2009 Minnesota Nonprofit Economy Report

2,195 views

Published on

A report by the Minnesota Council of Nonprofits looking at the total economic impact of nonprofits on our state.

Published in: Education, Business, Career
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,195
On SlideShare
0
From Embeds
0
Number of Embeds
135
Actions
Shares
0
Downloads
15
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

2009 Minnesota Nonprofit Economy Report

  1. 1. Minnesota Nonprofit Economy Report A Statewide and Regional Analysis Northwest Northeast Minnesota Minnesota Central Minnesota Twin Cities South Central/ Metro Area Southwest Southeast Minnesota Minnesota 2009 An annual study that describes the role of nonprofit organizations in Minnesota’s economy.
  2. 2. Using this Report Like every other industry in the United States, the nonprofit sector benefits from having timely information on economic performance. The Minnesota Council of Nonprofits’ Minnesota Nonprofit Economy Report, published annually for the last thirteen years, provides the most comprehensive nonprofit economic information available in the nation. Minnesota ranks at or near the top in virtually every measure of nonprofit and philanthropic activity. This success is due to substantial donations of time and financial resources by the people of Minnesota, generous support from Minnesota’s business community and strong partnerships with state and local governments. The Minnesota Nonprofit Economy Report – when used together with the Minnesota Salary and Benefits Survey, the Nonprofit Current Conditions Report and other publications from the Minnesota Council of Nonprofits – has important uses for five distinct audiences: • Managers of nonprofit organizations: planning budgets, evaluating revenue streams and identifying potential partnerships • Nonprofit boards of directors: developing strategic plans, informing board trainings and evaluating staffing and compensation plans • Government officials: understanding nonprofit funding streams and identifying partnership opportunities • Donors to nonprofits: understanding the sources of support and nature of expenditures of nonprofit organizations • Economic and community development planners: incorporating nonprofit employment trends into economic development plans and understanding regional differences and local economies The Authors Christina Wessel (Minnesota Budget Project deputy director), Jodi Benenson (research intern) and Jon Pratt (executive director) The Minnesota Council of Nonprofits (MCN) is the statewide association of more than 2,000 Minnesota nonprofit organizations. Through its Web site, publications, workshops and events, cost-saving programs and advocacy, MCN works to inform, promote, connect and strengthen individual nonprofits and the nonprofit sector. Copyright ® 2009 Minnesota Council of Nonprofits. All rights reserved. Short sections of text may be quoted without explicit permission, provided that full credit is given to the source. Additional copies of this report can be downloaded from MCN’s Web site at www.mncn.org.
  3. 3. 2009 Minnesota Nonprofit Economy Report Executive Summary Nonprofit organizations in Minnesota are a Nonprofit workforce still growing steady source of economic growth in every Table of Contents Despite the odds, the nonprofit sector still region of the state, as well as a key partner in 2 Statewide Analysis demonstrated its value as a steady source of delivering public sector services. However, 6 Twin Cities Metro Area Analysis economic activity in the state in 2008. Since the current economic pressures could weaken this 9 Northeast Minnesota Analysis 2001 recession, employment in the government critical component of Minnesota’s infrastructure. 12 Northwest Minnesota Analysis and for-profit sectors in the state has increased 15 Central Minnesota Analysis The Minnesota Nonprofit Economy Report is an an average of less than one percent per year. 18 Southeast Minnesota Analysis annual study by the Minnesota Council of Minnesota’s nonprofit workforce, however, has 21 South Central/Southwest Nonprofits (MCN) that analyzes public data on grown an average of three percent per year. By Minnesota Analysis nonprofit employers, employment, wages and 2008, nonprofits employed one out of every 24 Appendix finances to describe the role nonprofit nine workers in the state. This same trend held organizations play in the state’s economy. MCN true within all six regions of the state. also produces the Nonprofit Current Conditions Report, which surveys Key role of public funding revealed member organizations to assess financial and programmatic changes Nonprofits have long partnered with the public sector to provide being made during the year. The most recent survey results are critical services and build healthy communities. Unfortunately, it has available on MCN’s Web site, www.mncn.org. been difficult to measure the financial contribution government makes Too soon to measure the impact of the recession to the