A portrait of the Nonprofit Sector in Illinois

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    Don

    orsFo

    rum

    Chica

    go Strengthening philanthropic and nonprofit partnerships

    A Portrait of theNonprofit Sector in Illinois

    Linda Lampkin and

    Stanley Waringo

    of

    A joint endeavor of the

    Center on Nonprofits and

    Philanthropy,

    The Urban Institute

    and the

    Donors ForumofChicago

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    This report was prepared for the Donors Forum of Chicago by Linda Lampkin and Stanley Waringo at the Center onNonprofits and Philanthropy, The Urban Institute.

    Copyright 2003, Linda Lampkin

    All rights reserved

    Printed in the United States of America

    AcknowledgementsWe are grateful to Valerie Lies, her staff at the Donors Forum of Chicago, and to Debra A. Hass for help in shaping and distribut-

    ing this report.

    While this report is primarily the work of the Center on Nonprofits and Philanthropy of The Urban Institute, this partnershipwith the Donors Forum of Chicago is part of a larger effort the Forum has undertaken to build a body of knowledge about

    Illinois nonprofit sector. This report is the second in a series of periodic reports detailing the size, scope and impact of the sector.

    The first report, Illinois Nonprofit Employment, is also available from the Donors Forum of Chicago, www.donorsforum.org. We

    gratefully acknowledge the following funders for their support of this work: The Grace A. Bersted Foundation, The Chicago

    Community Trust, Community Memorial Foundation, The Richard H. Driehaus Foundation, Duchossois Family Foundation,Grand Victoria Foundation, Kaplan Foundation, Mayer and Morris Kaplan Family Foundation, Ronald and Mary Ann Lachman

    Foundation, John D. and Catherine T. MacArthur Foundation, Robert R. McCormick Tribune Foundation, Meyer Family

    Foundation, New Prospect Foundation, Retirement Research Foundation, Hulda B. and Maurice L. Rothschild Foundation,

    Patrick G. and Shirley W. Ryan Foundation and Steans Family Foundation.

    Suggested CitationA Portrait of the Nonprofit Sector in Illinois, by Linda Lampkin and Stanley Waringo (Illinois: Donors Forum of Chicago and

    The Urban Institute Center on Nonprofits and Philanthropy, May 2003). Copies of this report are available on the DonorsForum of Chicago web site (www.donorsforum.org) and The Urban Institute web site (www.urban.org).

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    A Portrait of theNonprofit Sector in Illinois

    KEY FINDINGS

    Nonprofits operate in every county in Illinois; however, almost half of reporting nonprofits1 (4,541)

    are in Cook County, which includes the City of Chicago. More striking, the Chicago PrimaryMetropolitan Statistical Area (PMSA), which includes Cook, Lake, DuPage, Kane, McHenry, and

    Will Counties, accounts for over two-thirds of reporting nonprofits in the state.

    Over the ten years from 1990 to 2000, the number of reporting nonprofits increased from 6,287 to9,767, an increase of 55 percent. It is worth noting that not all nonprofits are required to report tothe IRS. Researchers estimate that these 9,767 represent only about one-third of all Illinois nonprofit

    organizations. All together, there has been phenomenal growth in the nonprofit resources availableto Illinois citizens.

    Over the decade, from 1990 to 2000, expenditures of reporting nonprofits, an indication of their

    contribution to and impact on the states economy, nearly doubled from $19.5 billion to $36.1 bil-lion. In 2000, this represented 8.7 percent of the states Gross State Product (GSP). This figure is thesame as the proportion for the United States as a whole.

    Together, Hospitals (exclusive of other health care organizations) and the Higher Education field

    hold over half (56.6 percent) the assets of all reporting nonprofits in 2000, while they represent only3.4 percent of the total number. The two fields also account for 59 percent of the total expenses of

    all reporting nonprofits. In contrast, while the Human Services field dominates in number of organ-izations (33 percent), it accounts for only 11 percent of the assets and 14 percent of the expenses.

    Program service revenue, which includes fees for goods and services provided, is by far the largestcomponent of total revenue for reporting nonprofits in Illinois, accounting for 69 percent of total

    revenue. Private contributions (from individuals, foundations, corporations, and other nonprofits)

    are the next largest component of total revenue, accounting for 11 percent of total revenue. This rev-enue mix varies widely according to the type of organization. While hospitals rely on fees for 90 per-cent of their revenue, arts organizations rely on private contributions (35 percent) and government

    grants (14.5 percent) for nearly half their revenue.

    As reported in an earlier Donors Forum of Chicago report on the sector, nonprofits in Illinois are

    a major employer and economic force, employing more people than the Construction orTransportation Sectors. Nearly 8 percent of paid workers in Illinois are employed in the nonprofit

    sector, earning over $13.4 billion in wages in 2000.

    1 In creating the figures and summary information for this report, we refer to public charities as nonprofits.

    Information from foundations is not included. The data includes only organizations registered as 501(c)(3)s.

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    INTRODUCTION

    The nonprofit sector in Illinois is large, diverse, and growing.

