New Report Illuminates Economic Impact of Virginia’s Nonprofit Sector
The University of Virginia School of Data Science, in partnership with the Center for Nonprofit Excellence, has released the 2026 Economic Impact of the Nonprofit Sector Report, a comprehensive, data-driven analysis demonstrating how nonprofits strengthen Virginia’s economy and support the daily well-being of communities across the commonwealth.
The report reflects the School’s commitment to practice responsible data science for the common good and to support community, government, and nonprofit partners working to improve regional outcomes. By combining advanced analytics with on-the-ground expertise, the partnership offers policymakers, civic leaders, and nonprofit organizations actionable insight into the scale and importance of the nonprofit sector.
Virginia’s nonprofit ecosystem is both a social safety net and an economic engine. The report finds that the commonwealth is home to more than 43,000 charitable nonprofits, employing nearly 388,000 people and generating close to $80 billion in annual revenue. These organizations deliver essential services ranging from childcare and food assistance to workforce development and emergency response — services that enable families to work, learn, and thrive.
“Data science becomes most powerful when it is grounded in real community needs,” said Rebecca Schmidt, director of impact and applied learning at the UVA School of Data Science. “This collaboration demonstrates how data-informed partnerships with local organizations and governments can strengthen decision-making and ultimately improve quality of life across Virginia.”
The findings highlight the growing demand placed on nonprofits at a time when many face financial strain. Nearly 235,000 Virginia children live in households below the federal poverty level, and nonprofits provided 175 million pounds of groceries statewide in a single year to meet rising food insecurity. Volunteer engagement remains strong, with more than 2.5 million Virginians contributing their time and expertise to bettering their community.
For the School of Data Science, the project represents applied learning in action. Faculty and staff worked alongside nonprofit leaders to transform complex administrative and financial datasets into meaningful indicators that inform public investment, regional planning, and service delivery strategies.
Assistant Professor of Data Science Terence Johnson provided the data cleaning and analysis for the project as part of broader research into the nonprofit funding landscape nationally. "Supporting projects like this aligns with our vision of data science for the public good," he said.
Dr. Mariane Asad Doyle, executive director of the Center for Nonprofit Excellence, emphasized the broader implications of the findings: “Nonprofits are indispensable partners in building resilient communities. This report provides evidence that helps leaders across sectors, including local governments, understand where investment and collaboration can create the greatest impact.”
As service demand rises and economic pressures persist, the report underscores the importance of sustained partnerships among nonprofits, government agencies, and academic institutions. By translating data into insight, these collaborations equip communities with the tools needed to respond strategically to changing conditions.
The full report details sector size, employment trends, service impact, and funding challenges, offering a roadmap for informed decision-making at the local and state level.
Read the full 2026 Economic Impact of the Nonprofit Sector Report.
