North Carolina nonprofits a $38.5 billion business
North Carolina is home to over 10,600 nonprofits that spend $38.5 billion a year, or nine percent of the gross state product, and provide over 400,000 jobs, or one in 10 jobs in the state, a new report says.
And many of those nonprofits are facing rising demand for services and shrinking resources, says the report, “Essential: Our State’s Nonprofit Sector is a Vital Economic Engine,” from the North Carolina Center for Nonprofits.
In 2014, the report says, demand for services grew for 78 percent of all North Carolina nonprofits, while 60 percent were not able to meet that demand.
Forty percent of nonprofits in the state expected the 2014 financial outlook to be even tougher for the communities they serve, and 46 percent said the financial outlook is getting worse for their organizations.
Each year, the report says, 2.5 million North Carolinians volunteer, representing just over one in four people in the state.
Over the past even years, the report says, nonprofit employment in the state has grown nearly 18 percent while overall state employment has declined.
The nonprofit workforce in the state includes 367,229 employees of nonprofits that file annual Form 990 reports with the Internal Revenue Service, plus an estimated 72,000 employees of nonprofit churches, religious congregations and other religious groups.
Nonprofit employees’ average weekly wage was $837 in 2011, or the equivalent of over $15 billion in annual wages in the state.
Forty-three percent of nonprofits in the state operate with annual budgets under $100,000, while 84 percent have budgets under $1 million.
North Carolina nonprofits with budgets over $10 million account for 85 percent of total spending by all charitable nonprofits in the state, with the 104 nonprofit hospitals accounting for 38 percent of all nonprofit spending, and the 70 nonprofit colleges and universities accounting for 11 percent of all nonprofit spending.
Total dollars from state grants to nonprofits in 2012-13 were nearly the same as in 2003-04, representing a 40 percent decline relative to inflation and population growth during the period, the report says.
Roughly half the time, it says, state agencies pay nonprofits more than a month late for work they do for the state.
To help manage that big cash-flow problem, 35 percent of nonprofit;s used emergency reserves if they had them; 21 percent paid the delayed funds from their own budgets; 27 percent used other unrestricted or earned income; nine percent delayed payments to vendors; and 12 percent relied on loans or lines of credit and had to pay the interest themselves.
In 2014, 17 percent of North Carolina nonprofits had an operating deficit; 54 percent did not have enough cash on hand to operate for more than three months; 10 percent reduced staff; 5 percent reduced staff hours; and 2 percent froze positions.
In 2009, 60 percent of nonprofits in the state froze or reduced wages, as did 62 percent in 2010, 40 percent in 2011, and 14 percent in 2012.
Yet in 2014, 46 percent of the state’s nonprofit hired staff for new positions, 39 percent made replacement hires, 22 percent gave raises for the first time since 2008, and 48 percent served more people or locations.
Fifty-seven percent of North Carolina nonprofits collaborated with another organization in 2014 to improve or expand services.
High Point United Way giving $4.3 million
United Way of Greater High Point is giving over $4.3 million to nonprofits in the fiscal year that begins July 1.
In its 2014 annual campaign, United Way raised a record-high $4.9 million.
Proceeds from the campaign will fund 72 health and human service programs at 28 local partner agencies.
United Way also will award eight venture grants totaling over $32,500 for innovative programs at seven agencies not traditionally funded through United Way, and to one partner agency for computer upgrades to better serve clients.
In addition to direct financial assistance totaling over $4.2 million, United Way provides in-kind support to Partners Ending Homelessness and the Greater High Point Food Alliance.
That in-kind support includes office space, phones, computers, technical support, administrative and backroom operations, and serving as fiscal agent.
United Way also provides office space to to StepUp Ministries.
Donations from the campaign included $241,080 from local companies such as Bank of America and Aetna that run local campaigns.
Those funds were pledged and will paid directly to charities through a private third-party vendor those companies hired to handle payments for their United Way campaigns.
United Way’s partner agencies, as well as those that are not partner agencies, will received those additional funds separately from their official United Way allocation.
United Way donors also opted to designate an additional $389,323 to organizations outside the greater High Point area, mainly other local United Ways in the region, including in Greensboro and in Davidson, Randolph and Forsyth counties.
In addition to agency funding, United Way will allocate $14,684 to continue to provide 2-1-1 information-and-referral services in the region.
It also will spend $154,443, designed by donors, on its BackPack Feeding Program that provides food to nearly 450 kids at risk of hunger over the weekends during the school year.
Charlotte United Way giving $17 million
United Way of Central Carolinas is giving $17.05 million to support 154 programs operated by 80 charities in Mecklenburg and four surrounding counties that serve an estimated 284,000 women, men and children in the region, The Charlotte Observer reported.
United Way’s total giving is roughly what it gave last year, although the agency may need to take up to $2 million of those funds from its reserves because of a gap between what it raised last year and rising community needs, the newspaper says.
It says United Way has depended on its reserve fund nearly ever year since the start of the recession, including $985,000 last year.
