The Nonprofit Sector in Texas
The nearly 68,000i 501(c)(3) nonprofit corporations that constitute the Texas Nonprofit Sector are a social, cultural, and economic force upon whom Texans increasingly rely (TANO, 2010). They are a significant contributor to our local communities providing a wide array of services, including human services and support for those in need, education, arts appreciation, environmental protection and much more. Together, the 403,196 Texans who work within nonprofits account for 3.8% of our state’s total workforce and 4.3% of the non-government workforce. Nonprofits pay wages of $16.8 billion and contribute state and local tax revenues of $1.8 billion (Salamon and Lessans Geller 2010).
In the last decade, the number of filing nonprofits in Texas has grown by 30,626 organizations, nearly doubling in size and scope. The nearly 68,000 nonprofits reported total revenues of $83 billion and assets of $213.9 billion in 2009. Of the nonprofits in Texas, 59.6% are public charities, 9.3% are private foundations and 31% are some other kind of nonprofit. Nearly half of the nonprofits and 60% of the revenue are found in Bexar, Dallas, Harris, Tarrant or Travis County (Urban Institute 2010a).
The Texas nonprofit sector employs more than six times as many workers as the state’s oil and gas extraction industry and 20% more than the state government. Nonprofit employees represent 3.8% of the total Texas workforce (1 out of every 26 workers), which is below the US average of 7.2%. Health services account for 55% of all Texas nonprofit employment, including jobs at hospitals, health clinics and residential care facilities (Salamon and Lessans Geller 2010).
Despite the sector’s economic contributions and scope of services, the sector comprises largely small and medium size organizations. In 2009, 92% had annual revenue less than $1 million; 87% had annual revenue less than $500,000; 81% had annual revenue less than $250,000; and 71% had annual revenue less than $100,000 (Urban Institute 2010a). Accordingly, they rely heavily upon individual, foundation, business and federal and state support. They also rely upon a positive environment in which the state encourages citizen engagement and supports the growth of the sector.
Texas ranks third in the nation for number of nonprofits with government contracts and ninth in total number of government contracts. That’s a total of 6,776 government contracts and grants divided among 1,706 nonprofit organizations (Boris et al. 2010). Of these contracts, 63% are between human service related nonprofits and the government (Urban Institute: Nonprofit-Government Contracts and Grants: Overview 2010b). Although Texas ranks better than most states in a recent study nonprofits and government contracting, the contracting relationship remains complex and costly (National Council of Nonprofits, 2010), as similarly reported on in the Task Force’s own research findings. In addition, $1,266, the average charitable contribution per tax return puts Texas fourteen in comparison to other U.S. states (Urban Institute 2010c).
The sector varies widely in terms of mission area. Education-related groups represent 17% of nonprofits in Texas, followed by organizations representing community improvement, and capacity building (9.2%); philanthropy, voluntarism, and grantmaking foundations (9.4%); the arts (8.0%); recreation (7.4%), human services (6%), health-related (5.7%) and housing and shelter (2%). Religion-related nonprofits comprise 6.7% of the sector (Urban Institute 2010a).
Nonprofits contribute to the reduction of labor force inequalities by hiring disadvantaged groups of workers (Texas Association of Nonprofit Organizations 2010). The nonprofit sector brings a significant share of private employment to both urban and rural areas and brings higher average wages than for-profits in industries where both sectors are involved. In spite of the economy, nonprofit employment in Texas is growing; approximately 18,650 jobs have been added since 2004 (Salamon and Lessans Geller 2010). Nonprofits also take advantage of the power of volunteers. In 2009, 24.4% of Texas residents volunteered, slightly under the national average of 26.8%. Overall, 566.7 million hours of service were donated in Texas, worth a total of $11.8 billion (Corporation for National & Community Service 2009).
Nonprofit contributions to the welfare and cultural enrichment of Texans are often underrated. By supporting the Nonprofit Sector, the Texas government both strengthens a critical partner as well as the quality of life of all Texans.
i This number increases to 72,000 when private foundations are included in the tally.
