How Do Nonprofit Organizations Help the Community?

Nonprofit organizations are essential community resources that provide critical services and contribute to a more just and equitable society.

While it is widely understood that nonprofits are important community institutions, it can sometimes be confusing figuring out what exactly nonprofits do and how they help their communities.

In this article, we will provide a basic overview of the significance of nonprofit organizations for communities, the services they provide, and their overall impact.

Let’s dive in!

For almost two centuries, nonprofit organizations have formally existed to dismantle systems that cause harm, fill in service gaps that are not covered by the public sector, and provide aid to those in the community who need it most.

Charitable giving and aid has existed in one capacity or another since human civilization began. According to researchers, an innate desire to help others exists in all of us regardless of identity, social status, or cultural background.

Officially, the nonprofit sector can trace its beginnings back to the Civil War.

The United States’ first nonprofit organization, the Peabody Education Fund, was established in 1867 to help integrate recently freed ex-slaves and poor White people living in southern states and to provide intellectual and industrial education.

The Peabody Education Fund sought to address gaps in services that were not being readily or adequately provided by the public sector.

Today, the nonprofit sector continues to act as an important public service partner that addresses societal issues that—for a variety of reasons—are not being solved by the private or public sectors.

Unlike entities in the private sector, nonprofits do not make a profit and instead reinvest revenue back into their organization in support of their mission.

Since nonprofit organizations do not generate profit and instead use their revenue to provide important resources and services to the public, nonprofits can receive tax-exempt status or 501(c)3 designation as defined by the IRS.

Even if you have not gone out of your way to access services from a nonprofit organization, chances are you have been impacted in some way by a nonprofit’s work.

For example, are you currently living in the Midwest or have you spent significant time at one of the Great Lakes?

If so, it is very likely you have benefitted from the work of the Alliance for the Great Lakes, a nonprofit working to protect the lakes from pollution, ensure clean drinking water for the region, and educate the public about Great Lakes conservation.
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Or maybe you have donated blood, required services during an emergency, or have taken CPR/AED courses.

If so, you have likely interacted with the American Red Cross, an almost 140 year old nonprofit that provides disaster relief, manages blood donations, provides training and certifications including CPR/AED and water safety, and engages in international emergency responses.
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The Alliance for the Great Lakes and the American Red Cross are only two examples of many nonprofits that are working to benefit broader society through their work.

Every day, millions of people in the United States and across the world experience food insecurity, homelessness, racism, and barriers to basic necessities and resources that are crucial to live a healthy life.

Nonprofits exist to fill in these critical gaps in their communities. Keep reading to learn more about the different services provided by nonprofit organizations in the U.S. and abroad.

To understand how nonprofit organizations help their communities, it is important to learn about the different types of services that they offer.

According to the IRS, nonprofit 501(c)3s are defined as “Organizations that are organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, educational or other specified purposes.”

Today, there are millions of nonprofit organizations operating throughout the world that fall under that definition. Together, these organization provide advocacy, services, and resources across disparate societal domains, including:

• Racial justice
• Housing
• Food Access
• Water Access
• Arts and Culture
• Legal Services
• Animal Care and Advocacy
• Workforce Development
• Education
• Policy
• Research
• The Environment
• Healthcare
• And many more.

If you can think of a problem impacting your community, it is very likely that there is a nonprofit organization that is working tirelessly to find a solution to address that issue.

The following are just few of examples of key service areas managed by nonprofit organizations:

Social Services 

One of the most notable service areas covered by nonprofit organizations is social services. Many nonprofits provide comprehensive case management services and connections to community resources to help low-income individuals and families achieve self-sufficiency.

Social services are wide reaching, covering a variety of program areas. Some such services provided by social service nonprofits are:

• Access to food/food banks
• Homeless shelters and housing services
• Education
• Workforce development
• And many more.

For example, RISE is an organization that provides vital social and human services to individuals living with a disability and/or mental illness, individuals experiencing homelessness, and people with criminal records who live in Minnesota and western Wisconsin.

Like many other social service and human service nonprofits in the United States, RISE is helping to uplift individuals in their community who are marginalized and experience barriers to care and basic necessities.
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Legal Services and Advocacy

Many populations require services beyond direct case management and care, requiring legal advocacy and support to combat powerful and complex government and legal systems, many of which are oppressive and harmful.

RAICES is a nonprofit that primarily provides legal services to refugees and immigrants, but that also provides bond assistance, social programs, education, and advocacy on behalf of immigrant communities.

Many nonprofits will extend their services to advocate for policy change to address the problem they are working to solve at its root.
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Arts and Culture

While many nonprofits provide vital social services to underserved populations, other nonprofit organizations take the form of cultural and educational organizations, many of which you may recognize as popular institutions in your area.

Museums are one of the primary nonprofit entities that provide these types of services and resources to their communities. Museums act as hubs for people of all ages to learn about the world around them, view art, and connect with their own history and the histories of societies from across the globe.

According to recent data from Cause IQ, there are over 8,000 museums operating in the United States including science and technology museums, art museums, history museums, and children’s museums.

The American Museum of Natural History in New York City provides individuals and families with key educational experiences that they would otherwise never receive. Through its diverse exhibitions and programs, the museum promotes critical and creative thinking as well as scientific research and education.
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Youth Services and Programs

Other nonprofits provide key programming to children and youth.

Some nonprofit organizations manage community centers, provide after school and summer programming, and provide social emotional learning services for children to support them outside of school.

For example, many young girls benefit from services and programming provided by the Girl Scouts of the USA.

The Girl Scouts encourage community and friendship among young girls, provide unique activities, teach leadership skills, and promote civic responsibilities. As of 2022, the Girl Scouts had approximately 2.5 million girl and adult members worldwide, and more than 50 million women alive today have participated in the Girl Scouts at some point in their lives.
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Curious about nonprofit organizations in your own community? You can identify important nonprofit institutions in your area by connecting with your local government or searching online utilizing nonprofit and charity tools like Guidestar.

As illustrated above, nonprofit organizations have touched almost every aspect of our society.

Today, in the United States alone, there are over 1.5 million nonprofits providing a variety of services and programming, and worldwide, there are a whopping 10 million nonprofit organizations.

Most nonprofits are eager to tell their supporters and communities about the impact of their work.

Many nonprofit organizations will publish an annual report, detailing their yearly financials and key achievements made throughout the past year. To really understand how nonprofit organizations are impacting their communities everyday, it is helpful to review major nonprofits’ annual reports and read about how they are making a positive change.

For example, Feeding America releases an annual report that details the scope of their work and the number of individuals impacted by their services. They use their annual report to communicate to funders how helping people in America access life sustaining food helps not only the people accessing their services, but contributes to a more just and equitable society for everyone.
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Nonprofit organizations are vital community assets. Nonprofit organizations help the communities where they work everyday, making powerful and positive impacts on individuals, families, and society as a whole.

Want to learn more about how the nonprofit sector is impacting the lives of people across the country and throughout the world? Visit Instrumentl today to learn about the nonprofit sector, nonprofit management, and receive guidance on how to effectively start and lead your own nonprofit organization to long-term stability and success.