Defining Small Nonprofits:
Whether a
nonprofit or not-for-profit, a charitable organization’s “size” is not determined by its facility, number of staff, or services to the public but by the size of its operating budget. Large organizations have operating budgets in the $10- $50MM range, while organizations with annual budgets of $5MM or less are considered small. Large, nationally affiliated organizations tend to get the lion’s share of public recognition and visibility; however, they are not representative of the U.S. nonprofit sector as a whole. In fact, the
National Council of Nonprofits reports that 92% of organizations within the nonprofit sector are small organizations with annual revenue of less than $1MM. Yet the reality is that
all charitable organizations depend on public and private support (i.e., government or private grants, individual donations, in-kind gifts, volunteers) to achieve their missions, and small organizations often grapple with how to compete in a market publicly dominated by their larger counterparts.