The Economic Impacts of Idaho s Nonprofit Organizations

2016 REPORT www.idahononprofits.org The Economic Impacts of Idaho s Nonprofit Organizations RESEARCH REPORT Created by: Don Reading Ben Johnson Associates Boise, Idaho Steven Peterson Research Economist and Clinical Assistant Professor, Economics College of Business and Economics University of Idaho Moscow, Idaho Don Holley Department of Economics Boise State University Boise, Idaho The Economic Impacts of Idaho s Nonprofits Organizations was commissioned by The Idaho Nonprofit Center The Idaho Nonprofit Center represents the interests of Idaho s 4,600 charitable nonprofit organizations. It serves as a broker of information, a convener of leaders and allies, and a bridge between the nonprofit, public and private sectors to create a stronger Idaho. More information can be found on its website: www.idahononprofits.org

THE ECONOMIC IMPACTS OF IDAHO S NONPROFIT ORGANIZATIONS RANKINGS & MEASURES Idaho charitable nonprofit organizations employ an estimated 54,305 actual jobs which constitute 8.4% of all covered jobs in Idaho, 10.2% of private sector jobs, and pays $3.9 billion in total aggregate compensation. Idaho s charitable nonprofits are ranked 6th place as an industry based on actual employment and ranks 7th place in a broader measure of jobs which include self-employment. If ranked as a county economy (2014) in terms of employment charitable non profits would rank 3rd in Idaho behind Ada County (208,793 jobs) and Canyon County (54,938 jobs). Idaho charitable nonprofits directly employ more people than professional and technical services (31,789), construction (33,959), wholesale trade (28,660), transportation and warehousing (17,729), crop and animal Production (23,505), and finance and insurance (21,108). Overall, an approximate 52.4% of charitable nonprofit revenues are derived from federal or out-of-state sources, totaling $2.5 billion. Idaho s charitable nonprofit contribution to gross state product is 4.1%. OTHER KEY FINDINGS In December 2014 (including Battelle), Idaho had 7,443 -registered nonprofit organizations producing total revenue of $5.06 billion with $8.99 billion in assets. Of these, public charities consisted of 4,979 organizations with $4.71 billion in revenues and $6.91 billion in assets. The $4.71] billion revenues of Idaho public charities are their sources of operational spending and expenditures. Approximately 59% was spent on total compensation employing an estimated 54,305 direct workers. Approximately 21,977 - jobs (40%) are employed in non-health related organizations (and excluding Battelle) with combined revenues of just over $1 billion dollars. The average total compensation package per job is $27,673. Hospital and health- related organizations constitute 52% of all jobs (28,283), and Battelle Energy Alliance (BEA) employs 7.5% (4,046). The average total compensation per worker across all nonprofits was $50,849, and ranged from $84,938, per worker paid by Battelle to $22,078, per worker in arts, culture, and humanities. Economic impacts: The expenditures derived from these federal and out-of-state revenues generate the following economic impacts including the multiplier effects: - $4.77 billion in sales transactions - $2.62 billion in gross state product (4.1% of GSP) - $2.13 billion in total compensation (payroll) - 44,111 jobs According to Volunteering in America, 451,620 Idaho citizens volunteer annually in 2014, totaling 51.0 million hours of service. 35.8% Idaho residents are volunteers ranking the state 2nd in the nation. Volunteer hours are not included in GSP calculations but their implicit value can be estimated. The total market value of volunteer labor hours equals $1.3 billion annually in wage and salary earnings. This is the equivalent of $1.3 billion to gross state product (2.0% of the total). Annualized, the total labor hours are the equivalent of 24,519 jobs. In total, Idaho s charitable nonprofits create $137.6 million in taxes from economic activities arising from federal/out-of-state revenues. These include indirect business taxes (i.e. sales taxes, property taxes, and excise taxes), personal income taxes, and corporate income taxes (from the direct, indirect, and induced tax impacts). 2

