GIVING
Nonprofits have big economic impact
BY CAROL MCLAUGHLIN, CHIEF PROGRAM OFFICER Southwest Florida Community Foundation
The nonprofit sector in America has evolved to become a major player in the business world. There are those who might not consider nonprofit organizations to be "true" businesses, but they are mistaken. The importance of running a nonprofit as a business cannot be denied. Nonprofits must adhere too many of the same principles as the forprofits - fiduciary responsibility, good management, ethics in business, etc.
Their impact on the national economy needs to be taken seriously. According to Andrew Ortiz, President & CEO of Ortiz Leadership Systems, nonprofits are about 6-7 percent of the labor force in the world. Their assets total about $3 trillion dollars, with about $945 billion contributing to the economy in salaries and expenses. They are about 5.2 percent of the gross domestic product with 8.3 percent being paid in wages and salaries.
According to Robert Egger, Founder & president of DC Central Kitchen, there are 2 million nonprofits in the world. He sees the needs of the nonprofits growing and changing as baby boomers retire. Today's volunteers and nonprofit leaders will be retiring, and the face of the nonprofits will evolve with a new personality and persona directed by this influx of baby boomers. Egger believes that the nonprofit community should step up to the plate and become a strategic part of the political influence in our country, not a partisan influence, but a part of the political influence. With as much of an impact as 6-7 percent of the labor force, he feels that acting collectively should be part of the strategic plan of all nonprofits. The old adage "there is strength in numbers" comes into focus. As a lobbying force, they could make a greater impact on how they are perceived in their own community and the country as a whole.
Another area where their collective power could be felt is the media. As most nonprofits will attest, it is very difficult to get media coverage for the positive things that happen within the nonprofit community. The media will always be there for the negative, but when something good happens, media coverage can be scarce. The media should recognize that 20 million people worldwide work in the nonprofit community affecting over 60 million who use these services. That many consumers involved can sell a lot of newspapers and ads.
The value of nonprofit organizations should not be minimized. They have a dedication to the betterment of the communities they serve by providing necessary services to their clients. Most work ethically and with integrity. They are catalysts for change. If they can work in unison and with a shared vision for a better quality of life for their clients, they will be a recognized force in the communities they serve. ¦
The Southwest Florida Community
Foundation has been supporting the
communities of Lee, Charlotte, Collier,
Glades and Hendry through endowed
funds for 30 years. With assets of more
than $55 million and 313 endowed funds,
the community foundation has provided
more than $25 million in grants and scholarships
to the communities it serves.
For more information, please call 274-
5900, or visit the foundation's website at
www.floridacommunity.com