Non-Profits: Not So Small After-all

Non-profits: Not so Small After All A quick survey of the economic impact non-profits have nationally and in Texas.

By: Erin McClarty

Non-profits ≠ No money?

The word “non-profit” can be incredibly deceptive. Most believe non-profit to be analogous to little to no money.

Why is this???

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Few understand just how immense an impact non-profits have on the economy. This can often be attributed to two (amongst many) things:

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A misperception as to the number of non-profits that exist.

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The stereotypes often portrayed by society.

Clarification •

But, a quick survey of recent statistics shows that non-profit organizations are not only “profiting”, but many are beginning to pace for-profit organizations as well.

In fact, Nationally...

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...the number of 501(3)(c) charities increased by 32.7% and foundations 63.6% between 1998 and 2008.

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...in 2007 public charities accounted for over 1.4 trillion in total revenues.

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...in 2006, non-profits accounted for 8.11% of all wages and salaries paid in the United States.

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...there are 1,017,479 non-profit organizations as of today.

(Sources: NCCS Core Files 2007; IRS Business Master File 04/2009 (with modifications by the National Center for Charitable Statistics at the Urban Institute to exclude foreign and governmental organizations, Nonprofit Almanac 2008.)

In Texas.....

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...there are 69, 558 organizations, 31, 393 of which file.

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...the organizations that must file yearly account for $59,000,613,663 in revenues and have over $59,000,613,663 in assets.

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...Texan Foundations have awarded over 1,137,359,328 in grants while Charitable organizations have awarded 1,350,319,187 in grants. All of this is then re-invested back into local business and communities

Sources: IRS Business Master File (modified by NCCS) 04/2010; NCCS 501(c)(3) Public Charities Core File 2008; IRS Business Master File 04/2009 (with modifications by the National Center for Charitable Statistics at the Urban Institute to exclude foreign and governmental organizations; IRS Statistics of Income, July 2009: <http://www.irs.gov/pub/irs-soi/07in54cm.xls>. Prepared by the National Center for Charitable Statistics at the Urban Institute .

Texas Continued..... â&#x20AC;˘

Also, the number of Texan 501(3)(c) charities has increased 75.3 percent with Foundations slightly ahead at 77.3% between 1998 to 2008.

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In 2009 there were 11,278,559 tax returns made. Of these, 2,160,102 had charitable deductions amounting to $12,856,691.

Total Returns Made Returns with Charitable Deductions

16%

84%

Charts

The following are two charts detailing the top 10 non-profits in Texas by Gross Revenue and by assets. Keep in mind:

â&#x20AC;˘ How incredibly large the numbers are. In many instances individual institutions handle several millions dollars.

â&#x20AC;˘ These

are just the top ten non-profits (for each category respectively) in Texas. Imagine how much non-profits contribute to the state cumulatively.

Top 10 Texas Non-profits By Gross Receipts City

Gross Receipts (by dollars) 4,438,702,857

Gross Assets (by dollars)

Christus Health

Houston, Tx

Methodist Hospital

Houston, Tx

Memorial Herman Hospital

Houston, Tx

2,509,852,996

3,453,047,831

Texas Childrens Hospital

Houston, Tx

2,058,700,689

2,775,777,168

William Marsh Rice University

Houston, Tx

1,830,649,240

6,092,313,393

Baylor College of Medicine

Houston, Tx

1,416,938,637

2,753,179,210

Boy Scouts of America

Irving, Tx

1,320,090,753

868,591,890

Scott & White Memorial Hospital & Scott Sherwood Brindley Foundation

Houston, Tx

1,309,158,112

1,369,975,811

Daughters of Charity Health Services of Austin

Austin, Tx

1,291,325,093

1,538,826,895

Texas Christian University

Fort Worth, Tx

1,227,577,905

1,890,254,000

9,289,680,501

2,556,476,045 4,207,299,903

Top 10 Texas Non-profits by Assets 10,000,000,000

8. Southern Methodist University (Dallas, TX)

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Note: Here, revenues are being measured by almost the tens of millions!

9. Trinity Higher Education Authority Inc (Waco, TX) 10. Panhandle-Plains Higher Education Authority Inc (Canyon, TX)

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7. Christus Health (Houston, TX)

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6. Baylor College of Medicine (Houston, TX)

2,000,000,000

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5. Texas Childrens Hospital (Houston, TX)

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4. Memorial Hermann Hospital System (Houston, TX)

4,000,000,000

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3. Methodist Hospital (Houston, TX)

6,000,000,000

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2. William Marsh Rice University (Houston, TX)

8,000,000,000

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1. Brazos Higher Education Authority Inc (Waco, TX)

Source: NCCS 501(c)(3) Public Charities Core File 2008

Conclusion â&#x20AC;˘

In the end, it is important that tax-payers, governments, and businesses begin to understand just how large a role non-profits play in federal and state revenues.

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Realize that non-profits contribute heavily not only in moral currency, but monetary currency as well.

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By understanding how large a role non-profits play economically, perhaps people will begin to understand why investing in them is important and see to it that each and every one sustains.