OVERVIEW OF STUDY This is an update of an economic impact assessment of Idaho s charitable nonprofit organizations. The Original study was commissioned by the Idaho Nonprofit Center and completed April 2012. The update was completed in December, 2015. The primary economic analysis is conducted using data from the 3,141 charitable nonprofit organizations which file 990 and 990EZ tax returns ( reporting nonprofits ). TYPES OF NONPROFIT ORGANIZATIONS The IRS recognizes 29 different classifications of nonprofit organizations. Public charities represent a substantial portion of the national nonprofit sector, and constitute 62 of Idaho s nonprofit organizations. Public charities receive their tax-exemption under subsection (3) of Section 501(c). The IRS defines these organizations as charitable because they serve broad public purposes, including educational, religious, scientific, and the literary activities, among others, as well as the relief of poverty and other public benefit actions. Public charities are categorized into two sub-categories: 1) Registered charities; and 2) Unregistered charities (revenues less than $5,000). Registered charities are further classified into (a) those with revenues greater than $25,000 annually and (b) smaller charities under $25,000 in revenues Private foundations are also charitable organizations exempt under Section 50 1 (c) (3), but are not public charities. Most private foundations are created to distribute money to public charities or individuals. They must meet strict guidelines requiring distribution of a proportion of their assets each year. Other nonprofit organizations include social welfare organizations (501( c)( 4 )), business leagues and trade associations (501( c)( 6)), and social and recreational clubs (501( c )(7)). All nonprofit organizations, regardless of their classification, are exempt from federal income tax. However, only those classified as a 501( c) (3) permit donors to make tax-deductible contributions to the organization. Although this report will touch on the economic role of all nonprofit organizations in the economy, its focus is on public charities. NATIONAL ROLE OF NONPROFITS IN THE US ECONOMY Nonprofits play a significant role in the U.S. economy at all levels. Nationally there are 1.53 million nonprofits of which 69% are public charities, other nonprofits (24%), and private foundations (8%). U.S.-based nonprofits employed 11.4 million people in 2012, of which an estimated 10.23 million were employed in public charities (Independent Sector). This constituted 10.3% of the 2012 covered U.S. workforce for all classified nonprofits and 8.4% based on public charities alone (QCEW). To put this in perspective, the total U.S. nonprofit employment was larger than the population of 44 states. Public charities alone employed more people than the population of 43 states and is equivalent to the 9.88 million population of Michigan (U.S. Census). Nonprofits paid an approximate $587 billion in wages and benefits (2009/2010) which constituted 9.8% of the covered $5.98 trillion U.S. total wages and benefits (Independent Sector /QCEW). 3

IDAHO S NONPROFIT ORGANIZATIONS In 2014 (including Battelle), Idaho had 7,444 registered nonprofit organizations producing total revenue of $5.17 billion with $6.19 billion in assets. Of these, public charities consisted of 4,979 organizations (2,629 organizations filing form 990 or 990EZ) producing $4.71 billion in revenues. In terms of the relative size of the revenues of charitable organizations, the largest sub-sector was health- related ($3.22 billion) which constitutes 68% of the public charity revenues and 62% of assets. In second place ranking (excluding Battelle) was education producing $346 million in revenues, which constitutes 7% of total revenues and 17% of total assets. The $4.71 billion revenues produced by Idaho