SUMMARY OF THE ECONOMIC IMPACT OF THE NONPROFIT SECTOR IN PINELLAS COUNTY
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1 SUMMARY OF THE ECONOMIC IMPACT OF THE NONPROFIT SECTOR IN PINELLAS COUNTY with support from
2 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 workforce 1 Compare in employment size to the finance and insurance sectors in the county 2 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. INDUSTRY COMPARISON 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. 1 Pinellas County 2016 Economic Profile. August 15, Available at: collection/67248a37-781f-4ac2-b4b8-0fefabf0e41a/pinellas_county_economic_profile.pdf 2 Pinellas County Demographics Business Summary Available at: collection/d0cc72b ffd-95cf-c22dbf80bd57/pinellas_county_demographics-business_summary.pdf 3 Ibid. 1
3 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 $ Pinellas County health-based nonprofits employ 58 percent of the county s nonprofit employees. 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, ,792,788,513 Exhibit 2 contains the breakdown of employment of nonprofits in Pinellas County, Hillsborough County and Florida from the second quarter in EXHIBIT 2. Florida Nonprofit Employees and Wages, for the 2016 Second Quarter. Regions Nonprofits Hourly Wage Nonprofit Employees % of Total Workforce Pinellas County $ ,782 6% Hillsborough County $ ,778 3% Florida $ ,116 6% 2
4 DATA SOURCES Public 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. 3
5 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. flnonprofits.org ABOUT THE FOUNDATION FOR A HEALTHY ST. PETERSBURG 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. healthystpete.foundation/ Report released July 2017 Prepared by THE FLORIDA NONPROFIT ALLIANCE Prepared for THE FOUNDATION FOR HEALTHY ST. PETERSBURG
6 Pinellas County NONPROFIT SECTOR IMPACT An overview of the economic impact of nonprofits in the region NONPROFITS (2016) 4,167 nonprofits (7TH IN THE STATE) 29,782 people EMPLOYED Compares in employment size to Pinellas County s FINANCE AND INSURANCE SECTORS Pinellas County $1 billion IN ANNUAL WAGES Social Function Total Nonprofits Total Assets Assets Per Capita Arts, Culture, and Humanities 306 $361,462,062 $388 Education Environment $528,633,569 $66,603,171 $568 $72 Health 290 $8,177,396,324 $8,779 Human Services 1,153 $1,215,577,620 $1,305 International 49 $7,923,105 $9 Mutual Benefit 104 $10,818,990 $12 Public and Societal Benefit 790 $2,299, $2,469 Religion 701 $269,744,030 $290 Unknown Social Function 85 $10,020,693 $11 DATA PROVIDED BY FLORIDA NONPROFIT ALLIANCE ACCESS THE DATA DASHBOARD AT flnonprofits.org/page/datadashboard
7 What Can You Do? SUPPORT FLORIDA NONPROFITS 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 44 TH lowest in CHARITABLE GIVING Give to a cause you care about. VOLUNTEER 50 TH in VOLUNTEERISM Serve on a nonprofit board. ADVOCATE in the nation in the nation 40 TH lowest for NONPROFIT ASSETS PER CAPITA in the nation Celebrate and share the impact your favorite nonprofit is creating in your community. Stories are what make the data matter! DATA PROVIDED BY FLORIDA NONPROFIT ALLIANCE PREPARED FOR FOUNDATION FOR A HEALTHY ST. PETERSBURG
8 ECONOMIC IMPACT OF PINELLAS COUNTY NONPROFITS
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10 History With more than 83,000 nonprofit organizations, there is a demonstrated need for increased connectivity and a collective voice for the sector Florida Nonprofit Alliance launched in 2012
11 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 sector FNA 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.
12 Legislative/Public Policy Have statewide application, effect or potential impact Have local or limited application but are determined to have statewide policy significance And Have general relevance to the operation of nonprofit organizations Likely to have such a significant impact on the people and causes nonprofits serve.
13 Florida s Nonprofit Sector 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 Florida s health and economic vitality.
14 FNA Florida Overview 17 th Largest Economy in the world
15 Five states within Florida 1. North Florida 1-10 Corridor: same number of votes as Iowa 2. Orlando: size of Oregon, 20% Hispanic voters 3. Tampa/SW Florida: same number of votes as Missouri 4. SE Florida: same number of votes as Oregon 5. Miami: same number of votes as Nevada. 85% people of color
16 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
17 Components of Report Statewide 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, Noncharitable Nonprofits and 501c3s
18 What is a Nonprofit?
19 How does the sector rank? Florida s nonprofit organizations: Falls about 7 th The nonprofit sector is at 6.3% The construction industry employed 565,396, making up 6.6 percent of employment Other industries that are comparable include: Manufacturing with 5.2 percent of employment Finance, insurance, and real estate with 7.7 percent employment.
20 How does the sector rank? Florida ranks: 40 th lowest in the nation for nonprofit assets per capita 44 th lowest in the nation for most charitable states 50 th lowest in the nation for volunteerism
21 Key Data Points Florida s nonprofit organizations: Number at 83,449 Directly employed more than 530,000 people in 2016, or 6 percent of Florida s employed workforce Provide an annual payroll of $26.6 billion Hold assets of $205.7 billion Receive nearly $90 billion in annual revenue
22 Growth over The number of nonprofits has grown 80% from 46,587 to 83,449 Their workforce has grown 40% from 380,000 to 530,000 employees
23 Pinellas County Data Points Pinellas nonprofit organizations: 7 th in state in number of nonprofits (4,167) 7th in number of assets.out of 67 counties
24 Pinellas County Data Points Employed more than 29,700 people in 2016, or 6 percent of the Pinellas County employed workforce Provide an annual payroll of $1 billion Hold assets of $12 billion Generate nearly $6 billion in annual revenue
25 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.
26 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.
27 Pinellas County Health-Based Nonprofits 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 $ Pinellas County health-based nonprofits employ 58 percent of the county s nonprofit employees.
28 Statewide Comparison County Number of Nonprofits ranked Nonprofits Assets Pinellas 7 7 Miami Dade 1 2 Hillsborough 5 1
29 Employment Breakdown Florida County Nonprofits Hourly Wage Nonprofit Employees % of Total Workforce Pinellas $ ,782 6% Hillsborough $ ,778 3% Florida $ ,116 6%
30 Data Dashboard
31 Nonprofits by Social Function
32 Pinellas County Nonprofits
33 Social Function Defined
34
35
36 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.
37 What s Next? The data is live State Senate District Summaries have been mailed out Report results have been sent to all Florida elected officials Report release tour underway Partnerships with Florida Chamber Foundation, Philanthropy and Business Partners
38 Opportunities 66 New Members of the Legislature 46 in the house 20 in the senate Opportunity to build relationships while informing and educating
39 Opportunities Independent 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 problems About 88 percent of voters believe we should make it easier for people to deduct charitable contributions from their taxes 74 percent trust charities with their checkbooks over the federal government
40 Charitable Deductions Use economic impact data to highlight your impact in your community How do your donation dollars help you? Share a client story Urge your representative to preserve the Charitable Deduction
41 Economic Impact & Storytelling Nonprofits need to influence behavior change across many different stakeholders Empower board members to be your best cheerleaders Meet with elected officials to share your work over the summer Illustrating funding gaps
42 Economic Impact & Storytelling Use stories with data in your annual reports Use 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
43 Economic Impact & capacity building Businesses want to help Ask how they can help bring their expertise and capabilities to strengthen your nonprofit
44 Resiliency The resiliency of the nonprofit sector during the recession demonstrates its importance to the U.S. economy
45 Questions? Sabeen Perwaiz
46
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