U.S.-based nonprofit organizations spend between $7.8 billion and $9.2 billion annually addressing climate change, a report from the Indiana University Lilly Family School of Philanthropy finds.

Based on survey data from 130 organizations focused in part or entirely on the environment or climate change, the report, Mapping Nonprofit Spending on Climate Change (29 pages, PDF), estimates that nonprofits spend between $7.8 billion and $9.2 billion annually on programs and activities that address climate change. Of that spending, an estimated 49 percent went to climate mitigation efforts—those focused on limiting greenhouse gas emissions to stop global warming—and 14 percent went to adaptation, which is focused on limiting the negative effects caused by a changing climate, with 34 percent not clearly specified.

According to the survey, the most common tactics employed by nonprofits to support their work was policy-based approaches (30 percent), followed by climate justice and just transition of climate action (21 percent). When organized by sector focus, greener energy use and green and resilient energy supply topped the list of total climate expenditure (35 percent and 34 percent, respectively), followed by green and resilient land use (23 percent).

The survey also found that in fiscal year 2021, philanthropic sources (including foundations, individual donors, and corporations) provided approximately 88 percent of this funding, with the remaining coming from government sources (7 percent) and fees collected for services (5 percent). While 53.7 percent of climate change spending by respondents was used for efforts in the United States and Canada, 22 percent focused on climate issues in other parts of the world, with no other single country or regional grouping in the survey receiving more than 5 percent of allocations.

“Understanding climate funding flows is vital for pinpointing gaps and opportunities as philanthropy continues to step up efforts to address the climate crisis, working in coordination with civil society and the public and private sectors,” said ClimateWorks Foundation president and CEO Helen Mountford. “While more is known about how much foundations alone contribute to climate mitigation, this research reveals valuable insights into how U.S. nonprofits more broadly allocate their full suite of resources to fight climate change with both mitigation and adaptation solutions.”

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