public charities are the source of operational spending and expenditures. Approximately 59% was spent on total compensation for an estimated 54,305 direct workers (totaling $2.76 billion in total aggregate compensation). The average total compensation per worker was $50,849, and ranged from $84,938 per worker at Battelle to $22,708 per worker in arts, culture, and humanities. Approximately 40% of total jobs are in the health care sector and 20% are in human services. NTEE Type of Public Charity Number % Total Revenues % Total Assets % Code FIGURE 1 PUBLIC CHARITIES IN IDAHO, 2014 Report December, 2014 Spending A Arts, Culture, and Humanities 501 10.1% $49,809,497 1.1% $118,849,547 1.9% B Education 715 14.4% $346,594,586 7.4% $1,045,503,386 16.9% C Environmental Protection, Beaut. 156 3.1% $23,210,482 0.5% $73,452,451 1.2% D Animal-Related 153 3.1% $33,100,303 0.7% $92,510,965 1.5% E Health 216 4.3% $3,197,957,653 67.9% $3,796,619,244 61.3% F Mental Health, Crisis Intervention 77 1.5% $16,190,030 0.3% $17,177,854 0.3% G/H Medical Research/Diseases, Disciplines 88 1.8% $7,171,577 0.2% $9,188,849 0.1% I Crime, Legal Related 64 1.3% $16,000,033 0.3% $15,517,420 0.3% J Employment, Job Related 31 0.6% $53,609,342 1.1% $42,002,216 0.7% K Food, Agriculture, and Nutrition 64 1.3% $32,962,193 0.7% $16,500,262 0.3% L Housing, Shelter 92 1.8% $64,595,180 1.4% $251,372,835 4.1% M Public Safety 90 1.8% $3,908,958 0.1% $7,163,229 0.1% N Recreation, Sports, Leisure, Athletics 436 8.8% $43,160,372 0.9% $72,292,912 1.2% O Youth Development 219 4.4% $31,050,089 0.7% $73,887,072 1.2% P Human Services - Multipurpose 414 8.3% $224,751,075 4.8% $274,883,660 4.4% R Civil Rights, Social Action, Advocacy 32 0.6% $7,332,586 0.2% $7,052,300 0.1% S Community Improvement 187 3.8% $32,043,551 0.7% $73,160,263 1.2% T Philanthropy, Voluntarism, and Grants 103 2.1% $26,908,391 0.6% $151,188,307 2.4% U/V Science, Social Science and Technology 31 0.6% $1,414,443 0.0% $2,297,575 0.0% W Public, Society Benefit 90 1.8% $7,285,052 0.2% $5,967,500 0.1% X Religion Related, Spiritual Development 1,124 22.6% $25,131,160 0.5% $37,072,011 0.6% Q/ Z/Y Other including International 95 1.9% $6,686,401 0.1% $6,807,668 0.1% Battelle Energy Alliance 1 0.0% $457,428,966 9.7% Total 4,979 100.0% $4,708,301,920 100.0% $6,190,467,526 100.0% Source: National Center For charitable Statistics * Not available 4

FIGURE 2 TOTAL DIRECT PUBLIC CHARITY 2014 SPENDING & DIRECT JOBS Public Charity Total Charity Total Aggregate Total Direct Compensation Classification/Category Spending Compensation Employment % Jobs Per Worker Arts, Culture, and Humanities $49,809,497 $17,825,577 807 1.5% $22,078 Education $346,594,586 $261,017,301 7,513 13.8% $34,744 Environment $56,310,785 $31,222,322 691 1.3% $45,210 Hospitals $3,197,957,653 $1,795,812,932 28,018 51.6% $64,096 Health $23,361,607 $13,717,118 265 0.5% $51,802 Human Services $470,037,242 $242,919,129 10,988 20.2% $22,107 Public and Societal Benefit $74,984,023 $44,939,663 1,589 2.9% $28,284 Religious Organization $25,131,160 $6,541,159 215 0.4% $30,467 Other Public Charities $6,686,401 $3,695,085 174 0.3% $21,236 Battelle Energy Alliance $457,428,966 $343,685,361 4,046 7.5% $84,938 Total (with Battelle) $4,708,301,920 $2,761,375,647 54,305 100.0% $50,849 TOTAL DIRECT PUBLIC CHARITY 2013 SPENDING & DIRECT JOBS Public Charity Total Charity Total Aggregate Total Direct Compensation Classification/Category Spending Compensation Employment % Jobs Per Worker Arts, Culture, and Humanities $45,009,991 $14,410,944 827 1.6% $16,828 Education $332,952,708 $255,758,371 7,149 13.7% $34,531 Environment $47,087,914 $26,699,582 726 1.4% $35,516 Hospitals $2,914,040,427 $1,610,807,739 27,407 52.5% $56,732 Health $23,725,359 $13,922,345 315 0.6% $42,683 Human Services $456,400,381 $237,150,201 9,874 18.9% $23,184 Public and Societal Benefit $79,115,351 $43,188,387 1,400 2.7% $29,781 Religious Organization $24,011,123 $4,164,175 131 0.3% $30,781 Other Public Charities $11,947,089 $7,719,499 290 0.6% $25,678 Battelle Energy Alliance $457,428,966 $343,685,361 4,046 7.8% $81,986 Total (with Battelle) $4,391,719,309 $2,557,506,605 52,163 100.0% $49,029 5

