The 2026 Minnesota Nonprofit Economy Report is here, analyzing the economic performance, workforce trends, and wage growth within Minnesota’s nonprofit sector. In addition to providing critical services, this report shows that 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 wages continue to increase
The wage differences among sectors are narrowing, with nonprofit wages continuing to increase.
- All three sectors (nonprofit, government, and for-profit) reported a slight increase in inflation-adjusted average annual wages in 2025.
- The nonprofit sector saw the largest increase in average wages, increasing by $860.
- The average annual wage for nonprofits in 2025 was $76,754.
- Government annual wages averaged $73,360 and for-profit annual wages averaged $77,626.
Key finding #2: Part-time employment rises
Part-time employment increased across all nonprofit activity areas.
- The share of nonprofit employees working part-time increased from 37 percent to 43 percent.
- The number of full-time employees declined, and the number of part-time employees grew across all nonprofit activity areas.
- Nonprofits may be responding to financial pressures by reducing full-time positions in favor of part-time roles. They may also be responding to increased need by expanding staffing through more flexible part-time staffing.
Key finding #3: Nonprofit employment remains similar to last year
Despite fears of mass closings of nonprofits, the number of nonprofit employees and employers holds steady
- The nonprofit sector continues to show growth in its share of all statewide employees, employing 13.5 percent of the state’s total workforce.
- Nonprofits employ a total of 396,172 workers across the state.
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 2026 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.