Business and civil society’s impact on American democracy
This summer, Americans are celebrating the country’s founders for their courage, vision, and democratic ideals. But as the nation continues recognizing its 250th anniversary, it’s worth remembering that democracy endured not only because of our founding documents, but because generations of citizens, businesses, nonprofits, and civic institutions built the connective tissue that made this great…
In the wake of the United States' 250th anniversary, it is vital to recognize that democracy thrived not only due to the founding documents but also because of generations of citizens, businesses, nonprofits, and civic institutions that built the necessary connections and trust in the nation's political experiment. Benjamin Franklin, a statesman before his time, exemplified this civic spirit through his Junto Club, which evolved into a collective of tradespeople and artisans dedicated to mutual improvement.
They spearheaded the establishment of Philadelphia's first lending library, volunteer fire company, and public hospital, illustrating that when people unite around shared needs and values, they can create institutions that transcend individual political moments.
This pattern of collaborative effort has persisted for the past 250 years, resulting in a sector that has become indispensable to America's future. Today, there are over two million registered U.S. nonprofits, employing nearly 12.8 million people, making them the third-largest workforce in the country, after retail and manufacturing.
In 2025 alone, nonprofits received over $600 billion in donations, and spent more than $670 billion on wages—figures that have likely increased since. Furthermore, businesses that engage in large-scale community partnerships contribute significantly to this engine of global impact and national resilience.
Having dedicated four decades to the technology sector, particularly in the social impact space, the author has witnessed firsthand the potential of America's civic infrastructure and the stakes when it falter. They have observed organizations tackle complex challenges in American life with innovative solutions and a willingness to embrace modern tools.
However, while the total charitable giving continues to reach record highs, the number of Americans actively participating has declined, revealing strain that demands attention. Even during the pandemic, volunteering rates have only begun to rebound, indicating a need for renewed focus.
The former co-chair of the Generosity Commission—a panel tasked with understanding these trends and proposing solutions—highlighted a critical finding: Americans desire to give and understand the impact of their contributions, yet they are often hindered by time, financial constraints, and a perceived lack of impact. This challenge is not exclusive to any single sector; instead, it requires collective efforts.
Companies and conveners at scale have a unique role to play, and the case for why has never been more apparent. Private sector engagement with civil society is not merely charity but a strategic advantage. By investing in their communities, businesses foster deeper customer relationships, more engaged workforces, and enhanced trust that sets brands apart from the competition.
Moreover, technology plays an increasingly crucial role in the social impact sector. AI can personalize fundraising, improve donor engagement, and streamline operations, allowing professionals to focus on strategic and creative aspects. Organizations with advanced AI maturity consistently report stronger outcomes, from increased fundraising revenue and donor retention to heightened staff productivity.
These gains are not just time-saving; they reinvest in advancing the mission. By helping nonprofits adopt these technologies, businesses directly contribute to the health of the sector and the civic infrastructure that has sustained American communities for 250 years.
The founding generation's belief and subsequent achievement demonstrate that the country's future can be constructed through the collective efforts of its citizens and the business and civil society that support it. This conviction remains our legacy. With the necessary tools and frameworks, the next 250 years are within our reach to build.
Mike Gianoni, the president, CEO, and vice chairman of Blackbaud, underscores this vision for a future where business and civil society continue to bolster American democracy and its enduring promise of progress and resilience.
Written by urgent.news from Fast Company's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
