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2016 NJ Non-Profit Trends and Outlook Report

 

New Jersey's Non-Profit Sector: An Economic Force

 

2015 New Jersey Non-Profit Trends & Outlook Report Cover

 

NATIONAL
NON-PROFIT INFO:

National Council of Nonprofits
Trends in the Nonprofit Sector

Nonprofits by the Numbers

Myths about Nonprofits

Urban Institute
National Center for Charitable Statistics

New Jersey's Non-Profit Community

"The Center helps me remember the bigger picture. It reminds me that what affects any segment of the non-profit community affects me."
-- James A. Hemm, Former Executive Director, NJ Association on Correction

Basic Facts/Figures

  • 30,000+ 501(c)(3) organizations in NJ
  • NJ 501(c)(3)’s employ 314,000 people – nearly 10% of the state’s private sector work force and more people than many major industries including construction, utilities, transportation, finance and insurance.
  • Over $38 billion in annual expenditures by NJ 501(c)(3) organizations – much of it within the Garden State
  • 88% of NJ 501(c)(3) organizations have budgets under $500,000
  • Over 1.6 million people volunteer at New Jersey non-profits annually, providing over 225 million hours of service valued at more than $5.3 billion.

Sources: IRS Business Master File; Urban Institute, National Center for Charitable Statistics; Corporation for National & Community Service; Bureau of Labor Statistics; Independent Sector; and Johns Hopkins University

New Jersey Non-Profit Issues/Trends (2016)

  •  74% of NJ non-profit survey respondents said that demand for services had risen in 2015
  •  78% expected demand to increase in 2016 – but only 47% expected funding to increase
  •  42% reported receiving more total funding in 2015 vs. 2014, but 64% reported that their expenses were higher than in the previous year, and 35% reported that expenses exceeded support and revenue during their most recently completed fiscal year.
  •  Non-profits have adapted by taking a combination of actions, such as continuing to seek additional sources of revenue and recruit additional volunteers to support their work; adding new programs; launching new collaborative efforts; or exploring mergers/consolidations.

Top 5 issues affecting individual organization viability (aside from funding):

  • Financial uncertainty (51%)
  •  Need for better branding/communications (48%)
  •  Increased benefits/insurance costs (30%)
  •  Need for stronger board of trustees (40%)
  •  Cannot afford enough good staff (38%)

Top 5 issues affecting non-profit sector viability in the coming decade:

  •  Non-profit infrastructure/capacity building (56%)
  •  Foundation/corporate funding (50%)
  •  Attracting/retaining capable, committed board members (48%)
  •  Attracting/retaining qualified workers (37%)
  •  State fiscal policy/state budget (33%)

Source: Center for Non-Profits, New Jersey Non-Profits 2016: Trends and Outlook


Non-Profit Values

In one way or another, everyone’s life is touched by the work of a non-profit. 

Non-profits enhance our daily lives by:

  • assisting New Jersey’s most vulnerable people;
  •  training our workforce;
  •  engaging us in civic discourse;
  •  educating and mentoring children and adults alike;
  •  treating and curing illness and disease.
  •  providing stewardship to our environment;
  •  encouraging thoughtful dialogue and creativity through public television and radio;
  •  offering creative inspiration and cultural enrichment;
  •  providing an outlet for generosity through volunteerism and donations;
  •  conducting research to foster informed decisionmaking
  • providing spiritual fulfillment
  •  motivating social change; and
  • ensuring vital services that span a lifetime.

Non-profit organizations are an essential part of maintaining a strong quality of life in New Jersey, and they are also a valuable component of the state’s economic engine.  There are approximately 30,000  501(c)(3) non-profit organizations in New Jersey, not only providing essential programs and services in our communities, but also serving as a vital part of our economy.  IRS data show that New Jersey’s non-profits combined spend more than $38 billion annually, most of it in the Garden State.  New Jersey non-profits employ more than 314,000 people – nearly 10% of the state’s private workforce, and more than the state’s transportation and public utilities industries, more than the construction industry, and more than the banking and insurance industries.

Non-profits make up a vital sector that improves life for everyone. Non-profits are all about service to others, strengthening communities, finding common bonds across disparate personal and professional backgrounds, and enriching our society in countless ways large and small.  Every day, non-profits realize significant accomplishments that make our world a better place.