Nonprofit Sector is an Economic Force in Massachusetts
(April 25, 2005) The Massachusetts nonprofit sector generates about $50 billion in salaries, goods, services and expenditures for the state, according to a recent study from the Massachusetts Institute for a New Commonwealth (MassINC).
The Massachusetts Nonprofit Sector: An Economic Profile examines the nonprofit sector's impact on the commonwealth's overall economy and within various industries, rather than studying the sector only as an isolated entity. The study examines nonprofits reporting within 25 industries, including construction, mining and even real estate--far beyond just the image of nonprofits being just social services.
However, about 85 percent of nonprofit workers are employed in one of three fields: healthcare, educational services and social services. Of these, healthcare is the heavyweight, employing about 51 percent of all the state's nonprofit workers. Education employs nearly 25 percent and social services about 10 percent of nonprofit workers. Religious organizations account for 5 percent of the nonprofit workforce.
Comparing the number of nonprofit workers to other workers within a segment, social assistance employs the greatest ratio at 67 percent. In contrast, less than 15 percent of arts employees are nonprofit workers. About 56 percent of healthcare workers and 61 percent of religious workers are nonprofit employees.
The Massachusetts Nonprofit Sector also outlines the nonprofit workforce and employment statistics and profiles the organizational makeup of the sector and its growth patterns.
Nonprofit workers tend to be better educated than other workers in the state. About 57 percent of nonprofit employees have graduated from college, compared to 37 percent of all workers in the state. Additionally, more than 67 percent of nonprofit workers are in managerial or professional positions, compared to 41 percent of all workers.
Nonprofit organizations account for more than 13 percent of the commonwealth's workforce--420,000 employees--and they employ more workers than Massachusetts' federal, state and local governments combined. While employment in both the public and for-profit sectors declined between 2000 and 2003, the nonprofit sector grew 8.6 percent. About 20 percent of the nonprofit organizations are less than five years old, while nearly 75 percent are less than 25 years old.
To read the full report, visit the MassINC website at http://www.massinc.org/research/index.html