The Impact of Charitable Nonprofit Organizations on Iowa’s ...

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The Impact of Charitable Nonprofit Organizationson Iowa’s Economy and Quality of Life

February 2007

The Larned A. Waterman Iowa Nonprofit Resource Center www.iowalifechanging.com

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Printing was made possible by support from The University of Iowa (www.uiowa.edu) Office of the Vice President for Research (research.uiowa.edu).

The report, including an additional Appendix and Methodology, is available on the Iowa Department of Economic Development website at www.iowalifechanging.com/nonprofit and the Larned A. Waterman Iowa Nonprofit Resource Center website at http://nonprofit.law.uiowa.edu.

Contents

Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Statewide Overview: Numbers of Nonprofit Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Financial Characteristics: Revenues, Expenditures, and Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . �0

Wages and Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . �5

Volunteers and Public Charities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . �3

3

IntroductionIn January of �004, Governor Vilsack appointed the Governor’s Task Force on The Role of Charitable Nonprofit Organizations in Iowa to “assess the present and potential role of Iowa’s Nonprofit Sector in advancing the vitality of communities throughout the state.” As a result, the Task Force presented a list of �� recommendations to Governor Vilsack that would enhance the effectiveness and services of Iowa’s charitable nonprofit organizations. One recommendation of the Task Force was to “create and publish an annual report on the economic and programmatic impact of the charitable nonprofit sector in Iowa.”

The data and findings in this report will contribute to an understanding of the charitable nonprofit sector in Iowa and its contribution to the state’s economy and general quality of life. The Report should be useful in a variety of ways:

• By informing local elected officials, legislators, business leaders, and key decision-makers at all levels about the charitable nonprofit sector generally, and its specific impact on the state’s economy and qualify of life;

• By encouraging the consideration of the charitable nonprofit sector in policy decision-making by government leaders on the state and local levels;

• By informing the general public, potential donors, and professional advisors, of the size and impact of the charitable nonprofit sector, illustrating what impacts are already occurring, and especially the potential of the sector for influencing future quality of life in the state.

The Larned A. Waterman Iowa Nonprofit Resource Center and the Iowa Department of Economic Development developed this report. Principal authors were Jill Smith with the Larned A. Waterman Iowa Nonprofit Resource Center, and Catherine Bierling and Michael Miller at the IDED. The Report utilizes information obtained from Iowa Workforce Development and the Urban Institute’s National Center for Charitable Statistics.

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This report is divided into four sections: Executive Summary, Statewide Overview, Financial Characteristics, and Wages and Employment.

Executive Summary

This report illustrates the significant economic contribution of Iowa’s charitable nonprofit organizations to the state’s economy. Although agriculture, business, and government in Iowa receive the most attention, charitable nonprofit organizations also play a crucial role in the state. Charitable nonprofit organizations provide vital services in every Iowa community and county.

• In �005, charitable nonprofit employment represented 8.9% of total employment for the state of Iowa.

• In �005, there were only four industry groups that employed a larger number of employees than the total number of employees in the entire nonprofit sector in Iowa.

• In �005, charitable nonprofit employees earned $3.7 billion in wages or nearly 8% of the state’s total wages.

• Public charities in Iowa had $�0.7 billion in total assets in �004.

• Public charities in Iowa spent more than $8.3 billion in �004.

• The number of Iowa public charities with more than $�5,000 in gross receipts increased by ��.9% between �00� and �005.

• Iowans contribute an estimated 99 million hours of volunteer time and labor each year.

B e y o n d C h a r i t y

Nonprofit Organizations:

• Improve the character and quality of communities.

• Make communities attractive to businesses seeking cultural richness and essential services.

• Provide direct job training programs to improve Iowa’s workforce.

• Provide jobs for the underemployed and unemployed members of the workforce.

• Provide opportunities for people to become more active in their own communities through volunteerism and other cooperative efforts.

• Attract foundation and federal grant dollars into the state.

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Statewide Overview: Numbers of Nonprofit Organizations Although the terms nonprofit and charitable are often used as if they are interchangeable, there are practical and legal distinctions within the nonprofit sector. Some nonprofits are charitable and some are non-charitable (refer to Figure �).

