(image from healthysector.org)
A majority of Americans have the same high trust in nonprofits at 57% as they did in 2024. The challenge is that the sector dropped in almost every subcategory that makes up the high trust issue in new data from Independent Sector.
Those polled had high trust at just 35% that nonprofits provide people with information to help them vote, down four points from 2024. The high trust dropped three points in two areas, when those polled were asked if they have high trust when nonprofits meet with government officials about the work the organization does (31%) and when they conduct nonpartisan voter registration drives (29%).
The only subcategory of high trust that improved was in assisting in the writing or revision of laws and regulations, increasing one point to 27%
The nonprofit sector contributed more than 5% of the U.S. gross domestic product, in excess of $1.5 trillion in 2024 (U.S. Bureau of Economic Analysis, 2025b). Because the Bureau of Economic Analysis estimates the contributions of nonprofits by their expenditures — the people served by charitable nonprofits don’t pay for those services so the “value” can’t be estimated by price paid — this is a likely underestimate of the impact of nonprofits on communities, according to authors of the report “Health Of The U.S. Nonprofit Sector.” This is especially true during economic downturns and other crises, when the nonprofit sector may play a stabilizing role, according to the authors.
Data from the Bureau of Labor Statistics’ Quarterly Census of Employment and Wages show that in 2022 nonprofits were the third-largest employer in the private workforce. More people worked for nonprofits than in manufacturing. However, these nonprofit statistics — estimating that about 12.8 million people work in the U.S. nonprofit sector — are only updated by the Bureau of Labor Statistics every five years, and the data may exclude the smallest employers. More frequently released household survey data like that from the U.S. Census Bureau’s American Community Survey have found that more than 14 million people worked for nonprofits in 2023 (Independent Sector & United for ALICE, 2025).
Despite the important role of the sector in the economy, these data and others are not always as accurate and timely for the nonprofit sector as for other sectors. Accurately assessing, measuring, and communicating the broader impact of nonprofit organizations is necessary for the sector to advocate for itself and the people we serve, but doing so remains a challenge, according to Akilah Watkins, Ph.D., president and CEO, of Independent Sector.
There are four keys for charities to keep trust:
* Charitable organizations must be financially robust.
* Charitable organizations must be powered by a thriving workforce that reflects the communities served.
* Charitable organizations must be trusted, well-governed, and effective.
* Charitable organizations must be informed and active advocates, as allowed by law.
For a full copy of the report, go to https://healthysector.org/