nonprofit sector because the IRS Form 990 had nonprofits With the nation just beginning to emerge from a deep economic combine most revenue received from government with other program recession, many are asking how the nonprofit sector in Minnesota service revenue. For example, for the most current fiscal year (2007 weathered the downturn. In some ways, it is too soon to tell. This or 2008), nonprofits in Minnesota reported receiving approximately year’s report uses data from 2008, the most recent comprehensive $1.7 billion in government grants. In addition, these same nonprofits information that is available. It may be another year or two until the reported $31 billion in program service revenue, with an unknown effects of the recession on nonprofits can actually be measured. portion coming from government fees and contracts. A look back shows that Minnesota’s nonprofit sector pushed through That information gap is beginning to improve. The IRS recently made the 2001 recession with surprising strength, continuing to experience significant revisions to the Form 990 that nonprofits use to report growth in the number of nonprofit employers and nonprofit jobs. This financial information, allowing us to break program service revenue time around, however, there are more significant pressures on the into more detail. This is a new requirement, so only 12 percent of the sector. Continued state government budget deficits have led to nonprofits examined in this report filed the revised form. A significant funding cuts, the crash of stock market has reduced preliminary analysis of this new data reveals that at least 55 percent foundation resources and high levels of unemployment have made it of the program service revenue reported by these organizations came difficult for families to maintain charitable contributions. from government grants, contracts and fees. This analysis may actually under-represent the true role of public funding since it only Nonprofit wages may be falling counted revenue that was clearly attributed to a government source. There are many ways nonprofits could be responding to the recession This new information makes explicit that in addition to foundation that would be difficult to capture with the data used in this report. grants, charitable contributions and self-generated revenues, Nonprofits may be cutting back on the level of services they provide nonprofits rely on federal, state and local government for a in the community, or reducing benefits, hours or wages for their substantial share of their revenues. Being able to quantify government employees to balance their budgets. There may be a glimpse of that funding only emphasizes the nonprofit sector’s vulnerability during this in this report. In 2008, there were an increasing number of nonprofit recession. Government deficits are now at a high-water mark, and industries where the median wage fell below the minimum necessary nonprofits will face significant funding cuts in the coming months. to support the basic needs of a family in that region. Executive Summary 1
  4. 4. Statewide Nonprofit Employment Statewide Overview: Despite the deepening national economic recession, the nonprofit sector in Minnesota continued to show steady growth into 2008. There was an increase in both the number of nonprofit employers and the size of the nonprofit workforce. A majority of nonprofit employers and nonprofit workers are located in the Twin Cities metro area, but other regions also benefit from a strong nonprofit economy. The health care industry is the largest single component of the nonprofit sector, accounting for 66 percent of the nonprofit workforce and 74 percent of nonprofit wages. Number of Nonprofit Employers and Nonprofit • The nonprofit sector provided nearly 290,000 jobs in Employment Locations in Minnesota Minnesota in 2008, employing one out of every nine workers in the state. The nonprofit workforce in 000 3,000 4,000 5,000 6,000 5,627 5,184 Minnesota has grown steadily over the last decade, 4,692 increasing an average of three percent each year. During 4,509 the same period of time, the government workforce increased an average of just one percent per year and 3,829 3,641 the for-profit workforce experienced virtually no increase. 3,318 3,419 • In 2008, more than half of the nonprofit workforce in 1,000 2,0 Minnesota was located in the Twin Cities metro area (53 percent), another 17 percent in Southeast Minnesota (where the Mayo Clinic is located), nine percent in 0 Central Minnesota, eight percent in Northwest 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Number of Nonprofit Employment Locations Number of Nonprofit Employers Minnesota, seven percent in Northeast Minnesota and Source: MN Dept. of Employment & Economic Development, Quarterly Census of Employment & Wages six percent in South Central/Southwest Minnesota. • In 2008, there were just over 3,800 nonprofit employers Number of Nonprofit Employees in Minnesota in Minnesota. A single nonprofit employer, however, may