Section 50�(c) of the federal tax code categorizes all of the different types of nonprofit organizations. The 50�(c) designated organizations range from 50�(c)(�) through 50�(c)(�7). Some of the main categories are seen in Figure �. Charitable organizations are classified as 50�(c)(3)s. The IRS description of these organizations is “religious, educational, charitable, scientific, literary, testing for public safety, to foster national or amateur sports competitions, or prevention of cruelty to children or animals…”

Although all nonprofit organizations are exempt from paying federal income taxes, the 50�(c)(3) charitable organizations have an additional feature; donations to their organizations are also tax deductible to the donor.

These 50�(c)(3) charitable nonprofits are the focus of this report.

Public Charities50�(c)(3)

Private Foundations50�(c)(3)

50�(c)(4) social welfare

50�(c)(5) labor/agriculture

50�(c)(�) business leagues

50�(c)(8) fraternal beneficiary

50�(c)(�9) war veteran organizations

50�(c)(all others)

Figure 1 - Types of Nonprofit Organizations

All Nonprofit Organizations

Non-Charitable Organizations:Other 501(c)s

Charitable Organizations:501 (c) (3)s

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Overall Totals of Nonprofit Organizations

Some indication of the size of the nonprofit sector in Iowa is gained simply by noting the number of nonprofit organizations operating within the state as shown in Table �. There were a total of �7,704 registered nonprofit corporations in Iowa in �005. Over 40% were 50�(c)(3) organizations: public charities and private foundations.

• In �005, there were ��,4�5 organizations in Iowa with 50�(c)(3) status, consisting of ��,370 public charities and �,055 private foundations.

• While ��,370 public charities having more than $5,000 in gross receipts were registered with the IRS, only 4,000 plus were required to file an annual IRS 990 report because they had more than $�5,000 in gross receipts, the amount at which filing is required.

• The largest other 50�(c) subsection is 50�(c)4 civic leagues and social welfare organizations, followed by 50�(c)(5) labor, agriculture and horticulture organizations; and 50�(c)(�9) war veterans organizations.

Table � Iowa’s Nonprofit Organizations by IRS Subsection - �005

Tax Exempt Organizations

Registered with the IRS

Filing Annual IRS Report

50�(c)(3)s: ��,4�5 4,908

Public Charities ��,370 4,035

Private Foundations �,055 873

Other 50�(c) Subsections: �5,�79 �,�37

50�(c)(4) social welfare 7,985 �48

50�(c)(5) labor/agriculture �,445 47�

50�(c)(�) business leagues �,�33 5�9

50�(c)(8) fraternal beneficiary �,374 ��4

50�(c)(�9) war veterans orgs. �,4�5 �5�

50�(c)(all others) �,9�7 �98

Total Number of Nonprofit Organizations �7,704 7,545

Source: IRS Business Master Files December �005 (with modifications from the National Center for Charitable Statistics)

7

Overall Growth of Iowa Nonprofit Organizations

• There were a total of �7,704 nonprofit corporations in Iowa in �005 compared to ��,9�3 in �00�.

• The overall number of nonprofit corporations in the State of Iowa increased �.7% from �00� to �005.

• Iowa’s �.7% overall increase in the number of nonprofit corporations was substantially lower than the ��.9% national average from �00� to �005.

Source: National Center for Charitable Statistics

0

5000

�0000

�5000

�0000

�5000

30000

�005�00�

Figure 2 - Number of Iowa’s Registered Nonprofits in 2001 and 2005

��,9�3 �7,704

Num

ber o

f Org

aniza

tions

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Iowa’s 501(c)(3) Nonprofit Organizations: Public Charities and Private Foundations

50�(c)(3) charitable nonprofit organizations encompass both public charities and private foundations. The Internal Revenue Service (IRS) recognizes 50�(c)(3) “public charities” when they meet the “public support test” and are committed to serving a broad public purpose. Iowa’s public charities range from churches to schools, from hospitals to local community health clinics, from emergency housing shelters to organizations serving the elderly. One of the ways private foundations differ from public charities is that they are required by the IRS to distribute part of their assets annually to public charities or individuals.

Total Number of 501(c)(3) Nonprofit Corporations: Of the total �7,704 nonprofit organizations in the state of Iowa in �005, there were ��,4�5 organizations classified by the IRS as 50�(c)(3) organizations: public charities and private foundations. Both public charities and private foundations have experienced significant growth in Iowa recently.

