En g a g in g You t h in t h eNon p r ofit Se ct or

An Econ om ic De ve lop m e n t Mod e l

P r e s e n t e r : Rick Kin g

Pr e s id e n tTh r e e P illa r s I n it ia t ive

Oa k P a r k, I llin o is

© Three Pillars Initiative

U.S. Nonprofit Sector Economic ImpactA Major Industry

• 1,570,000 tax-exempt nonprofit organizations in the United States

• 12.3 million people employed by nonprofit organizations

• 55% of nonprofit employees work in the healthcare sector

• $1.7 trillion in total revenues generated by nonprofits each year

Sources: U.S. Department of Labor, U.S. Census Bureau, The Foundation Center

Nonprofit Employment by Sector

Source: Lester M. Salamon and Chelsea L. Newhouse, “The 2019 Nonprofit Employment Report,” Nonprofit Economic Data Bulletin no. 47. (Baltimore: Johns Hopkins Center for Civil Society Studies, January 2019). Available at: bit.ly/2019-NP-Empl-Rpt

Nonprofit Share of Private Employment by State

U.S. Average 10.2%

Illinois 11.3%

Source: Lester M. Salamon and Chelsea L. Newhouse, “The 2019 Nonprofit Employment Report,” Nonprofit Economic Data Bulletin no. 47. (Baltimore: Johns Hopkins Center for Civil Society Studies, January 2019). Available at: bit.ly/2019-NP-E l R t

Source: Lester M. Salamon and Chelsea L. Newhouse, “The 2019 Nonprofit Employment Report,” Nonprofit Economic Data Bulletin no. 47. (Baltimore: Johns Hopkins Center for Civil Society Studies, January 2019). Available at: bit.ly/2019-NP-Empl-Rpt

Average Weekly Wageby Industry

Nonprofit vs For-Profit

Source: Lester M. Salamon and Chelsea L. Newhouse, “The 2019 Nonprofit Employment Report,” Nonprofit Economic Data Bulletin no. 47. (Baltimore: Johns Hopkins Center for Civil Society Studies, January 2019). Available at: bit l /2019 NP E l R t

Industry Growth: Nonprofit vs For-Profit

Source: Lester M. Salamon and Chelsea L. Newhouse, “The 2019 Nonprofit Employment Report,” Nonprofit Economic Data Bulletin no. 47. (Baltimore: Johns Hopkins Center for Civil Society Studies, January 2019). Available at: bit.ly/2019-NP-Empl-Rpt

U.S. Nonprofit Sector Economic Impact

• $428 billion was donated to public charities in 2018 = @ 2% of GDP

• There are 86,000 foundations in the U.S. with a combined asset value of over $1 trillion

• 63 million adults volunteer their time on behalf of public charities

• Volunteers devote an average of 7.9 billion hours of service annually. The value of volunteer services = $58 billion

Sources: U.S. Department of Labor, U.S. Census Bureau, The Foundation Center

Illinois Nonprofit Sector Economic Impact

• 60,277 nonprofit organizations are operating in the State36,801 public charities (501c3)

5,337 grant making foundations18,139 other 501c organizations (civic leagues, chambers of commerce, veteran’s orgs)

• 577,876 people are employed by nonprofit organizations = 11.3% of all employment in the State

• $110 billion in total annual revenues generated by Illinois nonprofits

Source: Independent Sector

Illinois Nonprofit Sector Economic Impact

• Foundations in Illinois distribute over $3.6 billion annually in grants

• Illinoisans gave approximately $8.1 billion to charity in 2018 representing 2.8% of household income

• Nonprofits assets in Illinois = $291.6 billion

• 12% of all Illinois nonprofits hold 86% of all nonprofit assets

Source: Illinois Alliance for Community Foundations

For every $1 spent by a rural nonprofit (per capita), how much is spent by an urban nonprofit (per capita)?

• Science & Technology $40 Healthcare $3

• Philanthropy $ 8 Housing $3• Education $ 5 Mental Health $2• Youth Development $ 5 Employment $2

• Food, Ag, Nutrition $ 5 Environment $2Human Services $2Civic Improv. $2

Public Safety $1

Source: The Bridgespan Group

Effe ct ivee n g a g e m e n t o f t e e n s

in t h e loca ln on p r ofit s e ct o rm e a n s ke e p in gt h e ir a t t e n t ion

on t h ecom m u n it y

© Three Pillars Initiative

Future Philanthropists ProgramOak Park, Illinois

The Seminal Program Model

Key Premise:Creating ways to consistently reach out to youth in the community before and after high school graduation builds and sustains their commitment to their hometown.

In 2010:3 High Schools

12 High School Juniors3 Adult Mentors1 Program Coordinator

Today:3 High Schools

30 High School Juniors25 High School Seniors10 Adult Mentors2 Program Coordinators

Community Foundation:Assets:Population:

$43 million62,000

Future Philanthropists ProgramOak Park-River-Forest Community Foundation

Overview

• Ten-year, continuing youth philanthropy education experience.

