PPB August 2018

Market Snapshot Nonprofit groups in the United States are organized under 29 different tax-exempt classifications, and the Bureau of Labor Statistics found that the most common is 501(c)(3)—two out of every three nonprofits fall into this category. 501(c)3 organizations focus on a number of causes, such as: • Animal welfare • Child welfare • Public safety • Religious • Scientific pursuits • Charitable • Educational • Literary Giving is on the rise, according to Giving USA 2018: The Annual Report on Philanthropy for the Year 2017 . Researched and written by Indiana University Lilly Family School of Philanthropy, the report is sponsored by Giving USA Foundation, a public service initiative of The Giving Institute. Total contributions to nonprofits in 2017 were $410.02 billion, a three percent increase over 2016. Many of these gifts are being contributed to foundations and donor-advised funds, the report shows, which means a longer period of time will pass before nonprofits will be able to put those funds to work. Corporate giving also has increased, growing by eight percent to $20.77 billion in 2016, though donations as a percentage of corporate pre-tax profits have shrunk over the past 20 years. In the promotional products industry, more companies are working hand in hand with local nonprofits as well as creating their own charitable foundations. ePromos for Good, the charitable arm of distributor ePromos, gives away free promotional products throughout the year to 501(c)(3) organizations, accredited schools and religious organizations who demonstrate a need. At supplier Hanesbrands, The Hanes® and Champion® Hanes4Education™ Program helps raise funds for public and private K-12 schools through the sale of Hanes® and Champion® printed apparel purchased from screen printers and distributors for use as corporate apparel, team uniforms and event shirts. Nonprofit employment, total annual wages, and the number of establishments grew steadily each year from 2007 through 2012, even during the 2007–09 recession, according to the Bureau of Labor Statistics. Average employment numbers among nonprofits in 2012 was 11,426,870, with total annual wages of $532 billion. Nonprofits across the country employed the largest percentages of individuals in Pennsylvania (15.9 percent), New York (18.1 percent), Vermont (19.9 percent), Maine (17.7 percent), Massachusetts (17.7 percent) and Rhode Island (18.1 percent). Conversely, Nevada- based nonprofits employed just 2.7 percent of the working population. Nonprofit employment within industry sectors varied widely, with 70 percent employment in the educational services sector, 46 percent in health care and social assistance, and 17 percent in “other” services. The majority of nonprofits—90 percent—operated in three specific industries: health care and social assistance (68 percent); educational services (16 percent) and “other” services. Among the categories examined by the Giving USA 2018 study, religious organizations were the top recipient of charitable giving, receiving $127 billion in contributions—a 2.9 percent increase over the previous year. Environmental and animal organizations, in contrast, received just $11.83 billion—although the amount was an increase of 7.2 percent over 2016. | AUGUST 2018 | 35 GROW