In the last decade, the number of filing nonprofits in Texas has grown by 30,626 organizations, nearly doubling in size and scope. The nearly 68,000 nonprofits reported total revenues of $83 billion and assets of $213.9 billion in 2009. Of the nonprofits in Texas, 59.6% are public charities, 9.3% are private foundations and 31% are some other kind of nonprofit. Nearly half of the nonprofits and 60% of the revenue are found in Bexar, Dallas, Harris, Tarrant or Travis County (Urban Institute 2010a).
The Texas nonprofit sector employs more than six times as many workers as the state’s oil and gas extraction industry and 20% more than the state government. Nonprofit employees represent 3.8% of the total Texas workforce (1 out of every 26 workers), which is below the US average of 7.2%. Health services account for 55% of all Texas nonprofit employment, including jobs at hospitals, health clinics and residential care facilities (Salamon and Lessans Geller 2010).
Despite the sector’s economic contributions and scope of services, the sector comprises largely small and medium size organizations. In 2009, 92% had annual revenue less than $1 million; 87% had annual revenue less than $500,000; 81% had annual revenue less than $250,000; and 71% had annual revenue less than $100,000 (Urban Institute 2010a). Accordingly, they rely heavily upon individual, foundation, business and federal and state support. They also rely upon a positive environment in which the state encourages citizen engagement and supports the growth of the sector.
Texas ranks third in the nation for number of nonprofits with government contracts and ninth in total number of government contracts. That’s a total of 6,776 government contracts and grants divided among 1,706 nonprofit organizations (Boris et al. 2010). Of these contracts, 63% are between human service related nonprofits and the government (Urban Institute: Nonprofit-Government Contracts and Grants: Overview 2010b). Although Texas ranks better than most states in a recent study nonprofits and government contracting, the contracting relationship remains complex and costly (National Council of Nonprofits, 2010), as similarly reported on in the Task Force’s own research findings. In addition, $1,266, the average charitable contribution per tax return puts Texas fourteen in comparison to other U.S. states (Urban Institute 2010c).
The sector varies widely in terms of mission area. Education-related groups represent 17% of nonprofits in Texas, followed by organizations representing community improvement, and capacity building (9.2%); philanthropy, voluntarism, and grantmaking foundations (9.4%); the arts (8.0%); recreation (7.4%), human services (6%), health-related (5.7%) and housing and shelter (2%). Religion-related nonprofits comprise 6.7% of the sector (Urban Institute 2010a).
Nonprofits contribute to the reduction of labor force inequalities by hiring disadvantaged groups of workers (Texas Association of Nonprofit Organizations 2010). The nonprofit sector brings a significant share of private employment to both urban and rural areas and brings higher average wages than for-profits in industries where both sectors are involved. In spite of the economy, nonprofit employment in Texas is growing; approximately 18,650 jobs have been added since 2004 (Salamon and Lessans Geller 2010). Nonprofits also take advantage of the power of volunteers. In 2009, 24.4% of Texas residents volunteered, slightly under the national average of 26.8%. Overall, 566.7 million hours of service were donated in Texas, worth a total of $11.8 billion (Corporation for National & Community Service 2009).
Nonprofit contributions to the welfare and cultural enrichment of Texans are often underrated. By supporting the Nonprofit Sector, the Texas government both strengthens a critical partner as well as the quality of life of all Texans.
i This number increases to 72,000 when private foundations are included in the tally.
68,000
Texas nonprofits
::
$83 billion
2009 Texas nonprofit revenue
::
403,196
Texans works for nonprofits
::
81%
of nonprofts had annual
revenue less than
$250,000
::
$1,226
average charitable
contribution in Texas
::
556.7 million
hours volunteered in 2009
Works Cited
Boris, Elizabeth T., Erwin de Leon, Katie L. Roeger, and Milena Nikolova. 2010. Human Service Nonprofits and Government Collaboration: Findings from the 2010 National Survey of Nonprofit Government Contracting and Grants. Washington, D.C. Urban Institute. Available at: <http://www.govtcontracting.org/sites/default/files/Full%20Report.pdf>.
Corporation for National & Community Service. 2009. Volunteering in Texas. 27 April 2008. Accessed: 24 October 2010. <http://www.volunteeringinamerica.gov/TX>.