and Percentage of the State’s Total Workforce 300,000 289,260 12% operate in more than one location. In 2008, the 3,800 260,948 nonprofit employers operated over 5,600 employment 246,169 222,384 11% locations in Minnesota. Over the last decade, the number 225,000 10% of nonprofit employment locations has increased an 10% 10% average of more than two percent per year. 9% 150,000 8% • In 2008, just over half, or 51 percent, of Minnesota’s nonprofit employment locations were located in the 75,000 6% seven-county Twin Cities metro area, 13 percent were in Northwest Minnesota, nine percent were in the Southeast, eight percent were in Central Minnesota, eight 0 4% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 percent were in South Central/Southwest Minnesota and Nonprofit Employees in Minnesota Nonprofit Percentage of Minnesota's Total Workforce seven percent were in the Northeast. Source: MN Dept. of Employment & Economic Development, Quarterly Census of Employment & Wages 2 2009 Minnesota Nonprofit Economy Report
  5. 5. Statewide Nonprofit Wages Average Weekly Wages in Minnesota by Sector • In 2008, nonprofit employers paid $12.6 billion in (in constant 2008 dollars) wages, or 10 percent of all wages paid in the state. $950 • Average weekly wages in the nonprofit sector have been $892 $900 $876 $877 steadily increasing, closing the gap with the government $847 $855 $850 $843 and for-profit sectors. Over the last decade, the nonprofit $854 $840 average weekly wage has increased an average of two $827 $812 $800 percent per year, which was significantly faster than the $767 growth in either the government or for-profit sector. $750 $715 • Although the growth in nonprofit wages has been driven $700 largely by increases in the health care sector, not all Nonprofit Sector Government Sector For-Profit Sector $650 areas of nonprofit health care have experienced growth. 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 After adjusting for inflation, the average weekly wage for Source: MN Dept. of Employment & Economic Development, Quarterly Census of Employment & Wages an employee working at a nonprofit nursing or residential care facilities has declined one percent a year for the last • Health care – which includes ambulatory health care decade. services, hospitals, and nursing and residential care facilities – makes up the largest segment of the nonprofit • In most cases, the median hourly wage for a nonprofit economy. In 2008, these health care industries accounted employee was sufficient to support the basic needs of a for 26 percent of nonprofit employment locations in the family of four in the region where the job is located (with state, 66 percent of the nonprofit workforce and 74 two adults working full-time). percent of all nonprofit wages paid in the state. Average Weekly Wages for Nonprofit • The nonprofit sector is also widely associated with Employees by Industry providing social assistance, such as delivering individual (in constant 2008 dollars) $1,000 and family services; food, housing, emergency and other $943 relief services; vocational rehabilitation services; and $881 $900 child day care services. In 2008, 20 percent of nonprofit $780 $800 employment locations and 10 percent of the nonprofit $710 $710 workforce was involved in delivering social assistance in $700 $673 Minnesota. $600 • Other industries with a large share of the nonprofit $479 $495 $500 $473 economy in 2008 included educational services (nine $485 $456 $453 percent of nonprofit employment locations and nine $400 Health Care Education percent of the workforce) and arts, entertainment and Social Assistance Arts, Entertainment & Recreation $300 recreation (seven percent of nonprofit employment 2000 2001 2002 2003 2004 2005 2006 2007 2008 locations and two percent of the workforce). Source: MN Dept. of Employment & Economic Development, Quarterly Census of Employment & Wages Statewide Analysis 3
  6. 6. Statewide Nonprofit Finances Revenue Sources for Small Nonprofits • There are a substantial number of nonprofits in Minnesota (with assets under $1 million) that operate without any paid employees, so nonprofit employment data overlooks a substantial portion of the Investments nonprofit sector. Looking at nonprofit finances — Government and Sales revenues, expenditures and assets — captures the Grants 5% economic activity of nonprofits with and without paid staff. Charitable 21% This report analyzes the most recent financial return for Contributions close to 7,000 charitable organizations in the 29% state. The analysis includes most of the 501(c)(3) and 501(c)(4) organizations that were required to file a Form Program Other 990 return with the IRS, but notably excludes private Services S i Revenue foundations and thousands of small nonprofits that file a (Includes 1% Form 990EZ or are not required to file a return. Government Fees & • Nonprofit organizations in Minnesota receive their Contracts) revenues from four main sources: program services 44% Total Revenue: $1.5 billion