    Across the state, many nonprofit organizations serve citizens

    and communities and address issues of concern. Ranging

    from hospitals to boys and girls clubs, from universities to

    environmental groups, from emergency shelters to organiza-tions working with the elderly, immigrants, veterans, and the

    disabled, nonprofits touch the lives of all Illinois residents.

    This report summarizes data on the nonprofit organizations

    in Illinois that have registered with the Internal Revenue

    Service under Section 501(c)(3) of the Internal Revenue

    Code (IRC) and filed an IRS Form 990 information return.

    These organizations, commonly referred to as public chari-

    ties, serve broad public purposes including educational, reli-

    gious, scientific and literary activities, as well as those related

    to the relief of poverty and other public benefits. What

    makes this group of tax-exempt organizations unique is that

    their status permits them to receive tax-deductible contri-

    butions from donors. They are generally required to file an

    annual Form 990 if their annual gross receipts exceed $25,000.

    The major exception is religious congregations, who are not

    required to register with the IRS or file Form 990.2

    The information filed by the reporting nonprofit organiza-

    tions forms the basis for this report. While these numbers

    are certainly significant, they dont tell the whole story of the

    sector. In addition to the reporting 501(c)(3) organizations,

    there are at least three times as many organizations that are

    not required to file, including booster clubs, local PTAs,

    youth soccer, Little League, and numerous other smallorganizations that are active in Illinois communities, but

    whose limited finances exempt them from the IRS reporting

    requirement. Although the very smallest nonprofits and the

    religious congregations are not captured in the data, experts

    estimate that well over 90 percent of the expenditures of the

    sector are represented. Thus, the information reported pro-

    vides a useful portrait of the sector.

    The report reveals a growing number of organizations and

    an increasing economic presence. Over the ten years from

    1990 to 2000, the number of reporting nonprofits increased

    from 6,287 to 9,767, an increase of 55 percent. The report-

    ing nonprofits offer an incredible variety of programs, serv-

    ices, and activities that serve residents throughout the entire

    state. They have a significant impact on the daily lives of

    people in their communities and they comprise a major eco-

    nomic force. There is no doubt that the sector both strength-

    ens and improves the quality of life in the state.

    WORKING ON BEHALF OF ILLINOIS

    CITIZENS THROUGHOUT THE STATE

    Nonprofits operate in every county in Illinois; however, almosthalf of reporting nonprofits (4,541) are in Cook County, which

    includes the City of Chicago. More striking, the Chicago Primary

    Metropolitan Statistical Area (PMSA), which includes Cook,Lake, DuPage, Kane, McHenry, and Will Counties, accounts forover two-thirds of reporting nonprofits in the state.

    Figure 1 below shows the distribution by county. AppendixA contains a detailed list of numbers of reporting charities in

    each Illinois county.

    When viewed by metropolitan areas, the concentration iseven more striking, as shown in Figure 2. The ChicagoPrimary Metropolitan Statistical Area (PMSA),3 including

    2 More detail on registration and filing requirements can be found at

    www.nccs.urban.org.

    Figure 1: Distribution of Reporting Nonprofits inIllinois, by County

    McHenry (138)Winnebago(245)

    Kane (297)

    Lake (434)

    RockIsland(129)

    Cook (4,541)DuPage (856)Will (206)

    Peoria(230)

    McLean (150)

    Champaign (198)

    Menard/Sangamon (263)

    Macon (103)

    Madison(151)

    St. Clair(138)

    Count of Charities0 - 99100 - 199200 - 499

    500 - 9991000 - 5000

    3 A Metropolitan Statistical Area (MSA) is made up of one county that

    includes a large population nucleus (for example, Cook County for

    Chicago) and other relatively freestanding adjoining counties that have a

    high degree of economic and social integration with that nucleus. MSAs are

    typically surrounded by non-metropolitan areas. A PMSA consists of a

    large urbanized county or cluster of counties that have a very high degree of

    internal economic and social links, in addition to close ties to other por-

    tions of the larger area.

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    Cook, Lake, DuPage, Kane, McHenry, and Will Counties,accounts for 6,472 groups, about two-thirds of reporting

    nonprofits in the state.

    Other metropolitan areas with a substantial nonprofit pres-

    ence in the state include Champaign-Urbana, Bloomington,

    Rockford, Peoria, Springfield, Davenport, and the Illinois

    counties surrounding the St. Louis metropolitan area.

    The areas where reporting nonprofits are concentrated are

    also major population centers, with large numbers of people

    who benefit from the presence of hospitals, universities, andother nonprofits.

    Despite the clear concentration of reporting nonprofits, it

    is important to note that all counties in the state have

    reporting nonprofits and that all counties likely also have

    religious congregations, youth sports leagues, PTAs, and

    other small nonprofits that the IRS data in this report do

    not capture.

