1. Non-profits: Not so Small
After All
A quick survey of the economic impact non-profits
have nationally and in Texas.
By: Erin McClarty
2. Non-profits ≠ No money?
The word “non-profit”
can be incredibly
deceptive. Most believe
non-profit to be
analogous to little to no
money.
3. Why is this???
• Few understand just how immense an impact non-profits
have on the economy. This can often be attributed to two
(amongst many) things:
• A misperception as to the number of non-profits that
exist.
• The stereotypes often portrayed by society.
4. Clarification
• But, a quick survey of
recent statistics shows that
non-profit organizations
are not only “profiting”,
but many are beginning to
pace for-profit
organizations as well.
5. In fact, Nationally...
• ...the number of 501(3)(c) charities
increased by 32.7% and foundations
63.6% between 1998 and 2008.
• ...in 2007 public charities accounted
for over 1.4 trillion in total revenues.
• ...in 2006, non-profits accounted for
8.11% of all wages and salaries paid
in the United States.
• ...there are 1,017,479 non-profit
organizations as of today.
(Sources: NCCS Core Files 2007; IRS Business Master File 04/2009 (with modifications by the National Center for Charitable Statistics at the Urban Institute to exclude foreign and governmental
organizations, Nonprofit Almanac 2008.)
6. In Texas.....
• ...there are 69, 558 organizations, 31, 393 of which file.
• ...the organizations that must file yearly account for $59,000,613,663 in
revenues and have over $59,000,613,663 in assets.
• ...Texan Foundations have awarded over 1,137,359,328 in grants while
Charitable organizations have awarded 1,350,319,187 in grants. All of this is
then re-invested back into local business and communities
Sources: IRS Business Master File (modified by NCCS) 04/2010; NCCS 501(c)(3) Public Charities Core File 2008; IRS Business Master File 04/2009 (with modifications by the National Center for Charitable Statistics at the Urban
Institute to exclude foreign and governmental organizations; IRS Statistics of Income, July 2009: <http://www.irs.gov/pub/irs-soi/07in54cm.xls>. Prepared by the National Center for Charitable Statistics at the Urban Institute .
7. Texas Continued.....
• Also, the number of Texan 501(3)(c) charities has increased 75.3 percent
with Foundations slightly ahead at 77.3% between 1998 to 2008.
• In 2009 there were 11,278,559 tax returns made. Of these, 2,160,102 had
charitable deductions amounting to $12,856,691.
Total Returns Made
Returns with Charitable Deductions
16%
84%
8. Charts
The following are two charts detailing the top 10 non-profits in
Texas by Gross Revenue and by assets. Keep in mind:
• How incredibly large the numbers are. In many
instances individual institutions handle several
millions dollars.
• These are just the top ten non-profits (for each
category respectively) in Texas. Imagine how much
non-profits contribute to the state cumulatively.
9. Top 10 Texas Non-profits By Gross
Receipts
Gross Receipts Gross Assets
City
(by dollars)
4,438,702,857 (by dollars)
Christus Health Houston, Tx 9,289,680,501 2,556,476,045
Methodist Hospital Houston, Tx 4,207,299,903
Memorial Herman Hospital Houston, Tx 2,509,852,996 3,453,047,831
Texas Childrens Hospital Houston, Tx 2,058,700,689 2,775,777,168
William Marsh Rice University Houston, Tx 1,830,649,240 6,092,313,393
Baylor College of Medicine Houston, Tx 1,416,938,637 2,753,179,210
Boy Scouts of America Irving, Tx 1,320,090,753 868,591,890
Scott & White Memorial Hospital & Scott Sherwood Brindley Houston, Tx 1,309,158,112 1,369,975,811
Foundation
Daughters of Charity Health Services of Austin Austin, Tx 1,291,325,093 1,538,826,895
Texas Christian University Fort Worth, Tx 1,227,577,905 1,890,254,000
10. Top 10 Texas Non-profits by Assets
1. Brazos Higher Education Authority 10,000,000,000
Inc
(Waco, TX)
8,000,000,000
2. William Marsh Rice University
(Houston, TX)
6,000,000,000
3. Methodist Hospital
(Houston, TX)
4,000,000,000
4. Memorial Hermann Hospital System
(Houston, TX)
2,000,000,000
5. Texas Childrens Hospital
(Houston, TX)
6. Baylor College of Medicine
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Note: Here, revenues are being measured by almost the tens of millions!
(Dallas, TX)
9. Trinity Higher Education Authority
Inc
(Waco, TX)
10. Panhandle-Plains Higher Education
Authority Inc Source: NCCS 501(c)(3) Public Charities Core File 2008
(Canyon, TX)
11. Conclusion
• In the end, it is important that tax-payers,
governments, and businesses begin to understand
just how large a role non-profits play in federal
and state revenues.
• Realize that non-profits contribute heavily not
only in moral currency, but monetary currency as
well.
• By understanding how large a role non-profits
play economically, perhaps people will begin to
understand why investing in them is important
and see to it that each and every one sustains.