Nonprofits in Pennsylvania: A Data Deep Dive

Pennsylvania punches far above its weight in the nonprofit world. Despite ranking fifth in population, the Keystone State's 79,340 registered nonprofit organizations generate a remarkable $239.2 billion in annual revenue and hold $565.0 billion in assets. That $239.2 billion figure places Pennsylvania third in the nation for nonprofit revenue — ahead of much larger states like Texas and Florida. The reason? An extraordinary concentration of healthcare systems, elite universities, and major philanthropic vehicles that traces back to the state's Gilded Age industrial fortunes.

Pennsylvania's per-capita nonprofit revenue of roughly $18,500 is one of the highest in the nation, trailing only New York and a few smaller states. This reflects not a state awash in small community organizations, but rather the presence of several truly massive institutional nonprofits — led by the colossus known as UPMC.

The Top 10: Healthcare Giants and Philanthropic Powerhouses

1. UPMC (Pittsburgh) — $25.7 billion
2. University of Pennsylvania (Philadelphia) — $20.4 billion
3. National Philanthropic Trust (Jenkintown) — $15.9 billion
4. Vanguard Charitable Endowment Program (Malvern) — $12.4 billion
5. UPMC (additional entity) (Pittsburgh) — $8.3 billion
6. Highmark Health (Pittsburgh) — $6.4 billion
7. Milton Hershey School & School Trust (Hershey) — $5.8 billion
8. University of Pittsburgh (Pittsburgh) — $5.3 billion
9. Children's Hospital of Philadelphia (Philadelphia) — $3.9 billion
10. Lehigh Valley Hospital (Allentown) — $3.8 billion

Pennsylvania's top 10 is remarkable for several reasons. First, the sheer scale: the top two alone (UPMC and Penn) generate $46.1 billion — more than the entire nonprofit sectors of many states. Second, the diversity of types: healthcare (UPMC, Highmark, CHOP, Lehigh Valley), universities (Penn, Pitt), donor-advised funds (National Philanthropic Trust, Vanguard Charitable), and one of the most unusual institutions in American philanthropy (Milton Hershey School). Third, the geographic split: five are in Pittsburgh, three in Philadelphia, and two in suburban/central PA.

UPMC: The $34 Billion Nonprofit That Acts Like a Fortune 100 Company

UPMC (University of Pittsburgh Medical Center) is the most important nonprofit institution in Pennsylvania — and one of the most controversial in the nation. With combined entities generating roughly $34 billion in annual revenue (the main entity at $25.7B plus $8.3B from an additional entity), UPMC is:

• The largest employer in Pennsylvania with over 92,000 employees
• One of the largest nonprofit healthcare systems in the United States
• An international operation with facilities in Italy, Ireland, and Kazakhstan
• A health insurance company (UPMC Health Plan) competing directly with Highmark, another nonprofit insurer

UPMC's transformation from a university hospital into a diversified healthcare empire is one of the most dramatic stories in American nonprofit history. Under CEO Jeffrey Romoff (who led the system from 1992 to 2020), UPMC grew from a $1 billion regional hospital into a global enterprise. It operates 40+ hospitals, has a health insurance division with 4+ million members, and runs commercial ventures in technology, international consulting, and pharmaceutical services.

The UPMC vs. Highmark War

One of the most dramatic stories in American healthcare played out in Pittsburgh when UPMC and Highmark Health ($6.4 billion) — the state's dominant Blue Cross Blue Shield insurer — went from partners to fierce competitors. When Highmark acquired the Allegheny Health Network (a competing hospital system), UPMC responded by building its own insurance company and eventually refusing to accept Highmark insurance at most UPMC facilities.

The result: Pittsburgh residents were forced to choose between their hospital system and their insurer. A state-mediated consent decree maintained limited access, but the rivalry has fundamentally reshaped healthcare in western Pennsylvania. The fact that both combatants are nonprofits — ostensibly operating for public benefit — made the conflict all the more striking.

