Bridgespan Study Finds Dramatic Increase in Number of US Nonprofits with Annual Revenues of More than $50 Million

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) February 16, 2012 -- BOSTON, MA-February 16, 2012- A recent study by the Bridgespan Group found that the number of U.S. nonprofits with annual revenues of more than $50 million has increased dramatically. The research looked at the more than 200,000 nonprofits (excluding hospitals and universities) founded since 1975 and identified 201 that had grown to at least $50 million in annual revenue. (The full list is available at: www.bridgespan.org/how-big-nonprofits-get-bigger-data.aspx)

According to Peter Kim, a Bridgespan manager who worked with Bridgespan partner and co-founder Jeff Bradach on the research, “Although this represents a tiny fraction of nonprofits that sought mission driven growth, it represents a 40% increase in the number of nonprofits this size since 2007, when we published a similar study.”

The research, described in detail in “Why More Nonprofits are Getting Bigger,” (http://www.ssireview.org/articles/entry/why_more_nonprofits_are_getting_bigger) identified four key themes to provide insight into what is now shaping the growth on nonprofits:
• Single engine growth: Nonprofits are concentrating, rather than diversifying, funding efforts, relying on a dominant funding source, such as government or corporations, to drive growth.

• Heavyweight stability: In looking at the revenue mix of nonprofits that appeared in both the 2003 and current study, none of the organizations underwent a major change in their dominant funding source.
• Magnet fields: Certain fields attracted increased amounts of funding: international, health care and human services—even though they make up only one quarter of the sector.
• Bigger bettor philanthropy: Although only a handful of the 201 over $50 million group had foundations as a dominant funding source, foundation funding did play a key role in turning small and medium size nonprofits into large ones. Moreover, individual philanthropists willing to invest heavily in the early stages of the organizations’ development also fueled growth.

“Much has been made of the proliferation of nonprofits, but our research shows that the biggest nonprofits got bigger. Though the jury is still out on whether scaling organizations will translate into scaling impact, the evolution of this $50 million-plus class of nonprofits will clearly influence how the sector as a whole will grow and change—and how many of society’s most important challenges and opportunities will be addressed,” said Peter Kim.

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