Nonprofits boost economy but get squeezed by it too
Budget cuts, competition for donations weigh on bottom lines
John Cropley| April 8, 2017
Nonprofits are not charities that operate like businesses. They are businesses -- fairly similar to for-profit enterprises -- except in their mission and bottom line.
And they are just as worried about balancing their ledgers.
The prospect of government budget cuts, the squeeze of regulations, growing demand for services that non-profits have traditionally performed and competition for donations all weigh on their budgeting process.
The concerns are highlighted in a recent report by the Johns Hopkins Center for Civil Society Studies: “New York Capital Region Nonprofits: A Major Economic Engine.”
That report found nonprofits are an important piece of the area’s economy, with combined 2013 revenues of $9.2 billion, expenditures of $8.9 billion and payroll of $3.1 billion. The 79,210 paid employees of Capital Region nonprofits far surpassed the next-largest employment sectors: local government (57,193), retail (56,525) and state government (50,404).
The nonprofit sector added 12,834 jobs from 2003 to 2013. Combined, all other sectors showed a net increase of 1,310 jobs, the study found.
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