Despite the impressive scale, the majority of nonprofits are small. Seventy-two percent of WNC nonprofits reported annual revenue under $1 million, and more than half of those fell below $250,000. Yet, collectively, nonprofits are significant employers. Of the 1,187 organizations with current tax returns, 691 reported having at least one paid employee. In total, the nonprofit workforce in WNC numbers over 33,000 individuals, with a payroll nearing $1 billion. Human Services organizations employ the largest share at more than 10,000 workers, followed closely by health institutions and higher education.

Jeannette Butterworth, executive director of WNC Nonprofit Pathways, has a clear vantage point on the region’s nonprofit landscape. “I think the nonprofits at this moment in time and always, but especially this moment in time, they’re carrying heavy burdens,” Butterworth said. “They’re doing disaster recovery, dealing with shifting federal policy, but they continue to adapt and serve.”

She described the overall health of the sector as “a story of both strain and resilience at the same time. And that is also the historical story of nonprofits, but especially right now, after Helene and with the shifting federal landscape, it puts an extra strain on those nonprofit leaders.”

Purpose and Economic Impact 

The missions of WNC nonprofits are broad but concentrated. More than half fall into five primary fields: Human Services, General Education, Arts & Culture, Fire & Rescue, and General Health. Human Services is the largest cohort, encompassing organizations that provide shelter, clothing, food, and family support. Education and arts nonprofits each account for about 10 percent of the total, while Fire & Rescue and General Health each comprise about 9 percent.

This diversity underscores nonprofits’ multifaceted role in community life. “Nonprofits aren’t just service providers,” said Butterworth, “but they keep parents employed, they hire local contractors for rebuilding. Especially now, they stabilize local economies after disasters. They are employers, and they put a lot of dollars back into the local economies.”

Financially, nonprofits demonstrate relative stability. Only 16% reported spending more than they earned, and their revenue streams are well balanced between earned income, contributions, and government support. Contributions account for about 22% of total nonprofit revenues, while earned income—tuition, service fees, reimbursements—dominates, especially among health and higher education institutions.

Collaboration and New Energy

Butterworth emphasized that collaboration is one of the sector’s greatest opportunities in the wake of recent challenges. “A bright spot in all of this has been the new partnerships that we’ve seen develop,” she said. “We’ve seen groups that never worked together before, like food pantries and housing providers and churches, and they’re teaming up to meet those needs.”

She highlighted specific examples, such as a Swain County food pantry partnering with a housing nonprofit for the first time after Hurricane Helene to coordinate referrals so that families leaving temporary shelters also received groceries. “Other places are immigrant-serving communities teaming up with local churches to help families navigate the shifting federal policies,” Butterworth said. “And I think through all of this, we’ve also seen new…younger leaders stepping up into the nonprofit space.”

The Role of Pathways

WNC Nonprofit Pathways was created two decades ago to fill a critical gap. “The foundations saw that nonprofits in the western part of the state didn’t have access to the same type of resources that nonprofits in the central part of the state had, and they wanted to work together as a collaborative to bring those resources,” Butterworth said.

Funded by a coalition of regional funders, Pathways focuses on building organizational capacity through workshops, coaching, consulting, and one-on-one support for nonprofit leaders. “We’ve always said that at Pathways our mission is your mission, the nonprofit’s mission,” Butterworth said. “And so that’s our goal—to support the nonprofits in fulfilling their missions.”

An upcoming workshop will focus on skills that are urgently needed in today’s nonprofit environment:

• Grant Writing 101
  

• November 5 & 6, 9:30 a.m. – 12:30 p.m. (online via Zoom)
  

• A two-part introduction to crafting successful grant proposals, taught by Simone Adams. The class covers identifying funders, building budgets, measuring impact, and using AI in proposal development. The cost is $50 for both sessions, with the same accessibility supports for smaller nonprofits. This course is part of the Nonprofit Fundamentals Certificate Program, available to organizations based in the 18 counties of WNC.

Learn more at NonprofitPathways.org.