Myths About Nonprofits

While nonprofits are all around us, sometimes we find that there are some common misconceptions about what nonprofits are and what they do. Detailed here are some of the more common myths about the sector.

Myth: Nonprofits employ only volunteer labor and don't have employees

The reality: While nonprofits benefit a great deal from volunteers, they also employ more than 12.9 million people - 10% of the American workforce - and contribute nearly $322 billion in wages to the economy. The nonprofit workforce outnumbers the combined workforces of the utility, wholesale trade, and construction industries.

Myth: Nonprofits cannot lobby

The reality: Not only is lobbying a right of nonprofits, it is a duty. While there are strict regulations prohibiting nonprofits from supporting or campaigning against a candidate for office, nonprofits can and should speak up on matters of concern to the organization and the community it serves.

Myth: Nonprofits can't make a profit, so they contribute little to the economy

The reality: In addition to the millions of Americans employed by nonprofits, if the nonprofit sector were a country, it would have the seventh largest economy in the world.