• There were a total of ��,370 public charities in Iowa in �005 compared to 9,789 in �00�. • This represents a ��.�% increase in the total number of public charities in Iowa from �00� to �005.

• There were a total of �,055 private foundations in Iowa in �005 compared to �,0�� in �00�.

• This represents a �.8% increase in the total number of private foundations in Iowa from �00� to �005.


0

�000

4000

�000

8000

�0000

��000

�005

�0��

9789

��370

�055

�00�

Figure 3 - Number of Iowa’s 501 (c)(3) Charitable Nonprofit Organizations

Private Foundations Public Charities

Num

ber o

f Org

aniza

tions

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Iowa’s 501(c)(3) Charitable Nonprofit Organizations: Public Charities

Public charities benefit communities across Iowa by providing services relating to the arts and culture, education, environment, health care, human service, housing and community improvement. Private foundations are discussed in the Wage and Employment section of this report.


Figure 5 - Iowa’s Reporting Public Charities by Activity Area in 2005

Arts, Culture, Humanities

Education

Education, Higher

Environment

Health

Hospitals

Human Services

Others

Public and Societal Benefit

9%

�3%

�8%

9%

�%

�5%

3%�%

�0%

Registered and Reporting Public Charities: All 50�(c)(3) organizations with gross receipts more than $5,000 are required to register with the IRS and 50�(c)(3) organizations with gross receipts more than $�5,000 are required to file Form 990 with the IRS.

• There were ��,370 public charities registered with the IRS in �005 while only 35.4% or 4,035 were required to file an annual IRS 990 report (figure 4).

• The number of reporting public charities increased from 3,3�0 in �00� to 4,035 in �005 — a ��.9% increase (figure 4).

• In �005, the largest categories of Iowa’s reporting public charities were Human Services organizations (�8%), Public and Societal Benefit organizations (�5%) (Figure 5).

0

�000

4000

�000

8000

�0000

��000

�005�00�

Figure 4 - Iowa’s Registered Public Charities and Reporting Public Charities 2001-2005

Registered Public Charities

33�0

4035

Reporting Public Charities

Num

ber o

f Org

aniza

tions

�0

Financial Characteristics of Iowa’s Public Charities: Revenues, Expenditures and Assets

The focus of this section of the report is limited to Iowa’s public charities reporting to the IRS and filing annual IRS Form 990. These are the larger charitable organizations with more than $�5,000 in gross annual receipts. These IRS Form 990s are the primary data source for information about public charity revenues, expenses and net assets. It is important to keep in mind that the data will generally be undercounting the actual number and impact of nonprofits in Iowa due to this more limited scope of study. It is also important to note the time shift that has occurred in this section. This section will cover the five-year period of �000 to �004 instead of �00� to �005 from the previous section. Revenue, expenditure, and asset information is not available for �005. County level data is available about the number of organization and financial characteristics online: www.iowalifechanging.com.


$ 0

$ �

$ 4

$ �

$ 8

$ �0

�004�003�00��00��000

Figure 6 - Iowa’s Public Charities 2000-2004: Total Revenue

$7.5 $7.�$7.9

$8.4

$9.�

Figure 7 - Iowa’s Public Charities 2004: Overall Revenue Sources

Contributions, Gifts, Grants

Net Special Events Income(Too Small of Amount to Show)

Investment Income

Program Servicesand Contracts

Dues, Net Sales, andOther Income

�7%

�%

75%

�%

Total Revenue: The total revenues are comprised of various revenue sources (such as contributions and fees for services) that result in the total income the organization receives. The amounts vary by organization type. Revenues received by Iowa’s public charities increased dramatically over the five-year period.

• Iowa’s reporting public charities received $9.� billion in total revenues in �004 compared to $7.5 billion in �000. This is an increase of $�.� billion.

• This represents a ��.9% increase in total revenues received by Iowa’s public charities from �000 to �004.

Revenue Sources: There are diverse sources of funding for Iowa’s nonprofits that include contributions, gifts, and grants; special event income; investment income; program services and contracts; and dues, net sales and other income. • In �004, Program Services, Fees and

Contracts totaled $�.8 billion or 75% of all revenue sources.

• Contributions, gifts and grants totaled $�.5 billion or �7%.

• Other revenue sources (dues, net sales and other income; investment income; and net special events income) made up the remaining 8%.