    Figure 2: Distribution of Reporting Nonprofits in Illinois, by MetropolitanStatistical Area (MSA)

    Percent ofTotal Reporting

    MSA Major Towns/Cities Counties Nonprofits in IL

    Chicago Chicago, Evanston, Cook, DuPage, Kane, 66.3

    Waukegan Lake, McHenry, Will

    Peoria-Pekin Peoria Peoria, Tazewell, 3.4Woodford

    St. Louis East St. Louis, Clinton, Jersey, 3.3Granite City, Madison,Edwardsville Monroe, St. Clair

    Rockford Rockford Boone, Ogle, 2.9Winnebago

    Davenport-Moline- Rock Island, McHenry, 2.7Rock Island Moline Rock Island

    Springfield Springfield Menard, 2.7Sangamon

    Champaign- Champaign, Champaign 2.0Urbana Urbana

    Bloomington- Bloomington, McLean 1.5Normal Normal

    Decatur Decatur Macon 1.1

    PATTERNS OF STRONG GROWTH

    Over the ten years from 1990 to 2000, the number of reporting

    nonprofits increased from 6,287 to 9,767, an increase of 55 per-

    cent. It is worth noting that not all nonprofits are required to

    report to the IRS. Researchers estimate that these 9,767 represent

    only about one-third of all Illinois nonprofit organizations. All

    together, there has been phenomenal growth in the nonprofit

    resources available to Illinois citizens.

    The 55 percent growth rate, while strong, was less than the

    nationwide rate of 77 percent over the decade. Figure 3shows the change in number of organizations.

    Growth in total expenses for reporting nonprofits presentseven better evidence of the sectors strength. Expenses grew

    from $19.5 billion in 1990 to $36.1 billion in 2000, anincrease of 85 percent, illustrated in Figure 4. This was onlyslightly less than the national rate of increase of 93 percent

    over the same period. The expenses reported by Illinois

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    Figure 3: Reporting Nonprofits in Illinois,

    19902000

    6,287

    7,965

    9,767

    0

    5,000

    10,000

    1990 1995Year

    2000

    NumberofReportingNonprofits

    nonprofits account for 4.8 percent of the total expenses of

    all United States nonprofits. These expenses reflect moneythat nonprofits are putting into the local economy through

    the purchase of goods and services and payments for facili-ties, salaries and other operating expenses.

    The nonprofit sector is a major contributor to the GrossState Product (GSP) in Illinois. In 2000, the total expenses

    Figure 4: Total Expenses and Assets forReporting Nonprofits in Illinois, 1990-2000

    Expenses Assets

    0

    30

    60

    90

    A

    mount(billions)

    Total Expenses and Total Assets

    1990

    1995

    2000

    19.5

    27.8

    36.1

    30.4

    47.2

    78.1

    of reporting nonprofits represented 8.7 percent of the states

    GSP. This figure is comparable to the proportion for thecountry as a whole.4

    Assets increased by over 150 percent from $30.4 billion in1990 to $78.1 billion in 2000. This rate was higher than the

    national rate of increase of 124 percent. Nonprofits inIllinois accounted for 5.1 percent of total assets for report-ing charitable organizations in the United States in 2000.Assets include cash, investments such as securities, land,buildings, equipment, and inventories for sale or use. Whilethese numbers point to the strength of Illinoiss nonprofitsector in 2000, it is important to keep in mind that the assetsof many nonprofits may have dropped significantly duringrecent stock market declines.

    A review of Figures 3 and 4 shows different patterns ofgrowth in the two five-year periods. During 1995 to 2000, therates of increase were slower for the number and expenses of

    reporting nonprofits, while total assets increased at a muchfaster rate. The strong stock market at the close of the 1990smay have played a role in two waysreporting nonprofitswith endowments may have seen their assets grow as a resultof strong stock performance, and individuals whose wealthincreased in the period leading up to 2000 may haveincreased their charitable contributions to nonprofits.

    A DIVERSE GROUP OF ORGANIZATIONS

    WITH WIDE-RANGING PURPOSES

    Together, Hospitals (exclusive of other health care organiza-tions) and the Higher Education field held over half (56.6 per-cent) the assets of all reporting nonprofits in 2000, while they

    represent only 3.4 percent of the total number. In contrast,while the Human Services field dominates in number of organ-izations (33 percent), it accounts for only 11 percent of the

    assets and 14 percent of the expenses.

    When the reporting nonprofits are separated into fieldsbased on their organizational purpose, differences emerge

    among the different subsectors. The organizations aredivided into categories defined in the National Taxonomyof Exempt Entities (NTEE)5 for this analysis.

    4 Bureau of Economic Analysis, US Department of Commerce, 20005 The NTEE system is the standard for organizational classification in the

    nonprofit sector, used by the Internal Revenue Service, the Foundation

    Center, Independent Sector, and many foundations, as well as researchers.

    An NTEE code is assigned by the IRS to an organization at the time it

    applies for tax-exempt status. NTEE divides nonprofit organizations into

    types based on their organizational purpose. For more information, see

    www.nccs.urban.org.