N = 5,116 Organizations (which includes revenue from government fees and Source: MCN’s analysis of Form 990 information filed with the Internal Revenue Service (IRS) contracts), charitable contributions (which includes corporate and foundation grants), government grants, and returns from investments, sales and special events. Revenue Sources for Medium-Sized Nonprofits Revenue Sources for Large Nonprofits (with assets between $1 and $10 million) (with assets over $10 million) Investments Government Charitable and Sales Grants Contributions 3% 2% Charitable 17% Government Program Contributions Grants Services 9% 19% Investments (Includes and Sales Program g Government 4% Fees & Services Other Contracts) (Includes 84% Revenue Other Oh Government <1% Revenue Fees & 1% Contracts) 61% Total Revenue: $3.7 billion Total Revenue: $33.6 billion N = 1,396 Organizations N = 460 Organizations Source: MCN’s analysis of Form 990 information filed with the Internal Revenue Service (IRS) Source: MCN’s analysis of Form 990 information filed with the Internal Revenue Service (IRS) 4 2009 Minnesota Nonprofit Economy Report
  7. 7. Statewide Nonprofit Finances Minnesota Nonprofit Assets, Revenues and Expenses by Selected Activity Areas (most current fiscal year) All Minnesota Arts, Culture Environmental and Health Human Services Education Nonprofits and Humanities Animal-related Total Assets $65.6 billion $33.6 billion $6.8 billion $15.7 billion $2.4 billion $307 million Program Services 80% 89% 59% 61% 32% 25% Charitable Contributions 10% 6% 18% 17% 39% 47% Revenues Government Grants 4% 2% 17% 10% 15% 12% Investments and Sales 4% 3% 5% 11% 12% 14% Other Revenue 1% 1% 1% 1% 1% 2% Total Revenues $38.7 billion $28.9 billion $4.1 billion $3.5 billion $745 million $164 million Program Services 87% 87% 87% 86% 80% 82% Expenditures Management and General 12% 12% 11% 11% 13% 11% Fundraising 1% <1% 2% 3% 6% 7% Total Expenses $36.7 billion $27.6 billion $4.0 billion $3.0 billion $664 million $149 million Source: MCN’s analysis of Form 990 information filed with the Internal Revenue Service (IRS). This analysis includes 6,972 501(c)(3) and (c)(4) organizations located in Minnesota that filed a Form 990 financial return with the IRS for fiscal year 2007 or 2008. The financial information does not include all other types of 501(c) organizations, nonprofits that filed Form 990EZ, private foundations that filed form 990PF, some charitable trusts, and nonprofits with minimal financial activity that are not required to file a return with the IRS. More information on these activity areas is available in Appendix A. • The IRS made significant revisions to the Form 990 for Expenditures by Nonprofit Organizations the 2008 fiscal year, including requiring nonprofits to Located in Minnesota provide more detailed revenue information. The analysis in this report continues to utilize the revenue categories from previous years because only 12 percent of nonprofits included in the analysis had filed the revised Fundraising 990. However, an analysis of the organizations that did 1% Management file the revised form revealed that at least 55 percent Program and General of program service revenue came from federal, Services 12% state or local government sources. 87% • The Charities Review Council of Minnesota recommends Payments to Affiliates that nonprofits spend at least 70 percent of their total <1% annual expenses on program services and no more than 30 percent on management and fundraising. In 2008, nonprofits in Minnesota spent on average 87 percent of their revenues on program services and 13 percent on Total Expenses: $36.7 billion N = 6,956 Organizations management and fundraising. Source: MCN’s analysis of Form 990 information filed with the Internal Revenue Service (IRS) Statewide Analysis 5
  8. 8. Twin Cities Metro Area Nonprofit Employment Counties: Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, Washington Regional Overview: The seven-county Twin Cities metro area is home to a majority of nonprofit activity in the state. In 2008, there were more than 2,800 nonprofit employment locations and 153,000 nonprofit jobs in this region. Over the last decade, the nonprofit workforce in the Twin Cities metro area grew an average of three percent per year, while the for-profit workforce showed no growth. By 2008, nonprofits employed one out of every 10 workers in the region. More importantly, the median wage for most of these nonprofit jobs was sufficient to support a family of four (with two adults working full-time). Number of Nonprofit Employment Locations • Half of all nonprofit employment locations in the Twin in the Twin Cities Cities metro area in 2008 were located in Hennepin 3,000 2,862 County. This county was also home to more than half – 2,694 54 percent – of all nonprofit jobs in the region and 29 2,290 2,378 percent of all nonprofit jobs in the state. 