• Begins with 16-year old high school students and progresses through a wide-ranging and increasingly more advancedlearning experience up to their 25th birthday.

• Provides a virtual pipeline of young leaders whose knowledge of and experience in the local nonprofit sector gives them an incentive to stay connected to their community.

“Three Pillars of Philanthropy”

1 – Fund Raising

2 – Charitable Giving

3 – Service Projects

Key Program Components

1. High school juniors are competitively accepted for a 2-year commitment2. Adult community volunteer mentors are trained to deliver the program curriculum3. Student fundraising activities utilize proven methods of solicitation4. Student charitable grant making includes an RFP, site visits and distribution decisions5. Community service projects are designed by students to meet unmet/urgent needs6. Students continue philanthropic activities while earning a college degree7. Career networking opportunities enhance nonprofit sector employment

Value of FPP Designated Fund

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

2012 2013 2014 2015 2016 2017 2018 2019With Fundraising (Avg. 19%) Without Fundraising (Avg. 4%)

As of 12/31/19

High School: Teach the Fundamentals

Junior Cohort Curriculum• Historical Antecedents of Philanthropy• Giving in the United States• Interconnectedness of Business, Government,

Philanthropy and Charities• Stock Market & Fund Investment Principles• Requests for Proposals• Grant Guidelines & Eligibility• Consensus Decision Making• Evaluating Program Impact• Social Enterprise• Strategic Volunteerism

High School: Teach the Fundamentals

Senior Cohort Curriculum• Understanding Donor Intent• Developing a Case for Support• Concept of Affinity/Capacity• Campaign Pyramid of Gifts• Making the Ask• Donor Development Strategies and Tactics• Writing an Effective Appeal Letter• Fundraising Event Management• Internet Fundraising• Social Capital Investing• Strategic Volunteerism

College Program: Extend the Experience

E-Newsletter Publications

Scholarship Awards for Continuing Demonstration of Charitable Activities both on- and off campus

Volunteer Activities at Home (winter break)

Summer Conference on Current Nonprofit Sector Trends (summer break)

Networking Opportunities with Local Organizations

Career Network: Build the Impact

Keeping Connections to the Community

• Career Networking Opportunities• Nonprofit Sector Job Fair• Local Leadership Roles:

- Advisory committees and councils- Nonprofit governing boards- Economic Development Corporation- Volunteer activities- Civic affairs participation- Social enterprise development

• E-Newsletter Publications

Representative Community Foundations Serving Rural Illinois

Arcola Lake County

Charleston Livingston County

DeKalb Mattoon

East Central Metamora

Edgar County McHenry

Edwardsville Moline

Effingham Morris

Freeport Morton

Galena Quincy

Galesburg Rock Island

Kankakee Sangamon County

Social Enterprise:The 5th Bucket of Nonprofit Revenue

PrivateContributions

GovernmentGrants

SocialEnterprise

EarnedRevenue

EndowmentIncome

The objective of a social enterprise is to make money.

In a social enterprise, profits can be applied to nonprofit operating costs, program expansion or endowment.

If the business enterprise directly benefits the recipients served under the mission of the nonprofit organization, there are no UBIT liabilities.

IRS Code: Section 1.153-1(a)

Goodwill IndustriesThe “Original” Social Enterprise Model

Founded in 1902, Goodwill Industries began employing poor city residents to repair and then re-sell donated goods.

The money earned from selling these goods was not only used to pay wages but also put the profits into job training programs for the unskilled in the community.

Once trained in specific jobs, Goodwill worked with businesses to hire these workers in full-time positions.

Habitat for HumanityInternational

Focused on housing ministry by building homes with the owner’s participation and the help of community volunteers.

Commercial ReStore retail shops sell overstock building materials, appliances and tools that were donated for home building projects.

Growing Home

Farm-based job training program for inner city residents who have serious employment barriers.

Produce is sold to area restaurants and food distributors for healthier farm-to-table menu items

Access to healthy food improves the overall well-being of the residents.

Inspiration Corporation

Provides training and job placement for low income and homeless people specifically in the culinary industry.

Basic 12-week professional cooking program followed by work placement at one of many nonprofit restaurants. Proceeds from the restaurants provide funds for job training and support services.

Restaurants employ other poor people from the neighborhood which adds to the local economy as well as jobs creation.

Bright Endeavors

At New Moms, Inc., teen moms are taught to design and craft premium soy candles in a supportive, professional business environment.

Through a paid job training program, young moms learn the job skills needed to secure quality employment and to begin down the path to professional career opportunities not otherwise available to them.

Candles are marketed to wholesale outlets, retail shops and are sold online. Proceeds pay for the program.

Rick Kin g

r kin g @t h r e e p i.o r g3 1 2 -4 9 7 -1 1 7 3