainability. By closely managing their finances and resources, nonprofits can ensure they are able to weather financial challenges, diversify their revenue streams, and plan for future growth and expansion. This level of fiscal responsibility is essential for nonprofits to fulfill their missions over the long term and continue making a positive impact in their communities.

Despite its importance, nonprofit accounting can be challenging, especially for smaller organizations with limited financial expertise and resources. This is where the value of professional accountants and financial advisors comes into play. By working with experts who understand the unique complexities of nonprofit accounting, organizations can streamline their processes, identify efficiencies, and implement best practices that ensure their financial health and accountability.

In conclusion, while nonprofit accounting may seem daunting at times, its usefulness cannot be overstated. By maintaining accurate and transparent financial records, nonprofits can not only fulfill their regulatory obligations and demonstrate their impact but also lay the foundation for long-term sustainability and success. So the next time you find yourself grappling with budget spreadsheets or tax forms, remember that solid accounting practices are not just a necessary evil – they are a critical tool in helping nonprofits achieve their mission and make a difference in the world.

Reference

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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