Nonprofit heavyweights
Sector's contribution to state's economy surprisingly large
By Joanne Kelley, Rocky Mountain News (Contact)
Originally published 12:08 p.m., February 1, 2008
Updated 12:08 p.m., February 1, 2008
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Colorado gets a huge economic boost from its growing nonprofit sector, which generates more than $13 billion in annual revenue and has created jobs at almost twice the pace of the private sector in recent years.
Among the findings in a new study released today: The state's nonprofit groups attract almost $1 billion a year from outside Colorado, money that goes to organizations providing everything from health care to job training. The sector employs more than 5 percent of the state's work force and pays $4.2 billion in wages each year.
"Most people don't realize the impact the nonprofit community has on our state's economy," said Charley Shiman ski, president of the Colorado Nonprofit Association, which commissioned the study. "This report brings it into sharp focus."
This first comprehensive look at the economic scope of Colorado's nonprofit arena also shows the state lagging its counterparts elsewhere, partly because of reduced state funding for services and to a lesser extent because of the comparatively low level of charitable giving by residents.
Colorado's nonprofit work force — 5.6 percent of overall employment in the state — trails the national average of 7.2 percent. The sector's expenditures of $11.9 billion also stand below national levels.
"You have, relatively speaking, a much smaller nonprofit sector," said Lester Salamon, director of the Johns Hopkins Center for Civil Society Studies, which wrote part of the study. "Colorado's a good example of a fundamental misunderstanding ... an assumption that nonprofits and philanthropy can fill the void left by smaller state government."
Still, the study shows nonprofits in the state bring a significant amount of funds into Colorado, resulting in a total net impact of $2.1 billion — a conservative estimate at that — as the money circulates through the economy.
Kevin Raines, whose Denver- based Corona Research Inc. also analyzed data for the report, said the results show how much federal money flows into the state.
"To a great extent, it's a recapture of tax money that's going to (Washington) D.C.," Raines said.
About 62 percent of out-of- state funding comes from federal funds and grants.
Human services and education-oriented nonprofits attract the most money from outside the state.
An estimated 18,000 nonprofits operate across Colorado. But the report focuses on the roughly 6,400 of them required to file annual tax returns.
Collectively, the charitable sector in Colorado holds about $23 billion in assets.
It accounted for more than 5 percent of the gross state product in 2005, the year for which the most current comprehensive data are available.
"I think people in general are going to be surprised about the amount of dollars that are involved in helping others," said Gabriel Guillaume, executive director of the Community Resource Center, a Denver-based nonprofit.
"Money is really what makes the sector work. And passion, but that's less tangible. It's helpful to equate the sector with a dollar sign."
Statewide, the study showed that nonprofit employment grew by 39 percent while for-profit employment in Colorado grew by 22 percent between 1992 and 2005.
Kelly Felice, director of Metropolitan State College of Denver's Center for Nonprofit Studies, notes that many incoming students still view the sector as a volunteer opportunity, not as a career choice.
"I think this study will show how viable this sector is," she said.
Comments
Posted by horse90 on February 1, 2008 at 7:46 p.m. (Suggest removal)
With 18,000 non profits in Colorado and only one third of them filing a tax return leads me to wonder who's watching the other two thirds. Where is all that money going. Summer homes in Aspen maybe or expensive luxury cars ? This industry is very lucrative and has little oversight.
Posted by dlbeckm on February 1, 2008 at 10:31 p.m. (Suggest removal)
The state of Colorado exempts 501's (nonprofits) who do not have 4 full-time employees from having to pay unemployment tax. This means if they have one employee full-time and 5 part-time no one is covered. Of the 12,000 nonprofits left of 18,000 the majority of them have less than 10 employees, the majority of them are not covered by unemployment insurance. This also means that when they become unemployed they are not counted so our unemployment rate could and is higher than reported. It also means there isn't any safety net for those individuals who work in the nonprofit world.
Instead of setting the regulations to the number of employees the state should be setting the regs so that those agencies with budgets 50,000 or higher should have to cover their staff. Small businesses do, why shouldn't nonprofits? They are a business and they impact the economy of the state. DORA covers too many areas to be effective in overseeing the NonProfits ( especially where this area is growing so fast).
Posted by jay045 on February 1, 2008 at 11:01 p.m. (Suggest removal)
The reason that 12,000 don't file tax returns is that they have revenues under $25,000 (see http://www.990accountant.com/nonprofi...). So they're both likely not to have any employees or in need of a lot of oversight (of course they need some, but not worth a lot of resources watching tiny nonprofits)
There are a lot of nonprofits, such as clubs and associations, that really don't have a lot of revenue, and fall into the under $25,000 category.
Posted by SASQUATCH on February 2, 2008 at 11:36 a.m. (Suggest removal)
EXXON--FOR PROFIT HEAVYWEIGHT:
Carpe Diem puts Exxon's Tax Bill In Perspective:
Over the last three years, Exxon Mobil has paid an average of $27 billion annually in taxes. That's $27,000,000,000 per year, a number so large it's hard to comprehend. Here's one way to put Exxon's taxes into perspective.
According to IRS data for 2004, the most recent year available:
Total number of tax returns: 130 million
Number of Tax Returns for the Bottom 50%: 65 million
Adjusted Gross Income for the Bottom 50%: $922 billion
Total Income Tax Paid by the Bottom 50%: $27.4 billion
Conclusion: In other words, just one corporation (Exxon Mobil) pays as much in taxes ($27 billion) annually as the entire bottom 50% of individual taxpayers, which is 65,000,000 people! Further, the tax rate for the bottom 50% is only 3% of adjusted gross income ($27.4 billion / $922 billion), and the tax rate for Exxon was 41% in 2006 ($67.4 billion in taxable income, $27.9 billion in taxes).
Let's hear it for BIG OIL: Hip, hip....horay! Can you imagine how much Exxon would have paid in taxes had they been allowed to drill and pump in all those too many places now "out of bounds"?
Posted by STOPUSAGiveaway on February 3, 2008 at 12:04 a.m. (Suggest removal)
ALL NON PROFITs have to REPORT THEIR INCOME ANNUALLY even if it is "0"! They pay NO TAXES so the burden is carried by the HOMEOWNER.
The Catholic Church the worlds lagest mega real estate conglomerate brings in 7,500 spanish-speaking for their spanish speaking ILLEGALS! We pay for them at both ends: including Dial#2 for Spanish!
Hospitals, churches, church organizations and general non profits that help illegals: we pay for their medical care etc including those individuals they serve.
With a diminishing working class: how long can that last?
Can you afford to pay for your insurance and l00 others?
There are more births that are ILLEGITIMATE than to married couples. How long can our worker-taxpayer foot that bill?
NON PROFITs usually spend 90% of their earnings on themselves: not on those they serve: example United Way! The taxpayer foots their bill.
We are the worlds dumping groups our 4% takes in the most illegals and legals: Colorado is a prime picture of imports: especially POVERTY!
Look at I 70 it used to be pristine--now it is lined with condos and I-25 the same!
In the 70's it was predicted to be urban sprawl: but it is a megalopolosis much greater.
As the worlds caregivers we have violated our responsiblity.
We will all pay that price. The animals were doing fine until homosapiens began their breeding and clearing for greed and ignorance.
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