The Economic Impact of Idaho Nonprofits

Transcription

1 The Economic Impact of Idaho Nonprofits Janice Fulkerson Executive Director Idaho Nonprofit Center Steven Peterson Clinical Assistant Professor, Economics* University of Idaho * The results and findings of this analysis reflect those of the author, Steven Peterson and do not necessarily represent the University of Idaho or any other organization or individuals.

2 The Economic Impacts of Idaho s Nonprofits Originally commissioned in 2011 and reported in 2012; Updated in University of Idaho Clinical Assistant Professor, Economics Steve Peterson Data from Urban Institute, and many other data sources IMPLAN economic modeling recognized and respected tool across industries

3 About the Sector How Many Nonprofits in Idaho? 7,034 registered nonprofits in Idaho (12/13) 4, (c)(3) 3, (c)(3) in Idaho filing IRS form 990 Churches Additional 2000 not included in the numbers

4 The Idaho Nonprofit Sector: Is an important component of Idaho s economy. The nonprofit sector is unique in several ways: Spans across multiple industrial and service classifications which presents measurement challenges. Includes volunteer work and donated contributions to output which are often not included in government measurements of economic activity such as gross domestic product (GDP).

5 Why Nonprofits as a Sector? Are unique methods of organizing production that complement private and public sector economic activities. Foster entrepreneurship and new business development. Provides a continuous flow of vital services from the beginning of life to the twilight years. Are everyplace and everywhere!

6 Why Nonprofits? Are bridges between the private sector and public sector. Foster private-public partnerships. Unite individuals across racial, ethnic, and gender dimensions. Unite individuals across political divisions--- conservatives and liberals. Constitute one of the largest Idaho economic sectors.

7 Finding #1: Nonprofits are a significant driver of Idaho s gross state product Idaho nonprofits inject federal dollars into Idaho s economy, contributing $2.3 billion to gross state product in 2013, including the multiplier effects. Annually Idaho nonprofits add between 3.7% to 6.1% to Idaho s GDP

8 Finding #2: Nonprofits are significant employers Idaho nonprofits employ as many as 52,163 people The nonprofit sector: is larger as measured by jobs than all counties in Idaho except Ada County. Would rank 6 th place as an industry in Idaho (as measured by QCEW) and 7 th place as measured by the BEA.* * Actual jobs represent direct jobs (excluding multiplier effects). Covered employment is measured by the Quarterly Census of Employment and Wages (QCEW), Bureau of Labor Statistics, and excluded self-employed workers. Unless otherwise noted these rankings are based on QCEW data. Bureau of Economic Analysis-BEA.

9 Finding #2: Nonprofits are significant employers Idaho charitable nonprofits directly employ more people (52,163) than*: professional and technical services (30,379) construction (31,744) wholesale trade (28,154) transportation and warehousing (25,388) farm production (22,698) finance and insurance (20,758) * as measured by 2013 QCEW covered employment

10 Public Charity Total Charity Total Aggregate Total Direct Compensation Classification/Category Spending Compensation Employment % Jobs Per Worker Arts, Culture, and Humanities $ 45,009,991 $ 14,410, % $ 16,828 Education $ 332,952,708 $ 255,758,371 7, % $ 34,531 Environment $ 47,087,914 $ 26,699, % $ 35,516 Hospitals $ 2,914,040,427 $ 1,610,807,739 27, % $ 56,732 Health $ 23,725,359 $ 13,922, % $ 42,683 Human Services $ 456,400,381 $ 237,150,201 9, % $ 23,184 Public and Societal Benefit $ 79,115,351 $ 43,188,387 1, % $ 29,781 Religious Organization $ 24,011,123 $ 4,164, % $ 30,781 Other Public Charities $ 11,947,089 $ 7,719, % $ 25,678 Battelle Energy Alliance $ 457,428,966 $ 343,685,361 4, % $ 81,986 Total (with Battelle) $ 4,391,719,309 $ 2,557,506,605 52, % $ 49,029

11 Idaho Nonprofits are an impressive contributor to the Idaho Economy! Approximately 20,710 jobs (40%) are employed in nonhealth related organizations (and exclude Battelle) with combined revenues of nearly $1 billion dollars. The average total compensation package per job is $29,116.

12 Finding #3: Nonprofits pay significant Idaho taxes Any industry that generates a high level of economic activity will generate a considerable amount of tax revenues. Even when accounting for the nonprofit tax exemptions, their tax generation is considerable. Total Tax Contributions from Idaho's Charitable Nonprofits Includes the Direct, Indirect, and Induced Tax Impacts Federal/Out-of-State Indirect Business Taxes Idaho Taxes Sales Tax $ 35,973,452 Property Tax $ 26,897,235 Excise Taxes $ 15,818,907 Other Taxes $ 5,411,169 Sub-Total Indirect Taxes $ 84,100,764 Other Taxes Idaho Personal Income Tax $ 40,395,480 Idaho Corporate Taxes $ 4,508,209 Total Taxes $ 129,004,452

13 Finding #4: Nonprofits leverage other contributions Idaho Volunteering 425,050 Idahoans volunteered WOW! 58.2 million aggregate hours hours Idaho is 3 rd nationwide on an hours/capita basis. Total volunteer hours would equal $1.1B, or the equivalent of another 27,981 jobs.

14 What s Next? The Call to Action: Talk about the impact as a sector! NP are contributing businesses. Inform elected officials & candidates for public office about the importance of the sector to the Idaho economy and how services impact the daily quality of life across Idaho communities. Include the economic contribution of the sector in grants, annual report, social media and more. Serve on commissions, represent the sector in meetings, learn about other nonprofits and collaborate.