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Expenditures: One of the ways of assessing the impact of Iowa’s public charities is by looking at the dollars spent annually. These expenses include program, infrastructure, and fundraising expenses.

• Iowa’s reporting public charities spent $8.3 billion in �004 compared to $�.8 billion in �000.

• This represents a ��.8% increase in expenditures from �000 to �004.

• In �004 the top activity level by expenditure was Health, spending approximately $4.5 billion.

• The next highest group, Education, spent $�.� billion, followed by Human Services at $� billion and Mental Health at $��.� million.


$ 0

$ �

$ 4

$ �

$ 8

$ �0

�004�003�00��00��000

Figure 8 - Iowa’s Public Charities 2000-2004: Total Expenditures

$�.8 $�.9$7.4

$7.9$8.3

$ 0.0

$ 0.5

$ �.0

$ �.5

$ �.0

$ �.5

$ 3.0

$ 3.5

$ 4.0

$ 4.5

$ 5.0

Publ

ic,

Soci

ety

Bene

fit

Empl

oym

ent,

Job

Rela

ted

Arts

, Cul

ture

and

Hum

antie

s

Phila

nthr

opy

Hous

ing,

Shel

ter

Com

mun

ityIm

prov

emen

t

Men

tal

Heal

th

Hum

anSe

rvic

es

Educ

atio

n

Heal

th

Figure 9 - Iowa’s Public Charities 2004: Top Ten Activity Areas by Expenditures in 2004

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Reporting Public Charities by Expenditure Level in 2004


• The largest percentage of reporting public charities have annual expenditures of less than $�00,000 (47%).

• 74% of Iowa’s reporting public charities have annual expenditures of less than $500,000.

• Only �% of Iowa’s reporting public charities have annual expenditures of more than $5 million.

Figure 10 - Iowa’s Public Charities by Expenditure Level

Less than $�00,000

$�00,000 - $500,000

$500,000 - $�,000,000

$�,000,000 - $5,000,000

$5,000,000 - $�0,000,000

$�0,000,000 or more

47%

�7%

8%

��%

3%3%

�3

Total Assets: Total assets are all items owned by the organization that have value (including cash, property, equipment, etc).

• Iowa’s reporting public charities had $�0.7 billion in total assets in �004 compared to $�5 billion in �000.

• This represents a 38% increase in total assets from �000 to �004.

• Total assets should not be confused with net assets (total assets minus total liabilities) Reporting public charities had net assets totaling $��.7 billion in �004, compared to $8.8 billion in �000.

Assets by Activity Area: Each organization type will hold a different amount of assets. For organization types with large amounts of expenditures and revenues, there will also tend to be a higher level of assets.

• The sector with the highest amount of total assets at the end of �004 was Public and Societal Benefit Organizations with $4.8 billion or �3% of total assets for all sectors.

• Hospitals and Higher Education were second highest with ��% each.

• The sectors with the lowest amount of total assets were Arts, Culture, Humanities (3%) and Other Nonprofits (�%).



$ 0

$ 5

$ �0

$ �5

$ �0

$ �5

�004�003�00��00��000

Figure 11 - Total Assets of Iowa’s Public Charities

$�5$��.�

$�7.4$�9

$�0.7

Figure 12 - Iowa’s Reporting Public Charities with Total Assets by Activity Area

Arts, Culture, Humanities

Education

Education, Higher

Health

Hospital

Human Services

Public and Societal Benefit

Other Nonprofits

��%

��%

��%

8%��%

�3%

3%�%

�4

Reporting Public Charities by Level of Assets in 2004

The total amount of assets held by public charities is often a little misleading. Although the total amount of assets held by all of Iowa’s public charities is substantial, on an individual basis the majority of Iowa’s public charities do not hold a large amount of assets.

Figure 13 - Iowa Public Charities by Asset Size in 2004

0 - $�00,000

$�00,000 - $500,000

$500,000 - $�,000,000

$�,000,000 - $5,000,000

$5,000,000 - $�0,000,000

$�0,000,000 or more

35%

��%

��%

�8%

5%4%


• The largest percentage (35%) of public charities have less than $�00,000 each in total assets.

• Over half of all public charities have less than $500,000 each in total assets.

• Only 9% of all public charities have more than $5 million each in total assets.

