summary of the economic impact of the...
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SUMMARY OF THE ECONOMIC IMPACT OF THE NONPROFIT SECTOR IN PINELLAS COUNTY
with support from
EXECUTIVE SUMMARY
While considerable attention is paid to the public and private sectors of the economy, the nonprofit sector cannot be overlooked. Nonprofit entities provide vital services and fill essential societal functions. Through community organizations and associations, they play an active role in a wide range of settings — from providing healthcare to serving as financial institutions, protecting the environment to funding the arts. The diversity of offerings provided by nonprofits can make the sector’s impact seem smaller than it is. Thus, it is important to understand the contribution the nonprofit sector makes statewide as well as to the county’s employment and to highlight its significance and economic contribution to our overall economy.
Pinellas County nonprofit organizations: • Number over 4,167
• Directly employed more than 29,700 people in 2016, or 6 percent of the Pinellas County employed workforce1
• Compare in employment size to the finance and insurance sectors in the county2
• Provide an annual payroll of $1 billion
• Hold assets of $12 billion
• Generate nearly $6 billion in annual revenue
• Rank 7th in the state for the number of nonprofits
With broad distribution across the county, organizations comprising the nonprofit sector provide a level of stability in many communities. Maintaining the critical infrastructure the nonprofit sector provides to our economy is crucial to our state and county’s health and economic vitality.
Comparisons between nonprofit employment and other industry sectors in Florida are difficult because standard labor force numbers do not distinguish between for-profit versus nonprofit organizations. As such, most of Florida’s 534,000 nonprofit employees are already included in the nonfarm employment number. As a share of total nonfarm employment in the state, the nonprofit sector makes up 6 percent of Florida’s overall workforce. This is comparable to Florida’s construction industry, which employs 6.6 percent of the workforce aged 16 and over, and the manufacturing sector, which employs 5.2 percent of the workforce.3
In Pinellas County, the nonprofit sector also makes up 6 percent of the workforce. This is comparable to Pinellas’ finance and construction industries, which employ 6.8 percent and 6 percent, respectively. The nonprofit sector surpasses the construction industry in Pinellas County, which employs 4.7 percent of the county’s workforce.
INDUSTRY COMPARISON
1 Pinellas County 2016 Economic Profile. August 15, 2016. Available at: http://c.ymcdn.com/sites/www.pced.org/resource/ collection/67248A37-781F-4AC2-B4B8-0FEFABF0E41A/Pinellas_County_Economic_Profile.pdf
2 Pinellas County Demographics Business Summary. 2016. Available at: http://c.ymcdn.com/sites/www.pced.org/resource/ collection/D0CC72B9-2234-4FFD-95CF-C22DBF80BD57/Pinellas_County_Demographics-Business_Summary.pdf
3 Ibid.
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REGIONAL COMPARISON
In 2015, the nonprofit sector in the state of Florida held nearly $205 billion in assets and generated nearly $89 billion in total revenues. Exhibit 1 demonstrates how Pinellas County compares with Hillsborough County and the state.
EXHIBIT 1. Florida Nonprofit Organizations, Revenues and Assets, for the 2015 Tax Year.
Regions
Pinellas County
Hillsborough County
Florida
Revenue
6,027,963,319
8,677,777,850
89,936,247,099
Assets
12,947,650,633
27,939,706,595
205,792,788,513
EXHIBIT 2. Florida Nonprofit Employees and Wages, for the 2016 Second Quarter.
Regions
Pinellas County
Hillsborough County
Florida
Nonprofit Employees
29,782
36,778
534,116
% of Total Workforce
6%
3%
6%
Nonprofits Hourly Wage
$21.92
$23.63
$23.98
Exhibit 2 contains the breakdown of employment of nonprofits in Pinellas County, Hillsborough County and Florida from the second quarter in 2016.
PINELLAS COUNTY HEALTH-BASED NONPROFITS
Pinellas County contains 290 health-based nonprofits. This amounts to roughly 7 percent of the county’s nonprofits. These nonprofits average $8,779 assets per capita. This is significantly higher than the state’s $3,827 but comparable to Hillsborough County’s $10,731. Pinellas County health-based nonprofits pay salaries comparable to state levels. The average hourly wage for health-based nonprofits comes to $26.75 in Pinellas and $26.97 in the state. Hillsborough is slightly higher at $27.62. Pinellas County health-based nonprofits employ 58 percent of the county’s nonprofit employees.
