Oregon’s not-so-small nonprofit sector

For the first time, Oregon’s large nonprofit sector has received the analytic attention it deserves.

On May 1, Oregon’s $13 billion nonprofit sector was splayed and dissected in a 38-page document highlighting the sector’s strengths, weaknesses and impacts on the state’s overall economy and society. This inaugural document was the result of a collaborative partnership between the Nonprofit Association of Oregon and Portland State’s Institute for Nonprofit Management.

The report, titled the “Oregon Nonprofit Sector Report: The State of the Nonprofit Sector in Oregon,” is based on facts and figures gathered from surveys handed out to a representative sample of 600 nonprofit leaders and organizers. Also included is data examined from the 10,429 actively filing public charities in Oregon’s Department of Justice database, dating back to 2010.

Among other findings, the ONSR found that nonprofits are important in both the state’s economic and social welfare. Providing 166,130 jobs, Oregon’s nonprofit sector—including hospitals, religious institutions and foundations and organizations devoted to a wide range of missions—make up 13 percent of private sector employment.

According to the report, 86 percent of nonprofits cooperate with each other in the housing and shelter, health care and counseling, human services and community improvement, and capacity building subsectors, pointing to substantial social benefits coming from the sector. Of public charity nonprofits, 78 percent serve low-income populations, according to the study.

But while this study may be a landmark, some say that Oregon lagged behind on getting the crucial collection of information. “Oregon has been behind on this kind of report—other states have done it,” observed Oregon Business Editor-in-Chief Robin Doussard.

“I think the importance of this report is that it’s the first time that the nonprofit sector has ever been studied or researched in this way. I think it gives the nonprofit sector, the general business community and the general civic community a lot of important data on the size and scope of nonprofits in Oregon,” Doussard said.

Despite their not-for-profit status, Oregon’s nonprofits aren’t exempt from the financial strains inherent in a stagnant economy. The sector report found that some percentages showed resilience, while others felt the backlashes of the financial crisis. Surprisingly, on the whole, the sector has maintained stable employment figures. The report’s executive summary states, “Overall, employment in nonprofits has stabilized after the recent financial crises.” Of the respondents, 35 percent reported an increase in paid staff, with one quarter reporting increases in volunteer numbers, according to the report.

Other positive figures on the nonprofit sector indicate an overall resilience to the strains of the economic downturn. Increased revenue in 2011 was reported by 54 percent, whereas only 20 percent reported a decrease in revenue compared to 2010 numbers. Increased fundraising was reported by 60 percent.

On the downside, the report found that some nonprofits have been hit rather hard. While financial hardships may have had little effect on some nonprofits, money troubles have no doubt caused some individuals, especially those in low-income communities, to rely more upon the services certain nonprofits provide. With a reported 65 percent of nonprofits receiving an increased demand for service, people may be calling upon absent funds. Of nonprofits, 26 percent had to scale back programs and 51 percent had to turn away clients.

Despite figures that may not bode well for the health of the nonprofit sector, having these statistics is a vital step forward, according to Nonprofit Association of Oregon Executive Director Carrie Hoops.

“This report is going to definitely provide critical and timely information in three main areas, including a description of the size and scope of the sector, the current condition of nonprofits, and that includes economic and social relevance to the larger social impact of the nonprofit sector in Oregon,” Hoops said.

“Our intention is that this report will help provide critical information for public policy decision makers, philanthropists and nonprofit leaders who are all dealing with the consequences of the current economic downturn and the ongoing challenges of meeting growing needs. It’s been a really great collaboration between PSU and NAO…it really fit with both organizations that are really devoted to building nonprofit capacity,” Hoops said.

Results of the report remain shadowed in the future, but given the figures now brought out in the open, the nonprofit sector will likely be on the minds of policymakers as an important player in the socioeconomic climate in Oregon, just as the report’s authors hoped it would.

“Unfortunately, it’s a sector that gets scant recognition or attention as the significant economic force that it is,” wrote Doussard in a blog post for Oregon Business. “I think everyone greatly appreciates the work that nonprofits do. But rarely do I encounter a business group or summit that brings in the nonprofit sector as a constant equal partner to discuss the economy of the state,” Doussard wrote.

An overwhelming sense of validation and excitement seems to reign over those involved and connected with the study. “I think in general it’s a great awareness raiser for the nonprofit sector,” Hoops said. “There’s a lot of mythologies about the sector, and I can’t think of anybody in this state that isn’t touched by a nonprofit, whether they know it or not.”