ACTUAL (DIRECT) EMPLOYMENT FROM IDAHO S CHARITABLE ORGANIZATIONS In terms of industry employment comparisons, the charitable nonprofits would rank 6th place in Idaho using the most commonly cited measure of employment (Quarterly Census of Employment and Wages-QCEW). It would rank 7th place using a wider measure of employment called the Regional Economic Information System (REIS), Bureau of Economic Analysis. REIS includes an estimation of self-employed workers and includes other employment categories including production agriculture not included in covered employment measures. Idaho charitable nonprofits directly employ more people than professional and technical services (31,789), construction (33,959), wholesale trade (28,660) transportation and warehousing (17,792), crop and animal production (23,505), and finance and insurance (21,108) as measured by QCEW. If ranked as a county economy (2014) in terms of employment charitable nonprofits would rank 3rd in Idaho behind Ada County (208,793 jobs), with Canyon County ranking (54,938 jobs). FEDERAL AND OUT-OF-STATE SOURCES OF REVENUES A significant portion of total charitable nonprofit revenues originate from either federal or out-of-state sources. The majority of these revenues are generated by health care facilities and hospitals. Nonprofits account for about 80% of the acute care hospitals in the U.S. (Huffington). Hospitals receive from 35% to 55% of revenues from Medicare, depending on their facility and its mission. Idaho hospitals also receive approximately 16.5% of their revenues from Medicaid (Idaho Hospital Association) of which approximately 12% comes from federal sources. Medicare is a federal program that provides health care for seniors and Medicaid is a federal/state partnership that provides health care to the poor. From a careful evaluation of various indicators, we estimate that approximately 55% of Idaho hospital revenues come from federal Medicare or Medicaid sources. This constitutes about 31% of total Idaho charitable nonprofit revenues alone. The remaining sectors (excluding BEA which is 100 federal/ out- of-state funded) average a little over 20% in federal or out-of-state funds. Overall, we estimate that approximately 52% of charitable nonprofit revenues are from federal or out-of-state sources, totaling approximately $2.47 billion annually. The vast majority of these revenues and expenditures are spent on Idaho programs and activities. The funding and revenues sources for nonprofits arise from diverse and complex organizational systems and a small percentage is spent on out-of-state programs. Alternatively there are other sources of out-of- state funds for specific Idaho programs not included in reported nonprofit revenue totals. We assume these flows are offsetting. 6

BEA 2014 EMPLOYMENT RANKINGS Two Digit Industry Rankings Jobs Rank FIGURE 3 QCWE 2014 ANNUAL EMPLOYMENT RANKINGS Two Digit Industry Rankings Jobs Rank Government 127,053 1 Retail Trade 103,683 2 Health Care and Social Assistance 98,038 3 Manufacturing 66,631 4 Accommodation and Food Services 60,912 5 Construction 55,366 6 Nonprofit Charities 54,305 7 Professional, Scientific, and Technical Services 53,476 8 Administrative and Support and Waste Management and Remediation Services 52,987 9 Crop and Animal Production 51,460 10 Other Services (except Public Administration) 43,738 11 Real Estate and Rental and Leasing 42,435 12 Finance and Insurance 39,496 13 Wholesale Trade 32,063 14 Transportation and Warehousing 27,273 15 Arts, Entertainment, and Recreation 19,659 16 Educational Services 17,377 17 Information 12,219 18 Mining, Quarrying, and Oil and Gas Extraction 6,732 19 Management of Companies and Enterprises 6,000 20 Utilities 3,118 21 Total employment (Wage and Self-Employed)* 919,715 Total Private Employment 792,662 Source: BEA and EMSI * excludes unclassified employment Government 112,431 1 Health Care and Social Assistance 82,721 2 Retail