The nonprofit sector remains among the most trusted institutions in American society. However, there are signs this trust may be fraying amid concerns about the role of the federal government and the influence of wealthy donors. More specifically, Americans are increasingly skeptical of the motivations of the ultra-wealthy when it comes to their participation in the nonprofit and philanthropic sectors.
These are among the takeaways of Trust in Nonprofits and Philanthropy, a report released by Independent Sector. Conducted annually since 2021, the report examines Americans’ attitudes toward the nonprofit and philanthropic sectors. Of course, this year’s report comes at a time of unprecedented challenges due in large part to the return of Donald Trump to the White House.
“In a time of deep polarization, Americans continue to place more trust in nonprofits than in any other sector.”
According to the report, 57 percent of Americans trust nonprofits to “do what is right.” This far exceeds the level of trust in other institutions, including small business (42 percent), the news media (20 percent), and federal government (18 percent)—the least trusted institution in the report.
The survey was conducted in April, not long after the Trump administration embarked on a wide-ranging campaign to freeze funding for nonprofits perceived as promoting a “woke” agenda.
“In a time of deep polarization, Americans continue to place more trust in nonprofits than in any other sector,” Akilah Watkins, president and CEO of Independent Sector, said in a statement. “Preserving and strengthening trust,” she added, “means showing up with transparency, accountability, and a deep commitment to the communities we serve.”
Transcending Partisanship
One of the more striking findings of the report is the degree to which broad-based support for the nonprofit sector has persisted amid partisan attacks from Washington, DC. A large majority of Democrats (65 percent) trust nonprofits to “do what is right,” as do 57 percent of Republicans—and in both cases, trust has grown modestly since 2024.
On the other hand, trust in the federal government has tracked in the opposite direction. Indeed, Americans were less likely to support nonprofits that received a large amount of their funding from government sources. The baseline level of trust in nonprofits (57 percent) dropped to 38 percent if respondents were told a significant share of an organization’s funding came from the government.
Trust in nonprofits…dropped to 38 percent if respondents were told a significant share of an organization’s funding came from the government.
At the same time, most Americans believe some degree of government support is necessary for nonprofits to accomplish their missions: 56 percent feel government funding is essential for a healthy nonprofit sector, and 69 percent believe the federal government and nonprofits must work together to address societal issues.
As one participant in the study, a 26-year-old female Democrat, put it: “If [nonprofits] can’t uphold their mission as a result of lack of funds, that could cause the community to crumble and people would suffer.” Similarly, a 27-year-old male Republican participant noted, “If non-profit organizations lost federal government funding, I believe it would have a big impact on local communities.”
The Johnson Amendment
The Independent Sector report reinforces something nonprofit leaders have long known: The trust Americans place in nonprofits derives in large measure from their perceived nonpartisanship.
This is not just an academic debate these days. Republicans have proposed repealing the Johnson Amendment, the 1954 law that prohibits 501c3 nonprofits, including churches, from directly getting involved in partisan political campaigns as a condition of their tax-exempt status.
Last week, news broke that the Internal Revenue Service under the Trump administration asserted in court documents that it would not enforce the Johnson Amendment when it came to houses of worship (which are generally nonprofits). The decision, say sector leaders including Independent Sector, creates the potential not only to diminish hard-earned trust in the nonprofit sector but to turn churches into de facto funnels for partisan efforts and dark money.
“Some of these [wealthy] individuals are serious about helping those in need, and some are solely about themselves….It’s all about reducing the taxes at the end of the day.”
The Independent Sector report found that many Americans (48 percent) were more likely to trust nonprofits when informed about the Johnson Amendment, while a similar share (47 percent) would be less likely to trust nonprofits if the law were repealed. These patterns generally held whether respondents were conservative or liberal (although the latter were somewhat more likely to view the amendment as critical to their trust of nonprofits).
This bipartisan faith in nonprofits is reflected in some of the comments shared by survey respondents. One participant in the study, a female 54-year-old Republican, said: “My biggest concern would be that [repealing the Johnson Amendment] would open [nonprofits] up to corruption—that they would be more likely to accept monetary donations or favors in return for endorsements.”
The Elon Musk Effect?
Another notable shift in public attitudes toward the nonprofit and philanthropic sector is that Americans are more skeptical of giving on the part of wealthy—or “high-net-worth”—individuals.
Only 29 percent of respondents trust high-net-worth individuals engaged in philanthropy to do “what is right,” a five-percentage-point drop from 2022. The trend is all the more striking considering that over the same time period trust in private foundations and corporate philanthropy held steady or grew.
It’s possible that the unprecedented and outsized role that Elon Musk has played in the Trump administration—until recently, that is—has made Americans more skeptical of the motives of wealthy donors.
Drilling a little deeper, the study finds that 62 percent believe the wealthy have too much influence on federal government policymaking, and 59 percent feel they have too much influence over the nonprofits they fund. In addition, 58 percent feel that wealthy donors are more focused on their own interests than the public good.
As another participant in the study, a 43-year-old female Democrat, said: “Some of these [wealthy] individuals are serious about helping those in need, and some are solely about themselves….It’s all about reducing the taxes at the end of the day.”