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    5

    Figure 5 shows the distribution of reporting nonprofits in

    Illinois by field. As the figure shows, the largest fields by

    number of organizations are in Human Services, Health

    (including Hospitals) and Education (including Higher

    Education). A third of all reporting nonprofits are in the

    Human Services category. Health (including Hospitals) and

    Education (including Higher Education) are the next largestfields. These three fields account for about 64 percent of all

    reporting organizations.

    Comparing the fields to each other, the difference between

    the numbers of organizations in each field and their finan-

    cial status (shown in Figure 6) stands out.

    The Health field (including Hospitals) is by far the largest in

    terms of assets and expenses. While representing only 15 per-cent of all reporting nonprofits, it accounts for 44 percent of

    total assets and over 56 percent of total expenses. Hospitalsalone, only 2.4 percent of reporting nonprofits, account for

    over 35 percent of assets and 46 percent of expenses. Totalexpenses for the health field further demonstrate its domi-

    Figure 5: Distribution of Reporting Nonprofits inIllinois, by Field, 2000

    Arts, Culture,Humanities

    968

    CommunityImprovement,Public/Societal

    Benefit1,247

    Education excludingHigher Education

    1,618

    Higher Education102

    Health Care/MentalHealth excluding

    Hospitals

    1,246

    Hospitals234

    HumanServices

    3,171

    All Others432

    Environment/Animal Related

    251

    Figure 6: Number, Expenses, and Assets of Reporting Nonprofits in Illinois by Field, 2000

    9.9%

    12.8%

    16.6%

    1.0%

    2.6%

    12.8%

    2.4%

    32.5%

    9.5%

    4.6%

    6.2%

    4.9%

    21.4%

    1.4%

    8.7%

    35.2%

    10.9%

    6.7%

    2.4%

    3.8%

    3.6%

    12.5%

    0.6%

    11.3%

    46.8%

    13.9%

    5.2%

    0% 25% 50%

    Arts, Culture, Humanities

    Community Improvement, Public/Societal

    Benefit

    Education excluding Higher Education

    Higher Education

    Environment/Animal Related

    Health Care/Mental Health excludingHospitals

    Hospitals

    Human Services

    All Others

    Percentage of Total

    Number of Charities

    Assets

    Expenses

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    6

    nance. The $20.9 billion in total expenses of health organiza-

    tions account for over 4 percent of the entire states GSP,whereas the proportion for all reporting nonprofits is8.7 percent.

    Higher Education, with only 1 percent of all reporting non-

    profits in Illinois, accounts for 21 percent of all expenses inthe sector.

    SOURCES OF REVENUE FOR

    REPORTING NONPROFITS IN ILLINOIS

    Program service revenue, which includes fees for goods andservices provided, is by far the largest component of total rev-

    enue for reporting nonprofits in Illinois, with private contribu-tions (from individuals, foundations, corporations, and othernonprofits) accounting for 11 percent of total revenue. This rev-

    enue mix varies widely according to the type of organization.

    While hospitals rely on fees for 90 percent of their revenue, artsorganizations rely on private contributions (35 percent) andgovernment grants (14.5 percent) for nearly half their revenue.

    Total revenue for reporting nonprofits in Illinois was$36.1 billion in 2000. Total revenue is the income received

    by the nonprofits from all sources in a given fiscal year. Thisincludes income from private contributions, government

    grants, fees for goods and services provided, income frominvestments and other revenue such as membership fees,rental income, income from the sale of inventory, and

    income from special events and fundraising. Revenue differsfrom total assets, which are the financial holdings of an

    organization, such as property or resources, cash, accountsreceivable, equipment, and balances against liabilities.

    Using detailed data on revenues available from the Form990, Figure 7 shows the proportions received for reporting

    nonprofits in Illinois for all types combined. The variouscategories include private contributions, government grants,

    investment income, fees for goods and services, and otherrevenue such as membership dues, inventory sales, rental

    income, and income from special events. Differences areagain striking when the reporting nonprofits are grouped byfield. These are illustrated in Figure 8.

    The health care field, including hospitals, relies heavily onfees for goods and services, with hospitals receiving over90 percent of their revenue from fees. While human servic-es also show a high reliance on fees for goods and services

    (46.7 percent of revenue), compared to other fields, theyshow a higher reliance on government grants (26.8 percent

    of revenue).

    Private contributions are especially significant for artsorganizations, as they receive about 35 percent of their rev-

    enue from this source. In fact, private contributions plusgovernment grants account for about half of the revenue

    stream for the arts.

    In Illinois, nonprofits reported receiving 7 percent of theirrevenue in government grants. This represents about 4.3 per-cent of total government grants reported by public non-

    profits in the United States in 2000.6 Because different types

    of government support are reported in several areas of theForm 990, it is difficult to ascertain total government sup-port. For example, a government contractwould be reported

    together with all program service revenue on Form 990,in contrast to a government grant that would be reportedon another line as a contribution from government. There

    is also no way to determine what type of government (fed-eral, state, local) made the grant based on the Form 990

    information.

    Investment income includes interest on savings and tempo-

    rary cash investments and dividends and interest from secu-rities; this accounted for only 4 percent of revenues for all

    reporting nonprofits in Illinois.