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DATA SOURCESPublic Sector Consultants (PSC) compiled the most recent data available on nonprofit organizations in Florida. Sources for the data were:
• The IRS Business Master Files for Exempt Organizations for 2016, which list 83,449 nonprofit organizations, and the assets and revenue of the most recently filed tax returns
• The National Center for Charitable Statistics (NCCS) Core Files for 2013, which report the assets, expenditures, and revenue of all tax-exempt organizations with more than $25,000 in gross receipts
• The Florida Department of Economic Opportunity and the Bureau of Labor Market Statistics Quarterly Census of Employment and Wages Program — official source of state employment figures
• Individual annual reports for the 20 largest private foundations
• The U.S. Census Bureau and the U.S. Bureau of Labor Statistics
The IRS Business Master Files are periodically purged of defunct nonprofits, but this procedure is not standardized. There may be nonprofits included in the total count that no longer exist. This is a minor issue when looking at financial data, as the last date of submission is included. For the current data set, 60,648 nonprofits have a tax report filing as of 2013 or later. Removing those without a tax filing would undercount the total number of nonprofits, as not all are required to file tax returns.
While the total count of nonprofits is complete for all those registered as a nonprofit, it is important to note that throughout this analysis of financial information is considered only for those organizations with gross receipts of more than $25,000 annually. While those organizations that do not report financial information are by definition small, the large number of nonreporters creates an explicit downward bias in all of our estimates.
Furthermore, this report excludes government bodies (including public universities and colleges). To include government bodies would greatly distort the picture of the nonprofit sector, which is very much separate from the public sector. A similar downward bias also exists with respect to any employment figures that are included in this report. Employment numbers and wages came from the Florida Department of Economic Opportunity, Bureau of Labor Market Statistics, Quarterly Census of Employment and Wages Program and only include nonprofits covered by the Florida Reemployment Assistance Program. Some exceptions to this reporting include sole proprietors and religious organizations.
Employment numbers also do not include unpaid workers (volunteers), which make up a large share of the nonprofit sector workforce. Hence, these employment numbers are a low-end estimate. While PSC is confident that the employment figures presented in this report represent the vast majority of economic activity in the nonprofit sector, it is important to note that a nontrivial number of small nonprofits are not included in the employment figures.
Employment data was matched using Employer Identification Numbers received from the IRS Business Master Files were then given to the Florida Department of Economic Opportunity in order to obtain aggregate employment data at a variety of different geographic and National Taxonomy of Exempt Entities categories of nonprofit levels. At no time was organization-level employment information transmitted to PSC. Nonprofit organizations in Florida employed 530,000 people in the second quarter of 2016, which is approximately 6 percent of the Florida seasonally adjusted nonfarm labor force. Individuals in these jobs were paid nearly $6.6 billion in that same quarter.
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ABOUT THE FLORIDA NONPROFIT ALLIANCE
The Florida Nonprofit Alliance provides a collective voice for Florida nonprofits at the local, state and federal levels to inform, promote and strengthen the influence of Florida’s nonprofit sector.
The Foundation for a Healthy St. Petersburg is a private foundation, formed in 2013 following the sale of the nonprofit hospital Bayfront Health St. Petersburg. The Foundation works to support health equity in South Pinellas County, Florida, in the belief that every person, family, and community deserves a fair opportunity to live a long disease-free, healthy life regardless of race, ethnicity, income level or gender expression. The Foundation’s primary areas of focus are grantmaking, convening, policy, advocacy and strategic communications.
