Nonprofit Employment Statistics (2026)

Q: Why is there such a leadership diversity gap in nonprofits?

The diversity gap reflects decades of historical hiring patterns, limited pipeline development, and smaller organizations' inability to compete with for-profit salaries. Small organizations show higher CEO diversity, but this declines as organization size grows.

The nonprofit sector employs 12.5M Americans—10% of the private workforce—and contributes $670B annually in wages. Latest data on paid jobs, volunteer value, diversity, and industry trends.

The nonprofit sector stands as a cornerstone of American economic and social life. Nonprofits employ over 10% of the U.S. private workforce—12.5 million people—and spend more than $670 billion on wages , making it the third largest private sector employer in the country . This report synthesizes authoritative employment data from government agencies, academic institutions, and sector-leading research organizations, part of our comprehensive nonprofit industry statistics hub.

Methodology & Transparency. This report draws exclusively from primary sources: U.S. Bureau of Labor Statistics (BLS), Independent Sector, the Federal Reserve, Nonprofit Finance Fund, and peer-reviewed academic research. All figures cite their original source and publication year. We use BLS 2022 nonprofit employment data—the most recent comprehensive national dataset—supplemented by 2025–2026 research and volunteer metrics. This is a living report, refreshed annually.

Key takeaways

12.8M nonprofit jobs (2022)

9.9% of all private-sector employment

$36.14 value of volunteer hour (2025)

66% nonprofit workforce that is women

Nonprofit employment has grown steadily for nearly two decades

The nonprofit sector has demonstrated resilience and growth even through economic downturns. Employment at nonprofit organizations was 18.6 percent higher in 2017 than in 2007 , reflecting sustained demand for social services, healthcare, and education. The sector weathered the COVID-19 pandemic impact: between 2019 and 2020, nonprofit employment fell by 4.5 percent, followed by over-the-year employment increases in the subsequent two years. In 2022, nonprofit employment was below its 2019 level by 1.4 percent .

Nonprofit employment growth from 2007–2022, with COVID recovery through 2022. Source: U.S. Bureau of Labor Statistics

The concentration of nonprofit employment is remarkable. Nearly 2 out of every 3 nonprofit jobs in 2022 were in the health care and social assistance sector (66.3 percent). Other sectors with high shares of nonprofit employment included educational services (16.4 percent); other services (6.3 percent); and arts, entertainment, and recreation (2.6 percent) . This sectoral distribution has remained stable for 15 years, reflecting deep structural dependencies on nonprofits for essential services.

Health care & social assistance 66.3%

Educational services 16.4%

Other services 6.3%

Arts, entertainment & recreation 2.6%

All other sectors 8.4%

Distribution of nonprofit employment by industry (2022). Source: Bureau of Labor Statistics

Nonprofit employment is concentrated in the Northeast

Geography shapes nonprofit labor markets significantly. The District of Columbia had the highest percentage of nonprofit employment, 25.2 percent. Vermont, Massachusetts, Maine, New York, and Rhode Island also had high shares of nonprofit employment, with each reporting 17.0 percent or more of private employment in nonprofit organizations . Conversely, four states each had less than 6.0 percent: South Carolina, Texas, Alabama, and Nevada . Learn more about volunteer engagement patterns by state in our Volunteer Hours by State analysis.

25.2%

19.8%

17.6%

9.9%

Nonprofit employment as a share of private sector employment, selected states (2022). Source: Bureau of Labor Statistics

Women make up nearly two-thirds of the nonprofit workforce

Gender composition in nonprofits is distinctly different from the broader private sector. The nonprofit sector employs more women (66% of the nonprofit workforce) than are employed in the broader workforce . Compared with the for-profit sector, the nonprofit sector has a more educated and older workforce, which is heavily concentrated in the healthcare and education industries, as well as religious organizations . This concentration reflects the demand for educators, nurses, social workers, and care professionals—roles traditionally filled by women.

66%

34%

Gender composition of nonprofit workforce. Source: Independent Sector, December 2025

Nonprofit racial diversity is strongest in the workforce, weaker in leadership

The nonprofit sector shows a diversity puzzle: broad workforce representation that narrows sharply at the leadership level. Based on data from 59,550 public charities, 47% of all staff identify as white, 24% as Black/African American, 19% as Hispanic/Latino, 6% as Asian American/Pacific Islander, 1% as Native American, and 4% as multiracial . However, 70% of CEOs/executive directors as well as 66% of board members identify as white . At 15% and 6%, Black and Latino CEOs/EDs are especially underrepresented at the executive level . This leadership gap persists despite broader DEI commitments. For volunteer programs specifically, see our guide on volunteer background checks for nonprofits.