University of Pennsylvania: The $20 Billion Ivy League Powerhouse

The University of Pennsylvania generates an astonishing $20.4 billion in annual revenue, making it one of the largest university nonprofits in the country. Penn's revenue reflects its diversified operations:

• Penn Medicine: The university's health system — including the Hospital of the University of Pennsylvania, Penn Presbyterian Medical Center, and several other facilities — likely accounts for $10+ billion of that total. Penn Medicine has expanded aggressively, acquiring community hospitals throughout southeastern Pennsylvania.
• Research enterprise: Penn consistently ranks among the top 10 universities nationally in research funding, receiving billions in federal grants from NIH, NSF, DOE, and other agencies.
• Wharton School: The world's first collegiate business school generates significant revenue through executive education, research partnerships, and alumni giving.
• Endowment: Penn's endowment exceeds $20 billion, generating substantial investment income.

Penn's economic impact on Philadelphia is enormous. The university and health system together employ over 45,000 people, making Penn the largest private employer in the city. But the relationship between Penn and its West Philadelphia neighbors has often been fraught — the university's tax-exempt status removes a massive property from the city's tax rolls, and its expansion has contributed to gentrification in surrounding neighborhoods.

Philadelphia vs. Pittsburgh: Two Nonprofit Ecosystems

Philadelphia

Philadelphia's nonprofit sector is characterized by historic institutions and deep philanthropic traditions:

• Healthcare: Penn Medicine, Children's Hospital of Philadelphia ($3.9B — one of the top children's hospitals in the world), Jefferson Health, and Temple University Health System
• Universities: University of Pennsylvania, Temple University, Drexel University, and numerous smaller colleges
• Cultural institutions: The Philadelphia Museum of Art, the Barnes Foundation, the Philadelphia Orchestra, the Kimmel Center for the Performing Arts
• Historic philanthropy: The Pew Charitable Trusts (founded by the children of Sun Oil Company founder Joseph N. Pew) is headquartered in Philadelphia and manages over $8 billion in assets, funding research and public policy nationwide
• Community organizations: A dense network of neighborhood-based nonprofits serving Philadelphia's diverse communities

Pittsburgh

Pittsburgh's nonprofit sector bears the unmistakable imprint of its industrial history and subsequent reinvention:

• Healthcare dominance: UPMC ($34B) and Highmark Health ($6.4B) together make healthcare the defining feature of Pittsburgh's nonprofit landscape. The University of Pittsburgh ($5.3B) adds its own medical research and education enterprise.
• Carnegie's legacy: Andrew Carnegie's philanthropy created many of Pittsburgh's most beloved institutions: Carnegie Mellon University, Carnegie Museum of Art, Carnegie Museum of Natural History, Carnegie Library of Pittsburgh, and the Carnegie Hero Fund Commission. Combined, the Carnegie institutions represent billions in assets and hundreds of millions in annual activity.
• Heinz family philanthropy: The Heinz Endowments, with over $2 billion in assets, is one of the largest foundations in Pennsylvania, supporting education, environment, arts, and economic development primarily in southwestern Pennsylvania.
• Tech and innovation: Pittsburgh's emergence as a robotics and AI hub (driven by Carnegie Mellon University's research) has spawned new nonprofit activity at the intersection of technology and social impact.

Donor-Advised Funds: Pennsylvania's Quiet Giants

Two of Pennsylvania's top four nonprofits are donor-advised fund sponsors, reflecting the state's role as a hub for financial services-adjacent philanthropy:

• National Philanthropic Trust ($15.9B): Based in the Philadelphia suburb of Jenkintown, NPT is one of the largest independent DAF sponsors in the country, serving high-net-worth donors and financial advisors. Its $15.9 billion in annual revenue (reflecting new contributions) demonstrates the extraordinary scale of DAF giving.
• Vanguard Charitable Endowment Program ($12.4B): An independent nonprofit affiliated with the Vanguard Group, headquartered in Malvern. Vanguard Charitable has distributed over $14 billion in grants since its founding in 2001, making it one of the largest grantmaking entities in the country.

Together, these two DAF sponsors account for $28.3 billion — nearly 12% of Pennsylvania's total nonprofit revenue. Their presence in suburban Philadelphia reflects the region's concentration of financial services firms and wealth management operations.