Iowa’s Foundations

According to the National Center for Charitable Statistics, in �004, there were $�.9 billion in total assets held by Iowa’s private foundations and approximately $��0 million in contributions, gifts, and grants allocated by them to other organizations or individuals. Private foundation data for �005 was not available at the time of this printing.

These statistics on foundations do not include the many community foundations in the state. Community foundations and their affiliate organizations have seen substantial growth in Iowa in the �005-�007 period, due in part to state programs providing support for their creation and growth. The two major state programs are the Endow Iowa Tax Credit Program and the County Endowment Fund Program. Future Impact Reports should provide comparative data on this subset of nonprofits to the degree possible.

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Wages and Employment One way that the economic impact of the nonprofit sector can be seen is through the number of people that it employs and the wages paid. This section of the report presents a five-year comparison of the size, composition, and distribution of paid employment in Iowa’s 50�(c)(3) charitable nonprofit sector (public charities and private foundations) in �00� and �005. The data for this section was obtained from the National Center for Charitable Statistics (NCCS) and Iowa Workforce Development.

Charitable Nonprofit Organizations: Number of JobsUsing Unemployment Insurance forms, the Iowa Workforce Development approximated the number of jobs within the charitable nonprofit sector in �00� and �005.

Of the 4,95� reporting charitable nonprofits in �005, at least �,89� organizations, or 38%, have one or more employees covered by the Unemployment Insurance law of Iowa. These organizations employed ��8,544 people in �005 who earned $3.7 billion in wages or nearly 8 % of the state total. The balance of these organizations may use volunteers for their services or have employees not covered by the Unemployment Insurance law of Iowa.

• In �005, there were �,89� charitable nonprofit organizations with ��8,544 paid jobs, compared to ��,��3

Source: Iowa Workforce Development

jobs in �00�.

• Between �00� and �005, charitable nonprofit employment in Iowa grew by 4.7%.

• In �005, charitable nonprofit employment represented 8.9% of total employment for the state of Iowa.

0

30000

�0000

90000

��0000

�50000

�005�00�

Figure 14 - 2001-2005 Employment Changes in Iowa’s Charitable Nonprofits

��,��3��8,544

Num

ber o

f Job

s

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Number of Jobs in 2005: Iowa’s Charitable Nonprofit Organizations, Within Industry Sectors

Figure �5 presents the number of jobs in Iowa within each industry sector, each sector having both nonprofit and for-profit businesses. Because the charitable nonprofit organization jobs are found within each industry sector, a separate line shows the total number of charitable nonprofit organization jobs in Iowa (if treated as a separate category), underlining the significance of the charitable nonprofit sector in Iowa’s total employment.

• In �005, there were only four industry groups that employed a larger number of employees than the total number of employees in the entire nonprofit sector in Iowa.

• Trade employment, both wholesale and retail, made up the largest employment area with �47,798 jobs, followed by Manufacturing (��9,�7� jobs), Government (��8,08� jobs), and Education and


Health Services (�83,38� jobs).

• Iowa’s nonprofit sector creates:

- More than eight times as many jobs as the state’s non-farm Agriculture/Natural Resources and Mining industry.

- Approximately twice as many jobs as the state’s Transportation industry.

- About �.8 times as many jobs as the state’s Construction industry.

0

50,000

�00,000

�50,000

�00,000

�50,000

300,000

Figure 15 - Iowa’s Charitable Nonprofit Sector Within Iowa’s Industry Sectors

trade

government

manufacturing

education and health

servi

ces

leisure and hosp

itality

professional a

nd business

servi

ces

finance, in

surance, re

al esta

te

constructio

n

transp

ortatio

n and utilitie

s

other servi

ces

informatio

n

non-farm

ag/natural reso

urces and m

ining

Industry Sectors

Total Number of Jobsin Iowa’s Charitable Nonprofit Sector

Total Number of Jobsin Iowa by Industry Sector

�7

Iowa’s Charitable Nonprofit Employment by Activity Areas



0

�00

400

�00

800

�,000

tradetransportationaccomodationsand food service

finance andinsurance

public administration

informationprofessional and

technical services

RealEstate

administrative and waste

management

Figure 17 - Other Iowa Charitable Nonprofit Employers by Activity Area

877

587

38�34� 3�3 30�

�57 �4��85

Num

ber o

f Job

s

The number of jobs within the charitable nonprofit sector varies widely by field of activity. The vast majority of charitable nonprofit jobs are in four key activity areas: Health Care and Social Assistance, Education, Other Services, and Arts and Entertainment.