Trade 79,780 3 Manufacturing 59,886 4 Accommodation and Food Services 55,903 5 Nonprofit Charities 54,305 6 Administrative and Support and Waste Management and Remediation Services 40,720 7 Construction 33,959 8 Professional, Scientific, and Technical Services 31,789 9 Wholesale Trade 28,660 10 Crop and Animal Production 23,505 11 Finance and Insurance 21,108 12 Transportation and Warehousing 17,792 13 Other Services (except Public Administration) 15,926 14 Arts, Entertainment, and Recreation 9,689 15 Information 9,219 16 Real Estate and Rental and Leasing 6,842 17 Educational Services 6,185 18 Management of Companies and Enterprises 5,474 19 Utilities 2,914 20 Mining, Quarrying, and Oil and Gas Extraction 2,428 21 Percentage Total Covered Employment Wages** 646,930 8.4% Total Private Covered Employment and Wages 534,499 10.2% Source: BLS, Idaho Department of Labor, and EMSI * excludes unclassified employment FIGURE ECONOMIC IMPACTS OF THE CHARITABLE NONPROFITS OF 4 IDAHO (FROM FEDERAL AND OUT-OF-STATE FUNDING) INCLUDING THE MULTIPLIER EFFECTS Direct Gross State Product Total Public Charity Category FED/Out-of-State Includes the $ Direct, Indirect Sales & Induced Value impacts Added Compensation Jobs Arts, Culture, and Humanities $9,961,899 $18,286,465 $8,433,152 $5,931,544 241 Education $86,648,647 $145,772,267 $106,083,492 $83,171,050 2,402 Environment $11,262,157 $19,574,612 $11,464,594 $8,895,031 213 Hospitals $1,758,876,709 $3,133,876,847 $1,750,217,408 $1,423,315,462 27,737 Health $10,338,832 $19,275,951 $10,298,992 $8,832,010 207 Human Services $107,925,469 $193,264,019 $107,989,340 $82,128,687 3,323 Public and Societal Benefit $17,094,037 $30,964,089 $18,061,101 $14,342,496 490 Religious Organization $5,026,232 $10,323,552 $4,043,517 $2,789,359 88 Other Public Charities $1,337,280 $2,376,074 $1,415,908 $1,084,236 45 Battelle Energy Alliance $457,428,966 $1,195,154,104 $599,349,133 $499,457,611 9,366 Total (With Battelle) $2,465,900,229 $4,768,867,980 $2,617,356,638 $2,129,947,484 44,111 Total (Without Battelle) $2,008,471,263 $3,573,713,876 $2,018,007,505 $1,630,489,873 34,745 7

REGIONAL ECONOMIC ANALYSES HAVE A SPECIFIC LANGUAGE AND TERMINOLOGY AND ARE DEFINED BELOW: Direct effects (spending): This represents the actual observed sales, income, and jobs from nonprofit operations. Economic impacts: Economic impacts measure the magnitude or importance of the expenditures of base (export) industries. Our economic model estimates multipliers for each industry. If you have a multiplier of 1.61, for example, every dollar of expenditures creates $1.61 dollars of new spending in the community. The total multiplier has three components: direct effects, indirect effects, and induced effects. Indirect effects: These are the downstream economic effects on sales, payroll, jobs, and indirect taxes that results from direct spending in the regional economy. For example, a nonprofit purchases community goods and services which supports other area businesses. These firms, in turn, purchase even more goods and services as the effects ripple throughout the economy. They are part of the overall multiplier effects. Indirect taxes: All taxes generated from economic activity excluding personal and corporate income taxes. These consist of mostly sales taxes and property taxes. These are adjusted (i.e. reduced) for the tax exemption of nonprofit organizations. The economic activity including the downstream effects will generate considerable tax revenues despite the fact these organizations are tax-exempt. Induced effects: These are downstream economic effects of employee and consumer spending on the economy. They are part of the multiplier effects. Jobs: Total employment resulting from economic activity. The economic model reports these as full-time and part-time jobs. Sales: Total dollar transactions from an increase in direct expenditures including the multiplier effects (i.e. direct, indirect, and induced economic activity). Total compensation: Wage, salary, and other income payments including fringe benefits to