The S.B. Foundation recently released its densely data-packed, 95-page report on the State of Nonprofits in Santa Barbara County, largely prepared by UCSB’s Center for Evaluation and Assessment (CEA). It was based on surveys of nonprofit leaders and staff in Spring 2025 as well as IRS and CA Employment Development Department (EDD) data.
The findings are interesting for community members and will be particularly useful for funders, donors, government agencies, and nonprofit leaders. An event centered on the report, held June 2 at the Hilton Beachfront Resort, was sold out at its 200-person capacity, showing the strong interest in the report, which comes out every three years.
Some big-picture data from the IRS are striking: The county has 2,137 nonprofits, of which 885 are active and 665 have paid employees. Although CEA sought responses from more than 500 nonprofits, it received responses from only 105 nonprofit leaders and 92 workforce members, making the survey data less than ideal, but still quite probative.
EDD data shows the considerable impact nonprofits have on the local economy. In 2024, nonprofits employed 17,970 people, which was 8.5 percent of the county’s total employment. From 2019 to 2024, employment at nonprofits increased 21 percent while the county’s overall employment decreased by 1.45 percent. The majority of nonprofits are on the small side, with 57 percent of them having fewer than 10 employees and only 12 percent having 50 or more.
Of those nonprofits surveyed, about half reported job vacancies and nearly all of those reported that it negatively affected their ability to deliver services. Workforce members surveyed reported that vacancies caused increased workload, stress, and burnout, with many reporting being stretched thin by additional duties.
Leaders reported that hiring difficulties were concentrated at the entry and mid-level tiers and identified as the main causes the cost of a competitive salary, benefits, and local housing. Hybrid and remote working were common, with 58 percent of worker responses indicating work outside a traditional office part- or full-time.
Volunteers play an enormous role with the nonprofits surveyed, with 88 percent reporting they use volunteers, other than boardmembers, and 41 percent of those surveyed called volunteers “absolutely essential” to delivering their mission. Sadly, more than a third reported difficulty in volunteer recruitment.
The number of boardmembers is remarkable: IRS data from 2023 shows that there are 5,315 of them. While many people serve on multiple boards and some nonprofits draw on boardmembers outside the area, this figure still suggests significant community participation at the board level.
The report revealed a troubling divergence in racial composition of nonprofit leaders and the county population. Of those surveyed, 76 percent had a white CEO/executive director, and 79 percent had a white board chair. Census Data from 2020 shows that whites are only 40 percent of the population, while Hispanics/Latinos are a larger share — 49 percent — and are seriously underrepresented in nonprofit leadership. Of those surveyed, only 15 percent reported having a Hispanic/Latino CEO/ED and 8 percent a board chair. Similarly, at the boardmember level, 65 percent were white and 15 percent Hispanic/Latino, while the remainder were other races, two or more races, or unsure.
This divergence is especially concerning because many nonprofits serve populations that are largely composed of Hispanics/Latinos. Indeed, many workforce members surveyed pointed to the lack of diversity in leadership and noted this divergence with the communities served. An urgent need for bilingual and bicultural staff was specifically identified.
As for the demand for services, 62 percent reported growth, though this varied considerably by sector. For those reporting growth, only 20 percent stated they were able to fully meet the increased demand.
Nonprofits are disproportionately headquartered in South County, but the leader survey indicated that these nonprofits often provide services in Mid and North County as well. The imbalance improved between 2020 and 2023, with the number of nonprofits headquartered in Mid and North County increasing by 14 percent while those in South County decreased slightly.
There was some good news on the financial front, with more than two-thirds of surveyed leaders reporting having somewhat or very strong financial health. Nearly three-quarters indicated they have six or more months of cash reserves. Even more encouraging, about the same number predict their financial health will either stay the same or improve over the next 12 months.
Conversely, among nonprofits that have received federal funding, 24 percent have lost this funding, more than half anticipate losing or continue to experience a loss of this funding, and most of the remainder are unsure about future funding. Leaders expressed deep concern about the potential for significant organizational disruption.
As for revenue sources, IRS data show that contributions (individual, government, foundation, and corporate) make up half and program revenue 44 percent, though there were big differences among sectors.
The report also includes recommendations from the S.B. Foundation. These focus on having the high cost of living better communicated to and appreciated by funders, strengthening volunteer recruitment and management, increasing investment in Mid and North County, and supporting innovation and collective impact efforts.
To read the report, click here .
Councilmember Eric Friedman, Assemblymember Hart’s District Director Ethan Bertrand, S.B. Botanic Garden Executive Director Steve Windhager, S.B. Foundation President and CEO Jackie Carrera, and State Assemblymember Gregg Hart | Veronica Slavin
June 2 event panel members Rooted S.B. Executive Lead and Chair Beth Skidmore, Children’s Creative Project Executive Director Kai Tepper, Lompoc Valley Community Healthcare Organization Executive Director Ashley Costa, S.B. Botanic Garden Executive Director Steve Windhager, and S.B. Foundation Director, Collaboration for Social Impact Anne Whatley | Veronica Slavin