• More than three fifths, or 73%, of all charitable nonprofit jobs in the state are in Health Care and Social Assistance.

• Education, which includes private colleges, private schools, and some daycares, makes up the next largest with ��,��4 jobs or ��.5%.

• The four activity areas in Figure �� make up 97% of all jobs in the charitable nonprofit sector.

• In addition to the ��4,97� employees in the largest four activity areas (see Figure ��), Iowa’s other charitable nonprofit organizations employ 3,�5� people in a variety of other activity areas.

• These sectors may rely on a large number of volunteer workers. Refer to the Volunteer Section.

0

�0,000

40,000

�0,000

80,000

�00,000

arts and entertainment

other services

educationhealth care and social assistance

Figure 16 - Largest Iowa Charitable Nonprofit Employers by Activity Area, 2005

94,0�0

��,��4

7,7�4�,�08

Num

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f Job

s

�8

Iowa’s Total Charitable Nonprofit Employment by County

Although Iowa’s charitable nonprofit jobs are dispersed broadly throughout the state, most of the state’s nonprofit jobs are located in counties with the largest population.

• Polk County has the highest number of charitable nonprofit jobs per county (�3,885) in the state, followed by Linn (�0,053), Story (8,905), Scott (8,�03), Black Hawk (8,077), Johnson (5,�45), Woodbury (5,��5), and Dubuque (4,�78) Counties.

• These eight counties represent almost �0 percent of the total number of charitable nonprofit jobs in Iowa.


Figure 18 - Iowa’s Total Nonprofit Employment by County

Nonprofit Employment by County0 - 400 Employees

40� - �,�00 Employees

�,�0� - �,500 Employees

�,50� - �0,000 Employees

�0,00� - �5,000 Employees

0 �0 40 �0 80 �0 Miles Source: Quarterly Census of Employment and Wages Iowa Work force Development, Employment Statistics Bureau August �, �00�

Kossuth �85

Tama ��

Sac 3�7

Sioux �4��

Adair 78

Clayton 499

Butler 85

Linn �0053

Iowa �94

Benton 5�9

Plymouth 485

Fayette838

Lyon �73

Cass45�

Jasper ��7

Ida �87

Page 35�

Clinton 579

Taylor 99

Jones 487

Clay �0�5

Lee �05�

Monona �89

Cedar 457

Dallas 78�

Woodbury 5��5

Keokuk 89

Wright 308

Greene 99

Harrison ��7

Crawford 50�

Polk �3885

Wayne 80

Webster ��84

Story 8905

Hardin �9�

Shelby 573

Pottawattamie 88�

Jackson ��5

Floyd 387

Davis 4�9

Guthrie �3�

Warren ��4

Mills �83

Franklin 3��

Boone��9�

O'Brien 959

Ringgold 38

Carroll ��

Marion �07�

Allamakee �05

Calhoun 54�

Hamilton �49

Hancock �9�

Decatur 57�

Johnson5�45

Scott8�03

Madison �37

Dubuque 4�78

Mahaska 5�0

Grundy ��5

Union 435

Delaware ��3

Lucas 357 Henry

37�

Palo Alto597

Cherokee 5�3

Marshall �58�

Buchanan �0�

Fremont �4�

Winneshiek �9�4

Worth ��

Clarke �58

Mitchell 4�8

Howard 355

Pocahontas �7

Louisa ��

Adams �5�

Audubon ��

Buena Vista 7�0

Chickasaw 98

Monroe ��0

Poweshiek �57�

Washington 74�

Bremer �4��

Emmet ��

Van Buren �45

Black Hawk 8077

Appanoose 5�0

Jefferson 55�

Osceola �34

Humboldt �35

Cerro Gordo �5��

Wapello �884

Dickinson 5��

Muscatine ��04

Winnebago 43�

Montgomery �� Des Moines

�057

Average 3rd Quarter 2005

�9

Percentage of Iowa’s Charitable Nonprofit Employment by County and Metropolitan Statistical Areas (MSA)

The Metropolitan Statistical Area (MSA) designation is used to define urban versus rural areas. An MSA is defined as a core urban area with a population of 50,000 or more and may include multiple county areas. This maps shows how many of each county’s jobs are charitable nonprofit-created jobs within Iowa’s MSAs and rural designated areas.

