The IRS, in its 2007 Data Book, recently reported that the number of nonprofits--501(c)(3)organizations-- increased by 6% between 2006 and 2007. This is the highest percentage in several years. The actual number went from 1,064,191 to 1,128,367 for an increase of 64,176.
The rapid growth in the nonprofit sector has been the subject of much debate in recent years with pundits weighing in on all sides of the issue. Do we have too many? Can you ever have too many organizations serving the public good? Is the fundraising pie large enough to accommodate all of these nonprofits? Is redundancy and repetition weakening the sector?
Here are some articles we tracked down that debate the issue:
- The Nonprofit World: Its Size and Scope. Chronicle of Philanthropy (subscription required). This is a comprehensive rundown of the stats about the nonprofit sector, published earlier this year.
- Do We Need 85,000 New Charities? Somebody Thinks So. From the Charity Governance Consulting website about the number of applications the IRS received for 501(c)(3)status between 2006 and 2007.
- Too Many Nonprofits? Let 85,000 Flowers Bloom! From the Donor Power Blog in reaction to concerns that there are too many nonprofits expressed in the article just above.
- Are There Too Many Charities?
Interesting piece from last year on White Courtesy Telephone, a popular blog about the third sector.
We would like to hear your opinion too. Let us know if you think there are too many nonprofits and why in the comments section.
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Comments
“Are there too many non-profits?” is the wrong question.
“Are all the world’s problems solved yet?” is a better question, and until that answer is yes, the answer is the first question is “No.”
Besides, I think the 1.4 million overstates reality by at least 200,000. My prediction that as the new IRS regulations kick in that require all nonprofits to register, there will be a significant decline in the number of active non-profits. Some percentage of the 1.4 million are ones that formed 20 years ago (or 3 years ago) and declined, or never really got off the ground.
Bill Huddleston, CFC ExpertBillHuddleston@verizon.net
http://www.cfcfundraising.com
blog:www.cfctreasures.wordpress.com
This assumes that non-profits are the solution to the world’s problems. Until that assumption gets questioned, there will be continued proliferation of these largely ineffective organizations created.
But think of the number of churches that are not included in that number, but are nonprofit.