Prepared by THE FLORIDA NONPROFIT ALLIANCE
Prepared for THE FOUNDATION FOR HEALTHY ST. PETERSBURG
ABOUT THE FOUNDATION FOR A HEALTHY ST. PETERSBURG
Report released July 2017
healthystpete.foundation/
flnonprofits.org
Pinellas CountyNONPROFIT SECTOR IMPACTAn overview of the economic impact of nonprofits in the region
NONPROFITS (2016)
DATA PROVIDED BY FLORIDA NONPROFIT ALLIANCE ACCESS THE DATA DASHBOARD AT flnonprofits.org/page/datadashboard
4,167nonprofits
$1 billionIN ANNUAL WAGES
Compares in employment size toPinellas County’s FINANCE AND INSURANCE SECTORS
29,782 peopleEMPLOYED Pinellas
County
Education
Environment
Arts, Culture, and Humanities
Total Nonprofits Total Assets Assets Per Capita
164
525
306
$66,603,171
$528,633,569
$361,462,062
Social Function
Human Services
Mutual Benefit
Health
104
1,153
290
$10,818,990
$1,215,577,620
$8,177,396,324
Religion
Unknown Social Function
Public and Societal Benefit
85
701
790
$10,020,693$269,744,030
$2,299,471069
$72
$568
$388
$12
$1,305
$8,779
$11
$290
$2,469
(7TH IN THE STATE)
International 49 $7,923,105 $9
What Can You Do?SUPPORT FLORIDA NONPROFITS
DATA PROVIDED BY FLORIDA NONPROFIT ALLIANCE PREPARED FOR FOUNDATION FOR A HEALTHY ST. PETERSBURG
A strong nonprofit sector helps improve the quality of life of all Floridians.
Help improve the sector’s visibility and foster cooperation and collaboration across all sectors. The single biggest determinant of the scale of nonprofits activity around Pinellas County is the extent to which its government is supportive of it.
DONATE
VOLUNTEER
ADVOCATE
44TH lowest in
50THVOLUNTEERISM
CHARITABLE GIVING
in
40TH lowest forNONPROFIT ASSETS PER CAPITA
Celebrate and share the impact your favorite nonprofit is creating in your community. Stories are what make the data matter!
Serve on a nonprofit board.
Give to a cause you care about.
in the nation
in the nation
in the nation
ECONOMIC IMPACT OF PINELLAS COUNTY NONPROFITS
HistoryWith more than 83,000 nonprofit organizations, there is a demonstrated need for increased connectivity and a collective voice for the sectorFlorida Nonprofit Alliance launched in 2012
Why a statewide organization?FNA provides a collective voice for nonprofits at the local, state, and federal levels to inform, promote, and strengthen the influence of the nonprofit sectorFNA is a central resource for all nonprofits to gather, analyze, and share important sector data, fostering statewide nonprofit communication and collaboration.FNA represents the needs of the nonprofit sector in Tallahassee and Washington D.C.
Legislative/Public PolicyHave statewide application, effect or potential
impactHave local or limited application but are determined
to have statewide policy significanceAnd
Have general relevance to the operation of nonprofit organizations Likely to have such a significant impact on the people
and causes nonprofits serve.
Florida’s Nonprofit SectorOrganizations comprising the nonprofit sector provide a level of stability in many communities. Maintaining the critical infrastructure the nonprofit sector provides to our economy is crucial to Florida’s health and economic vitality.
FNA Florida Overview
17th Largest Economy in the world
Five states within Florida1. North Florida 1-10 Corridor: same
number of votes as Iowa2. Orlando: size of Oregon, 20%
Hispanic voters3. Tampa/SW Florida: same number of
votes as Missouri4. SE Florida: same number of votes as
Oregon 5. Miami: same number of votes as
Nevada. 85% people of color
FNA Advocacy
Economic Impact Report for State of Florida’s Nonprofit sector◦ First of its kind◦ Data has not been updated in over ten years◦ Free ◦ Will be updated every two years or so
Components of ReportStatewide infographic accompanied by a two-page summary of key nonprofit sector statistics
Infographic created for Florida includes information on the number of nonprofits, assets, revenues, employment, and wages.
District summary reports can bring to light the importance of the sector to Florida Senators. Ability to filter by Foundations, NoncharitableNonprofits and 501c3s
What is a Nonprofit?
How does the sector rank?Florida’s nonprofit organizations: Falls about 7th
The nonprofit sector is at 6.3%The construction industry employed 565,396, making up 6.6 percent of employmentOther industries that are comparable include:Manufacturing with 5.2 percent of employment Finance, insurance, and real estate with 7.7 percent
employment.