2,250 • Ramsey County has traditionally been another center of 1,500 nonprofit activity in the Twin Cities metro area. In 2008, 30 percent of the region’s nonprofit employment locations 750 and 30 percent of the region’s nonprofit workforce was located in Ramsey County. 0 • Dakota and Anoka counties, each with more than 7,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: MN Dept. of Employment & Economic Development, Quarterly Census of Employment & Wages nonprofit employees in 2008, also stand out as major nonprofit centers in the region and in the state. • The Twin Cities metro area was home to a majority of the state’s nonprofit employment locations (51 percent) in Number of Nonprofit Employees in the Twin Cities and 2008. Over the last decade, the number of nonprofit Nonprofit Percentage of All Twin Cities Employees 160,000 153,528 25% employment locations in the region has increased an average of close to three percent per year. 129,069 136,672 20% 120,000 117,207 • In 2008, there were more than 150,000 nonprofit jobs in the Twin Cities metro area, or 53 percent of all 15% nonprofit jobs in the state. The nonprofit workforce in the 80,000 region has been growing an average of three percent 10% 10% 8% 9% per year since 1999. The size of the for-profit workforce 8% in the region, however, was virtually the same size in 40,000 5% 2008 as it was a decade earlier. • As a result of the strong job growth, by 2008, nonprofits 0 0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 employed one out of every 10 workers in the Twin Cities Nonprofit Employees in the Region Nonprofit Percentage of the Region's Workforce metro area. Source: MN Dept. of Employment & Economic Development, Quarterly Census of Employment & Wages 6 2009 Minnesota Nonprofit Economy Report
  9. 9. Twin Cities Metro Area Nonprofit Wages Counties: Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, Washington • The nonprofit health care industry is not as dominant in • Nonprofit organizations in the Twin Cities metro area this region as it is in others. In 2008, health care paid $6.8 billion in wages in 2008, or eight percent of accounted for 23 percent of nonprofit employment all wages in the region. After adjusting for inflation, the locations and 58 percent of the nonprofit workforce. total nonprofit payroll in the region has increased an Median Hourly Wages for Full-Time average of five percent per year over the last decade. Employees in the Twin Cities Metro Area Government and for-profit wages increased just one Full-Time Median Hourly Wage by Sector percent per year over the same period of time. Industry (% of the sector’s total employment in the region) Nonprofit For-Profit Government • The nonprofit average weekly wage in the Twin Cities Arts, Entertainment & $17.08 $13.96 $16.48 metro area did show a slight decline between 2007 and Recreation (3%) (2%) (1%) 2008 (after adjusting for inflation). The same decline is Educational Services $21.67 $20.34 $25.22 also found in for-profit sector average weekly wages. (11%) (1%) (47%) However, it is too early to tell if this one-year change Health Care reflects the impact of the recession. $23.45 $20.67 $26.41 Ambulatory Health Care Services (10%) (4%) (<1%) • According to the JOBS NOW Coalition, in 2008, each $29.88 $22.95 $22.45 Hospitals adult needed to earn $14.34 an hour to support the (35%) (<1%) (2%) Nursing & Residential Care $15.58 $13.43 $19.25 basic needs of a family of four (two adults working full- Facilities (12%) (2%) (1%) time, two children) in the Twin Cities region. In 2008, all Social Assistance but three industries in the region (vocational rehabilitation $15.75 $11.37 Individual & Family Services NA services, child day care services, and civic and social (6%) (2%) Community Food, Housing, $16.83 $15.87 organizations) exceeded the minimum amount necessary NA Emergency & Other Relief Services (1%) (<1%) to meet these costs. Vocational Rehabilitation $14.02 $16.95 $25.56 Average Weekly Wages in the Twin Cities by Sector Services (4%) (<!%) (<1%) (in constant 2008 dollars) $12.88 $11.99 $16.11 Child Day Care Services $1,100 (1%) (<1%) (<1%) $1,031 $1,003 $1,010 Other Services $967 $1,000 $18.19 $13.64 Religious Organizations NA $972 $957 $974 (1%) (<1%) $927 $900 $26.06 $24.97 $855 $842 Grantmaking & Giving Services NA (1%) (<1%) $793 $840 $800 $16.95 $16.52 $30.45 $812 Social Advocacy Organizations $733 $767 (2%) (<1%) (<1%) $700 $12.43 $11.36 $715 Civic & Social Organizations NA (3%) (<1%) $600 Source: MN Dept. of Employment & Economic Development, Enhanced Wage Records, 4th Quarter 2008 Nonprofit Sector Government Sector Notes: “NA” indicates either that the sector did not have any employees in that industry or that the information for that category was suppressed for reasons of privacy. The selected industries For-Profit Sector Statewide Nonprofit Average $500 represent 90 percent of nonprofit employment, 11 percent of for-profit employment and 51 percent of government employment in the region in 2008. More extensive descriptions of these 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 industries are available in Appendix A. Source: MN Dept. of Employment & Economic Development, Quarterly Census of Employment & Wages Twin Cities Metro Area Analysis 7
