New Report Shows Kentucky Nonprofits Employ Nearly 179,000 Workers and Face Rising Demand for Services

FRANKFORT, Ky. – Kentucky Nonprofit Network (KNN), the state’s association of charitable nonprofits,
released new data Wednesday showing charitable nonprofits are a major driver of Kentucky’s economy
and workforce, employing nearly one in 10 private-sector workers across the Commonwealth.

The data comes from KNN’s latest “More Than Charity” report, which finds charitable nonprofits employ
178,864 Kentuckians, making the sector the fourth-largest private-sector employer in Kentucky. Those
jobs generate $11.9 billion in annual wages and $32.5 billion in economic activity benefiting
communities across the state.

KNN unveiled the report during a legislative breakfast and press conference at the Kentucky State
Capitol Annex Wednesday morning, joined by lawmakers and nonprofit leaders. A new interactive
online data dashboard was also announced – available at kynonprofits.org/mtcdashboard – that allows
data summaries by Kentucky county and Local Workforce area.

“Today’s report makes it clear: nonprofits are more than charity — they are essential employers, service
providers, and community partners helping Kentucky thrive,” said Danielle Clore, CEO at KNN.

The report reflects 2024 employment and economic data and shows continued growth in the nonprofit
sector. Compared with KNN’s previous report two years ago, nonprofit employment increased from
roughly 163,000 jobs to nearly 179,000 today, highlighting the expanding role nonprofit organizations
play in Kentucky’s workforce and economy.

“Nonprofits are a major part of Kentucky’s economy. Charitable nonprofits are not just charities, they are
a major employer and economic engine in Kentucky,” said Rep. Samara Heavrin of Leitchfield,
Republican co-chair of the legislature’s Nonprofit Caucus while speaking at the event.

In addition to the sector’s growth, nonprofit leaders say organizations across Kentucky are experiencing
increased demand for services. According to research highlighted in the report, 77% of nonprofits
expect demand for services to increase, while 45% report they cannot meet the full demand for services
in their communities.

“Nonprofits are also facing things like workforce shortages, rising operational costs and funding
uncertainty that’s at an all-time high,” commented Sen. Cassie Chambers Armstrong of Louisville,
Democratic co-chair of the Nonprofit Caucus, during her remarks. “Despite all of these challenges,
public trust in nonprofits remains high. More than 80% of all voters in the last election trust that charitable
nonprofits will address their community needs and engage in nonpartisan policy work.”

Speakers also emphasized the wide range of services nonprofits provide in communities across
Kentucky—from health care providers and food banks to housing programs, youth activities, disaster
relief and arts organizations. This work is being highlighted in KNN’s new public awareness campaign,
“Nonprofits Get It Done,” which showcases the people behind these services and the neighbors who
rely on them.

“Every Kentuckian, directly or indirectly, is receiving some kind of care through our nonprofits, and our
nonprofits also strengthen our communities through our civic engagement, bringing people together to
solve problems and attracting employers and investments,” said LeAnn Magre of Aetna Better Health of
Kentucky, who co-sponsored the More Than Charity report.

Erica Jackson of Dean Dorton, another sponsor of the report, discussed how charitable nonprofits
operate differently from for-profit businesses, with any surplus funds not going to owners or shareholders
but instead, as required by law, being reinvested in mission-driven work.

“There are a lot of different services that are needed in our communities that are not being met by the
public and the private sectors,” said Jackson. “What nonprofits do is meaningful. It’s important. There’s a
gap there, and it’s being filled by what nonprofits are doing.”

Charitable donation are important sources of revenue for nonprofits, though nearly 9 in 10 nonprofit
dollars come from program service income and government partnerships rather than donations,
according to the report, underscoring the important role nonprofits play as partners with government in
delivering services to communities statewide.

Clore noted that charitable nonprofits frequently operate on tight budgets—80% have annual budgets
under $1 million—making predictable partnerships and timely payments essential to sustaining services
and employment.

She encouraged lawmakers to continue supporting policies that strengthen nonprofit partnerships with
government, including efforts such as House Bill 480, which would improve protections to ensure
nonprofits are paid on time for state grants and contracts.

“Charitable nonprofits are local, neighbors serving neighbors, and they need every tool in their toolbox
to meet the growing needs of Kentuckians,” Clore said. “Ensuring nonprofits can continue serving
communities strengthens Kentucky’s workforce, economy, and quality of life.”

To see the full More Than Charity report, visit kynonprofits.org/advocate/morethancharity.