By The Numbers
Facts about the Nonprofit Sector

For better or for worse, nonprofits are closely scrutinized in the United States. On one hand, data is plentiful for those who want to see the big picture, and we’ll take a look at some interesting figures below. On the other hand, this scrutiny can lead to harsh criticism or lawsuits over the work nonprofits do. Take a look at the facts below to get a better understanding of the nonprofit world and to help you make insurance decisions.

Nonprofits Are Financial Powerhouses in Their Own Right

Nonprofits Are Financial Powerhouses in Their Own Right

5.3%
of the GDP in 2014 came from nonprofits.
9.2%
of all US wages and salaries in 2010 were provided by nonprofits.

According to the National Center for Charitable Statistics Quick Facts page New browser window icon., nonprofits accounted for 5.3 percent of the GDP in 2014 and 9.2 percent of all wages and salaries paid in the United States in 2010. This shows that just because nonprofits aren’t moneymakers in the traditional sense doesn’t mean they’re strangers to money. In fact, according to the same source, their total revenue in 2012 amounted to more than $1.65 trillion. Because of this, nonprofits might sometimes be seen as easy targets for cash-grab lawsuits. To defend against these frivolous cases, it’s a good idea to have policies like General Liability Insurance to cover legal expenses.

When Raising Funds, Individual Donors Are King

When Raising Funds, Individual Donors Are King

72%
of contributions to nonprofits were from individuals.
15%
were from foundations.
7%
were from bequests by the deceased.
6%
were from corporations.

The National Center for Charitable Statistics also tracks the sources of charitable giving New browser window icon.. What it found is that the majority of nonprofit donors are individuals and their contributions make up over 21 percent of total nonprofit revenue. For your nonprofit, that percentage might be much, much higher. Maintain a good reputation to attract donors and keep them interested in your cause. Spend wisely, focus on the mission, and when throwing fundraising events, carry Special Event Insurance to protect your organization and the attendees you depend on.

Board Members Are Easy Targets for Lawsuits

Board Members Are Easy Targets for Lawsuits

48%
of nonprofits had a D& O claim in the past 10 years.
73%
of those claims were employment-related.
23%
were regulatory.
13%
were fiduciary.

When it comes to running a successful nonprofit, your directors, officers, and board members can make all the difference. Attracting high-quality talent to run your organization is crucial, especially as your NPO grows. Unfortunately, individuals who take on this responsibility assume lots of personal liability, and the risk is very real. In a report on directors and officers liability New browser window icon., consulting firm Towers Watson found that 48 percent of nonprofits experienced claims against directors and officers. Protect your talent with Directors and Officers Insurance to ensure those key players stick around.

Grab-n-Go Information

Nonprofit Risks eBook
Certainty in Uncertain Times - A Nonprofit’s Guide to Risk Management
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