  10. 10. Twin Cities Metro Area Nonprofit Finances Counties: Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, Washington Assets, Revenues and Expenses by Selected Activity Areas for Nonprofits in the Twin Cities Metro Area All Twin Cities Arts, Culture Environmental and Health Human Services Education Nonprofits and Humanities Animal-related Total Assets $41.7 billion $15.1 billion $5.6 billion $12.6 billion $2.2 billion $223 million Program Services 82% 93% 61% 64% 33% 23% Charitable Contributions 9% 3% 20% 15% 39% 49% Revenues Government Grants 4% 1% 13% 11% 14% 12% Investments and Sales 4% 2% 5% 8% 13% 15% Other Revenue 1% 2% 1% 1% 1% 2% Total Revenues $25.5 billion $18.1 billion $3.0 billion $2.3 billion $680 million $130 million Program Services 87% 88% 87% 86% 81% 84% Expenditures Management and General 12% 12% 11% 11% 13% 8% Fundraising 1% <1% 2% 3% 7% 8% Total Expenses $24.4 billion $17.5 billion $3.0 billion $2.1 billion $608 million $120 million Source for both tables: MCN’s analysis of Form 990 information filed with the Internal Revenue Service (IRS). This analysis includes 3,925 501(c)(3) and (c)(4) organizations that filed a 990 financial return from an address located in the Twin Cities metro area for fiscal year 2007 or 2008. More information is available in the appendices. Assets, Revenues and Expenses by Size of Organization • Nonprofits in the Twin Cities metro area for Nonprofits in the Twin Cities Metro Area reported more than $41.7 billion in assets for Small: Medium: Large: the most current fiscal year (either 2007 or Assets under Assets between Assets over 2008). The activity areas in the region with the $1 million $1 and $10 million $10 million largest assets were health care organizations Total Assets $544 million $2.7 billion $38.4 billion (36 percent of total nonprofit assets) and Program Services 43% 56% 86% educational organizations (30 percent of total nonprofit assets). Charitable Contributions 32% 21% 6% Revenues Government Grants 19% 19% 2% • Revenue sources for nonprofits in the Twin Investments and Sales 5% 3% 4% Cities metro area varied considerably depending on the organization’s activity area. Other Revenue 1% <1% 1% On average, nonprofit health organizations Total Revenues $999 million $2.2 billion $22.3 billion raised 93 percent of their revenues from Program Services 83% 86% 88% program services (including government fees Expenditures and contracts). Environmental and animal- Management and General 13% 12% 11% related nonprofits, on the other hand, raised Fundraising 3% 2% 1% almost half of their revenues from charitable Total Expenses $982 million $2.1 billion $21.2 billion contributions. 8 2009 Minnesota Nonprofit Economy Report
  11. 11. Northeast Minnesota Nonprofit Employment Counties: Aitkin, Carlton, Cook, Itasca, Koochiching, Lake, St. Louis Regional Overview: Northeastern Minnesota, with only seven counties, is still the second-largest region in the state in terms of square miles. Nonprofit activity in the region is heavily concentrated in St. Louis County, home to the city of Duluth. In 2008, this one county accounted for 80 percent of the region’s nonprofit workforce, 58 percent of nonprofit employment locations and 84 percent of nonprofit wages. The nonprofit sector in the region has been growing slowly over the last decade, averaging a one percent per year increase in employment locations and two percent per year growth in the nonprofit workforce. Number of Nonprofit Employment Locations • Nonprofit activity in Northeast Minnesota is heavily in the Northeast concentrated in one area. St. Louis County, where the city 400 383 399 of Duluth is located, was home to 80 percent of the 372 376 nonprofit workforce in the region in 2008. Within St. Louis County, the nonprofit sector employed more workers 300 than the government sector. Additionally, in 2008, St. Louis County accounted for 58 percent of the region’s 200 nonprofit employment locations and 84 percent of the region’s nonprofit wages. 100 • Itasca County is a distant second in nonprofit activity in Northeast Minnesota. In 2008, this county was home to 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 14 percent of the region’s nonprofit employment Source: MN Dept. of Employment & Economic Development, Quarterly Census of Employment & Wages locations, eight percent of the region’s nonprofit workforce and seven percent of all nonprofit wages. • The Northeast region has the fewest nonprofit employment locations in the state, just seven percent of Number of Nonprofit Employees in the Northeast and all nonprofit employers in Minnesota. Over the last Nonprofit Percentage of All Northeast Employees decade, the number of nonprofit employment locations in 20,839 21,000 30% the Northeast has increased an average of just one 19,369 17,882 percent per year. 17,068 • The growth in the nonprofit workforce in Northeast 14,000 20% Minnesota, however, has outpaced growth in the region’s government and for-profit sectors. Over the last ten years, 15% the nonprofit workforce in the Northeast grew an 13% 14% 7,000 12% 10% average of two percent per year, while the government workforce grew less than one percent per year and the for-profit workforce actually declined. In 2008, 15 percent of the Northeast region’s workforce was 0 0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 employed by the nonprofit sector, which was above the Nonprofit Employees in the Region Nonprofit Percentage of the Region's Workforce statewide average of 11 percent. Source: MN Dept. of Employment & Economic Development, Quarterly Census of Employment & Wages Northeast Minnesota Analysis 9
