MCN is pleased to release the 20th edition of the Minnesota Nonprofit Economy Report, which analyzes the economic performance, workforce trends, and gender pay equity within Minnesota’s nonprofit sector. In addition to providing critical services, nonprofits play a key role in Minnesota as employers and driving economic activity.
This report is the most comprehensive examination of the economic impact of Minnesota nonprofits.
Key finding #1: Nonprofit workforce growth and recovery
The nonprofit sector in Minnesota has shown significant recovery and growth post-COVID.
- Nonprofit workforce rebounded to 382,382 employees by 2024, nearing pre-COVID levels.
- Over 211,000 employees added since 1993, representing a 124% increase.
- Nonprofit workforce growth rate is four times faster than the overall workforce growth of 30% in the same period.
- In 2024, there were 10,246 financially active nonprofits in Minnesota; 71% of nonprofits report annual revenues of less than $1 million.
Key finding #2: Gender pay equity in nonprofits
The nonprofit sector demonstrates notable progress in gender pay parity compared to other sectors.
- Female employees make up 74% of the nonprofit workforce, the highest percentage among the three sectors.
- In 2024, female nonprofit employees earned 97.6% of what their male counterparts earned, up from 94.2% in 2023.
- For-profit sector shows a significant gender pay gap, with females earning only 80.2% of male wages.
Key finding #3: Average annual wage trends in nonprofits
The average annual wage for nonprofit employees has shown a slight increase after years of decline.
- Average annual wage increased to $73,638 in 2024, marking the first increase since 2022.
- Wages decreased from $78,586 in 2014 to $73,509 in 2023 before the recent uptick.
- Nonprofits paid nearly $28.1 billion in wages in 2024, up from $27.63 billion in 2023.
The full report gives more details on these key findings, as well as employment demographics in nonprofits, regional variations in nonprofit employment, and distribution of nonprofits across the state.
About the Minnesota Nonprofit Economy Report
The 2025 Minnesota Nonprofit Economy Report provides a comprehensive analysis of the nonprofit sector’s growth, workforce demographics, and economic impact in Minnesota. This report provides important information and analysis to key nonprofit audiences, including:
- Nonprofit leaders and executives to put their own nonprofit situation in perspective for decision-making and communications with their own board, supporters, and staff.
- Nonprofit board of directors to develop strategic plans, inform board training, and evaluate staffing and compensation plans.
- Government officials and nonprofit supporters to understand the unique role and contributions of Minnesota nonprofits and identify partnership opportunities.
- Economic and community development planners to incorporate nonprofit employment trends into economic development plans, with understanding of regional differences and local economies.
Data in this report comes from the Minnesota Department of Employment and Economic Development (DEED), Minnesota’s Attorney General’s Office, Quarterly Census of Employment and Wages, and the Internal Revenue Service exempt organizations business master file.
Access MCN’s additional research on Minnesota’s nonprofit sector.