The economic impact of nonprofits in West Michigan is on the rise. The Community Research Institute (CRI) at the Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership at Grand Valley State University recently conducted studies of the impact of nonprofits on the economy in Kent, Ottawa, Muskegon and Newaygo counties.
Nonprofits are widely acknowledged to create societal benefits. It is less widely known that the sector provides critical economic benefit at all levels of the local, state, and national economies.
The economic impact of nonprofits is estimated at $2.2 billion in Kent County; $650 million in Ottawa County; $385 million in Muskegon County; and $165 million in Newaygo County.
The reports quantify the diverse nonprofit sector and measure how large an impact it has on the West Michigan economy. The research team for this study used data from a number of sources, including the IRS, the U.S. Department of Commerce, and the U.S. Department of Labor.
“Nonprofit organizations have long been recognized for contributing to the high quality of American life, but few people grasp the enormous economic consequences of their activities,” said Joel Orosz, distinguished professor of Philanthropic Studies at Grand Valley. “This study from the Johnson Center’s Community Research Institute will open a lot of eyes to this vital contribution to our communities and our economy.”
KEY FINDINGS OF THE REPORT:
· The nonprofit sector is large
and growing. In 2006, the IRS recorded 3,149 distinct nonprofit
organizations in Kent County, an increase of 4.9 percent since 2005
(2,998). In 2006, the IRS recorded 1,104 distinct nonprofit
organizations in Ottawa County; 698 in Muskegon County; and 366 in
Newaygo County.
· It is estimated that there are 40,280 nonprofit jobs in Kent County; 13,644 in Ottawa County; 8,185 in Muskegon County; and 1,645 in Newaygo County. Additional jobs in the for-profit sector created as a direct result of nonprofit economic activity are estimated at 18,090 in Kent County; 3,276 in Ottawa County; 2,540 in Muskegon County and 380 in Newaygo County.
· The weighted average of the dollar-value multipliers for the payrolls of all nonprofit organizations varies by county. When multiplied by payroll estimates, the total annual economic impact of nonprofits is estimated at $2.2 billion for Kent County, an increase from the 2006’s Economic Impact of Nonprofits in Kent County, which estimated a $2.1 billion economic impact; $650 million for Ottawa County; $385 million for Muskegon County; and $165 million for Newaygo County.
Reports on The Economic Impact of Nonprofits in Kent, Ottawa,
Muskegon, and Newaygo Counties are available online at www.cridata.org/publications.
The
Community Research Institute is a one stop shop for data about West
Michigan’s nonprofit community. It provides innovative applied
research, generates information to improve decision-making, forecasts
trends for effective problem solving, and measures results and reports
outcomes of investments in community change. CRI gathers, analyzes,
interprets, and shares national and local data through partnerships
with nonprofit and neighborhood groups in an effort to assist local
and regional nonprofit leaders with decision making, grant writing,
and program evaluation. This is research that makes a difference
through a distinctly valuable blend of university rigor and community relevance.
For additional information about this study, contact: Maria Gajewski at (616) 331-7238 or [email protected] or call GVSU News and Information Services at (616) 331-2221.
