the nonprofit sector & the common good

Nonprofit organizations that are independent, receive voluntary contributions, and do not distribute profits comprise the so-called “third sector” and are positioned between governmental (“first sector”) and business (“second sector”) entities.

The boundaries between governmental, business, and nonprofit sector organizations are intertwined. 

Within American society, nonprofit, or charitable, organizations play an instrumental role in promoting the common good by helping to form and strengthen communities. The large and diverse nonprofit sector encompasses voluntary associations, charitable organizations, community groups, foundations, and a broad range of private organizations.

Organizations that only operate charitable activities are classified under Section 501(c)3 of the Internal Revenue Code. More than 86 million people are invested in the work of over 1 million registered U.S. nonprofit 501(c)3 organizations. These organizations are the focus of our work within the Philanthropy as Civic Engagement course.

The sections that follow offer nationwide, statewide, and citywide snapshots of the nonprofit sector and philanthropic giving.

nonprofit California

nonprofit Los Angeles

philanthropic giving in the U.S.

“Philanthropy” is voluntary giving by an individual or group to promote the common good.

In many cases, philanthropic gifts are made to nonprofit—or charitable—organizations that, in turn, work for the causes of poverty or social problems, thus improving the quality of life for all citizens.

As illustrated below, philanthropic giving comes from multiple sources and supports a variety of activities.