Volunteering is the backbone of the U.S. nonprofit sector, yet it remains significantly underfunded. A 2023 report from the Do Good Institute found that 78.9% of nonprofit leaders say volunteers enable them to provide essential services they otherwise could not. Yet, the national volunteer rate hovers at just 28% and has not increased significantly in decades.
Nonprofits face a growing challenge—according to Points of Light’s Annual Affiliate Report 2023, half their volunteer positions remain unfilled, even as demand for their services surges. Volunteers comprise one-third of the nonprofit workforce; voluntary human capital plays a critical role in delivering essential local services such as food security, disaster response, and youth mentorship. Yet, without greater investment in volunteer engagement and infrastructure, nonprofits will continue to struggle to fully leverage this valuable resource.
A lack of investment in volunteer infrastructure
There’s substantial evidence that volunteering improves individual well-being, reduces loneliness, and builds new skills. Communities benefit from services nonprofits can’t provide without volunteers. And through increased volunteering, society experiences greater civic engagement and more resilient communities—those who volunteer are more likely to vote, join community organizations and take on leadership roles, and give philanthropically. Furthermore, studies demonstrate that social cohesion and civic participation directly influence levels of trust in government and other institutions. Despite these benefits, volunteering remains underfunded and undervalued.
To better understand the challenges nonprofits face in boosting volunteering, Points of Light commissioned a report, informed with research conducted by The Bridgespan Group, a global nonprofit advisory firm. The research identified significant underinvestment and helps make the case for funding for volunteer infrastructure.
The hidden costs of volunteering
What do we mean by volunteer infrastructure? Volunteers may be unpaid; they are not free. Recruiting, training, recognizing, and retaining volunteers requires dedicated resources, yet funding for these efforts is almost nonexistent. According to Points of Light’s report, of the $1 trillion in grant dollars awarded by foundations from 2016 to 2025, only 0.19% was allocated to volunteer engagement. Among the top 10 largest (by total giving) institutional foundations, just 0.07% of their grant portfolios were allocated to support volunteer engagement.
The misalignment between funders and nonprofits
Nonprofits recognize volunteers as vital contributors to positive change and transformation in their communities. Yet, a fundamental disconnect remains between funders and nonprofits.
Research by the Do Good Institute found that while 72% of nonprofits say volunteers improve the quality of their programs, only 25% of funders agree. Similarly, nearly three-quarters of nonprofits report the cost savings volunteers provide, yet fewer than 40% of funders recognize this benefit.
The issue isn’t just about perception—it’s a lack of measurement and investment. Without resources to quantify volunteer impact, nonprofits will always struggle to secure funding for volunteer engagement, limiting both capacity and participation.
Volunteering is too often seen as a “nice-to-have,” rather than a necessity. Recognizing and resourcing volunteer engagement is critical to unlocking its full potential.
What we stand to lose without investment in volunteer engagement
If volunteer participation remains stagnant, nonprofits will face service gaps and be forced to cut or scale back programs. Communities will lose access to critical services, and vulnerable populations will be at greater risk.
Beyond straining service delivery, a decline in volunteering would weaken civic engagement and social cohesion and the other benefits mentioned above. Without a change in this misaligned dynamic between funders and nonprofits, organizations’ sustainability is at stake.
What nonprofit leaders can do now
Nonprofits can take a proactive role in shifting perspectives and securing support for volunteers.
Advocate: Emphasize the vital role of volunteering in driving broader societal change and community development. Highlight the benefits to employers, including increased employee well-being, engagement and retention. Encourage corporate partners to activate volunteer time off policies, demonstrating how employer-supported service strengthens workplaces while expanding community impact.
Assess: Analyze the true costs of volunteer engagement—recruitment, training, management, recognition, and retention—to help funders understand the investment needed to sustain robust volunteer programs.
Align: Engage funders directly and reframe volunteer support as an investment in programs and organizational capacity, not just a nice-to-have. Show how volunteer engagement drives your mission and community impact.
Advance: Foster sector-wide change through meaningful dialogue on the essential role of volunteers in strengthening social connections, meeting community needs, and enhancing organizational capacity.
Changing decades-long trends won’t be easy; but history shows that shifting perspectives can drive action. For example, early childhood education reforms gained traction as research highlighted the critical impact of the first five years on brain development, and studies on obesity spurred nutrition and exercise programs. It’s time to do the same for volunteering.
We hope this report from Points of Light and The Bridgespan Group will help nonprofit leaders build the case for investment in volunteering. As author Gabrielle Bernstein said, “a miracle is a shift in perspective.” This April, as we celebrate Global Volunteer Month and National Volunteer Week (April 20-26), we can make a conscious choice to act, recognizing volunteering as the powerful force for social change.
Photo credit: Julia M. Cameron via pexels
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