  12. 12. Northeast Minnesota Nonprofit Wages Counties: Aitkin, Carlton, Cook, Itasca, Koochiching, Lake, St. Louis • Northeast Minnesota has a high percentage of nonprofit • The arts, entertainment and recreation industry also plays employment in the health care sector. In 2008, 77 an important role in Northeast Minnesota, accounting for percent of the region’s nonprofit workforce was employed 10 percent of all nonprofit employment locations in the in one of the three health care industries. region in 2008, the highest percentage in the state. Median Hourly Wages for Full-Time • In 2008, nonprofits paid $909 million in wages, or 18 Employees in Northeast Minnesota percent of all wages in the region. Over the last decade, Full-Time Median Hourly Wage by Sector after adjusting for inflation, total nonprofit payroll in the Industry (% of the sector’s total employment in the region) Northeast has increased an average of four percent per Nonprofit For-Profit Government year. During the same period of time, total government Arts, Entertainment & $14.50 $10.04 $13.23 payroll in the region increased less than one percent per Recreation (2%) (2%) (7%) year and total for-profit payroll declined slightly. $20.90 $17.54 $11.25 Educational Services (6%) (<1%) (36%) Health Care • According to the JOBS NOW Coalition, in 2008, each $19.00 $17.70 adult needed to earn $12.07 an hour to support the Ambulatory Health Care Services NA (20%) (3%) basic needs of a family of four (two adults working full- Hospitals $21.44 NA $18.42 time, two children) living in the Northeast. Although the (41%) (7%) majority of the nonprofit industries examined exceeded Nursing & Residential Care $12.39 $10.87 $15.29 Facilities (16%) (6%) (3%) the minimum amount necessary to support these costs, Social Assistance four industries – vocational rehabilitation services, child $14.25 $10.60 day care services, religious organizations, and civic and Individual & Family Services NA (3%) (2%) social organizations – did not meet this basic wage in Community Food, Housing, $15.10 $14.48 NA 2008. Emergency & Other Relief Services (1%) (<1%) Vocational Rehabilitation $10.27 $12.37 Average Weekly Wages in the Northeast by Sector NA (in constant 2008 dollars) Services (3%) (<1%) $860 $11.08 $9.38 $840 Child Day Care Services NA (1%) (<1%) $812 $839 Other Services $810 $783 $806 $772 $11.44 $762 Religious Organizations NA NA $760 (<1%) $768 $760 $21.10 $715 Grantmaking & Giving Services NA NA (<1%) $710 $702 $13.64 $10.01 Social Advocacy Organizations NA (1%) (<1%) $660 $649 $658 $8.59 $9.11 Civic & Social Organizations NA $642 $635 (3%) (1%) $610 Source: MN Dept. of Employment & Economic Development, Enhanced Wage Records, 4th Quarter 2008 Nonprofit Sector Government Sector Notes: “NA” indicates either that the sector did not have any employees in that industry or that the For-Profit Sector Statewide Nonprofit Average information for that category was suppressed for reasons of privacy. The selected industries $560 represent 97 percent of nonprofit employment, 14 percent of for-profit employment and 52 percent 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 of government employment in the region in 2008. More extensive descriptions of these industries are available in Appendix A. Source: MN Dept. of Employment & Economic Development, Quarterly Census of Employment & Wages 10 2009 Minnesota Nonprofit Economy Report
  13. 13. Northeast Minnesota Nonprofit Finances Counties: Aitkin, Carlton, Cook, Itasca, Koochiching, Lake, St. Louis Assets, Revenues and Expenses by Selected Activity Areas for Nonprofits in Northeast Minnesota All Northeast Arts, Culture Environmental and Health Human Services Education Nonprofits and Humanities Animal-related Total Assets $5.8 billion $5.2 billion $242 million $151 million $56 million $20 million Program Services 87% 95% 42% 68% 28% 52% Charitable Contributions 4% 1% 20% 7% 39% 34% Revenues Government Grants 5% 1% 33% 22% 19% 3% Investments and Sales 2% 2% 4% 2% 12% 10% Other Revenue 1% 1% 1% 1% 2% 2% Total Revenues $2.3 billion $1.9 billion $212 million $119 million $22 million $9 million Program Services 85% 85% 88% 87% 82% 70% Expenditures Management and General 15% 15% 11% 12% 14% 27% Fundraising <1% <1% 1% 1% 5% 3% Total Expenses $2.2 billion $1.9 billion $196 million $112 million $20 million $8 million Source for both tables: MCN’s analysis of Form 990 information filed with the Internal Revenue Service (IRS). This analysis includes 553 501(c)(3) and (c)(4) organizations that filed a 990 financial return from an address located in Northeast Minnesota for fiscal year 2007 or 2008. More information on which organizations are included and how the activity areas are defined is available in the appendices. • Nonprofits in Northeast Minnesota reported Assets, Revenues and Expenses by Size of Organization more than $5.8 billion in assets for the most for Nonprofits in Northeast Minnesota current fiscal year (either 2007 or 2008). The Small: Medium: Large: activity areas in the region with the largest Assets under Assets between Assets over assets were health care organizations (89 $1 million $1 and $10 million $10 million percent of total nonprofit assets) and human Total Assets $90 million $344 million $5.4 billion service organizations (four percent of total Program Services 41% 62% 93% nonprofit assets). Charitable Contributions 28% 13% 2% Revenues • Nonprofit expenditures in the Northeast fell well Government Grants 23% 19% 2% within the recommended guidelines from the Investments and Sales 6% 4% 2% Charities Review Council of Minnesota. In the Other Revenue 1% 1% 1% most recent fiscal year, nonprofits in the region spent, on average, 85 percent on program Total Revenues $86 million $319 million $1.9 billion services and only 15 percent on management Program Services 84% 87% 85% Expenditures and fundraising. Revenue sources for Management and General 14% 12% 15% nonprofits, however, varied considerably Fundraising 2% 1% <1% depending on the size of the organization and the activity area. Total Expenses $81 million $304 million $1.8 billion Northeast Minnesota Analysis 11
  14. 14. Northwest Minnesota Nonprofit Employment Counties: Becker, Beltrami, Cass, Clay, Clearwater, Crow Wing, Douglas, Grant, Hubbard, Kittson, Lake of the Woods, Mahnomen, Marshall, Morrison, Norman, Otter Tail, Pennington, Polk, Pope, Red Lake, Roseau, Stevens, Todd, Traverse, Wadena, Wilkin Regional Overview: Nonprofit activity in the 26-county Northwest region is widely dispersed. In 2008, at least six counties (Crow Wing, Clay, Otter Tail, Beltrami, Polk and Douglas) could claim a substantial share of the region’s 700 nonprofit employment locations and 24,000 nonprofit jobs. The nonprofit sector in Northwest Minnesota has been experiencing solid growth in recent years. Although the size of the nonprofit workforce in the region declined during the 2001 recession, since then the workforce has been increasing an average of three percent per year. Number of Nonprofit Employment Locations • Nonprofit activity is widely dispersed in the Northwest, in the Northwest reflecting that the region has more, but smaller, 750 712 population centers than other regions. In 2008, 11 648 percent of nonprofit employment locations were in Crow 600 571 587 Wing County (where Brainerd is located), 10 percent in Clay County (Moorhead), 10 percent in Otter Tail County 450 (Fergus Falls), nine percent in Beltrami County (Bemidji), seven percent in Polk County (Crookston and East Grand 300 Forks) and seven percent in Douglas County (Alexandria). 150 • The nonprofit workforce in the region followed a slightly different pattern, with 15 percent of the region’s nonprofit 0 jobs in Clay County, 10 percent in Otter Tail, nine 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 percent in Crow Wing, nine percent in Beltrami, eight Source: MN Dept. of Employment & Economic Development, Quarterly Census of Employment & Wages percent in Polk and just four percent in Douglas. • Thirteen percent of the state’s nonprofit employment Number of Nonprofit Employees in the Northwest and locations were located in the Northwest region in 2008, Nonprofit Percentage of All Northwest Employees the largest concentration outside of the Twin Cities. Over 25,000 24,246 30% 22,581 the last decade, the number of nonprofit employment 20,533 20,451 locations in the Northwest has increased an average of 20,000 nearly three percent per year. Only Central Minnesota 20% experienced stronger growth over the same period. 15,000 • In 2008, the nonprofit sector in the Northwest employed 11% 10,000 10% 10% 11% 11 percent of the region’s total workforce, the same as 10% the statewide average. Since 2001, the end of the last 5,000 recession, the nonprofit workforce in the region has increased an average of three percent per year. During the same period of time, the for-profit workforce in the 0 0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 region increased an average of just one percent per year Nonprofit Employees in the Region Nonprofit Percentage of the Region's Workforce and the government workforce declined slightly. Source: MN Dept. of Employment & Economic Development, Quarterly Census of Employment & Wages 12 2009 Minnesota Nonprofit Economy Report

×