    The breakdown of revenue sources shows the diversity inrevenue sources for reporting nonprofits in Illinois. Whilethese organizations are charitable entities, it is important to

    note that the majority of their revenue does not come fromcharitable contributions but from fees for services and goods

    provided.

    Figure 7: Sources of Revenue for All ReportingNonprofits in Illinois

    *Other revenue includes revenue from membership dues and

    assessments, rent, sale of assets, special events and activities,

    and sales of inventory

    Other revenue*9%

    Investmentincome

    4%

    Governmentgrants

    7%

    Privatecontributions

    11%

    Fees for goodsand services

    69%

    6 National Nonprofit Organization Database, Urban Institute, 2000.

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    7

    Figure 8: Sources of Revenue for All Reporting Nonprofits in Illinois,Selected Fields

    Arts, Culture & Humanities

    34.7%

    14.5%

    26.6%

    6.6%

    17.6%

    0%

    10%

    20%

    30%

    40%

    Education, excluding Higher Education

    28.4%

    8.9%

    37.5%

    6.2%

    19.0%

    0%

    10%

    20%

    30%

    40%

    Higher Education

    14.4%9.5%

    58.3%

    5.2%

    12.6%

    0%

    20%

    40%

    60%

    Hospitals

    1.1% 0.2%

    90.2%

    2.9% 5.6%

    0%

    20%

    40%

    60%

    80%

    100%

    Health/Mental Care, excluding Hospitals

    12.7% 9.9%

    64.5%

    3.5%9.4%

    0%

    20%

    40%

    60%

    80%

    Human Services

    14.8%

    26.8%

    46.7%

    2.6%

    9.2%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    Priva

    teco

    ntribution

    s

    Gove

    rnmentgran

    ts

    Fees

    forg

    oodsand

    servi

    ces

    Investm

    entincom

    e

    Othe

    rreve

    nue

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    8

    FUNDRAISING AND LOBBYING EXPENSES

    FORILLINOIS REPORTING NONPROFITS

    Reporting of expenses for fundraising and special events isincluded on the Form 990. Although some nonprofits maylegitimately have no fundraising expenses, there are some

    problems with accurate reporting or underreporting on theseline items. For those that report these expenses45 percent

    of reporting public nonprofits (4,356) in Illinoisthere iswide variation across the different fields within the sector as

    shown in Figure 9. The total amount of fundraising and spe-cial events expenses reported by Illinois nonprofits is almost$574 million, accounting for 2.4 percent of fundraising

    expenses reported by all US charities.

    The Human Services field accounts for the highest dollaramount of fundraising and special events expenditures, with

    over 20 percent of the entire sectors fundraising expenses.7

    Higher education, only 1 percent of all reporting nonprofits,accounts for 17 percent of the sectors fundraising expenses.

    In general, reporting nonprofits in Illinois tend to spend lessthan 10 percent of their budget on fundraising and special

    events. Hospitals especially have a very low ratio (less than1 percent). This may be because hospitals rely on fees to pay

    for their expenses to a larger extent than most other non-profits. As noted in the previous section on revenue, whilerelatively few (compared to the numbers of nonprofits in

    other fields), hospitals very high reliance on fees for revenuemakes fees the dominant revenue source for the entire non-

    profit sector. Large numbers of organizations in the arts andother fields raise much of their revenue from private contri-

    butions, thus explaining their greater reliance on fundrais-ing and special events.

    Lobbying expenses are also included on the Form 990, butthose reported by Illinois nonprofits are very low, which is

    similar to those reported by all nonprofits in the US. The factthat organizations exempt from taxes under IRC Section

    501(c)(3) face restrictions on lobbying and political activityhelps explain the low level of expenditures. These restric-tions are intended to ensure that charitable contributions

    are used primarily for charitable and not political purposes.

    In the US, nonprofit health care and education organizations(including hospitals and higher education) account for

    almost two-thirds of total lobbying expenses reported on the

    7 Special events include activities such as dinners, dances, carnivals, raffles,

    bingo games and door-to-door sale of merchandise whose sole purpose is

    to raise funds that are other than contributions to finance an organizations

    exempt activities. See IRS Instructions for Form 990, www.nccs.urban.org/

    irsforms/i990-ez_02.pdf.

    Figure 9: Fundraising and Special Events Expenses for ReportingNonprofits in Illinois, by Field, 2000

    Nonprofits Percent of totalreporting Amount of fundraising and

    fundraising and fundraising and special eventsReporting charitable special events special events expendituresnonprofits expenditures expenditures for the sector

    Arts, Culture, Humanities 481 $62,486,242 10.9

    Community Improvement, 546 $54,893,675 9.6Public/Social Benefit

    Education excluding 899 $60,742,892 10.6Higher Education

    Higher Education 67 $99,079,398 17.3

    Environment/Animal Related 127 $14,031,804 2.4

    Health Care/Mental 453 $103,351,375 18.0Services excluding

    Hospitals

    Hospitals 62 $18,622,002 3.2

    Human Services 1,420 $116,473,567 20.3

    All Others 301 $44,223,442 3.7

    All Organizations 4,356 $573,904,397 100.0

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    100.9135.2

    285.6336.7

    444.2

    0

    50

    100

    150

    200

    250

    300350

    400

    450

    500

    NonprofitSector

    Transport, Comm.,and Public Util.