• Decatur County has the highest percentage of charitable nonprofit jobs per county at �4%, followed by Davis (�0%), Story (�0%), Winneshiek (�8%), Calhoun (�7%), Palo Alto (��%), and Poweshiek (��%) counties.

• Charitable nonprofits accounted for a significant share of Iowa’s total employment in both urban and rural areas. The charitable nonprofit share of Iowa’s total employment in Metropolitan Statistical Areas was 9.�% versus 8.�% in rural areas.


Figure 19 - Percentage of Iowa’s Nonprofit Employment to Total Employment by County

NOTE: Top number in each county is total county employment.Bottom number is nonprofit employment.

Average 3rd Quarter 2005

Percentage of Nonprofit Employment to Total

Less than 1.0% - 4.9%

5.0% - 7.9%

8.0% - 11.9%

12.0% - 15.9%

16.0% - 24.0%

MSA Borders

Source: Quarterly Census of Employment and WagesIowa Workforce Development, Employment Statistics BureauAugust 2, 2006

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A Comparison of Wages in Iowa in 2001 and 2005: Charitable Nonprofit Organizations, Government and For-Profit

• In �005, charitable nonprofit employees earned $3.7 billion in wages or nearly 8% of the state’s total wages.

• Between �00� and �005, overall total charitable nonprofit wages in Iowa grew by ��.�%.

• For-profit wages grew by ��.8% from �00� to �005 and government wages grew by ��.9%.

• Iowa’s reliance on volunteer service contributes to lower total annual wages in the nonprofit sector.


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Figure 20 - Iowa’s Total Annual Wages by Employment Sector 2001-2005

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Wages by Activity Areas within Iowa’s Charitable Nonprofit Sector

• Within the charitable nonprofit sector, Management of Enterprises activity area (which includes officers and executives) are the highest paid followed by Administrative Services, Finance and Insurance, and Professional and Technical Services.

• The wage disparity between activity areas is similar to the government and for-profit sectors, with the exception of the Educational Services sector. Nonprofit education jobs report a wage that is �5 percent higher than the average for the industry, statewide.

• Within Iowa’s charitable nonprofit sector, Educational Services and Health Services make up the largest employment activity areas and are the fifth and seventh highest paying, respectively.


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Figure 21 - Wages by Activity Areas within Iowa’s Charitable Nonprofit Sector

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Iowa’s Charitable Nonprofit Wages by Activity Areas

The amount of wages within the charitable nonprofit sector varies widely by field of activity. The vast majority of charitable nonprofit wages are in four key activity areas: Health Care, Education, Other Services, and Administrative Services.

• More than three fifths, or 73%, of all charitable nonprofit sector wages in the state are in Health Care.

This activity area makes up $�.7� billion of the total state charitable nonprofit wages of $3.7 billion.

• Education, which includes private colleges, private schools, and daycares, makes up the next largest with $78�.8 million or �0.3%.

• The four activity areas in Figure �� make up 97% of all wages in the charitable nonprofit sector.


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Figure 21 - Iowa’s Charitable Nonprofit Wages by Highest Activity Area

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Volunteers and Public Charities

VOLUNTEERISM

Apart from the actual employment and wages generated through nonprofits, they are also a major catalyst for and recipient of unpaid volunteer time and activity.

A new study released in June of �00� by the Corporation for National and Community Service attempts to quantify the amounts and value of this volunteer service. The title of the report is “Volunteering in America: State Trends and Rankings.” The report has several interesting findings for Iowa. Based on an average of the data from �00�-�005, it estimates that 39.�% of Iowa’s population volunteers their services. The report estimates the total annual number of hours contributed by these individuals in Iowa to be over 99 million hours. Finally, using an estimate of the value of the volunteer’s time of $�8.04 per hour, the report estimates an “imputed value” for that volunteer service to be almost $�.8 billion. (The value per hour comes from Independent Sector, a coalition of 550 charities and foundations.) The full report includes other interesting data about volunteering in Iowa, and all the other states as well. The report can be found on the Corporation’s website at http://www.nationalservice.gov.

�4www.iowalifechanging.com

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