The nonprofit sector is growing in San Diego County and so is its impact, with local nonprofits making significant contributions to the region’s health, economy and overall quality of life and responding to urgent challenges in healthcare, housing and more, according to a new report.
The annual State of Nonprofits and Philanthropy report by the Nonprofit Institute at the University of San Diego assesses the health of the local nonprofit sector and its ability to meet the needs of San Diegans.
The report outlines the strength and impact of nonprofits in San Diego County and draws from a variety of data sources, including quarterly polls of San Diego residents, an annual survey of nonprofit leaders, a survey of local foundation leaders, the most recently available IRS tax filings from nonprofits and philanthropic organizations, and data on nonprofit wages and job postings.
Highlights of the report point to several trends in San Diego’s nonprofit sector, including a growing number of nonprofits serving the community. The full report will be released in January.
The nonprofit sector expanded by 14% between 2017 and 2022, with 13,172 organizations now serving the San Diego area — up from more than 12,000 identified in last year’s report. The region’s nonprofit sector now employs over 106,000 individuals, representing 8% of private employment, according to the report.
The report also notes the important role nonprofits play during natural disasters and other crises, including flooding that devastated several San Diego neighborhoods in January. Local government agencies and corporations turned to nonprofits to deliver critical support to affected residents.
“While agencies provided funding and logistical support, nonprofits like the San Diego Refugee Communities Coalition utilized their deep community connections to identify and reach those most affected, ensuring that food, shelter and medical assistance reached residents in need,” said Tessa Tinkler, director of research at The Nonprofit Institute.
“This collaboration underscores the unique role of nonprofits as trusted intermediaries capable of upholding our community in times of crisis,” she said.
Still, the reach of nonprofits goes far beyond such incidents, extending to every corner and community in the region, according to the report.
For instance, 81% of San Diego residents surveyed said they benefited from a nonprofit in the past year. Nearly half said they engaged with nonprofits dedicated to health, arts and environmental causes, including hospitals, theaters, museums, animal shelters and conservation groups.
Trust in nonprofits continues to be a strong point. The poll also found that 81% of San Diego residents surveyed said they hold nonprofits in high regard – outpacing their confidence in corporations (67%) and government agencies (56%). Respondents cited the commitment of nonprofits to public welfare, quality service and positive social change.
Meanwhile, two-thirds of San Diegans polled said they believe in the importance of giving back, with 41% volunteering and 44% donating to nonprofits in 2024’s second quarter. These contributions are essential for nonprofits to meet the growing needs across the region.
Still, challenges appear to be on the horizon. Laura Deitrick, the institute’s executive director, said government funding is expected to drop in the coming year amid upcoming policy changes, so nonprofits will increasingly be called on to step into the expanding gap between what government funding provides and what communities actually need.
“At a time when the government is forecasting significant spending cuts, nonprofits will be relied upon to provide more essential services,” Deitrick said.
That is cause for concern because individual charitable donations are on the decline even as the demand for services grows. Donations from individuals fell 2.4% in 2023 compared to the previous year, according to Giving USA, an annual report on the sources and uses of charitable giving in the United States. The report is based on research conducted by the Indiana University Lilly Family School of Philanthropy.
Deitrick said recent surveys also indicate a continued decrease in individual donor support as households grapple with inflation and economic uncertainty.
Still, she pointed to the historical resilience of San Diego’s nonprofit sector in times of economic and social turbulence. Research has found that during past crises—such as the 2008 financial downturn and the COVID-19 pandemic—nonprofits consistently stepped up to address urgent needs.
“The sector will rise to the occasion as it has in other turbulent times, but it will need greater support from individual donors,” Deitrick said. “It’s a critical moment for San Diegans to recognize the importance of supporting the nonprofits that so deeply impact their lives.”
Dietrick said the institute is committed to raising awareness of the essential contributions nonprofits make to San Diego.
“Our purpose is to produce research that helps San Diegans recognize the breadth and depth of an often unseen collection of organizations that surrounds and supports their daily lives,” she said.
Methodology: About the data
The listing of nonprofits provided in this year’s guide is based on IRS public data records compiled and verified by The Nonprofit Institute, University of San Diego, and DataLake Nonprofit Research.
These lists are limited to 501(c)(3) Public Charities. Organization size and rank were assessed by combining revenue and assets as reported on the most recently available IRS Form 990 / 990ez.
Classifications/groupings were determined using the National Taxonomy of Exempt Entities (NTEE) codes, an IRS classification system for nonprofits. The organizations listed were identified and ordered by mission and program statements, total revenues, expenses, and assets reported by each organization for circa tax year 2022.
Note: These data are self-reported and subject to change; they may contain errors, omissions and discrepancies. These lists do not serve as an endorsement of any organization.
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