White (all staff) 47%

White (CEOs/EDs) 70%

Black/African American (all staff) 24%

Black/African American (CEOs/EDs) 15%

Hispanic/Latino (all staff) 19%

Hispanic/Latino (CEOs/EDs) 6%

Racial/ethnic diversity in nonprofit staff vs. executive leadership (2024). Source: Candid, Nonprofit Sector Diversity Report

Volunteer contributions now valued at $36.14 per hour

Volunteers represent incalculable value to the nonprofit sector. Independent Sector and the Do Good Institute estimate that the value of a volunteer hour was $36.14 in 2025 — a 3.9% increase from 2024 . This figure is based on Bureau of Labor Statistics data and represents the average hourly earnings of all production and nonsupervisory workers on private nonfarm payrolls, plus a 15% increase to estimate fringe benefits . For organizations looking to attract and screen volunteers reliably, VolunteerBadge's identity verification ensures safe, compliant onboarding. State-by-state valuations vary significantly: the value of a volunteer hour ranges from $17.32 in Puerto Rico to $52.06 in Washington, D.C.

Value of volunteer hour: five-year trend (2022–2025). *2026 represents preliminary early-year estimate. Source: Independent Sector & Do Good Institute

Corporate volunteer time-off programs drive talent and giving

Employers increasingly leverage volunteer engagement as both a talent and fundraising tool. 65% of companies offer some sort of paid-release-time volunteer programs for their employees. Companies with paid volunteer time off programs offer an average of 20 VTO hours per team member annually (equalling about 2.5 days each year) . 79% of people who volunteer with a nonprofit also contribute financially to the organization, with 84% being more likely to give if a donation match is available . This interconnection between volunteering and charitable giving strengthens nonprofits' financial sustainability. Organizations managing youth volunteers should review our child safety in youth programs standards.

65%

79%

Corporate volunteer engagement and giving alignment (2024–2025). Source: Double the Donation

One in five nonprofit workers faces financial hardship

Despite the sector's growth, nonprofit employee compensation remains a persistent challenge. 1 in 5 nonprofit workers lives in a household experiencing financial hardship , highlighting the wage-sustainability gap. The nonprofit sector has a 10% wage gap and chronic retention struggles despite increased DEI efforts . For organizations seeking to build trust with volunteers and mitigate risk, implementing FCRA-compliant background checks is essential—VolunteerBadge screens at just $5 per check with no monthly fees, helping free up limited budgets for mission-critical staff support.

20%

80%

Financial hardship among nonprofit employees. Source: Independent Sector & United for ALICE

What this means for your volunteer program

Nonprofits manage one of the nation's largest volunteer forces while operating on razor-thin margins. With 12.8 million paid staff and millions more volunteers, your organization's hiring and volunteer onboarding must balance mission urgency with legal compliance. Best practices matter: Screen volunteers thoroughly to protect your community and your organization's reputation. Character reference checks, identity verification, and background screening are table stakes for any serious volunteer program. Effective background checks take 5–10 minutes per volunteer, cost $5, and use federal FCRA compliance standards.

Recognize the economic value of your volunteers—at $36.14 per hour nationwide, volunteer contributions directly offset tight budgets. Document and report this impact to donors and board members using standardized metrics. Finally, address the wage gap in your own workforce: nonprofit employees earn 10% less than comparable for-profit roles. Strategic hiring, retention bonuses, and transparent pay equity reporting build long-term staff and mission sustainability.

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Download the data

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Frequently asked questions

Q: How many nonprofits employ the 12.8 million nonprofit workers?
A: Over 300,000 nonprofit establishments in the country accounted for 12.8 million jobs , with an average of about 43 employees per organization—larger than for-profit establishments on average.

Q: What's the largest nonprofit employer in the U.S.?
A: Healthcare nonprofits dominate employment. Hospitals, nursing homes, and health services collectively employ about 8.5 million nonprofit workers, roughly two-thirds of the sector.

Q: How does nonprofit employment compare to manufacturing?
A: For the first time, nonprofit employment now equals manufacturing. Retail trade and accommodation and food services are the only U.S. industries that employ more people than nonprofits.

Q: Are volunteer hours captured in the 12.8 million employment figure?
A: No. The 12.8 million figure counts only paid employees. Volunteer hours are tracked separately; an estimated 63 million Americans volunteer 7.7 billion hours each year, which is valued at ~$175 billion annually .

Q: How do I screen volunteers compliantly?
A: Use FCRA-compliant background checks that include identity verification, criminal history review, and sex offender registry checks. Our guide on school volunteer background checks walks through state-specific requirements. VolunteerBadge offers $5 checks with no monthly fees, supporting both compliance and budget sustainability.

Q: Why is there such a leadership diversity gap in nonprofits?
A: The diversity gap reflects decades of historical hiring and promotion patterns, limited pipeline development programs, and smaller organizations' inability to compete with for-profit salaries for top talent. There is more CEO diversity among small organizations compared to large ones. The smallest organizations—with expenses of $50,000 or less—have the highest proportion of CEOs of color, transgender CEOs, and CEOs who identify as having a disability. Representation of these demographic groups steadily declines as organization expenses grow .

Sources & references

Report History:
First published: July 26, 2026
Last updated: July 26, 2026

This is a living report. We refresh employment, volunteer, and demographic data annually as new government statistics are released (typically Q1 and Q3 each year). Volunteer hour valuations are updated by Independent Sector each April. Check back next year for 2027 updates and deeper sectoral analysis. This report is educational, not legal or tax advice; consult qualified counsel on compliance matters.