January 2023

State of the nonprofit sector

Key takeaways

  • A recent survey by Nonprofit Finance Fund (NFF) collected insights from nonprofit leaders across the U.S. about the impact of the past two years – from the pandemic to events that sparked calls for racial justice. The resulting 2022 State of the Nonprofit Sector (“the report”) shared what leaders had to say about how their nonprofit organizations have been faring and the investments they need to secure their long-term futures.
  • At the time of the survey (between January 19 and March 4, 2022), many nonprofit survey respondents indicated they are in a stronger financial position than pre-pandemic, but the picture isn’t all rosy. Nonprofits face familiar financial challenges: achieving long-term financial sustainability, covering the full costs of their operations, and raising unrestricted funding are foremost among them.
  • In addition to responding to COVID-19, nonprofits have also been on the frontlines of the movement for racial justice and equity. The vast majority (95%) have taken actions to address diversity, equity and inclusion (DEI), however, certain funding practices remain inequitable. According to NFF, this can be aided by retaining and accelerating changes instigated by the pandemic, including more flexible or unrestricted funds or streamlined application processes.


Read our full analysis for a more in-depth look at these trends.