    Construction StateGovernment

    FederalGovernment

    Thousands

    9

    Form 990. This amount, however, is relatively small, only2.6 percent of all expenses by these types of organizations.

    In Illinois, only about 1.7 percent of all organizations inIllinois reported lobbying expenses in 2000, similar to the

    number reporting at the national level.

    A MAJOREMPLOYER IN ILLINOIS

    A recent Donors Forum of Chicago report, Illinois NonprofitEmployment, prepared by the Johns Hopkins Center for

    Civil Society Studies demonstrated the nonprofit sector inIllinois is a major employer8 and economic force, employ-

    ing more people than the Construction or TransportationSectors. Nearly 8 percent of paid workers in Illinois are

    employed in the nonprofit sector, earning over $13.4 billionin wages in 2000.

    Within the various fields of reporting nonprofits, employ-ment varies widely, as shown in Figure 11. The health sector

    is the largest employer within the sector with 55 percent of

    all employment. Similar to the levels of expenses and assets,the next largest fields for employment are education(including higher education) and social services.

    Figure 10: Employment in the Nonprofit Sector Compared to OtherSectors, Illinois, 2000

    Source: Center for Civil Society Studies, Johns Hopkins University.

    Figure 11: Illinois Nonprofit Employment inSelected Fields, 20009

    Health55%

    Education18%

    Social and LegalServices

    16%

    Culture andRecreation

    2%

    Civic and Social6%

    Other3%

    Source: Center for Civil Society Studies, Johns Hopkins

    University.

    8 A complete copy of this report is available at www.donorsforum.org.

    9 Illinois Nonprofit Employment, Sarah Dewees and Lester M. Salamon

    (Illinois: Donors Forum of Chicago and Johns Hopkins Center for Civil

    Society Studies, September 2001). The categories used in classifying non-

    profit organizations in this study are different from the categories used in

    the NCCS data in Figure 5 because of different datasets.

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    APPENDIXA: DISTRIBUTION OF CHARITABLE NONPROFITS IN ILLINOIS, BY COUNTY, 2000

    Total Total Total TotalCounty Number Expenses Assets County Number Expenses Assets

    Adams 93 $199,647,510 $443,274,385 Livingston 31 $21,441,420 $35,489,820

    Alexander 8 $11,980,255 $12,122,187 Logan 29 $119,702,376 $204,542,667

    Bond 10 $40,752,141 $48,423,433 Macon 103 $316,199,187 $760,003,051Boone 16 $3,518,260 $8,439,943 Macoupin 23 $43,170,104 $43,746,656

    Brown 8 $7,715,521 $12,461,943 Madison 151 $402,033,718 $426,718,201

    Bureau 32 $51,477,518 $64,347,628 Marion 35 $106,606,217 $97,773,830

    Calhoun 3 $1,062,736 $3,475,592 Marshall 9 $4,098,094 $2,736,933

    Carroll 5 $2,160,217 $3,339,201 Mason 7 $2,737,292 $3,720,295

    Cass 12 $3,950,818 $3,907,711 Massac 6 $4,195,140 $4,691,715

    Champaign 198 $422,307,427 $1,833,483,663 McDonough 22 $11,522,480 $25,744,235

    Christian 16 $38,520,952 $52,143,135 McHenry 138 $251,822,777 $311,875,704

    Clark 8 $6,475,890 $6,337,517 McLean 150 $300,004,827 $735,929,384

    Clay 4 $2,001,749 $2,766,872 Menard 5 $1,225,819 $1,953,415

    Clinton 8 $23,541,100 $43,311,474 Mercer 13 $1,522,085 $4,718,753

    Coles 42 $115,942,810 $175,884,810 Monroe 14 $4,195,065 $7,748,124

    Cook 4,541 $19,722,048,768 $47,983,379,503 Montgomery 15 $36,601,345 $36,330,588Crawford 10 $2,186,796 $5,568,320 Morgan 45 $99,996,507 $272,968,611