individuals. Value-added (value-output): Value added is a measure of total net production and activity. This is a measure of gross domestic product at the local or regional level. Based on the economic impacts of the 44,111 jobs arising from federal dollars and out-of-state revenues alone, the charitable nonprofits would rank 6th place by the QCEW covered industry rankings and 11th by the REIS employment rankings. The Idaho charitable nonprofits contribute 4.1% of Idaho s GSP as measured economic impacts. They illustrate the effect of nonprofit expenditures and backward linkages on all of Idaho s economic sectors. Figure 4 presents the economic impacts by charitable activity including the multiplier effects. Figure 5 illustrates the economic impacts by industry including the multiplier effects. The purpose of this comparison is to illustrate how the backward linkages of the charitable nonprofits reach nearly all of the industries in Idaho. The industry with the largest impacts is hospitals and health care with 50.0% of all jobs. Second place is social services (8.5%), followed by nonprofit education (7.0%). 8

VALUE OF IDAHO S VOLUNTEERS According to Volunteering in America, 451,620 Idaho citizens volunteer annually in 2014. Approximately 35.8% of adult residents volunteer, which ranks the state 2nd place nationwide. Idaho contributed 51.0 million hours of service annually averaging 31.2 hours per adult resident. Volunteer hours are not included in GSP calculations but their implicit value to Idaho s economy can be estimated. The average wage in the Idaho nonprofit economic sector is about $24.45/hour (total compensation) when Battelle is included and $17.10 when Battelle is excluded. Applying that wage to the total volunteer labor hours equals $1.3 billion annually in total compensation. This is the equivalent of $1.3 billion to gross state product (2.0% of the total). BROADER MEASURES OF ECONOMIC IMPACTS The economic impacts reported earlier are founded on economic base theory, derived solely from federal and private out-of-state revenues which may understate the actual contribution of charitable nonprofits to the Idaho economy for several reasons. First, many foundations and supporting charities are gatekeepers for various funding sources. These funds would leak directly out of the state in the absence of the public charities regardless of the origin of the funding. Secondly, a significant portion of nonprofit activities in Idaho are necessities such as acute care hospitals and related health care services. Patient revenues whether arising from private insurance or Medicare/Medicaid will follow the hospitals out-of-state if necessary. Third, these numbers do not capture all nonprofit activities. Most notably are the nonprofit organizations/events that attract out-of-state visitors such as concerts, museums, workshops, and other events. Fourth, these estimates do not include the value of volunteer or in-kind contributions to charitable organizations. Finally, the reported revenues and expenditures do not capture all of the flow of funds to nonprofits in general and charitable nonprofits in particular. Based on these factors, a broader measure was employed that estimated the economic contributions of the nonprofits (including Battelle): $8.8 billion in sales; $4.9 billion in gross state product (7.7% of Idaho GSP); $4.0 billion in total compensation; and 89,100 jobs (13.8% of covered employment) (Figure 6). TAX REVENUES GENERATED BY IDAHO S CHARITABLE NONPROFITS Idaho s charitable nonprofits generate considerable tax revenues even though most nonprofit activities are exempt from income tax and nonprofits generally do not pay property taxes. The economic activities of these organizations create tax revenues in several important ways: 1) Some activities of charitable non profits are not tax exempt, 2) Employees of charitable nonprofits pay income taxes, property taxes, sales taxes, and excise taxes, 3) Contracting and outsourcing firms from charitable nonprofits pay taxes. The magnitude of these tax revenues is substantial. The economic activities arising from federal/out-of-state revenues created $74.1 million in indirect business taxes in 2014. These are comprised of sales taxes ($37.8 million), property taxes ($29.7 million), excise taxes ($6.6 million). They include the direct, indirect, and induced tax impacts. In addition, the charitable nonprofits created $60.0 million in Idaho personal income payments and $3.5 million in corporate income taxes. In total, $137.6 million in tax revenues were created. 9

