Nonprofits 108 billion for economy

April 13, 2009
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The nonprofit sector accounts for a $108 billion impact in Michigan's economy, according to a new report from the Michigan Nonprofit Association. Of that, $60 billion is direct spending and $48 billion is indirect economic stimulation, the study indicated.

In addition to the MNA, the study, "Economic Benefits of Michigan's Nonprofit Sector 2009," was sponsored by the Council of Michigan Foundations and the Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership at Grand Valley State University. It was conducted by Public Sector Consultants.

In West Michigan's four largest counties, public charities, private foundations and noncharitable nonprofits spent nearly $7.4 billion, according to the analysis of 2006 data. A total of 2,558 organizations employed 65,553 people. The counties are Kalamazoo, Kent, Muskegon and Ottawa.

The number of nonprofits in Michigan soared by 25 percent since 1997, to more than 47,229 in 2008, with nearly 10,000 new organizations. The number was up by 14 percent since 2001. That was driven mostly by organizations with federal tax 501(c) (3) status, which grew by 64 percent between 1997 and 2008. Those groups make up about 63 percent of all nonprofits in the state.

Nonprofits employ more than 440,000 people, about 10 percent of the Michigan work force. Nonprofit expenditures spur another 162,000 jobs in other sectors, the report estimated. The nonprofit sectors encompasses categories for charitable organizations, including public charities and private foundations, and noncharitable nonprofits, such as civic groups and social leagues.

Across the state, they held assets of more than $179 billion, up 71 percent since 2003. Payroll amounts to more than $4 billion every quarter.

Public charities are dominated by health services organizations, which account for 72 percent of income, 74 percent of expenditures, and 63 percent of all public charity assets, the report stated.

The largest public charities and private foundation are based outside of West Michigan, other than the W.K. Kellogg Foundations in Battle Creek. Trinity Health, based in suburban Detroit and owner of three West Michigan hospitals, is one of the largest public charities.

Some 2,404 private foundations claimed $22.7 billion in assets in 2006, according to the study. Some $13.7 billion was controlled by the four largest private foundations. Twenty-five foundations had more than $100 million each.

There were 4,849 noncharitable nonprofits holding $74.7 billion in assets. They spent $24 billion.

The full report is available at www.mnaonline.org

NONPROFIT SNAPSHOT, 2006

County
Kalamazoo
Kent
Muskegon
Ottawa

Number
506
1,376
245
431

Employment
18,284
33,068
5,335
8,866

Assets
$3.3 billion
$10.26 billion
$675.5 million
$1.48 billion

Expenditures
$1.59 billion
$4.74 billion
$405 million
$654.7 million

Source: “Economic Benefits of Michigan’s Nonprofit Sector 2009,” Public Sector Consultants

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