FLORIDA’S NONPROFIT SECTOR: A MAJOR ECONOMIC FORCE Lester M. Salamon Miami, Florida, November 7,...

FLORIDA’S NONPROFIT SECTOR:

A MAJOR ECONOMIC FORCE

Lester M. Salamon

Miami, Florida, November 7, 2007

The Johns Hopkins Center for Civil Society Studies

• 4th most populous state

FLORIDA REALITIES

• Twice the U.S. population growth rate,

2000-04

• 25% larger proportion of elderly than U.S.

• Median household income 10% below U.S. • 21% of residents with no health insurance vs. 16% nationally

TYPES OF TAX-EXEMPT ORGS UNDER U.S. LAW501(c)(1) Corporations organized under an act of Congress501(c)(2) Title-holding companies501(c)(3) Religious, charitable, educational, etc.501(c)(4) Social Welfare501(c)(5) Labor, agriculture organization501(c)(6) Business leagues501(c)(7) Social and recreational clubs501(c)(8) Fraternal beneficiary societies501(c)(9) Voluntary employees’ beneficiary societies501(c)(10) Domestic fraternal beneficiary societies501(c)(11) Teacher’s retirement fund501(c)(12) Benevolent life insurance associations501(c)(13) Cemetery companies501(c)(14) Credit unions501(c)(15) Mutual insurance companies501(c)(16) Corporations to finance crop operation501(c)(17) Supplement unemployment benefit trusts501(c)(18) Employee-funded pension trusts501(c)(19) War veterans’ organizations501(c)(20) Legal services organizations501(c)(21) Black lung trusts501(c)(25) Holding companies for pensions501(d) Religious and apostolic organizations501(e) Cooperative hospital service organizations501(f) Cooperative service organizations of operation educational organizations521 Farmer’s cooperatives527 Political organizations

Tax Code Number Type of Tax-exempt Org


IN SEARCH OF FLORIDA NONPROFITS

EOMF:

IRS 990 filers:

ES-202:

46,587 organizations

13,686 organizations

6,192 organizations

501 (C) (3)’s


A MAJOR ECONOMIC PRESENCE – 2005

• 630,000 workers

– 380,000 paid workers

– 250,000 FTE volunteer workers

• 4.9% of total state employment

• $48.1 billion in revenues

• $76.2 billion of assets

• $14.6 billion in wages and compensation

• Generates at least $300 million of sales tax revenue


Florida Nonprofits: The 4th Largest Workforce Among Florida Industries

200 400

% of nonprofit revenue

0 600 800 1000 1200* Excludes nonprofits

Retail

Administrative Support

Accommodations & Food

Nonprofit Sector

Health & Social Services*

Construction

Education*Professional & Scientific

Services*Manufacturing

Finance & Insurance

Wholesale

Transport

Other Services*

Real Estate

InformationArts & recreation

AgricultureManagement of Companies

Utilities

Mining

629

6

3063

101167168

173

216

259

338

352

422

400

487

574

597

728

814

981

Nonprofit employees

Nonprofit volunteers

Other Employees

380


FLORIDA NONPROFIT EMPLOYMENT BELOW U.S. AVERAGE

14%

12%

10%

8%

6%

4%

2%

0%

4.9%

No

np

rofi

t E

mp

loy

me

nt

as

% o

f T

ota

l

Florida

U.S.

Census Dist. 5

SoutheastNew York

Ohio

California

Texas

7.2%6.3%

13.3%

8.0%

5.1%4.1%


FLORIDA NONPROFIT EXPENDITURES PER $1,000 OF GROSS STATE PRODUCT BELOW

U.S. AVERAGE*

$120

$80

$40

$0

$73

No

np

rofi

t E

xp

en

dit

ure

s p

er

$1

00

0 o

f G

SP

Florida

U.S.

Southeast

New York Ohio

California

Texas

$93 $87

$127$117

$87

$52

$140

$20

$100

$60

*2005 990 data/2004 Gross State Product


FLORIDA NONPROFIT EXPENDITURES PER CAPITA BELOW U.S. AVERAGE

$8000

$6000

$4000

$2000

0%

$2505

No

np

rofi

t E

xp

en

dit

ure

s p

er

Ca

pit

a

Florida

U.S.

