logo
    • Magazine
    • Membership
    • Donate
  • Racial Justice
  • Economic Justice
    • Collections
  • Climate Justice
  • Health Justice
  • Leadership
  • CONTENT TYPES
  • Subscribe
  • Webinars
    • Upcoming Webinars
    • Complimentary Webinars
    • Premium On-Demand Webinars
  • Membership
  • Submissions

Infographic: What is Driving Nonprofit Sector’s Growth?

Jaclyn Lambert
December 10, 2013
Share
Tweet
Share
Email
Print

During the recession, while for-profit businesses struggled with decreased revenues causing significant downsizing, high unemployment rates, and record breaking home foreclosures, the nonprofit sector continued its pattern of growth, and actually thrived. According to the recent Urban Institute’s Nonprofit-Government Contracts and Grants: Findings from the 2013 National Survey by Sarah L. Pettijohn and Elizabeth T. Boris, with Carol J. De Vita and Saunji D. Fyffe, one-third of revenue for public charities—501(c)(3) nonprofit organizations—in 2011 came directly from government grants and contracts. While according to the Urban Institute nearly 50 percent of organizations surveyed indicated they experienced a decrease in local, state or federal funds, the majority was able to survive without cutting programs or payroll. In fact, only 14 percent had to reduce their number of clients served when experiencing a cut in government funding.

The nonprofit sector is the third-largest workforce in the United States, behind retail and manufacturing, representing 10 percent of the total workforce in 2010. Public charities, the largest designation, contributed over $800 billion to the 2010 economy, making up 5 percent of the GDP and paying over $320 billion in wages. While the for-profit sector experienced an 8.4 percent decrease in employment and 8 percent decrease in wages, the nonprofit sector increased wages by 6.5 percent and overall employment by 4 percent. With the strong paid workforce, nonprofits also experienced an increase in volunteers and volunteer hours. In 2011, over 15 billion hours were contributed, with nearly 28 percent of U.S. adults supporting nonprofits through the volunteering of their time. More and more people are seeking ways to contribute to society either by changing careers, or through the volunteering with nonprofit organizations.

Education and healthcare are the two largest segments in the nonprofit sector, which explains the continued growth throughout the recession. The implementation of the Affordable Care Act and increasing support for education at all levels helps to explain the sector’s growth. Healthcare is by far the largest employer of nonprofit workers, representing 57 percent, with education second at 15 percent. While there is still some question surrounding how nonprofit hospitals will be affected by the Affordable Care Act’s new surveying requirements, it is still safe to presume that new jobs will continue to be added and administrative professionals will continue to be in high demand as greater focus and funding are placed on healthcare.

Sign up for our free newsletters

Subscribe to NPQ's newsletters to have our top stories delivered directly to your inbox.

By signing up, you agree to our privacy policy and terms of use, and to receive messages from NPQ and our partners.

While traditionally the nonprofit sector is not top-of-mind when thinking about economic growth, the truth is that it successfully weathers economic downturns and contributes to the economy while providing much-needed services. How different would our world be if there were not dedicated individuals with a passion for helping others? Nonprofit organizations not only provide healthcare and education, but allow us to view great works of art, practice the religion of our choice, support the preservation of wildlife and the environment, help victims of natural disasters, and so much more. With competitive wages and benefits, strong job growth, and diverse opportunities, the nonprofit sector is becoming the sector of choice for many professionals dissatisfied in their for-profit sector careers. A strong background in public administration and a desire to change the world is all that is required to make the leap into one of the most growth oriented sectors in the U.S. economy.

The Rise

Infographic Source: USF’s Online Master of Public Administration

Share
Tweet
Share
Email
Print
ABOUT THE AUTHOR
Jaclyn Lambert

Jaclyn Lambert is a digital marketer and blogger who has worked extensively with nonprofits and colleges to advocate for their causes through promotion and fundraising.

More about: Economic DevelopmentPolicy

Become a member

Support independent journalism and knowledge creation for civil society. Become a member of Nonprofit Quarterly.

Members receive unlimited access to our archived and upcoming digital content. NPQ is the leading journal in the nonprofit sector written by social change experts. Gain access to our exclusive library of online courses led by thought leaders and educators providing contextualized information to help nonprofit practitioners make sense of changing conditions and improve infra-structure in their organizations.

Join Today
logo logo logo logo logo
See comments

NPQ_Winter_2022Subscribe Today
You might also like
Cancelling Student Debt Is Necessary for Racial Justice
Kitana Ananda
To Save Legal Aid, Expand Public Service Loan Forgiveness
Zoë Polk
No Justice, No Peace of Mind and Body: The Health Impacts of Housing Insecurity for Black Women
Jhumpa Bhattacharya, Maile Chand and Andrea Flynn
The Human Impact of the Global Refugee Crisis Must Be Understood—And Acted Upon
Anmol Irfan
BCG’s New Frontier: Autoworkers and the Environmental Movement
Ramón Cruz and Cindy Estrada
Black Americans Need Reparations: The Fight for the CTC Highlights the Roadblocks
Jhumpa Bhattacharya and Trevor Smith

Popular Webinars

Remaking the Economy

Black Food Sovereignty, Community Stories

Register Now

Combating Disinformation and Misinformation in 21st-Century Social Movements

Register Now

Remaking the Economy

Closing the Racial Wealth Gap

Register Now

Like what you see?

Subscribe to the NPQ newsletter to have our top stories delivered directly to your inbox.

See our newsletters

By signing up, you agree to our privacy policy and terms of use, and to receive messages from NPQ and our partners.

Independent & in your mailbox.

Subscribe today and get a full year of NPQ for just $59.

subscribe
  • About
  • Contact
  • Advertise
  • Copyright
  • Careers

We are using cookies to give you the best experience on our website.

 

Non Profit News | Nonprofit Quarterly
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.