Press Release

Nonprofits are Big Business in Georgia

$6 billion payroll is greater than real estate, telecommunications, or food and accommodations sectors

Atlanta, GA - 1/17/2006 -

The Georgia Center for Nonprofits (GCN) today released The Economic Impact of Georgia’s Nonprofit Sector, a report that thoroughly quantifies Georgia’s nonprofit sector and its impacts on the state’s economy.

The report concludes that Georgia’s nonprofit sector is large, diverse, and growing. Nonprofits work in every Georgia county and contribute to the overall health of the state’s economy. Georgia nonprofits bring in money from outside sources, provide jobs and wages to residents, and circulate money in the economy through the purchase of goods and services––as well as employ a taxpaying workforce.  More important, they provide a network for solving problems and building community leaders, policy makers, and business leaders.

“We have always known the significant social contributions of Georgia’s nonprofits, and this financial data now proves the economic benefits as employers, revenue generators and community builders,” said Karen Beavor, president and CEO of GCN.

Among the key findings of the report are:

· In 2003, there were over 22,249 nonprofit organizations in Georgia, an increase of over 57 percent since 1997 (14,155).

· Georgia nonprofits currently employ approximately 179,000 persons.  Indirect employment is estimated to total 600,000 and is forecast to grow to more than 900,000 Georgians by 2035.

· With a $6 billion payroll, nonprofits have a greater total payroll than the real estate, food and accommodations, or telecommunications sectors.

· On average, nonprofits will generate between $17.6 and $26.8 billion in revenue for Georgia businesses each year through 2035.

· The value of assets held by Georgia nonprofits reached $42.7 billion, which is almost three times the assets—$15.2 billion—over the last 10 years.

· About 63 percent of total revenues for reporting nonprofits in Georgia were from fees for services, while only 22 percent of total revenues of these nonprofits were from contributions made by individuals, corporations, and foundations.

· If state and local governments in Georgia were forced to assume the responsibilities of Georgia nonprofits, it would create a budget deficit for state government of between $13 and $22 billion dollars per year, depending on the financing approach, and a budget deficit for local governments of between $1 and $3 billion dollars per year, depending on the financing approach, both over the study period of 2000 to 2035.

“It is clear that Georgia’s nonprofits are major factors in Georgia’s economy and that we need to revise how we perceive nonprofits and their roles in our state,” said Beavor.  “They are a major employer and revenue generator.  But just as important is their value in bringing people together around issues of mutual concern and common interest in pursuit of the common good.”

The Economic Impact of Georgia’s Nonprofit Sector is available free online at www.gcn.org or by calling 678-916-3005. (Online access to report requires registration, which is free.  Select “Services,” then “Research,” then “Georgia Reports.”)

About the Georgia Center for Nonprofits
An all-in-one resource for and about Georgia’s nonprofit sector, the Georgia Center for Nonprofits works to serve, strengthen and support nonprofit, charitable organizations statewide. The center provides nonprofits with the resources and tools they need to be most effective; promotes partnerships between nonprofits and foundations, businesses and government to meet critical needs; and helps state and local policy-makers and the public understand and support the work of nonprofits.

Media Contact
Nancy Longacre
678-916-3030
nl@gcn.org