2018 State of the Nonprofit Sector Survey

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• Demand Is Rising
• Critical Community Needs
• Real-Time Concerns
• Chronic Challenges
• Financial Resilience
• Stepping Up: Addressing Racial Inequity
• Forward Momentum: Actions Taken
• Measuring What Works
• Data for Change
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NFF’s Survey gathers data and stories from thousands of nonprofit leaders across the country who support and enrich millions of lives across the US. We partnered with the Local Grantmaking Program at The David and Lucile Packard Foundation to take a closer look at grantee findings compared to national respondents. The grantee and national data provide insights into trends among nonprofits as well as the impact of real-time developments and concerns, which ultimately inform the Local Program’s strategies and grantmaking decisions.

Grantees comprised 112 of the 3,369 total Survey respondents that gave voice to:

• Familiar, chronic challenges plus real-time concerns
• Actions taken and planned to keep moving forward
• Intense worry about the vulnerable people they serve

The Survey is a widely cited barometer of US nonprofits’ financial and operational health, a collective megaphone for thousands of nonprofits nationwide, and a crucial evidence base for a wide array of sector funding discussions. There are many ways leaders can use Survey data, and we encourage you to visit the Survey Analyzer to explore the full data set and filter the results yourself.

The analysis and charts below compare national results with responses from Packard grantees.

When nonprofit leaders took the Survey in January-February 2018, they anticipated increased demand for services in 2018, and many didn't think they could keep up.

Nonprofits serving low-income communities are finding it even harder to meet demand, with 65% of national respondents and 74% of grantees saying they can't keep up.​

Affordable housing, youth programs and services, and education are still identified as top community needs, similar to Packard grantee responses in the 2015 Survey.

"The nonprofit sector does the difficult work of solving deep, persistent, and growing issues of poverty without adequate resources. Investing in solutions that improve the lives of marginalized and vulnerable community members will ultimately "save" the community money."

CA Housing/shelter nonprofit

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The majority of respondents said that 2017 federal policies and positions made their clients’ lives harder.

"Fear in the immigrant and communities of color has affected their/our mental health and ability to focus in schools, work, healing, etc. We have seen more hate crimes and indirect racism in our community which impacts the community's overall health."

CA Human services nonprofit

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Similar themes emerged in 2018 as in 2015 around top operational, financial, and staffing challenges for grantees and national respondents.

There is a need to invest in the human capital* of the nonprofit sector.

"It is a vibrant sector that should have more investment in the leadership pipeline. We are more than a few little charities. We are the sector that ensures the quality of life of our country's citizenry."

CA Arts & culture nonprofit

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Grantees demonstrated strong financial management, with the majority reporting break-even operating results or a surplus for FY2017.

• The majority of grantees also reported having 3 or more months of cash on hand (55% of grantees had between 3-6 months of cash, and 21% had more than six months of cash on hand). Nationally, 44% of respondents had between 3-6 months of cash, and 25% had more than six months of cash on hand.
• 64% of grantees have reserves – separate from cash on hand – specifically designated for emergencies and/or opportunities, compared to only 53% nationally.

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Grantees are addressing racial inequity at even higher rates than national respondents. As shown below, 73% of grantees proactively address racial inequity, and among those, 52% said this focus increased in the past year.

Grantees also have more leadership diversity compared to national respondents, though people of color are consistently underrepresented across all respondents.

Executive Director/CEO/Managing Director identifies as:

• Female, 69% of grantees, 62% nationally
• A person of color, 21% of grantees, 17% nationally 
• A member of at least one of the communities my org serves, 56% of grantees, 43% nationally

More than half of board members identify as:

• Female, 56% of grantees, 46% nationally
• A person of color, 12% of grantees, 17% nationally
• A member of at least one of the communities my org serves, 51% of grantees, 49% nationally

More than half of senior leadership identify as:

• Female, 72% of grantees, 61% nationally
• A person of color, 28% of grantees, 20% nationally
• A member of at least one of the communities my org serves, 55% of grantees, 43% nationally

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Amid chronic funding challenges and uncharted political waters, nonprofit leaders are as determined as ever to create positive social change. Grantees are even more proactive than their peers nationally in partnering with other organizations, increasing staff and staff pay, and expanding programs.

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Grantees appear to be ahead of the national curve in an increasingly outcomes-focused sector.

• 86% of grantees collect measures of service impact compared to 75% nationally
• 70% of grantees have staff dedicated to collecting/analyzing data compared to 61% nationally
• 91% of grantees use data to inform decision-making compared to 79% nationally

"Data-driven decisions are critical. Having the infrastructure to use data is important, however most nonprofits don't have the financial resources to invest in positions with this expertise."

CA Employment/workforce development nonprofit

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For more grantee data analysis, you can access a special webinar hosted by The David and Lucile Packard Foundation at this link (password is P@ckard321), and presentation slides here (click “Download” on the upper right corner of the screen).

We are grateful to the thousands of nonprofit leaders who took the time to share their stories, challenges, and successes in our 2018 State of the Nonprofit Sector Survey, as well as the hundreds of partners, funders, and supporters who stand behind the survey along with NFF.

Learn more about the Survey here and explore the full dataset on our Survey Analyzer.

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*Note: NFF now uses "people and skills" in place of the term "human capital" to describe the abilities, values, and perspectives people bring to an organization beyond their contribution to the organization's bottom line.