Giving Compass' Take:
- A new study from the Lilly Family School of Philanthropy at Indiana University finds that close to 90% of Americans engaging with nonprofits are not aware of the fact that they are nonprofits.
- How might the nonprofit sector and philanthropy increase public awareness of its impact on communities across the country and globally?
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Many Americans encounter nonprofits in everyday life without recognizing those interactions as nonprofit service use, according to a new report from the Indiana University Lilly Family School of Philanthropy What Americans Think About Nonprofits & Philanthropy 2026. While only 7.4% of respondents reported that they or someone in their immediate family had received or used services from a charitable organization in the past year, 71.9% reported engaging in at least one activity typically provided by nonprofits, meaning nearly 90% of nonprofit users did not initially identify themselves as such.
The report funded by the William and Flora Hewlett Foundation builds on research first conducted in 2023 and returns to core questions about public awareness, confidence, and expectations for the nonprofit sector. It examines whether Americans recognize nonprofits’ role in everyday life, whether they express confidence in the sector, and how policy and current events may shape views of charitable giving and the respective roles of nonprofits and government.
Key Findings at a Glance
- Many Americans interact with nonprofits without recognizing they are doing so. While only 7.4% of respondents reported receiving or using nonprofit services in the past year, 71.9% reported engaging in at least one activity typically provided by nonprofits. In other words, nearly 90% of those who use nonprofit services did not initially identify themselves as having done so.
- Confidence in nonprofits is higher than confidence in many other institutions but remains limited and malleable. Nonprofits were among the groups with the highest levels of confidence, similar to individuals, religious institutions, and future or rising generations. However, only 23.3% of respondents expressed high confidence in nonprofits’ ability to solve societal or global problems. Additionally, 22.7% said their confidence in nonprofits would decrease if a trusted political figure expressed a lack of confidence in the sector.
- While nearly one in five Americans expect to increase their giving in response to the universal charitable deduction, anticipated use of the provision appears more muted as an enacted policy rather than a hypothetical one. More than three-quarters of respondents said their giving would stay the same, while 19% said their giving would increase due to the universal charitable deduction. This is a decrease from 24.4% when compared to the 2023 report, showing that expected increases appear more subdued once a policy becomes reality.
Read the full article about public awareness of the nonprofit sector at Lilly Family School of Philanthropy.