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Holding the Fort: The Nonprofit Sector’s Impact on
               Missouri’s Economy


            By Rebecca Gordon, CFRE
             Rebecca Gordon Group




   @rgordongroup      facebook.com/RebeccaGordonGroup

       www.rebeccagordongroup.org
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    facebook.com/RebeccaGordonGroup        www.rebeccagordongroup.org
The Economic Contribution
           of the
Nonprofit Sector in Missouri


                    May 2002
  Missouri Department of Economic Development
 Missouri Economic Research and Information Center
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         facebook.com/RebeccaGordonGroup   www.rebeccagordongroup.org
The State of Philanthropy




                            5
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 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.
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   facebook.com/RebeccaGordonGroup   www.rebeccagordongroup.org
A MAJOR ECONOMIC FORCE

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 national’s 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
                    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        facebook.com/RebeccaGordonGroup        www.rebeccagordongroup.org
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   facebook.com/RebeccaGordonGroup   www.rebeccagordongroup.org
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         facebook.com/RebeccaGordonGroup          www.rebeccagordongroup.org
How Do We Stack Up In Missouri?



            1 in 10 jobs are
         nonprofit

                Jobs a Distributed
                Fairly Evenly




@rgordongroup      facebook.com/RebeccaGordonGroup   www.rebeccagordongroup.org
@rgordongroup   facebook.com/RebeccaGordonGroup   www.rebeccagordongroup.org
A Dynamic Sector

                      Recent Trends
                       2000-2010



@rgordongroup   facebook.com/RebeccaGordonGroup   www.rebeccagordongroup.org
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               facebook.com/RebeccaGordonGroup   www.rebeccagordongroup.org
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         facebook.com/RebeccaGordonGroup      www.rebeccagordongroup.org
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.
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         facebook.com/RebeccaGordonGroup         www.rebeccagordongroup.org
“ Feeling good is
what nonprofits
      sell.”




      Seth Godin, Author
Holding the Fort: The Nonprofit Sector’s Impact on
               Missouri’s Economy


            By Rebecca Gordon, CFRE
             Rebecca Gordon Group




   @rgordongroup      facebook.com/RebeccaGordonGroup

       www.rebeccagordongroup.org

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Nonprofit's Impact on the Economy

  • 1. Holding the Fort: The Nonprofit Sector’s Impact on Missouri’s Economy By Rebecca Gordon, CFRE Rebecca Gordon Group @rgordongroup facebook.com/RebeccaGordonGroup www.rebeccagordongroup.org
  • 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 facebook.com/RebeccaGordonGroup www.rebeccagordongroup.org
  • 3. The Economic Contribution of the Nonprofit Sector in Missouri May 2002 Missouri Department of Economic Development Missouri Economic Research and Information Center
  • 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 facebook.com/RebeccaGordonGroup www.rebeccagordongroup.org
  • 5. The State of Philanthropy 5
  • 6. 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 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. 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 facebook.com/RebeccaGordonGroup www.rebeccagordongroup.org
  • 8. A MAJOR ECONOMIC FORCE 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 national’s total private employment and makes the U.S. nonprofit workforce the third largest among U.S. industries, behind only retail trade and manufacturing.
  • 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 facebook.com/RebeccaGordonGroup www.rebeccagordongroup.org
  • 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 facebook.com/RebeccaGordonGroup www.rebeccagordongroup.org
  • 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 facebook.com/RebeccaGordonGroup www.rebeccagordongroup.org
  • 12. How Do We Stack Up In Missouri? 1 in 10 jobs are nonprofit Jobs a Distributed Fairly Evenly @rgordongroup facebook.com/RebeccaGordonGroup www.rebeccagordongroup.org
  • 13. @rgordongroup facebook.com/RebeccaGordonGroup www.rebeccagordongroup.org
  • 14. A Dynamic Sector Recent Trends 2000-2010 @rgordongroup facebook.com/RebeccaGordonGroup www.rebeccagordongroup.org
  • 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 facebook.com/RebeccaGordonGroup www.rebeccagordongroup.org
  • 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 facebook.com/RebeccaGordonGroup www.rebeccagordongroup.org
  • 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. 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 facebook.com/RebeccaGordonGroup www.rebeccagordongroup.org
  • 19. “ Feeling good is what nonprofits sell.” Seth Godin, Author
  • 20. Holding the Fort: The Nonprofit Sector’s Impact on Missouri’s Economy By Rebecca Gordon, CFRE Rebecca Gordon Group @rgordongroup facebook.com/RebeccaGordonGroup www.rebeccagordongroup.org

Hinweis der Redaktion

  1. Rebecca’s Background – Started in 1996 – duties as assigned – Capitol Jazzfest and Children’s Expo
  2. PTA, PTO, Boosters
  3. Missouri Accounts for 10.8% just above the national level
  4. Domestic Violence money
  5. 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.
  6. The nonprofit sector is a valuable asset to communities wanting to draw in new business, and develop robust and thriving ecnonomies
  7. Rebecca’s Background – Started in 1996 – duties as assigned – Capitol Jazzfest and Children’s Expo