Nonprofit's Impact on the Economy


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  • Rebecca’s Background – Started in 1996 – duties as assigned – Capitol Jazzfest and Children’s Expo
  • PTA, PTO, Boosters
  • Missouri Accounts for 10.8% just above the national level
  • Domestic Violence money
  • 97% of nonprofit employment comes from healthcare, social services and education. 91% of for-profit jobs are concentrated outside of services, ie. Manufacturing, construction, transportation, and wholesale and retail trade. Nonprofit employment is concentrated in the growth areas of the economy while for-profit employment has been shedding jobs.
  • The nonprofit sector is a valuable asset to communities wanting to draw in new business, and develop robust and thriving ecnonomies
  • Rebecca’s Background – Started in 1996 – duties as assigned – Capitol Jazzfest and Children’s Expo
  • Nonprofit's Impact on the Economy

    1. 1. Holding the Fort: The Nonprofit Sector’s Impact on Missouri’s Economy By Rebecca Gordon, CFRE Rebecca Gordon Group @rgordongroup
    2. 2. Holding The Fort: Nonprofit Employment During A Decade of Turmoil This research comes at an extraordinarily important time as we struggle with the aftermath of the 2007-2009 economic recession. Lester Salamon, PH.D Director Johns Hopkins Center for Civil Society Studies Lead Researcher@rgordongroup
    3. 3. The Economic Contribution of theNonprofit Sector in Missouri May 2002 Missouri Department of Economic Development Missouri Economic Research and Information Center
    4. 4. Just So We’re Clear What is a nonprofit? Nonprofit it a term used loosely to describe groups of people who come together to achieve a common mission. *For the purpose of this discussion, “nonprofits” are defined as entities exempted from income taxation under Section 501©3 of the Internal Revenue Code.@rgordongroup
    5. 5. The State of Philanthropy 5
    6. 6. The nonprofit sector has been growingsteadily, both in size and financial impact, for more than a decade. Between 2001 and2011, the number of nonprofits has increased 25 percent; from 1,259,764 million to 1,574,674 million today. The growth rate of the nonprofit sector has surpassed the rate of both the business and government sectors. In 2010, nonprofits contributed products andservices that added $779 billion to the nation’s gross domestic product; 5.4 percent of GDP. In 2011, charitable giving totaled over 346 billion dollars, a 7.5% increase over 2010.
    7. 7. Source of Giving in BILLIONS Individuals 260.18 billion/75% Bequests 23.69 billion/7% Foundations 44.73 billion/13% Corporations 17.57 billion/5%@rgordongroup
    8. 8. A MAJOR ECONOMIC FORCEThough many people are not aware of it, researchconfirms the enormous scale of the nonprofitworkforce. U.S. nonprofit establishments employednearly 10.7 million paid workers in 2010. This accountsfor about 10.1% of our national’s total privateemployment and makes the U.S. nonprofit workforcethe third largest among U.S. industries, behind onlyretail trade and manufacturing.
    9. 9. A Major Economic Force Retail Trade 14.5% Manufacturing 11.5% NONPROFIT 10.7% Construction 5.5% Finance and Insurance 5.5% Wholesale trade 5.5% Transportation 3.9% Real Estate 1.9% Agriculture 1.1% Mining .7% Utilities .6% 0 5 10 15 20@rgordongroup
    10. 10. More specifically, the U.S. nonprofit sector employs: • Nearly 19 times more workers than the nation’s utility industry. • Nearly 10 times more than agriculture. • About 5.5 times more workers than the nation’s real estate industry. • About twice as many workers as the nation’s wholesale trade, finance and insurance and construction industry.@rgordongroup
    11. 11. Nonprofit Presence in Key Fields Three service fields, healthcare, education and social assistance – account for a vast majority (84%) of U.S. nonprofit jobs. •57% of all nonprofit jobs in the U.S. are in the heath care field. •37% in hospitals •Health clinics •Nursing homes •15% of all nonprofit jobs are in education. •Private elementary and secondary schools •Colleges and Universities •Educational Facilities •13% are in social assistance. •Individual and family services •Community Food Services •Housing •Child Day Care@rgordongroup
    12. 12. How Do We Stack Up In Missouri? 1 in 10 jobs are nonprofit Jobs a Distributed Fairly Evenly@rgordongroup
    13. 13. @rgordongroup
    14. 14. A Dynamic Sector Recent Trends 2000-2010@rgordongroup
    15. 15. Striking Conclusions The nonprofit sector grew steadily throughout the past decade, achieving and annual growth rate of 2.1%. By contrast, the for-profit sector lost jobs over the same time period at an average annual rate of minus .6%. Nonprofit employment grew every year between 2000 and 2010 despite two recessions.@rgordongroup
    16. 16. Accounting For the Results Many factors are likely responsible for the disparate employment trends of nonprofit and for-profit organizations between 2000-2010. •Growth in government spending in fields in which they operate. •Bolstered by the American Recovery and Reinvestment Act emergency funding.@rgordongroup
    17. 17. Field of Service• Beyond government spending….The nonprofit edge comes less from the characteristics of nonprofit organizations than from the characteristics of the fields in which nonprofit employment in concentrated.
    18. 18. Our Biggest Contribution The nonprofit sector not only represents a significant amount of the employment and wages in the State of Missouri, but it also contributes to quality of life issues. Missourians have access to quality healthcare, education, job training, social activities, and recreation because of this important sector in our economy. * Missouri Department of Economic Development@rgordongroup
    19. 19. “ Feeling good iswhat nonprofits sell.” Seth Godin, Author
    20. 20. Holding the Fort: The Nonprofit Sector’s Impact on Missouri’s Economy By Rebecca Gordon, CFRE Rebecca Gordon Group @rgordongroup