Most people who use a nonprofit do not realize it

Most Americans rely on nonprofits without thinking of them as nonprofits, according to What Americans Think About Nonprofits & Philanthropy 2026, a report from the Indiana University Lilly Family School of Philanthropy released September 25.

Asked directly, 7.4 percent of respondents said they or someone in their immediate family had received or used services from a charitable organization in the past year. Asked about specific activities nonprofits typically provide, such as religious services, museum visits, food assistance, or enrollment at a private university, 71.9 percent said they had done at least one. By the researchers' count, nearly 90 percent of the people who used a nonprofit did not first describe themselves that way.

The report, funded by the William and Flora Hewlett Foundation, repeats a study first run in 2023. Other findings:

• 23.3 percent expressed high confidence in nonprofits' ability to solve societal or global problems, and 22.7 percent said their confidence would fall if a political figure they trust criticized the sector.
• 18.9 percent said nonprofits are more effective than government at meeting basic needs, down from 24.6 percent in 2023.
• 53.5 percent said they did not know whether the sector is headed in the right direction.
• 78.7 percent said foundations should give over time or in perpetuity rather than spend their assets quickly.

Why it matters on the ground

Jon Bergdoll, the report's lead analyst, said the recognition gap shapes whether people donate and how they respond to policies that affect the sector. For a food pantry, an after-school program, or a community theater, the fix is small and repeatable: say the word. Put "nonprofit" on the sign, the flyer, the registration form, and the thank-you note, and tell participants who pays for the service they just used.