Most Popular States for Starting a Non-profit in America, Revealed
Wednesday, February 21st, 2024
- West Virginia has the highest percentage of non-profit organizations with 13.04% of all registered businesses.
- Vermont came second with 12.41%, and Iowa came third with 10.86%.
- Nevada had the lowest percentage of non-profit organizations with 3.56%.
A new study has revealed that West Virginia has the highest percentage of non-profit organizations in America.
Business QR code generator site, QRFY, analyzed public data from the US Census Bureau to find the percentage of registered non-profit organizations for each US state throughout 2021. These results were then ranked to determine which states had the highest percentage of non-profit organizations compared to the number of registered businesses.
West Virginia ranked first with 13.04% of all businesses being classified as non-profit organizations. Out of 35,316 total registered establishments, 4,606 establishments were registered as not-for-profit. The annual payroll for all non-profit organizations across West Virginia was found to be $5,028,327,000, with an average of $1,091,690 per business.
Vermont came second with 12.41% of all businesses being classified as non-profit organizations. Out of 20,696 total registered establishments, 2,569 establishments were registered as not-for-profit. The annual payroll for all non-profit organizations across Vermont was found to be $2,856,747,000, with an average of $1,112,007 per business.
Iowa ranked third with 10.86% of all businesses being classified as non-profit organizations. Out of 82,997 total registered establishments, 9,014 establishments were registered as not-for-profit. The annual payroll for all non-profit organizations across Iowa was found to be $7,844,883,000, with an average of $870,300 per business.
North Dakota came fourth with 10.80% of all businesses being classified as non-profit organizations. Out of 24,816 total registered establishments, 2,680 establishments were registered as not-for-profit. The annual payroll for all non-profit organizations across North Dakota was found to be $3,510,761,000, with an average of $1,309,985 per business.
Pennsylvania came fifth with 10.79% of all businesses being classified as non-profit organizations. Out of 304,633 total registered establishments, 32,861 establishments were registered as not-for-profit. The annual payroll for all non-profit organizations across Pennsylvania was found to be $53,484,782,000 with an average of $1,627,606 per business.
Other states that featured in the top ten were Maine, South Dakota, Alaska, Kentucky, and Mississippi.
Nevada ranked last in the study, with only 3.56% of all businesses being classified as non-profit organizations. Out of 73,505 total registered establishments, 2,620 establishments were found to be non-profits.
Marc Porcar, CEO of QRFY commented on the findings:
“It is fascinating to see the extent to which non-profit organizations contribute to the overall number of businesses in each state and their average annual payrolls.
“Non-profit organizations often help to fill the gaps in services that haven't been provided for by for-profit organizations or the government. Given that these figures are taken from the end of the pandemic, this period may have contributed to the registration of more non-profit organizations, to fundraise for those who needed extra support.
“States such as West Virginia and Vermont, which ranked top, have a higher population per square mile, which may foster a greater sense of community and encourage people to be more charitable towards one another, hence making non-profits in these states more sustainable. Hopefully, we will see more public figures released for subsequent years to see whether these trends continue at all.”
