CALIFORNIA STATE UNIVERSITY

LONG BEACHEconomic Impact of Long Beach Nonprofits Lisa M. Grobar, Ph.D. & Joseph P. Magaddino, Ph.D.

“Nonprofit Sector Needs to Be Better Understood,” Stanford Social Innovation Review, Feb. 2010

• The nonprofit sector does not get enough respect.

• The sector is big and sprawling, plays an indispensable role in society and the economy, and faces daunting financial and operating challenges.

• Yet the sector generally is poorly understood and underappreciated.

How Are Nonprofits Defined?

• 501 (c) (3) federal tax code• Our study excludes religious institutions,

professional & membership organizations, etc.

• Includes faith-based charitable institutions

What are the data sources?

• IRS Form 990• Nonprofits survey conducted by the Long

Beach Nonprofit Partnership in cooperation with the CSULB Office of Economic Research

• CSULB Long Beach database

Composition of Long Beach Nonprofit Organizations

Human Services – 18%

Health – 16%

Community/Social Justice – 16%

Youth – 13%

Art & Culture – 13%

Education/Training – 13%

Housing/Shelter – 6% Animals & Environment – 5%

Employment

• 19,230 workers employed by the Long Beach nonprofit organizations

• This represents over 10% of all jobs in Long Beach

• This is similar in size to our tourism (accommodations and food services) sector

Where are the workers employed?

Category of Service Share of Employment

Human Services 18%

Art & Culture 3%

Education & Training 13%

Health 55%

Community/Improvements/Social Justice 3%

Housing/Shelter 2%

Youth 4%

Animals & Environment 2%

Nonprofit Organizations in Long Beach

Large Nonprofit Employers (excluding healthcare)

• YMCA of Greater Long Beach• Goodwill • Associated Students/49er Shops• Starview Community Services• Aquarium of the Pacific• Advocacy for Respect and Choice (disabled

services)

Employment and Payroll

• 19,230 workers• 417 organizations• $687 million annual payroll• $35,712 average annual payroll

Average Payroll

$- $15,000 $30,000 $45,000

Average Payroll

Volunteers & Economic Value

• 120,000 volunteers• 4.9 million hours per year• An equivalent annual payroll of $109

million• Imputed annual payroll (actual plus value

of volunteers) of $795 million

Economic Impact of Long Beach Nonprofits: Expenditures on Goods & Services in LA County

Direct Indirect Induced Total0.00

500.001000.001500.002000.002500.003000.003500.004000.004500.005000.00

$ millions

$631

$1,564

$4,851

$2,656

Economic Impact of Long Beach Nonprofits: Employment in Los Angeles County

Direct Indirect Induced Total0.00

5000.0010000.0015000.0020000.0025000.0030000.0035000.0040000.0045000.00

10,421

41,970

19,230

12,319

Summary

• 19,230 jobs in Long Beach and an additional 22,740 in the region

• 4.9 million volunteer hours• $2.7 billion in direct annual expenditures

with a total impact of $4.9 billion in the region

CALIFORNIA STATE UNIVERSITY

LONG BEACHEconomic Impact of Nonprofits in 17 Cities

City % of Establishments

Artesia 3

Bellflower 6

Carson 14

Cerritos 11

Compton 6

Downey 10

Harbor City 2Hawaiian Gardens 1

Lakewood 9

Lomita 3

Lynwood 3

Norwalk 3

Paramount 3

San Pedro 18

Signal Hill 2

South Gate 3

Wilmington 3

Study Area: 17 Cities

Non-profits in the 17 Cities

Employment

• 11,370 workers employed by nonprofit organizations in the 17 cities

• Hospitals, clinics and other health care employed 4,808

• Education and Training employed 3,444

Where are the workers employed?

Category of Service Share of Employment

Human Services 11%

Art & Culture 4%

Education & Training 30%

Health 46%

Community/Improvements/Social Justice 3%

Housing/Shelter 2%

Youth 3%

Animals & Environment 1%

Large Nonprofit Employers (excluding healthcare)

• Valley Christian School System• Cal State Dominguez Hills Foundation• S. California Alcohol and Drug Programs• UAW Labor Employment & Training• Comprehensive Community Services of S. Bay• South Bay Vocational Center

Employment and Payroll

• 11,370 workers• 436 organizations• $346 million annual payroll• $30,419 average annual payroll

Economic Impact of Nonprofits in the 17 Cities: Expenditures in Los Angeles County

Direct Indirect Induced Total0.00

200.00

400.00

600.00

800.00

1000.00

1200.00

1400.00

1600.00

$ millions

$666 mn $713 mn

$207 mn

$1,586 mn

Economic Impact of Nonprofits in the 17 Cities: Employment in Los Angeles County

Direct Indirect Induced Total0

5,000

10,000

15,000

20,000

25,000

5,459 4,750

21,579

11,370

Volunteers & Economic Value

• 125,000 volunteers• 3.3 million hours per year• An equivalent annual payroll of $73

million• Imputed annual payroll (actual plus value

of volunteers) of $419 million

Summary

• 11,370 jobs in the 17 cities and an additional 21,579 in the region

• 3.3 million volunteer hours• $666 million in direct annual

expenditures with a total impact of $1.6 billion in the region

Combined Impact: Long Beach and 17 Cities

• 30,600 direct jobs and 63,600 in the region

• 8.2 million volunteer hours• $3.3 billion in direct annual expenditures

with a total impact of $6.5 billion in the region

Thank You!

California State University, Long Beach Office of Economic Research

oer@csulb.edu