Nonprofit's Impact on the Economy

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@rgordongroupfacebook.com/RebeccaGordonGroupHolding the Fort: The Nonprofit Sectors Impact on Missouris EconomyBy Rebecca Gordon, CFRERebecca Gordon Group

Rebeccas Background Started in 1996 duties as assigned Capitol Jazzfest and Childrens Expo1

Holding The Fort: Nonprofit Employment During A Decade of Turmoilwww.rebeccagordongroup.org

@rgordongroupfacebook.com/RebeccaGordonGroupThis research comes at an extraordinarily important time as we struggle with the aftermath of the 2007-2009 economic recession.

Lester Salamon, PH.DDirector Johns Hopkins Center for Civil Society StudiesLead Researcher

The Economic Contribution of the Nonprofit Sector in Missouri

May 2002Missouri Department of Economic DevelopmentMissouri Economic Research and Information Center

Just So Were Clearwww.rebeccagordongroup.org

@rgordongroupfacebook.com/RebeccaGordonGroupWhat 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 5013 of the Internal Revenue Code.

PTA, PTO, Boosters4

The State of Philanthropy5

In 2011, charitable giving totaled over 346 billion dollars, a 7.5% increase over 2010.

The nonprofit sector has been growing steadily, both in size and financial impact, for more than a decade. Between 2001 and 2011, 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 and services that added $779 billion to the nations gross domestic product; 5.4 percent of GDP.In 2011, charitable giving totaled over 346 billion dollars, a 7.5% increase over 2010.


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Though many people are not aware of it, research confirms the enormous scale of the nonprofit workforce. U.S. nonprofit establishments employed nearly 10.7 million paid workers in 2010. This accounts for about 10.1% of our nationals total private employment and makes the U.S. nonprofit workforce the third largest among U.S. industries, behind only retail trade and manufacturing.

A MAJOR ECONOMIC FORCE

A Major Economic Forcewww.rebeccagordongroup.org


Missouri Accounts for 10.8% just above the national level9

More specifically, the U.S. nonprofit sector employs:

Nearly 19 times more workers than the nations utility industry.Nearly 10 times more than agriculture.About 5.5 times more workers than the nations real estate industry.About twice as many workers as the nations wholesale trade, finance and insurance and construction industry.www.rebeccagordongroup.org


Nonprofit Presence in Key Fieldswww.rebeccagordongroup.org

@rgordongroupfacebook.com/RebeccaGordonGroupThree 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 hospitalsHealth clinicsNursing homes 15% of all nonprofit jobs are in education.Private elementary and secondary schoolsColleges and UniversitiesEducational Facilities13% are in social assistance.Individual and family servicesCommunity Food ServicesHousingChild Day Care

How Do We Stack Up In Missouri?

1 in 10 jobs are nonprofit

Jobs a Distributed Fairly Evenly





A Dynamic SectorRecent Trends 2000-2010



Striking ConclusionsThe 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.



Accounting For the Results


@rgordongroupfacebook.com/RebeccaGordonGroupMany 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.

Domestic Violence money

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Field of ServiceBeyond 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.

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. 17

Our Biggest Contribution


@rgordongroupfacebook.com/RebeccaGordonGroupThe 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

The nonprofit sector is a valuable asset to communities wanting to draw in new business, and develop robust and thriving ecnonomies 18

Feeling good is what nonprofits sell.

Seth Godin, Author


@rgordongroupfacebook.com/RebeccaGordonGroupHolding the Fort: The Nonprofit Sectors Impact on Missouris EconomyBy Rebecca Gordon, CFRERebecca Gordon Group

Rebeccas Background Started in 1996 duties as assigned Capitol Jazzfest and Childrens Expo20

Nonprofit's Impact on the Economy

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