Maryland’s Nonprofit Sector

Maryland’s nonprofit sector is a cornerstone of our state’s economy and quality of life. With over 40,000 organizations employing more than 280,000 people full-time, nonprofits are a major driver of economic activity and innovation, contributing billions to Maryland’s economy each year.

Three children and one adult on a boat

A Vital Force in Our Economy and Communities

Nonprofits in Maryland contribute billions to the state’s economy, especially in fields such as education, healthcare, arts, and social services. Beyond their economic contributions, Maryland’s nonprofits are essential partners in addressing societal challenges, fostering innovation, and ensuring that resources reach those who need them most.

Employer

Top Employer

Nonprofits represent nearly 13% of Maryland’s private workforce—making the sector one of the largest employers in the state.

Revenue

Economic Driver

Nonprofits generate billions in wages, salaries, and revenue annually, fueling Maryland’s economy. Nonprofits in Maryland paid over $1.7 billion in payroll taxes in 2023.

Infrastructure

Critical Infrastructure

From managing disaster relief to providing social safety nets, nonprofits are trusted partners in delivering vital services efficiently and effectively.

Strengthening Communities, Enriching Lives

Every Marylander benefits from nonprofits, whether they realize it or not. Some impacts are clear—like food banks feeding the hungry or shelters helping animals. Others are less visible but just as vital, like YMCA gyms and adult day programs serving our families and neighbors, and arts groups revitalizing neighborhoods. These organizations quietly strengthen communities and enrich lives across Maryland.

Education
Nonprofits provide critical educational services, including early childhood education, after-school programs and adult education.

Healthcare
Nonprofits offer essential healthcare services, including clinics, mental health services and health education.

Arts and Culture
Nonprofits enrich Maryland’s cultural landscape through museums, theaters and community arts programs.

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    Maryland nonprofits are -and always have been- on the front lines of change. By investing in new partnerships between the State and the nonprofit sector, we are getting big things done for the people of Maryland. And together, we will leave no one behind.
    Governor Wes Moore

    The Economic Impact of Maryland’s Nonprofits

    280,000

    A Powerful Job Creator

    Nonprofits employ 280,000 workers full-time—nearly 13% of all non-governmental workers in Maryland—and more than every other major private industry in the state, with the single exception of retail trade. These jobs span healthcare, education, social services, and beyond, ensuring diverse employment opportunities across the state.

    $4 Billion

    Tax Revenue and Spending Power

    The sector’s purchasing power drives local economies, from small businesses to large industries. Nonprofits paid more than $1.7 billion in payroll taxes in 2023, directly supporting state and federal budgets.

    $1.7 Billion

    Leveraging Federal Funds

    Maryland nonprofits were awarded more than $4 billion in federal grants, contracts, direct payments, and other obligations in FY23, amplifying their ability to deliver services and innovate solutions statewide.

    Inequities Within the Sector

    The findings in our 2021 COVID-19 and Racial Equity Survey revealed two nonprofit sectors: one that is far more challenging and inequitably structured for Black, Latino, Asian and Indigenous People leading nonprofit organizations, compared to the nonprofit sector experienced by white leaders.

    • Black, Latino and Asian executive directors are under-represented in executive director roles compared to the Maryland census.
    • 60% of nonprofits with less than $25,000 in revenue are led by people of color, and just 13% of nonprofits over $5 million in revenue are led by people of color.
    • White-led nonprofits were more likely to be larger organizations that were able to pivot and grow by accessing more relief funds during the pandemic. Organizations led by people of color received a smaller proportion of all federally funded COVID-19 relief funds.

    View the Report >

    COVID-19 Pandemic and Racial Equity Survey
    Nonprofit advocates at bill signing in Annapolis 2024

    A Unified Voice for Advocacy

    Nonprofits aren’t just service providers—they are key players in shaping public policy and advancing equity.

    Nonprofit organizations exist in every community and are often closest to the community’s challenges. Their collective power drives systemic change by:

    • Representing community needs to policymakers.
    • Advocating for equitable funding and fair regulations.
    • Building bridges between government, for-profit business, and communities to create lasting solutions.

    Nonprofit Advocacy Wins

    Maryland Nonprofits, our members, and nonprofit advocacy leaders across the state work together to drive meaningful public policy change. These collaborative efforts make public policy more equitable, increase the state’s investment in communities, and improve the operating environment for nonprofits in Maryland.

    Nonprofit Interest Free Micro-Bridge Loan Program (NIMBL)

    A lifeline for nonprofits facing delayed government payments, NIMBL provides short-term, interest-free loans to help organizations maintain cash flow and continue serving communities without disruption.

    Maryland Efficient Grant Application (MEGA) Council

    This initiative makes recommendations to streamline the state grant process, reducing administrative burdens and making it easier for nonprofits to access critical funding through a more efficient, standardized application system.

    Prompt Pay for State Grants

    Ensures that nonprofits receive timely payments for state-funded services, addressing longstanding cash flow challenges and strengthening the ability of organizations to fulfill their missions.

    Federal Injunction Against Federal Funding Freeze

    A major victory led by the National Council of Nonprofits in protecting nonprofit funding, this federal court ruling blocked an attempt to freeze federal grants, safeguarding essential resources for nonprofits nationwide, including those in Maryland.

    Get Involved

    Join

    Join Maryland Nonprofits to amplify your voice, connect with advocacy leaders, and strengthen policies that support nonprofits and the communities they serve.

    Donate

    Support nonprofit advocacy in Maryland—your donation helps strengthen policies, secure funding, and create lasting change for communities across the state. Give today to power our collective impact.

    Take Action

    Make your voice heard! Sign on to our advocacy letters, support key policies, and help drive change for Maryland’s nonprofit sector and the communities we serve. Take action today.