    Cumberland 4 $9,272,263 $2,749,987 Moultrie 12 $14,112,993 $73,080,478

    De Kalb 66 $111,637,306 $215,245,048 Ogle 24 $23,471,913 $31,257,602

    Dewitt 8 $2,418,824 $7,258,370 Peoria 230 $1,421,995,885 $1,993,257,523

    Douglas 16 $3,671,289 $8,320,311 Perry 11 $15,171,215 $14,951,028

    Du Page 856 $4,611,650,832 $10,863,418,605 Piatt 11 $8,354,733 $23,258,724

    Edgar 15 $22,575,734 $31,365,220 Pike 10 $12,554,079 $7,685,341

    Edwards 1 $235,383 $8,034 Pope 3 $3,807,938 $2,236,236

    Effingham 24 $74,084,238 $126,282,337 Pulaski 4 $8,379,152 $3,503,214

    Fayette 13 $5,271,128 $5,844,601 Putnam 4 $207,895 $847,946

    Ford 13 $21,447,816 $34,084,462 Randolph 6 $26,335,626 $18,230,947

    Franklin 13 $20,247,514 $37,545,479 Richland 13 $28,237,739 $19,240,158

    Fulton 16 $51,263,611 $74,566,179 Rock Island 129 $406,526,458 $524,587,438

    Greene 2 $5,454,045 $2,589,863 Saint Clair 138 $460,123,375 $700,261,945

    Grundy 23 $48,220,937 $61,753,242 Saline 12 $38,866,984 $24,848,757

    Hamilton 1 $1,018,777 $713,330 Sangamon 258 $886,896,564 $1,363,621,140

    Hancock 10 $18,045,802 $19,076,505 Schuyler 8 $885,250 $1,636,922

    Hardin 2 $6,915,450 $2,444,741 Scott 3 $218,122 $223,563

    Henderson 2 $1,860,707 $2,504,679 Shelby 7 $16,672,875 $39,976,577

    Henry 35 $32,298,222 $40,192,747 Stark 7 $285,538 $3,241,056

    Iroquois 20 $39,814,392 $42,280,461 Stephenson 47 $123,969,294 $111,045,522

    Jackson 42 $220,808,483 $307,953,198 Tazewell 78 $112,306,942 $148,120,432

    Jasper 2 $58,384 $697,558 Union 13 $10,845,142 $13,094,032

    Jefferson 24 $69,531,585 $56,142,102 Vermilion 48 $36,436,626 $60,655,014

    Jersey 10 $2,162,776 $8,948,326 Wabash 10 $3,658,645 $10,309,885Jo Daviess 24 $5,634,111 $12,456,886 Warren 20 $34,826,425 $119,308,463

    Johnson 3 $305,907 $433,495 Washington 11 $7,212,538 $7,095,644

    Kane 297 $835,828,044 $1,173,538,764 Wayne 12 $16,432,196 $16,679,931

    Kankakee 68 $192,380,308 $364,790,669 White 8 $11,212,998 $7,206,834

    Kendall 22 $3,415,091 $5,362,093 Whiteside 39 $39,778,444 $58,850,345

    Knox 75 $328,938,167 $481,459,110 Will 206 $1,160,335,791 $1,848,115,739

    La Salle 82 $155,006,457 $209,581,822 Williamson 48 $49,190,752 $71,205,034

    Lake 434 $952,322,079 $1,680,403,786 Winnebago 245 $795,110,504 $1,025,531,511

    Lawrence 5 $7,466,434 $15,552,630 Woodford 23 $35,333,553 $64,393,688

    Lee 31 $69,065,386 $91,833,556 TOTAL 9,767 $36,122,446,587 $78,074,316,164

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    Center on Nonprofits and Philanthropy, The Urban Institute

    The Urban Institute is a nonprofit, nonpartisan policy research and educational organization established to examine the social,

    economic and governance problems facing the nation. It provides information and analysis to public and private decision

    makers to help them address these challenges and strives to raise citizen understanding of these issues and tradeoffs in policy

    making.

    The National Center for Charitable Statistics (NCCS) was established in 1982 and has been a program of the Center on

    Nonprofits and Philanthropy (CNP) at the Urban Institute since July 1996. Working closely with the IRS and other govern-

    ment agencies, private subsector service organizations and the scholarly community, NCCS builds compatible national, state,and regional databases, and serves as the host of classification systems used in the nonprofit sector. NCCS also works to

    develop and implement uniform standards for charitable organization reporting. In addition to information on NCCS

    resources and tools to facilitate broader use of the data by others, NCCS use its data to conduct research on the sector; for

    example, studying the reporting of overhead and administrative costs and creating reports on the characteristics of the

    nonprofit sector in specific states.

    Donors Forum of Chicago

    The Donors Forum of Chicago is a nonprofit membership organization of metropolitan Chicago grantmakers. Its mission is to promote

    and support effective and responsible philanthropy.

    The Donors Forum believes:

    in the importance of promoting and encouraging active relationships with nonprofits.

    in encouraging philanthropy that is guided by the values of openness, inclusiveness,

    accessibility, ethical conduct and sensitivity to the diverse population of the community.

    Goals

    The Donors Forum will:

    Exercise leadership and serve as a catalyst for philanthropic action in response to critical issues.

    Provide information and education about philanthropy and the nonprofit sector to

    grantmakers, nonprofit organizations, potential new philanthropic sources and the public.

    Organize opportunities to network, exchange information, and collaborate among donorsand their advisors, nonprofit organizations and the community.

    Increase public understanding of the value and needs of the philanthropic and nonprofit

    community with particular emphasis on the media and policy makers.

    Promote greater inclusiveness within grantmaking institutions.

    Promote the growth of philanthropic resources and the diversity of philanthropic sources.