How does the sector rank?Florida ranks: 40th lowest in the nation for nonprofit assets per capita44th lowest in the nation for most charitable states 50th lowest in the nation for volunteerism
Key Data Points Florida’s nonprofit organizations: Number at 83,449Directly employed more than 530,000 people in 2016, or 6 percent of Florida’s employed workforceProvide an annual payroll of $26.6 billion Hold assets of $205.7 billion Receive nearly $90 billion in annual revenue
Growth over 2007-2017The number of nonprofits has grown 80% from 46,587 to 83,449Their workforce has grown 40% from 380,000 to 530,000 employees
Pinellas County Data Points Pinellas’ nonprofit organizations: 7th in state in number of nonprofits (4,167)7th in number of assets ….out of 67 counties
Pinellas County Data Points Employed more than 29,700 people in 2016, or 6 percent of the Pinellas County employed workforceProvide an annual payroll of $1 billion Hold assets of $12 billion Generate nearly $6 billion in annual revenue
Pinellas County Data Points This is comparable to Pinellas’ finance and construction industries, which employ 6.8 percent and 6 percent, respectively. The nonprofit sector surpasses the construction industry in Pinellas County, which employs 4.7 percent of the county’s workforce.
Pinellas County Health-Based NonprofitsPinellas County contains 290 health-based nonprofits. This amounts to roughly 7 percent of the county’s nonprofits. These nonprofits average $8,779 assets per capita. This is significantly higher than the state’s $3,827 but comparable to Hillsborough County’s $10,731.
Pinellas County Health-Based NonprofitsPinellas County health-based nonprofits pay salaries comparable to state levels. The average hourly wage for health-based nonprofits comes to $26.75 in Pinellas and $26.97 in the state. Hillsborough is slightly higher at $27.62. Pinellas County health-based nonprofits employ 58 percent of the county’s nonprofit employees.
Statewide Comparison
County Number of Nonprofits ranked
Nonprofits Assets
Pinellas 7 7
Miami Dade 1 2
Hillsborough 5 1
Employment BreakdownFlorida County Nonprofits
Hourly WageNonprofit Employees
% of Total Workforce
Pinellas $21.92 29,782 6%
Hillsborough $23.63 36,778 3%
Florida $23.98 534,116 6%
Data Dashboard
Nonprofits by Social Function
Pinellas County Nonprofits
Social Function Defined
Data Sources Internal Revenue Service Business Master Files for Exempt Organizations for 2015 The National Center for Charitable Statistics Core Files for 2013 (or most recently available), which report the assets of tax-exempt organizations who are required to file a Federal 990, 990-EZ, or 990-PF.Individual annual reports for the 15 largest private foundations in Florida to ensure data accuracy.The U.S. Census Bureau and the U.S. Bureau of Labor Statistics.The Florida Department of Economic Opportunity—official source for state employment figures.
What’s Next?The data is liveState Senate District Summaries have been mailed outReport results have been sent to all Florida elected officialsReport release tour underwayPartnerships with Florida Chamber Foundation, Philanthropy and Business Partners
Opportunities66 New Members of the Legislature 46 in the house20 in the senateOpportunity to build relationships while
informing and educating
OpportunitiesIndependent Sector Research (2016)78 percent support a bigger role for the
charitable sector in working with the federal government to produce more effective and efficient solutions to problemsAbout 88 percent of voters believe we should
make it easier for people to deduct charitable contributions from their taxes74 percent trust charities with their checkbooks
over the federal government
Charitable DeductionsUse economic impact data to highlight your impact in your communityHow do your donation dollars help you?Share a client storyUrge your representative to preserve the Charitable Deduction
Economic Impact & StorytellingNonprofits need to influence behavior change across many different stakeholdersEmpower board members to be your best cheerleaders Meet with elected officials to share your work over the summerIllustrating funding gaps
Economic Impact & StorytellingUse stories with data in your annual reportsUse data to highlight the importance of your work Independent Sector Volunteer Hours (2017)Use numbers to strengthen your grant applications Use numbers to show the disparity amongst the sector Write op-eds. Leverage the media
Economic Impact & capacity buildingBusinesses want to help Ask how they can help bring their expertise and capabilities to strengthen your nonprofit
Resiliency The resiliency of the nonprofit sector during the 2007-09 recession demonstrates its importance to the U.S. economy
WWW.FLNONPROFITS.ORG