Philanthropy Roundtable’s Government Affairs Associate Patterson Tanner’s blog “Dispelling Myths: The Truth Behind the Growth of the Nonprofit Sector,” was recently published at DonorsTrust. In her piece, Tanner discusses the Roundtable’s recent research paper, “Growth of the Nonprofit Sector: More Charities, Better Solutions” that highlights the tremendous growth of nonprofits and cautions against perceptions that growth in this sector stems from political advocacy organizations.
Highlights from “Dispelling Myths: The Truth Behind the Growth of the Nonprofit Sector,” published at DonorsTrust:
“Earlier this year, the Roundtable released a comprehensive research paper outlining the growth of the nonprofit sector in recent decades. Recently, nonprofit growth has caught the attention of lawmakers and sector leaders concerned with improper foreign influence in election activity.”
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“While it’s crucial for lawmakers to address legitimate concerns, particularly regarding organizations linked to hostile foreign governments or terrorist groups, legislators must be careful not to impose overly broad solutions. Such measures could unintentionally harm the vast majority of nonprofits that are doing important work in their communities.
Our analysis provided an in-depth review of growth patterns in the sector, granularly exploring the various types of nonprofit organizations. We also analyzed employment growth in the sector by breaking out nonprofits into subsectors.
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“Contrary to concerns about increased political advocacy, the number of 501(c)(4) organizations has declined by 46% from 2022 to 2023, while the vast majority of 501(c)(4) organizations don’t even engage in any political activity or policy advocacy. What’s more, data indicate a broad sectoral decline in nonprofit advocacy. Many nonprofits are unaware of their legal ability to educate and lobby, which has led to a 31% decline in participation in important policy debates, thereby impacting their role in civic engagement.”
Continue reading, “Dispelling Myths: The Truth Behind the Growth of the Nonprofit Sector,” at DonorsTrust.
