While nonprofits are still the most trusted institutions in America, a decline in that trust accelerated in 2023, a study conducted by Independent Sector (IS) finds.

The fourth annual report, 2023 Independent Sector Trust in Civil Society (28 pages, PDF), found that only 52 percent of Americans say they trust nonprofits to do what is right today, down a statistically significant 4 percentage points from last year. Over the same period, trust in philanthropy held steady at 34 percent, but distrust in philanthropy increased 5 points to 26 percent.

Conducted in partnership with Edelman Data X Intelligence, the report found that trust was higher for smaller and local institutions, and that trust correlates with personal financial health and outlook amid a cost-of-living crisis. For the first time, the report also included qualitative research in the form of online discussion boards conducted with 50 participants in August 2023 to gain deeper insights into the survey findings.

“While nonprofits remain among our country’s most trusted institutions, we see clear evidence that trust in the charitable sector is declining,” said IS president and CEO Akilah Watkins. “This erosion of trust poses a threat that warrants our collective attention. Without trust, the challenges confronting nonprofits and philanthropy become increasingly more difficult.”

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