Mapping Alabama’s Public–Nonprofit Partnership examines how Alabama’s nonprofit sector functions as an essential partner in the delivery of public services. The report is a collaboration between Alabama Association of Nonprofits and the Community Foundation of Greater Birmingham, with research conducted by PARCA.
Alabama is home to 5,996 active 501(c)(3) organizations that file regular tax returns and report at least $25,000 in annual revenue or assets. Although more than 25,000 nonprofits are registered in the state, many are inactive. The active group represents the real working infrastructure of civic life—from child abuse prevention and mental health services to workforce training, arts, and conservation.
Relative size
Alabama has 114.6 nonprofits per 100,000 people—ranking 40th nationally. Its density is lower than most states, suggesting opportunity for measured growth rather than oversaturation.
Economic footprint
Active nonprofits generate $16.9 billion in annual revenue, but that total is highly concentrated: 0.35% of organizations (the 21 largest) account for nearly half of all income. The median nonprofit operates on about $200,000 a year, with two-thirds reporting less than $500,000.
Public investment
Between 2015 and 2025, Alabama nonprofits received $5.5 billion in federal awards—an average of $553 million per year. More than 60% of those dollars flow through the U.S. Department of Health and Human Services; most reach communities through state agencies such as the Alabama Department of Economic and Community Affairs (ADECA), the Alabama Department of Public Health (ADPH), and the Department of Early Childhood Education.
Philanthropic capacity
Alabama’s 822 foundations hold $4.5 billion in assets—ranking 49th per capita. Assuming a typical 5.6% payout, foundations could distribute about $226 million per year, only one-third of recent federal funding. Private philanthropy cannot replace sustained public investment.
Key finding
Alabama’s progress depends on collaboration among government, philanthropy, and community organizations. Nonprofits are not a substitute for government; they are its local expression. Strengthening this partnership—through data transparency, diversified funding, and civic trust—is essential to building a resilient Alabama.
Click here for the full report, or view below.