Study finds nonprofits contribute to economic health, job creation
March 13, 2013
The findings from a Johns Hopkins University Center for Civil Society Studies report suggests that nonprofits are not only beneficial to the people participating in programs, they also create jobs and contribute to economic growth.
Some key findings from its Nonprofit Economic Data Project report show that the nonprofit sector in the United States is responsible for 15 times more jobs than the American mining sector. Although it's eclipsed by the number of positions in retail trade and manufacturing, nonprofit organizations outdo construction, finance & insurance, real estate and agriculture for employment.
"Nonprofit organizations have been holding the fort for much of the rest of the economy over the past decade, creating jobs right through the recent recession and jobs crisis while other components of the economy have been shedding jobs at accelerating rates," said Lester M. Salamon, director of the Center for Civil Society Studies.
However, these findings reach further than the bounds of the United States, the center found in a separate study. "The State of Global Civil Society and Volunteering" report showed that nonprofit positions account for 7.4 percent of labor markets in 13 countries, and are responsible for 4.5 percent of gross domestic product in 15 nations, as reported by The Chronicle of Philanthropy.
Nonprofits can contribute to national data about employment and economic impact with fund accounting software and other financial management programs.