FIGURE 6 2014 ECONOMIC CONTRIBUTIONS OF IDAHO CHARITABLE NONPROFITS Includes the Direct, Indirect & Induced impacts Direct Gross State Product Total Public Charity Category Total Sales Value Added Compensation Jobs Arts, Culture, and Humanities $49,809,497 $91,432,325 $42,165,761 $29,657,718 1,206 Education $346,594,586 $583,089,068 $424,333,968 $332,684,201 9,607 Environment $56,310,785 $97,873,062 $57,322,970 $44,475,153 1,065 Hospitals $3,197,957,653 $5,697,957,903 $3,182,213,469 $2,587,846,294 50,431 Health $23,361,607 $43,495,827 $23,448,995 $19,864,997 441 Human Services $470,037,242 $842,011,028 $465,592,411 $352,200,109 14,190 Public and Societal Benefit $74,984,023 $135,722,110 $79,564,500 $63,426,824 2,131 Religious Organization $25,131,160 $51,617,762 $20,217,586 $13,946,793 440 Other Public Charities $6,686,401 $11,880,369 $7,079,540 $5,421,179 223 Battelle Energy Alliance $457,428,966 $1,195,154,104 $599,349,133 $499,457,611 9,366 Total (With Battelle) $4,708,301,920 $8,750,233,558 $4,901,288,333 $3,948,980,879 89,100 Total (Without Battelle) $4,250,872,954 $7,555,079,454 $4,301,939,200 $3,449,523,268 79,734 ECONOMIC IMPACTS OF THE CHARITABLE NONPROFITS OF IDAHO (FROM FEDERAL & OUT-OF-STATE FUNDING) Includes the Direct, Indirect & Induced impacts Direct Gross State Product Total Public Charity Category FED/Out-of-State $ Sales Value Added Compensation Jobs Arts, Culture, and Humanities $9,001,998 $14,215,668 $7,577,885 $4,412,185 213 Education $83,238,177 $130,143,545 $96,879,236 $75,327,358 2,197 Environment $9,417,583 $14,851,332 $8,584,851 $6,084,726 179 Hospitals $1,602,722,235 $2,590,033,748 $1,473,494,180 $1,114,945,761 24,053 Health $10,464,357 $17,277,301 $9,916,354 $7,900,385 218 Human Services $105,191,158 $175,873,821 $97,157,331 $74,388,171 2,940 Public and Societal Benefit $17,975,769 $30,618,582 $16,723,923 $13,296,116 443 Religious Organization $4,802,225 $7,658,043 $3,669,682 $1,640,616 53 Other Public Charities $2,389,418 $4,248,517 $2,348,145 $2,013,756 74 Battelle Energy Alliance $457,428,966 $1,114,882,560 $559,094,340 $465,911,950 8,737 Total $2,302,631,885 $4,099,803,116 $2,275,445,926 $1,765,921,024 39,108 10

FIGURE 7 TOTAL TAX CONTRIBUTIONS FROM IDAHO S CHARITABLE NONPROFITS Federal/Out-of-State Indirect Business Taxes Idaho Taxes Sales Tax $37,823,375 Property Tax $29,692,425 Excise Taxes $6,606,689 Sub-Total Indirect Taxes $74,122,489 Other Taxes Idaho Personal Income Tax $59,986,004 Idaho Corporate Taxes $3,521,228 Total Taxes $137,629,720 Sources: National Center for Charitable Statistics (NCCS). http://nccsdataweb.urban.org Idaho Department of Labor. http://labor.idaho.gov/dnn/idl/statisticsresearch/tabid/673/default.aspx Independent Sector. www. independentsector.org/economic_role The Huffington Post, Nonprofit Hospitals Face Downgrades As Revenues Fall: Moody s. www.huffingtonpost. com/2011/08/10/nonprofit-hospitals_n_923364.html?view=prin Lester M. Salamon, Stephanie L. Geller, and Kasey L. Spence, Impact of the 2007-2009 Economic Recession on Nonprofit Organizations, Johns Hopkins University Center for Civil Society Studies, No. 14, 2009 Quarterly Census of Wages and Employment, U.S. Department of Labor, Bureau of Labor Statistics. www.bls.gov/cew/ U.S. Census Bureau, Quick Facts. http://quickfacts.census.gov/qfd/states/00000.html U.S. Census Bureau, Population Finder. http://factfinder.census.gov/servlet/saffpopulation?_ submenuld=population_0&_sse=on U.S. Department of Commerce, Bureau of Economic Analysis, Regional Economic Information System 11