Mapping Alabama's Public-Nonprofit Partnership 

AAN has partnered with The Community Foundation of Greater Birmingham and the Public Affairs Research Council of Alabama (PARCA) to produce this report. Mapping Alabama’s Public–Nonprofit Partnership examines how Alabama’s nonprofit sector functions as an essential partner in the delivery of public services.

Economic footprint: Alabama's 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.

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.

“Across the state of Alabama, nonprofits are on the ground supporting and uplifting our communities. Their work demonstrates incredible power of collective action: by working together to serve others, we can provide greater opportunity for Alabamians to succeed and strengthen our entire state. I’m deeply proud to be a partner in Washington to take the needs of our nonprofits and identify solutions that support their vital work, benefitting our state and setting an example for our nation.” -- US Senator Katie Britt

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