Southeast

New York Ohio

California

Texas

$3660$3307

$5939

$4322

$3659

$2067


II. A DIVERSE SECTOR: FIELDS20%

10%

Arts, culture,recreation

Youth, human srvcs,food, shelter

20%

Grant making &giving

50%40%30%

Civic and social

Other education

Social advocacy

Not elsewhereclassified

Other health

Nursing homes

Science and tech

Hospitals

Higher education

3%18%

10%14%5%

10%

1%7%

4%5%4%5%

2%5%

7%4%

6%3%

1%

1%47%

1%8%

OrganizationsExpenditures

% of State Nonprofit Total

0%

Other civic 8%1%


DISTRIBUTION OF NONPROFIT EXPENDITURES BY FIELD, FLORIDA VS. THE NATION, 2005

10%

20%

50%

40%

30%

8%10%8%9%

3%

47%43%

4%7%

5% 4%7%

4% 3%6% 3%

FloridaUnited States*

60%

70%

80%

Youth,h

uman

srvc

s, fo

od,

shel

ter

Hospita

ls

Nursin

g

homes

Other

hea

lth

Higher

educa

tion

Other

educa

tion

Not els

ewher

e

clas

sifie

d Civic

and s

ocial

organ

izatio

ns

Home

health

Arts,

ente

rtain

men

t,

recr

eatio

nSoci

al

advo

cacy

organ

izatio

ns

Scien

ce a

nd

tech

nology

Grantm

akin

g

and g

ivin

g

serv

ices

10%

3% 2%3%1% 2% 1%1% 1%

3%

0%

% o

f T

ota

l N

on

pro

fit

Ex

pe

nd

itu

res


NONPROFIT SHARE OF TOTAL EMPLOYMENT IN SELECTED FIELDS, FLORIDA VS. U.S., 2005

20% 40% 80%60%

Science and technology

7%

4%6%

1%3%

FloridaU.S.

Employment in nonprofits as percent of total employment0% 100%

Total 5%

Grantmaking and giving

Social advocacy organizations

Civic and socialorganizations

HospitalsYouth development, humanServices, food, and shelter

Higher education

Nursing homes

Home health

Other health

Arts, culture, humanities,and recreation

26%36%

85%73%

81%70%

63%68%

60%52%

48%53%

28%34%

22%18%

15%5%

10%

10%

Other education


DIVERSITY:GEOGRAPHIC DISTRIBUTION29%

10%

Southeast

Tampa Bay

East Central

30%20%

Northeast

Northwest

Southwest

South Central

State total

4.5%

25%5.5%

22%5.7%

10%6.1%

6%

Share of FL NP employees

NP employeesas % of allemployees

% of State Total

0% 40%

4.6%

North Central 4%7.9%

3%3.3%

1%4.6%

4.9%


DISTRIBUTION OF FLORIDA NONPROFIT EMPLOYMENT, BY REGION, 2005


NONPROFIT EMPLOYMENT AS A PERCENT OF TOTAL EMPLOYMENT, BY REGION, 2005


A DIVERSE SECTOR: ORGANIZATIONAL SIZE

10% 20% 50%40%30%

OrganizationsExpenditures

% of Florida Nonprofit Total

0%

SMALL

(< $1 million)

60% 70% 90%80%

MEDIUM

(Rev. $1 m - $9.9m)

LARGE

(Rev. $10 m - $49.9m)

VERY LARGE

(Rev. > $50m)

80%4.3%

15%14.3%

18.3%3%

1%62.9%


GENEROSITY: CHARITABLE GIVING% OF INCOME FROM CONTRIBUTIONS*

21.7%

10%

Arts, culture, humanitiesand recreation

Youth, human srvcs, food, shelter

20%

Grantmaking & giving

50%40%30%

Civic and social

Other education

Social advocacy

Not elsewhere classified

Other health

Nursing homes


Hospitals

Higher education

25.3%

91%

60%

65%

38%

8%

% of nonprofit revenue

0%

U.S.

Florida

60% 70% 80% 90% 100%

60%

51%

41%

36%

32%

22%

4%

* Includes private gifts and government grants


GENEROSITY II:FLORIDA BELOW U.S. AVERAGE IN

CONTRIBUTIONS PER $1000 OF INCOME*

$30

$20

$10

$0

$23.55

Co

ntr

ibu

tio

ns

pe

r $

10

00

of

AG

I*

Florida

U.S.

New York

California

TexasOhio

$24.66

$28.99

$25.19

$23.47

$20.73

*AGI: Adjusted Gross Income


GENEROSITY III: VOLUNTEERING, 2006

30%

20%

10%

0%

18.6%

% o

f p

op

ula

tio

n v

olu

nte

eri

ng

Florida

U.S.

SoutheastOhio

Texas

California

New York

26.7%

23.7%

30.2%

26.6%

23.5%

18.4%

40%


FLORIDA NONPROFIT EXPENDITURES, GROWING FASTER THAN U.S. AVERAGE,

1992-2005

50%

Florida

U.S.

