U.S. Nonprofits Reported Decline in Spending on Internal R&D Activities in FY 2024; Increase in Funding for External R&D

U.S. Nonprofits Reported Decline in Spending on Internal R&D Activities in FY 2024; Increase in Funding for External R&D

U.S. nonprofits spent an estimated $29.4 billion on research and experimental development (R&D) performed within their organizations in FY 2024, a decline of 4% in current dollars from FY 2023 (figure 1).^{​All amounts in this report are shown in current dollars.} In addition, nonprofits spent an estimated $10.5 billion on grants and contracts provided to other organizations to conduct R&D, an increase of 33% from FY 2023 (figure 2).

Data in this InfoBrief are from the Nonprofit Research Activities (NPRA) FY 2024 module of the 2025 Annual Business Survey. The NPRA Survey was funded by the National Center for Science and Engineering Statistics (NCSES) within the U.S. National Science Foundation, and data collection was conducted by the Census Bureau.

Sources of Funding for Nonprofit R&D Performance

The largest funding source for nonprofit R&D performance in FY 2024 was the federal government, contributing $11.2 billion, or 38%, of the total. Nonprofit organizations' internal funds were the next largest source at $8.6 billion, or 29%, of the total (figure 1). For-profit businesses funded $3.7 billion (13%), foundations and all other nonprofits contributed $2.5 billion (9%), and individual donors contributed $1.4 billion (5%). The remaining sources contributed a combined total of 7% to total nonprofit R&D performance.

The only specific source of funding showing an increase between FY 2023 and FY 2024 was the nonprofit organizations themselves (internal funds). Internally funded R&D expenditures increased 3% between FY 2023 and FY 2024, from $8.4 billion to $8.6 billion. Funding from the federal government declined 10% between FY 2023 and FY 2024, from $12.4 billion to $11.2 billion. Funding from businesses, foundations and all other nonprofits, and individual donors also experienced declines between 6% and 9% from FY 2023 to FY 2024.

Nonprofit R&D Performance by Type of R&D

Nonprofits reported that just over half (53%, or $15.5 billion) of their FY 2024 R&D performance was categorized as basic research and 31% ($9.3 billion) was applied research (table 1). The remaining 16%, or $4.7 billion, was categorized as experimental development. A higher proportion of the nonfederally funded R&D total was spent on experimental development (20%) compared to the federally funded R&D total (10%). Conversely, a higher proportion of the federally funded R&D total was spent on applied research (38%) compared to the nonfederally funded total (27%).

Nonprofit R&D Performance by Field

The majority (74%, or $21.7 billion) of nonprofit R&D spending was again concentrated in biological, biomedical, and health sciences in FY 2024, despite a 7% decline in expenditures in this field compared to FY 2023 (table 2). Although they each currently comprise small amounts of the total R&D spending within nonprofits, three fields experienced significant growth between FY 2023 and FY 2024. Research in mathematics, statistics, and computer and information sciences increased 19% to $907 million in FY 2024, psychology and social sciences increased 17% to $1.4 billion, and agricultural sciences and natural resources and conservation increased 9% to $1.0 billion.

Nonprofit R&D Funding to Others

In addition to reporting expenditures for R&D performed within their organizations, nonprofits also reported the amount spent in FY 2024 on funding for R&D conducted by others. In contrast with the decline in expenditures for R&D performed by the nonprofits themselves, nonprofit funding provided to other organizations for R&D increased 33% from $7.9 billion in FY 2023 to $10.5 billion in FY 2024 (figure 2). The majority of this funding (64%, or $6.8 billion) came from nonprofits not working in healthcare or science and technology. External R&D funding provided by this category of nonprofits increased 53% between FY 2023 and FY 2024.

Nonprofit R&D Personnel

An estimated total of 163,828 employees^{​See the full set of data tables: table 10 for R&D personnel counts.} worked on R&D within U.S. nonprofit organizations in FY 2024, including 125,555 full-time equivalent (FTE) employees.^{​Employee numbers were reported both as total headcounts and as full-time equivalents (FTEs). Headcounts represent every individual employed by the organization during FY 2024 regardless of their total hours worked. The FTE counts convert the headcounts to a total of FTE employees using the following calculation: 1 FTE equals 40 hours per week for 52 weeks per year. If an employee works 20 hours per week, the employee counts as half of an FTE.} Of the FTE total, 43% were classified as researchers, 35% were classified as technicians, and the remaining 22% were other support personnel (table 3). The total number of FTE employees working on R&D declined 13% from FY 2023.

Survey Information and Data Availability

The NPRA FY 2024 module of the 2025 Annual Business Survey was conducted in 2025 with a sample of 8,000 nonprofit organizations representing 20,500 eligible nonprofit organizations in the United States.^{​See the "Technical Notes" to the FY 2024 data tables for details on the survey frame and exclusions.} Higher education institutions and nonprofit-administered federally funded research and development centers are not included in this survey, as these populations are already included in NCSES's Higher Education R&D Survey and FFRDC R&D Survey. The fiscal year referred to throughout this report was the nonprofit organizations' fiscal year; for the majority of organizations reporting R&D performance, this fiscal year ended in either September or December of 2024.

The response rate for the NPRA FY 2024 module was 78%. The estimates in this InfoBrief are based on responses from a sample of the population and may differ from actual values because of sampling variability or other factors. As a result, apparent differences between the estimates for two or more groups may not be statistically significant. Unless otherwise noted, all comparative statements in this InfoBrief have undergone statistical testing and are significant at the 90% confidence level. The variances of estimates in this report were calculated using the delete-a-group jackknife replication method. The complete set of data tables for FY 2024 is available at https://ncses.nsf.gov/surveys/nonprofit-research-activities/2024#data. For more information, please contact NCSES.

NCSES has reviewed this product for unauthorized disclosure of confidential information and approved its release (NCSES-DRN26-032).

Notes

1 All amounts in this report are shown in current dollars.

2 See the full set of data tables: table 10 for R&D personnel counts.

3 Employee numbers were reported both as total headcounts and as full-time equivalents (FTEs). Headcounts represent every individual employed by the organization during FY 2024 regardless of their total hours worked. The FTE counts convert the headcounts to a total of FTE employees using the following calculation: 1 FTE equals 40 hours per week for 52 weeks per year. If an employee works 20 hours per week, the employee counts as half of an FTE.

4 See the "Technical Notes" to the FY 2024 data tables for details on the survey frame and exclusions.

Suggested Citation

National Center for Science and Engineering Statistics (NCSES). 2026. U.S. Nonprofits Reported Decline in Spending on Internal R&D Activities in FY 2024; Increase in Funding for External R&D. NSF 26-329. Alexandria, VA: U.S. National Science Foundation. Available at https://ncses.nsf.gov/pubs/nsf26329.

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