The United States has a long history of volunteerism and charitable service that precedes the founding of the country. For more than 200 years, American citizens have identified needs and found ways to serve their neighbors and communities during times of crisis and change.

That drive to help others continues today; it’s an important component of the American way of life. Nonprofit organizations also play a pivotal role in community and economic development, providing indirect benefits to those outside the target audience.

Nonprofits in the United States: A Brief History

Nonprofit efforts and organizations in this country developed in response to human needs and a desire for change.

1700s

• 1736: Benjamin Franklin founded the Union Fire Company with 26 volunteer firefighters after a ship burned down a wharf, warehouse and housing.
• 1775: The Society for the Relief of Free Negroes Unlawfully Held in Bondage was an abolitionist group that’s considered one of the first social impact organizations
• 1773-1783: Civilians volunteered to fight in the Revolutionary War while others raised money and boycotted British goods to support the cause.

1800s

• 1851: Young Men’s Christian Association promoted Christian principles, education, athletics and humanitarian work
• 1867: The Peabody Foundation was founded to integrate poor white and previously enslaved individuals in the South.
• 1881: Clara Barton established the American Red Cross and mobilized the first large-scale volunteer effort during the Johnstown Flood of 1889.

1900s

• Early 1900s: Many nonprofit organizations developed during the Progressive Era, which centered on social and political activism.
• 1940s: World War II and interwar periods saw extensive volunteerism as American civilians reduced their consumption and sent supplies overseas.
• 1969: The federal government passed the Tax Reform Act, establishing 501(c)3 classifications and tax exemptions for nonprofits.

2000s

• 2001: Roughly 250 nonprofit groups were created following the September 11^th terrorist attacks to support individuals and communities.
• 2012: The first Giving Tuesday was launched to encourage Americans to donate during the holiday season.

Why It’s Important to Support Nonprofits

Personal Impact

Donating funds, time, effort and skills to a nonprofit organization can help individuals who face hunger, natural disasters, displacement and other life-altering events. The United States has more than 1.3 million charities that provide food, shelter, education and support to people from all walks of life.

Some organizations serve a broad audience, while others target a niche group that faces a specific challenge. Donations also help organizations run their operations, pay rent and utilities and support growth. That allows them to better serve those in need.

Community Impact

Nonprofit organizations can unite people behind a common cause and inspire positive change, becoming the foundation of a healthy community. Improving the lives of all can lead to a more fulfilling community environment.

That also builds social capital by strengthening interpersonal networks and connecting individuals from different backgrounds. Working with or volunteering for a nonprofit also encourages problem-solving and innovation that can produce far-reaching community benefits, such as environmental efforts and educational reform.

Economic Impact

The nonprofit sector adds $1 trillion in gross domestic product annually to the U.S. and employs 10% of the workforce. Most charitable organizations have full-time staff, contributing to employment rates and economic growth.

Supporting nonprofits can stimulate local economies, encourage transactions of goods and services and promote economic development. Supplying healthcare, social welfare and education services to those in need also helps manage the demand for government programs.

Nonprofit Marketing Services in Toledo, Ohio

MadAveCollective offers comprehensive marketing services to optimize your charitable efforts. You can select individual services or take advantage of a full suite of marketing programs that can help you achieve your goals. Contact our team to learn more.