The first-ever statewide study of nonprofit employment shows that nonprofit organizations provide 212,814 jobs in North Carolina. This is more jobs than in the state’s construction industry and 54 percent more than in the state’s entire banking, finance, insurance, and real estate industry. Nonprofits employ more than one in every 18 workers in North Carolina, or about 6 percent of all jobs, says the study released today by the North Carolina Center for Nonprofits. National experts at Johns Hopkins University conducted the study on contract with the Center. Additional research found that the nonprofit sector puts $25.8 billion into the state’s economy each year.
“Economic developers tout our quality of life, and nonprofits play a vital role in creating this quality of life,” says Jane Kendall, president of the N.C. Center for Nonprofits. “Nonprofit colleges, PTAs, and day care centers educate and take care of our children. Nonprofit museums, theatres, and music festivals teach about our cultural heritage. Nonprofits also promote recycling, conserve green space, and monitor water quality. And, YMCAs, YWCAs, Boys and Girls Clubs, and Boy and Girl Scouts help young people grow. Nonprofits are a part of our economy that works for the common good.”
“We depend on nonprofits for many of the drawing cards that make North Carolina attractive to business,” says Jim Fain, Secretary of the N.C. Department of Commerce. “Many in industry and government were not aware of nonprofits’ economic force, but this report will change that. The nonprofit sector is a key part of a vibrant economy for us now and in the future.”
The Surprise: More Jobs Than Several Large Industries
Nonprofits provide 212,814 jobs in North Carolina, which is about the same number as in the state’s construction industry (210,900 jobs) and one and a half times the state’s banking, finance, insurance, and real estate industry (137,800) combined. Nonprofits provide almost three times more jobs than the transportation (77,000) and information (75,100) industries, and 15 times more than the utilities industry (14,200) in North Carolina.
Nonprofit Sector Employment Growing Faster Than Business Sector
Between 1995 and 2003, nonprofit employment in North Carolina grew by 35.4 percent and added 55,700 jobs to the state’s work force. This is an average growth rate of 4.4 percent per year, which was six times the growth rate achieved by the business sector during this period. The nonprofit sector accounted for 26 percent of the state’s job growth in these eight years.
Total Economic Impact of Nonprofits
The total economic impact of the nonprofit sector in North Carolina has grown even faster than the jobs it has created. Nonprofits put $25.8 billion into the economy in 2005, an increase of 117 percent in one decade, up from $11.9 billion spent in 1995.
“The benefits of nonprofits are not limited to the people that they serve,” says Richard “Stick” Williams, vice president of enterprise field services at Duke Energy in Charlotte. “These dollars support local economies and create jobs.”
Nonprofit employees earned nearly $6.6 billion in wages in 2003, which accounted for 5.5 percent of the payroll of all North Carolina workers.
“The people who work in the nonprofit sector also contribute to the state’s economy,” says Kendall. “Nonprofit employees pay hundreds of millions of dollars in state income taxes. They buy clothes, food, and computers and thus pay state and local sales taxes on their purchases. They also buy homes and cars and pay property taxes to local governments.”
Just as sports events generate economic ripples, nonprofit activities such as arts performances, museum tours, and conferences also benefit the economy by boosting local businesses and sales taxes revenue through visitors’ expenditures at local hotels, restaurants, and stores.
Where Nonprofit Employees Work
North Carolina’s distribution of jobs in charitable nonprofits is similar to the national pattern. The majority (54 percent) are in health services, from Duke Health System, one of the state’s largest nonprofits, to local health clinics. Eighteen percent are in educational services, including private elementary and secondary schools and colleges, such as the Asheville School, Davidson College, and Shaw University. Ten percent of nonprofit jobs are in social assistance – from elderly services to emergency relief and child care. Nine percent are in membership, civic, and advocacy organizations, such as United Ways, foundations, and those addressing social issues such as child abuse. Three percent provide professional, scientific, and technical services, such as research organizations and legal services. Two percent of nonprofit jobs are in arts and recreation, such as performing arts groups, museums, and local recreation centers.
From 1995 to 2003, nonprofit job growth was strongest in membership, civic, and advocacy organizations (149 percent) and in private schools and colleges (101 percent). Other fields with above-average job growth were professional, scientific, and technical services (75 percent); social assistance (57 percent); and arts and recreation (39 percent). Hospital employment grew by 24 percent during this period. By contrast, nonprofit clinics and home health services lost 14 percent of jobs, a possible reflection of the growth of for-profit businesses in this arena.
Average Nonprofit Wages Are Lower Than in Business and Government
At $593, average weekly wages of nonprofit workers were 4 percent below those of workers in the business sector and local government, and 11 percent below those in state government. However, these averages obscure significant variations for nonprofit workers in different fields. Average wages range from a low of $391 per week in the social assistance field to a high of $710 in the hospital field.
What Nonprofits Do in North Carolina
Nonprofits fulfill several roles in North Carolina. (1) They deliver health and social services through organizations such as nonprofit hospitals, hospices, day care centers, and the Salvation Army. (2) They create volunteer opportunities, such as delivering Meals on Wheels or building a house with Habitat for Humanity. (3) They educate the public on issues such as smoking, domestic violence, and air pollution. (4) They develop programs and propose policies to solve public problems, such as the Child Care Services Association’s innovations in affordable day care and the Center for Community Self-Help’s leadership in curbing predatory lending. (5) They supply a voice for the voiceless, such as children, the frail elderly, and people with AIDS. (6) Finally, they offer avenues for religious worship through churches, synagogues, and mosques.
The report’s release coincides with the start of the holiday season when many people volunteer and make charitable contributions to nonprofits that deliver services to people in need. “But the impact of the nonprofit sector on the quality of life and the economy is felt in North Carolina 365 days a year,” says Kendall. “This study points to the large stake that North Carolina has in the health of its nonprofit sector.”
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