by Dr. Kevin Dean, President & CEO, Tennessee Nonprofit Network
Have you interacted with a nonprofit today without even realizing it? Consider this: from the moment you wake up and perhaps tune into your local NPR station for the morning news, to the educational programs your children attend, the cultural enrichment you experience at a museum, the YMCA where you work out, or even the healthcare services you access at a community clinic – chances are, your day is already deeply interwoven with the work of nonprofit organizations. These entities, often operating quietly in the background, form an invisible yet indispensable framework that shapes our lives in countless ways.
We inhabit a world subtly yet profoundly orchestrated by the tireless efforts of nonprofit organizations. While often operating behind the scenes, away from the clamor of the for-profit sector, these entities form the very bedrock of our society, influencing how we learn, interact, and thrive. The sheer scale of their presence is staggering: 1.8 million nonprofits actively shape the landscape of the United States alone. They are not mere peripheral actors; they are central to our existence.
Consider the evidence. A remarkable 12.8 million individuals are employed by these organizations, representing a significant 9.9% of all private-sector jobs across the nation. This figure eclipses the entire manufacturing sector, a traditional powerhouse of the American economy. Furthermore, the economic impact of nonprofits is immense, generating a staggering $3.3 trillion annually. These are not marginal contributions; they are foundational pillars supporting our economic well-being. If you take away the nonprofit sector, you could easily tank the economy!
Look closer at the institutions that permeate our daily lives. Did you know these organizations are nonprofits? The familiar voices and insightful programming of your local NPR and PBS affiliates? They are likely arms of nonprofit organizations, dedicated to public service and enriching our understanding of the world. Library foundations save you tax dollars by supplementing tax dollars to provide additional support to libraries across Tennessee. Hospitals like Vanderbilt University Medical Center, St. Jude Children’s Research Hospital, and LeBonheur Children’s Medical Center are nonprofits. When you work out at the YMCA, you’re actually supporting a nonprofit that has community-based programming for kids. Many nursing homes and hospice care centers are nonprofits. Have you ever ordered catering from Nashville Food Project? That’s a nonprofit. Have you visited Ijames Nature Center? Nonprofit. Shelby Farms Park? Run by a nonprofit, Shelby Farms Park Conservancy. Overton Park in Memphis? Run by Overton Park Conservancy, a nonprofit. Frist Museum? Nonprofit.
Our cultural and intellectual landscapes are equally shaped by the nonprofit sector. The awe-inspiring collections and educational programs offered by museums and the vital conservation efforts undertaken by zoos and botanic gardens are largely the domain of nonprofit organizations, enriching our understanding of art, history, and the natural world. Even the thought-provoking and globally accessible ideas disseminated through TED Talks originate from a nonprofit foundation, dedicated to spreading knowledge and sparking dialogue.
It’s crucial to move beyond the notion that we merely “benefit” from the nonprofit sector. Yet, a fundamental disconnect persists in how we perceive and support these vital entities. Nonprofits are often expected to tackle the most pressing societal challenges – poverty, inequality, environmental degradation, healthcare access – with the financial constraints typically associated with a fledgling startup. They operate on what is effectively a shoestring budget, facing a starkly different reality than their for-profit counterparts.
The typical avenues for growth and expansion in the commercial world are largely unavailable to nonprofits. There are no investor rounds to inject significant capital, no unlimited advertising budgets to amplify their message and reach, and critically, often no margin for error in their tightly controlled finances. They are constantly navigating a precarious tightrope, balancing the complexities of intricate grant applications with intense public scrutiny regarding administrative costs and the relentless pressure to demonstrate tangible impact with every single dollar spent.
This already challenging environment is now facing increasing headwinds. The recent $400 million funding cut to AmeriCorps serves as a stark reminder of the vulnerabilities within the sector. This single decision led to the termination of nearly 1,000 vital community programs and directly impacted over 32,000 dedicated members, diminishing the capacity of communities across the nation–and Tennessee!–to address pressing local needs.
Compounding this crisis, at least 14,000 nonprofit jobs have been lost since the beginning of 2025 due to federal budget cuts, further straining the capacity of these organizations to fulfill their missions. We’re also seeing executive orders and unexpected cuts to important organizations like NPR, libraries and library foundations, hospitals, and food banks.
The consequences of struggling nonprofits extend far beyond the organizations themselves. When these vital entities falter, it is not simply their loss; it is a collective detriment to our society. Our classrooms, often supplemented and supported by nonprofit educational initiatives, suffer. Our healthcare systems, reliant on community health centers and other nonprofit providers, face increased strain. And ultimately, our communities, the very fabric of our social connections and support networks, are weakened when the organizations that bind them together are undermined.
Nonprofits are not simply charitable endeavors; they are integral components of our societal infrastructure, quietly, diligently, and relentlessly upholding systems that we often take for granted. They are the unseen pillars that support our education, health, and community well-being. And even the organizations that you may think don’t serve or support you actually make your life better.
Ultimately, the prevailing mindset needs to shift. We must move away from the mindset that “nonprofits serve people over there.” They serve us, and they serve our communities. This subtle yet pervasive distancing – the notion that nonprofits address needs somehow separate from our own daily realities – is a fundamental misunderstanding of their role. It fosters a sense of detachment, a belief that their struggles are not inherently our concern. This couldn’t be further from the truth. The “people over there” often include our neighbors, our children’s classmates, our family members, and indeed, ourselves at different points in our lives. The services provided by nonprofits are not confined to some distant, abstract population; they are woven into the fabric of our local communities, directly impacting the quality of life for everyone. When a local food bank supported by a nonprofit ensures that families in our town don’t go hungry, that directly strengthens our community’s well-being. When a nonprofit after-school program provides a safe and enriching environment for children, it contributes to the development of future generations within our own neighborhoods. When a nonprofit environmental organization works to protect local waterways, it safeguards the health and beauty of the environment we all share. To view nonprofits as serving a separate entity is to ignore the interconnectedness of our society and the vital role these organizations play in fostering healthy, vibrant, and equitable communities for all of us. Their mission is not an altruistic endeavor detached from our lives; it is an investment in the collective well-being that directly benefits each and every one of us.
Because at the end of the day, the truth is undeniable: we do not simply benefit from the work of nonprofits; we are fundamentally and inextricably dependent upon them for the health, well-being, and vibrancy of our society. Their struggles are our struggles, and their success is intrinsically linked to our own. It is time we recognize their true value and invest in their future with the same dedication and unwavering support they so consistently provide to us.