    Vision

    The Donors Forum of Chicago will transform itself into an information organization that fully utilizes and deploys its infor-

    mation assets for the improvement of philanthropy and the benefit of the philanthropic/nonprofit sector. We will become the

    gateway for information and knowledge exchange within our sector and beyond. We will demonstrate leadership by deploy-

    ing creative, cutting edge strategies for collecting, organizing and sharing information. Technology will play a pivotal role inexpanding opportunities for our constituents to network, research and learn. Our strategies will capitalize on the relation-

    ships and the knowledge of our Members, Forum Partners and staffultimately forming an information community.

    Inclusiveness Statement

    The Donors Forum promotes inclusivity in order to ensure that a range of perspectives, opinions and philosophies are an

    integral part of the work carried out to fulfill the organizations mission. The Donors Forum shares the perspective that all

    people are pivotal to the improvement of the quality of life and need to be participants in the decision-making processes

    which involve issues that affect them.

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    Publications available from the Donors ForumofChicago

    For more information on these publications, to place an order or to download, go to www.donorsforum.org. All prices include shipping.

    Illinois Funding SourceResearch foundations, corporate giving programs, grants and funding trends right from your desktop with this online tool!IFS commbines two powerful databases, FoundationSource, a searchable directory of more than 2,600 Illinois foundations,and GrantSource, a database holding $2.7 billion in grants awarded by local funders. (Go to ifs.donorsforum.org to subscribe)

    How Effective Nonprofits Work: A Guide for Donors, Board Members and Foundation OfficersWritten by Marianne Philbin and Marcia Festen for Giving Greater Chicago, this easy-to-understand guide offers concise yetdetailed information on the strategies, structures, tactics and best practices that contribute to the development of healthy non-profit organizations. ($18.50/$11 for Donors Forum Members, Associate Members and Forum Partners)

    The Directory of Illinois Foundations, 7th editionThis comprehensive resource features listings on over 2,500 Illinois foundations, including more than 300 newly establishedfoundations. Find extensive profiles of foundations and corporate giving programs, eight indexes for targeted research efforts,and our listing of the assets and grants of the top 100 Illinois foundations.

    ($103.50/$83.50 for Donors Forum Members, Associate Members and Forum Partners)

    Giving in Illinois 2003This report contains updated grantmaking information for more than 2,600 Illinois foundations. Includes analyses of thetypes of grants made by Illinois funders, as well as data on individual charitable giving, charitable bequests and donor-advisedfunds. A must-have report. ($28.50/$23.50 for Donors Forum Members, Associate Members and Forum Partners)

    Duties and Responsibilities of Directors and Trustees of Illinois Private FoundationsDavid S. Chernoff, associate general counsel for the John D. and Catherine T. MacArthur Foundation, is the author of thishandbook aimed at promoting responsible oversight of private foundations. Chernoff clarifies the often complex laws thataffect private foundations. ($14.50/$12.10 for Donors Forum Members, Associate Members and Forum Partners)

    A Guide to Funding Youth Development ProgramsThis guide provides an overview of youth development and offers a set of questions and characteristics to help in the proposal

    review process. A valuable resource for foundation staff and board members.($6/$5 for Donors Forum Members, Associate Members and Forum Partners)

    Six Months LaterWhat impact did 9/11 and the economic downturn have on local organizations and foundations? Find out in this DonorsForum research paper. (Available for download as an Adobe PDF file at www.donorsforum.org)

    Illinois Nonprofit EmploymentThis report from the Donors Forum and Johns Hopkins University, authored by Dr. Lester M. Salamon and Sarah Dewees ofthe Johns Hopkins University Center for Civil Society Studies, finds that nonprofits -- in addition to the immense social ben-efits generated by their services -- play a large role in the state's economy.

    (Available for download as an Adobe PDF file at www.donorsforum.org)

    Discrimination and Inclusiveness at a CrossroadsUsing the recent Boy Scouts of America ruling as a case study, this new brochure discusses discrimination law as it relates tosexual orientation and provides recommendations on integrating sexual orientation into grantmaking inclusiveness policies.

    (Available for download as an Adobe PDF file at www.donorsforum.org)

    Building on a Better FoundationThe work of building a truly tolerant society that respects human diversity, in all its variations, is far from complete. Thistoolkit helps your organization think through the issues and possible solutions in promoting greater inclusion.

    (Available for download as an Adobe PDF file at www.donorsforum.org)

    Glossary of Terms in PhilanthropyDo you understand the difference between a public foundation and a private foundation? Wonder what a "PRI" is or "qualify-ing distribution"? This 8-page booklet is a useful guide to the most common terms used within the field.

    (Available for download as an Adobe PDF file at www.donorsforum.org)

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    Donors ForumofChicago208 South LaSalle Street

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    Library (312) 578-0175

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    www.donorsforum.org

    May 2003

    Center on Nonprofits and Philanthropy

    The Urban Institute

    2100 M Street, NW

    Washington, DC 20037

    (202) 261-5790

    Fax (202) 833-6231

    E-mail [email protected]

    www.urban.org

    The Urban Institute