Scope of the Arizona Nonprofit Sector

Title

Growth of the sector

The nonprofit sector continues to demonstrate in several ways that it is a growing sector in the state of Arizona.

41%

increase in Arizona nonprofit orgs., 2002-2015

109

increase in Arizona nonprofit expenditures, 2007-2016

Between 2002 and 2015 the number of registered nonprofit organizations increased by 41 percent, from 16,786 to 23,689. Since 2013 it has grown by 20 percent, up from 19,776 organizations.

There was an important decrease in the number of nonprofits in 2011. This decrease happened across the nation as several nonprofit organizations lost their tax-exemption when they failed to file with the IRS for three years in a row, a new requirement that went into effect with the Pension Protection Act of 2006.

Total nonprofit expenditures have increased significantly as seen in the chart below: from $12.95 billion in 2007 to $27.07 billion in 2016, a 109 percent growth in an economy that grew 18.5 percent over the same period.

The chart also shows the impact that the Great Recession had on Arizona's economy, as seen in the significant downturn from 2008 to 2009. However, the chart suggests that the nonprofit sector showed more resiliency to the recession: nonprofit expenditures continued to increase even during the years of the recession.

Want to know more? Learn about the growth of the nonprofit sector in the United States.