National Center for Charitable Statistics. 2009. Number of Registered Nonprofit Organizations Filing Forms 990 in the Past 2 Years by State, 2008. 2009. Washington, D.C.: Urban Institute. Accessed: 24 October 2010. <http://nccs.urban.org/>.
National Council of Nonprofits. (2010). Costs, Complexification, and Crisis: Government’s Human Services Contracting “System” Hurts Everyone. National Council of Nonprofits. Accessed: 14 October 2010.- http://www.govtcontracting.org/sites/default/files/Costs%20Complexification%20and%20Crisis.pdf
OneStar Foundation. 2010. Nonprofit Sector's Importance to Texas. http://www.onestarfoundation.org/page/sectors-importance-to-texas (accessed October 21, 2010).
Salamon, Lester M. and Stephanie Lessans Geller. 2010. Texas Nonprofit Employment Update. Baltimore: Johns Hopkins Center for Civil Society Studies. Baltimore: Johns Hopkins Center for Civil Society Studies. [Download Report from OneStar Foundation]
Texas Association of Nonprofit Organizations. 2010. Impacts of Nonprofits on Our Society: Profile of Nonprofit Sector. Austin, TX: TANO. Accessed 8 October 2010. <http://www.tano.org/public-awareness>
Urban Institute. 2010a. National Center for Charitable Statistics. Nonprofit databases. Accessed 30 September, 2010. <http://nccs.urban.org>.
Urban Institute. 2010b. Nonprofit-Government Contracts and Grants: Overview. National Study of Nonprofit Government and Contracting. Washington, D.C: Urban Institute: Center on Nonprofits and Philanthropy.
Urban Institute. 2010c. Profiles of Individual Donors by State. Washington, D.C.: Urban Institute: Center on Nonprofits and Philanthropy.
Boris, Elizabeth T., Erwin de Leon, Katie L. Roeger, and Milena Nikolova. 2010. Human Service Nonprofits and Government Collaboration: Findings from the 2010 National Survey of Nonprofit Government Contracting and Grants. Washington, D.C. Urban Institute. Available at: <http://www.govtcontracting.org/sites/default/files/Full%20Report.pdf>.
Corporation for National & Community Service. 2009. Volunteering in Texas. 27 April 2008. Accessed: 24 October 2010. <http://www.volunteeringinamerica.gov/TX>.
National Center for Charitable Statistics. 2009. Number of Registered Nonprofit Organizations Filing Forms 990 in the Past 2 Years by State, 2008. 2009. Washington, D.C.: Urban Institute. Accessed: 24 October 2010. <http://nccs.urban.org/>.
National Council of Nonprofits. (2010). Costs, Complexification, and Crisis: Government’s Human Services Contracting “System” Hurts Everyone. National Council of Nonprofits. Accessed: 14 October 2010.- http://www.govtcontracting.org/sites/default/files/Costs%20Complexification%20and%20Crisis.pdf
OneStar Foundation. 2010. Nonprofit Sector's Importance to Texas. http://www.onestarfoundation.org/page/sectors-importance-to-texas (accessed October 21, 2010).
Salamon, Lester M. and Stephanie Lessans Geller. 2010. Texas Nonprofit Employment Update. Baltimore: Johns Hopkins Center for Civil Society Studies. Baltimore: Johns Hopkins Center for Civil Society Studies. [Download Report from OneStar Foundation]
Texas Association of Nonprofit Organizations. 2010. Impacts of Nonprofits on Our Society: Profile of Nonprofit Sector. Austin, TX: TANO. Accessed 8 October 2010. <http://www.tano.org/public-awareness>
Urban Institute. 2010a. National Center for Charitable Statistics. Nonprofit databases. Accessed 30 September, 2010. <http://nccs.urban.org>.
Urban Institute. 2010b. Nonprofit-Government Contracts and Grants: Overview. National Study of Nonprofit Government and Contracting. Washington, D.C: Urban Institute: Center on Nonprofits and Philanthropy.
Urban Institute. 2010c. Profiles of Individual Donors by State. Washington, D.C.: Urban Institute: Center on Nonprofits and Philanthropy.
