As we conclude 2024, I’m proud to reflect on the progress we’ve made together as a community of nonprofit and philanthropic changemakers. This year has been about listening deeply and acting boldly.
By the end of Independent Sector’s Listening Tour in March, I had heard from more than 500 nonprofit and philanthropic changemakers across the country. You shared a clear message: our nonprofit workforce is overextended and under-supported. Despite our sector being the country’s third-largest private employer and contributing over 5% of GDP, 22% of nonprofit workers struggle to afford basic necessities.
Dr. Akilah Watkins
As the national membership organization for the charitable sector, we heard your call to focus on supporting the nonprofit workforce and identifying where we can bring the greatest value to the people and sector we serve.
From Insight to Action
2024 has been about turning insight into action. In September, we released ALICE in the Nonprofit Workforce: A Study of Financial Hardship in partnership with United For ALICE. This landmark report revealed that 22% of nonprofit workers face financial insecurity, struggling to afford basic necessities like housing, food, and health care. These findings underscore the urgent need for collective action and collaboration with policymakers to drive change.
We elevated these issues to the highest levels of government, co-hosting three roundtables with the White House and sector leaders. The first focused on the state of the nonprofit workforce, highlighting the need for better workforce data and actionable solutions to support the people powering our sector.
Our advocacy has led to tangible progress, including the bipartisan introduction of the Small Nonprofit Retirement Security Act by Senators James Lankford (R-OK) and Catherine Cortez Masto (D-NV), which addresses tax credit fairness for nonprofit employers.
But our workforce isn’t limited to paid employees alone. Volunteers are the lifeblood of our sector, bridging nonprofits and communities. While volunteer contributions are immeasurable, assigning a monetary value can help us demonstrate their impact. This year, with IS member Do Good Institute, we announced that the latest value of a volunteer hour is $33.49, a 5.3% increase from the previous year.
Through our 250 & Beyond initiative, launched with IS member National Museum and Center for Service at October’s National Service Symposium, we’re honoring and inspiring the American spirit of service. The selection of Independent Sector as the new home for the Initiative for Strategic Volunteer Engagement reinforced our commitment to shaping the future of volunteerism.
Responding to Challenges
You know that 2024 brought some significant challenges to our sector. Our Health of the U.S. Nonprofit Sector report — released yesterday — shows a troubling trend of declining charitable giving. We continue advocating for an expanded charitable deduction to encourage greater giving and provide nonprofits with the resources they need.
This year, our sector also faced various legislative and legal threats. With IS member Council on Foundations, we provided resources on the Fearless Foundation lawsuit, defending philanthropy’s First Amendment right to give according to our values — including to historically marginalized groups. We also spoke out against H.R. 9495. Independent Sector is committed to stopping bad actors from using our sector to fund terrorism, but we will fight any effort — however well-intentioned — that could compromise the due process rights of nonprofits and make it easier to target individual organizations.
Looking Forward
Through it all, our research shows nonprofits are the most trusted institutions in America, uniquely positioned to bridge divides and drive positive change. But trust alone isn’t enough. To fulfill our sector’s potential, we need fair policies, adequate funding, and greater recognition of our workforce’s challenges and contributions.
As we approach 2025 with a new administration and Congress, I’m hopeful about the opportunities ahead because IS has laid such a strong foundation of bipartisan work. Strong relationships and coalitions are key to successful advocacy for our sector, as we saw in this year’s The Pursuit of Influence report. We’re committed to partnering with the new administration and working with legislators to ensure tax legislation in 2025 helps unlock the full potential of our sector.
This year showed us what’s possible when we listen, collaborate, and act with purpose. I’m grateful for your dedication to building a nation where all people can thrive. Together, we can achieve even more in the year ahead.
Dr. Akilah Watkins is president and CEO of Independent Sector.
