Most nonprofits are relatively small: 97% of nonprofits have budgets of less than $5 million annually, 92% operate with less than $1 million a year, and 88% spend less than $500,000 annually for their work. Thus, the “typical” nonprofit is community-based, serving local needs. It should be no surprise that relatively few nonprofits have an endowment. Indeed, most nonprofits have limited reserves—about 50% have less than one month of cash reserves, according to one analysis of nonprofit financial records.

Nonprofit Impact Matters