From improving and saving lives to bolstering local, state, and national economies, we know that nonprofits matter. But running a nonprofit in Texas is both a rewarding and challenging endeavor. The number of nonprofits continues to increase year after year. There are more than 130,000 nonprofits across the state of Texas. The sector has grown by 22 percent between 2015 and 2022. In fact, one in 20 people in Texas are directly employed by a nonprofit. Revenue, however, lags far behind this growth, which stifles full impact potential. Factors that limit revenue growth include the shifting trends in giving and economic uncertainty.

This Built for Texas report (2023 Edition) provides an update on the original report published in 2020. Many of the findings draw upon research through 2019, the most recent year with available data. This report, nonetheless, sheds light on the typical nonprofit in Texas which is small but mighty. Smaller nonprofits may be forced to manage an increasing demand for services in the face of stagnant revenue. This report also highlights the evolving challenges facing rural nonprofits. Rural regions tend to have less access to locally based funders and receive nine cents per every dollar that an urban nonprofit receives.

From this data, an urgent need to establish more collaboration between nonprofit networks, particularly around advocacy was observed. By pursuing these connections, the sector can build more power together than by independent and fragmented efforts.

Moreover, nonprofits can continue to enhance the lives of our changing Texas communities but will need to get even more creative in fundraising strategy. Some of this creativity may manifest through new partnerships, but there is also a special role for philanthropy to play in developing creative approaches to funding. Within the Texas nonprofit sector, there are many routes for innovation, which will lead to serving Texans in a more impactful way.