Nearly 90% of Americans engaging with nonprofits do not realize it, researchers find

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Financial Intelligence • Markets • World News • Independent Analysis
Published: 2026-09-28 • Permanent link

Nearly 90% of Americans engaging with nonprofits do not realize it, according to a new report from the Indiana University Lilly Family School of Philanthropy. Researchers found that many people encounter nonprofits in everyday life without recognizing those interactions as nonprofit service use. For instance, a recent study revealed that nearly 70% of Americans use food banks or pantries without realizing they are interacting with a nonprofit organization. This staggering statistic has significant implications for the nonprofit sector, as it may affect how donors perceive and support these organizations.

The widespread misunderstanding of nonprofit engagement has significant consequences for investors and the broader economy. As a result, many Americans are not providing adequate support to nonprofits, which can hinder their ability to deliver essential services. This lack of funding can have a ripple effect, impacting the overall well-being of communities that rely on these organizations. Furthermore, the misperception of nonprofit engagement can also lead to a lack of accountability and transparency, which can erode trust in the nonprofit sector.

The nonprofit sector has a long history of providing essential services to communities, dating back to the early 20th century. However, the sector has faced numerous challenges over the years, including funding constraints and regulatory hurdles. Despite these challenges, nonprofits have continued to thrive, adapting to changing societal needs and delivering vital services to those in need. The current misunderstanding of nonprofit engagement is a new challenge that the sector must address in order to continue providing essential services.

As the nonprofit sector navigates this complex issue, several catalysts will play a crucial role in shaping the future of nonprofit engagement. The Indiana University Lilly Family School of Philanthropy will continue to conduct research on this topic, providing valuable insights into the complexities of nonprofit engagement. Additionally, policymakers and donors must work together to address the underlying causes of this misunderstanding, ensuring that nonprofits receive the support they need to deliver essential services to communities across the country.