150%100%

U.S. GDP

California

Ohio

New York

97%

70%

190%

Percent change in Expenditures, 1992-2005

(Adjusted for inflation)

0% 200%

The South 82%

70%

13%

25% 75% 125% 175%

Texas 84%

54%


Annual Average Change, Florida and U.S. NonprofitExpenditures and Florida and U.S. GDP,

1992-2005, by Period

1%

2%

5%

4%

3%

1992-1997

6%

7%

8%

0%

1997-2002 2002-2005

Florida nonprofits

Florida gross state product

7.2%

4.4%

4.1%4.0

3.7

5.6

6.8

3.5

1.9

2.9

3.7

3.1

U.S. nonprofits

U.S. GDP

An

nu

al A

vera

ge

% C

han

ge


GROWTH IN NONPROFIT EXPENDITURES, BY FIELD, FLORIDA VS. U.S.

1827%

50%

Social advocacy

Civic and social

100%

Grantmaking & giving

250%200%150%

Youth, social services

Other education

Arts, culture, recreation

Other health

Nursing homes

Hospitals

Higher education

Not classified elsewhere


97%

264%233%

107%196%

313%176%

109%167%

117%160%

119%155%

121%114%

79%63%58%

38%10%

0%21%

134%

FloridaU.S.

% change in expenditures 1992-2005 (inflation adjusted)0% 350%300%

All70%

→

60%


CHANGES IN FLORIDA EMPLOYMENT BY REGION, NON PROFIT VS. FOR-PROFIT

2002-2005

4%

State

Tampa Bay Region

South Central

12%8%

East Central

North Central

Northwest

Northeast

Southwest

7.0%

6.3%

8.8%14.3%

7.7%

Nonprofit

For-profit

Percent change in employment, 2002-2005

0% 16%

8.1%

Southeast 6.8%9.3%

9.4%

15.7%

8.5%

2% 6% 10% 14%-2%

9.1%

-0.1%

5.5%7.2%

5.8%

8.6%8.9%


A COMPETITION CHALLENGE FOR FLORIDA NONPROFITS?

60%

40%

20%

0%

State total

Religious,grantmaking,

civic associations

7.0%

80%

-20%

8.6%

3.0%

67.6%

-12.3%

22.1%

1.4%

Home healthcare service

22.7%

4.5%

16.3%

Arts,entertainmt,recreation

2.4%

1.6%

Highereducation

87.4%

7.1%

19.8%

Othereducation

-4.3%

10.1%

19.7%

Nursing andResidential

care

2.5%

-11.9%

18.9%

4.4%6.9%

6.6%

Youthdevelopment,

human services,food, shelter

Hospitals

For-profit

Nonprofit

Public

% o

f ch

ang

e in

em

plo

ymen

t, 2

002-

2005


NONPROFIT AS A PERCENT OF PRIVATE EMPLOYMENT BY FIELD IN FLORIDA,

2002 vs. 2005

10%

20%

50%

40%

30%

State total

5.8% 5.7%

20022005

60%

70%

80%

Higher education

Hospitals Youthdevelopment,

human services,food, shelter

Nursing homes

Civicorganizations

Home health

Arts, culture,humanities, and

recreation

84.2%

0%

90%

81.7%

65.6% 62.8%

52.1% 51.4%

31.6% 30.6%

23.1%

38.5%

20.9%23.2%

4.5% 4.8%

Pe

rce

nt

of

tota

l p

riv

ate

em

plo

ym

en

t


AVERAGE WEEKLY WAGES IN FLORIDA,NONPROFIT, FOR-PROFIT, AND GOVERNMENT

$668

Nonprofit

$100

$200

$500

$400

$300

$600

$700

$800

$0

$900$822

$642

$733

Local gov State gov For-profit


COMPARATIVE AVERAGE WEEKLY WAGES OF NONPROFITS VS. FOR-PROFITS IN SELECTED

SERVICE FIELDS, FLORIDA, 2005

$200

$400

$1000

$800

$600

$668

NonprofitFor-profit

$1200

$1400

$0

$642

$1259 $1237

$798

$1000

$761 $737 $757

$551

$678

$540 $533$502

$458$475

$436

$537

$428

$348$269

$342

Statetotal

Higher education

Hospitals Home health

Socialadvocacy

organizations

Nursing homes

Arts, culture,

humanities, and

recreation

Youthdevelopment,

human services,

food, shelter

Civicand

socialorganizations

Science and

technology

Grantmaking and givingservices


• A powerful engine for good

CONCLUSIONS AND IMPLICATIONS

-$48 billion “industry”

• Even greater potentials

• The time is now.

-4th largest employer

-Improve visibility/credibility -Boost giving and volunteering -Strengthen partnership w/government

-Build capacity

FLORIDA’S NONPROFIT SECTOR: A MAJOR ECONOMIC FORCE Lester M. Salamon Miami, Florida, November 7,...

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