By Rick Garcia
One warm summer afternoon as I was handing out information packets in our Eaton County United Way “booth” at a community fair, I was approached by a gentleman who confronted me how disappointed he was that his donations were going to pay the “Executives” salaries and not services that we do fund.
Understanding how people could be skeptical about charities due to sensational negative news that hit the media periodically, I gave him a website address www.guidestar.org , a charity watch organization that reports all financial information. I told him that the Better Business Bureau endorses a nonprofit operating with an overhead of less than 30 percent. Ours is 16 percent.
Lastly, I told him not to be fooled by the “Executive” title. Wearing faded jeans and a t-shirt, I am far from that word. Yes, I do lead an organization. The last 24 years I also cleaned the office, answered phones, drove disabled clients to their appointment and in some cases, take out the trash and clean
bathrooms.
The word “Nonprofit” has many different interpretations – From a small neighborhood charity asking for donations to plant trees at a park to an International Humanitarian Relief organization mobilizing
resources for millions.
You may not bat an eye from a bee buzzing near you, but you will likely gasp and head for the hills from a swarm of angry bees at your heels. This illustrates the misnomer of nonprofit organizations.
There are two major divisions of nonprofits: charitable nonprofit organizations (to which donations is tax deductible) which include public charities, foundations, religious and education organizations and non-charitable nonprofit organizations which include civic, social and trade/member organizations.
Nonprofit organizations are often recognized for their contribution as a “safety net” providing valuable services to our residents, but rarely are considered as contributors to the overall health of our economy.
Nonprofits serve as consumers of product, employers and vendors, a vibrant taxpaying workforce, and a network of community leaders, policy makers and businesses. Little information is collected about the nonprofit sector, placing this sector at a comparative disadvantage.
In a recent completed study by Michigan Nonprofit Association and Public Consultants, Inc. of Lansing, the Tri-County’s nonprofit sector directly impacts the local economy in a number of positive ways.
The study conducted in 2008 and 2009 took an in-depth look at the nonprofit sector through the Economic Benefits of Michigan’s Nonprofit Sector report. The study found the nonprofit sector actually
increased employment nearly 2.7% (or 11,500 jobs) over the three year period.
There were over 47,000 nonprofits in the state employing more than 440,000 people or ten percent of the Michigan workforce and pay their employees more than $4 billion per quarter. Nonprofit also hold
assets of over $179 billion and receive more than $133 billion in annual revenue.
There has been increased debate as to the value nonprofits bring to the State, let alone the county.
Nonprofits need to be seen as more than a charity. When analysts put together economic impact studies surveying our local economy and industry sectors, rarely is the nonprofit sector included or even mentioned. When you factor in volunteer board members, auxiliary groups and support groups, the economic impact grows.
While the MNA are surveying and collecting data from local nonprofits, note that the nonprofits in Michigan have generated more than $108 billion each year in overall economic activity from expenditures directly and indirectly. Further, the demand for many nonprofit services increases during times of economic stress—show that a healthy and vibrant nonprofit sector is critical to Michigan’s future.
So why use the bee analogy? Just like a colony of bees collecting pollen to produce honey, nonprofits, particularly in this county, work collaboratively well and produce both human and health services and brings in State, Federal and private dollars back to our communities.
I finally thanked the nice gentleman at the fair for sharing his concerns. I told him that I am one of many nonprofit professionals who work not for the pay, but for the passion and the cause to improve the lives of our citizens.
This was printed in the October 21, 2012 – November 3, 2012 Edition
