A hidden driver of economic activity, nonprofits comprise the 6th largest industry in Arizona, according to ASU research
ASU Lodestar Center’s “Scope of the Sector” data platform analyzed the state’s 29,622 nonprofits to uncover surprising findings on economic impact, employment and wages
Arizona’s nonprofit sector spans from tiny groups supporting local swim clubs to giant healthcare organizations with billions of dollars in annual revenue. A research platform from Arizona State University’s Lodestar Center for Philanthropy and Nonprofit Innovation, freshly updated with the latest government data, has quantified the full size and true impact of this often-overlooked pillar of Arizona’s economy.
“Scope of the Arizona Nonprofit Sector” blends data from the Internal Revenue Service, the Census Bureau and IPUMS USA to paint a detailed picture of the varied nonprofit landscape. Beyond simply reporting the number and location of Arizona nonprofits, this novel approach to nonprofit data allows ASU Lodestar Center researchers to answer such questions as:
- What is nonprofits’ economic impact compared to other sectors and industries?
- How many people do nonprofits employ, and how much do their workers make?
- Do nonprofit workers make less than comparable for-profit peers?
- Does the nonprofit sector have a gender wage gap?
Those and other questions are answered on a website platform, populated with interactive dashboards, visualizations and digestible research papers. The website will continue to evolve with new dashboards and findings over time, helping funders, practitioners and researchers better understand the nonprofit sector and address its needs.
New breakouts for nonprofit subsectors
To paint a better picture of the nonprofit sector, the project breaks the nonprofit sector into five subsectors: healthcare organizations, religious organizations, education organizations, financial organizations and all other "core" nonprofits. "Financial nonprofits" captures organizations such as credit unions, electrical and water cooperatives, and employee pension funds.
These distinctions were made largely due to the wide range of income by these groups. The 8,106 organizations in the Core Nonprofit subsector that reported income to the IRS had a median annual income of $183,161. The Healthcare and Education subsectors had median incomes of $528,857 and $2.69 million, respectively. The Financial subsector had a median income of $1.56 million. Only 211 of the 4,677 religious organizations reported any income since they are largely exempt from IRS reporting requirements. The few religious groups that did report income showed a median income of $107,255.
An analysis of employee pay also benefits from these groupings. Nonprofit healthcare organizations, which employ many highly trained doctors and nurses, report an average full-time wage of $80,548. Similarly, the average pay at financial nonprofits is $94,277. The "core" subsector, which includes human service organizations, arts and culture nonprofits and more, has an average wage of $54,639, by contrast.
For full findings on nonprofits in Arizona, visit the Scope of the Arizona Nonprofit Sector website. This platform will be continually updated with new research and data to continue telling the sector’s story.
Through research, education, technical assistance and convenings, the ASU Lodestar Center for Philanthropy and Nonprofit Innovation focuses on advancing nonprofit leaders and philanthropists to solve problems, to realize a community’s highest aspirations and to accelerate social impact.
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