Fidelity Charitable now 2nd-biggest U.S. grantmaker
Fidelity Charitable says the funds it grants on the advice of its donors tripled over 10 years to $2.6 billion in 2014, making it the second-largest grantmaker in the U.S., trailing only the Bill & Melinda Gates Foundation.
The number of charities its grants support doubled over the same period to 97,000, Fidelity Charitable says.
In its 2015 Fidelity Charitable Giving Report, the independent public charity says a survey of 1,042 of its donors finds that events and philanthropic goals often drive the use of donor-advised funds.
Sixty-two percent of those donors use a donor-advised fund to sustain giving in retirement, while 27 use it to capitalize on a financial windfall and 24 percent use it to capitalize on a year-end bonus.
Seventy-three percent of survey respondents say a key feature that influenced their use of donor-advised funds was the ability to get more money to a charity by leveraging tax benefits such as those associated with giving long-term appreciate assets, while 76 percent said a key feature was the ability to grow their charitable dollars with tax-free investment options.
Fidelity Charitable says it has made an additional $3.6 billion available for grantmaking through investment growth since it was established in 1991.
In 2014, it says, donors recommended eight grants from individual donor-advised funds, on average, up from five in 2005.
And the share of grants from pre-scheduled recommendations grew to 23 percent, up from eight percent in 2005.
Ninety-one percent of donor-advised funds also make direct gifts, while nine percent also use community foundations to give, and six percent also use private foundations to give, the survey says.
On average, Fidelity Charitable says, donors report using a donor-advised fund for about two-thirds of their household’s charitable giving.
Harvard gift eclipses most college endowments
The $400 million gift to Harvard last week by hedge fund billionaire John A. Paulson exceeds the endowments of 98 percent of colleges and universities in the U.S., The Boston Globe reported.According to an analysis of data reported to the U.S. Department of education, the newspaper said, the combined value of the top one percent of college and university endowments represents nearly two-thirds of all endowment dollars in the U.S.
The 10 richest colleges account for one-third of all endowment dollars for colleges and universities, and Harvard’s $36.4 billion endowment alone accounts for 6.6 percent.
The gift, which supports Harvard’s school of engineering and applied sciences school and is the single largest donation in the university’s 379-year history, also exceeds the endowments of all but one of the historically black colleges and universities in the U.S., reported Gene Demby of National Public Radio, according to Quartz.
Howard University, with an endowment of $586 million in 2014, is the only exception.
Concert nets $38,800 for two charities
The Fifth Annual Rock Your World free benefit concert in Cary on May 8 netted $38,804 for Hope for Haiti Foundation and Dew4Him Ministries.
Winston-Salem Foundation gives $342,400
Winston-Salem Foundation awarded 14 grants totaling $342,417 that for programs serving people in Forsyth County in the areas of arts and culture, education, environment, health, human services, public interest, and recreation.
Temple joins Genesis Home
Robin Temple, development manager at the North Carolina Healthy Start Foundation in Raleigh, has been named director of development at Genesis Home in Durham.
Stop Hunger Now gala to honor founder
Stop Hunger Now in Raleigh will hold a benefit gala on September 25 honoring founder Ray Buchanan.
Keynote speaker at the event, to be held in the A.J. Fletcher Theater at the Duke Energy Center for the Performing Arts, will be Tony P. Hall, former U.S. Ambassador to the United Nations Agencies for Food and Culture and former member of the U.S House of Representative from Ohio.
2016 Human Race scheduled for April 16
The 2016 Human Race, a 5K event that raises money for local nonprofits and is managed by The Volunteer Center of Greensboro, will be held April 16 at the Greensboro Coliseum.
Hospitality House gets $12,000 from former lodger
Hospitality House of Charlotte, which since 1985 has provide affordable lodging to over 54,000 guests from 49 states and 37 countries with a seriously ill family member in a local hospital.
When her sister became seriously ill, Debra Harvey and her mother stayed at Hospitality House for 80 days, thanks to a special fund that covers the cost of food and lodging for families that are struggling.
Harvey’s sister died in July 2014. With her estate now settled, Harvey decided to make the gift to Hospitality House.
Arts Council awards mini-grants, seeks applications
The Arts Council of Winston-Salem and Forsyth County awarded 10 grants of $500 each to community groups and individuals.
The Arts Council also seeking applications for its Duke Energy Regional Artist Project Grants from artists in a six-county region to help them further their professional development.
The deadline for submitting applications for the grants, available for artists in Forsyth, Davie, Davidson, Stokes, Surry, and Yadkin counties, is July 10 at 5 p.m.
Economic developer of year named
Sandy Dunbeck, senior vice president at the High Point Economic Development Corporation, has been named 2015 Economic Developer of the Year by the North Carolina Economic Developers Association.
Junior Achievement gets $10,000
Junior Achievement of Eastern North Carolina was awarded a $10,000 grant by the Bank of America Charitable Foundation.
Prevention Partners honors Dow health director
Catherine Baase, global director of health services for The Dow Chemical Company, received the 2015 Jim Long Award for Individual Prevention Excellence from Prevention Partners in Chapel Hill.