The document discusses the nonprofit sector in South Dakota, highlighting key statistics such as 7,581 organizations with $7.1 billion in income and $12.7 billion in assets. It emphasizes trends in governance, accountability, and public perception, noting a growing scrutiny of nonprofits, particularly in light of recent scandals. The regulatory landscape is evolving, with the IRS and other bodies shifting focus towards broader governance oversight.

1. The Nonprofit Sector in South Dakota – What’s New? “ Transparency” November 14, 2008

2. Topics We Will Cover Statistics on Nonprofits and Philanthropy Trends: Governance Accountability Public Perception Regulation

3. Nonprofits in the US Total 501(c) organizations - 1,540,554 Total 501(c)3 organizations - 1,010,365 Total 501(c)6 organizations - 86,054 Nonprofits comprise about 8.5% of GDP Nonprofits comprise about 11% of employment

4. Nonprofit Market is Vast 75% of US nonprofits have revenue under $1 million Largest nonprofits’ revenues only 1.5% of annual giving Only ¼ of 501(c)3s file a Form 990/990-EZ

5. Nonprofits in South Dakota 7,581 Organizations $7.1 Billion in Income $12.7 Billion in Assets

6. Nonprofits in Sioux Falls Minnehaha County – 1,132 Orgs $3.56 Billion Income $4.42 Billon Assets Lincoln County – 188 Orgs $338 Million Income $682 Million Assets

7. Nonprofits in Sioux Falls Sioux Falls Chamber of Commerce – 50 Major Employers (300+ employees) For-Profit 34 25,691 53.9% Nonprofit 10 15,405 32.3% Government 5 5,599 12.5% Other 1 590 1.3% TOTAL 50 47,641 100.0%

8. 2007 charitable giving Total = $306.39 billion ($ in billions) Individuals $229.03 74.8% Foundations $38.52 12.6% Bequests $23.15 7.6% Corporations $15.69 5.1% Source: 2008 Giving USA

9. Types of recipients of contributions, 2007 Total = $306.39 billion ($ in billions) Environment and animals $6.96 2.3% Foundations $27.73 9.1% Human services $29.64 9.7% International affairs $13.22 4.3% Arts, culture, and humanities $13.67 4.5% Public-society benefit $22.65 7.4% Unallocated giving $23.67 7.7% Health $23.15 7.6% Religion $102.32 33.4% Education $43.32 14.1% Source: 2008 Giving USA

10. Where the money comes from and where it goes doesn’t change much over time 75% of gifts are made by individuals – 1.4%-1.6% of GDP Corporate gifts tied to net revenues (usually 1.2% of pretax profits) Religion and education are top causes International causes are usually at bottom* Corporate giving tied to HQ and operations locations

11. Nonprofits in the News (usually for the wrong reasons!) United Way of America – William Aramony September 11 charity American Red Cross – 9/11, etc. “ Pennies for Charity” and state AGs Katrina Nonprofit hospitals University endowments Local “Scandal du jour”

12. Regulatory Trends and Influences IRS Intermediate Sanctions Sarbanes-Oxley (SOX) Senate Finance Committee House Joint Tax Committee (hospitals) Panel on the Nonprofit Sector IRS Governance Best Practices IRS Inquiry Letters (hospitals & universities)

13. Conclusions Nonprofit sector is big and influential Nonprofit sector is very splintered Perception of eroding confidence in charity Trends toward more public scrutiny IRS changing role – reluctantly - from pure financial regulation to broader governance oversight

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