Milton Hershey School: America's Most Unusual Nonprofit

At $5.8 billion in annual revenue, Milton Hershey School & School Trust is one of the most remarkable nonprofit institutions in the country. Founded in 1909 by chocolate magnate Milton S. Hershey and his wife Catherine, the school provides free education and housing to children from low-income families. What makes it unique is its endowment: the Hershey Trust Company controls a roughly $17 billion stake in the Hershey Company, making it one of the largest endowments in the world — larger than all but a handful of university endowments.

The school serves approximately 2,000 students on a 10,000-acre campus in Hershey, Pennsylvania. The enormous endowment relative to the modest student body has generated controversy — critics argue the trust should serve more students or find other charitable uses for its vast resources. Multiple reform efforts and legal challenges have sought to address the disparity between the Trust's wealth and its charitable output.

Historic Philanthropy: Carnegie and Pew

Pennsylvania's nonprofit sector has been fundamentally shaped by two of America's greatest philanthropic traditions:

Andrew Carnegie

The Scottish-born steel magnate who made his fortune in Pittsburgh became one of the most prolific philanthropists in history. His philosophy — "The man who dies rich dies disgraced" — led him to give away over $350 million (equivalent to roughly $10 billion today) during his lifetime. His Pennsylvania legacies include:

• Carnegie Mellon University: Originally founded as Carnegie Technical Schools in 1900, now one of the world's leading research universities, particularly in computer science, robotics, and AI.
• Carnegie Museums of Pittsburgh: Encompassing the Carnegie Museum of Art, Carnegie Museum of Natural History, Carnegie Science Center, and Andy Warhol Museum.
• Carnegie Library of Pittsburgh: One of the first free public library systems in the nation, still operating 19 locations across the city.

The Pew Family

The children of Sun Oil Company (Sunoco) founder Joseph N. Pew created the Pew Charitable Trusts, which has grown into one of the most influential philanthropic organizations in the country. With over $8 billion in assets, Pew operates as both a grantmaker and a direct operator of research and public policy programs. Its work spans environmental conservation (Pew Research Center data is widely cited), ocean policy, state fiscal research, and journalism. While Pew now operates nationally and globally, its roots and headquarters remain firmly in Philadelphia.

Challenges Facing Pennsylvania's Nonprofits

• Tax-exempt property debate: Pennsylvania's large nonprofit institutions — particularly hospitals and universities — remove billions in property from local tax rolls. Philadelphia, Pittsburgh, and smaller cities have increasingly pushed back, seeking payments in lieu of taxes (PILOTs) or challenging tax-exempt status directly.
• Rural healthcare access: While Pittsburgh and Philadelphia have world-class medical institutions, rural Pennsylvania faces hospital closures and declining access to care. The gap between urban and rural healthcare is one of the state's most pressing challenges.
• Population decline: Unlike fast-growing states like Texas and Florida, Pennsylvania's population has been essentially flat, growing less than 3% over the past decade. This limits the growth of the donor base and creates fiscal pressure on government funding for nonprofits.
• Post-industrial transition: Many Pennsylvania communities are still grappling with the decline of coal, steel, and manufacturing. Nonprofits in these areas face high demand for services amid shrinking local philanthropic capacity.
• Concentration risk: Pennsylvania's nonprofit sector is unusually concentrated in a few very large institutions. UPMC, Penn, and the two major DAF sponsors alone account for over $82 billion — more than a third of the state's total nonprofit revenue. This concentration means the sector's overall health is heavily dependent on the fortunes of a handful of organizations.

The Bottom Line

Pennsylvania's nonprofit sector is a testament to the enduring power of institutional philanthropy. From Andrew Carnegie's 19th-century vision to UPMC's 21st-century healthcare empire, the Keystone State has produced some of the largest and most influential nonprofit organizations in American history. At $239.2 billion in annual revenue — third in the nation despite ranking fifth in population — Pennsylvania demonstrates that nonprofit economic power doesn't necessarily correlate with state size. It correlates with institutional depth, philanthropic tradition, and the concentration of healthcare and higher education. For better and for worse, Pennsylvania's 79,340 nonprofits operate in the long shadow of a few towering institutions — institutions that generate enormous economic activity and public benefit, while also raising fundamental questions about the nature and limits of tax-exempt status in 21st-century America.