FYC Quiz 2 study guide Non profits I II III IV V FYCS a The Game Plan for the Session b Origin history of the nonprofit sector c Roles of the nonprofit sector d Types and classifications of nonprofits e Scale of the nonprofit sector in the U S of A f The nonprofit sector of the Sunshine state g Training the workforce for the sector role of FYCS UF h Welcome to the wonderful world of the Nonprofit Sector Just 40 years ago Nonprofits were perceived a To be marginal to the American society b To have a non businesslike operation c To supplement the work of government d To not offer well paying jobs e To not participate in policy making process f To be charities simply seen as do gooders Today We know that nonprofits a Are central to the American society b Account for about 9 of ALL organizations and represent about 10 of total employment c Are central to our quality of life d Are not businesses but should be managed like them e Are increasingly participating in social policy making f Are still seen as do gooders Foundations for funding charters History of nonprofits a First amendment guarantee to form groups b Charters with tax free status in early 1800s c d Two pioneers for social service nonprofits Jane Addams Dorothea Dix e Federal funding New Deal Great Society etc and the rapid growth f The origin of nonprofits a Two theoretical explanations b Market Failure theory Nonprofits are created to provide services that the c public sector cannot or will not provide and services for which the for profit businesses Impacts and transformation YMCA March of Dimes etc cannot get sufficient returns on their investments d Contract Failure theory Nonprofits are needed to provide services where the parties who want them offered are not in a position to provide these services themselves These parties are often not the consumers of the services they are donors VI VII Major roles of the sector a The Service role b Half of nation s hospitals 1 3 of its health clinics c Over a quarter of its nursing homes d Nearly half 46 of its higher educational institutions e Four fifths 80 of individual family youth community service agencies f Major roles of the sector a The Advocacy role b Giving voice to a wide assortment of social political environmental ethnic and community interests concerns NAACP MADD Sierra Club c The Community Building role d Promoting quality of life and building social capital CDCs VIII Major roles of the sector a The Expressive role b Being a conduit for sentiments and impulses religious artistic cultural recreational c All religious organizations over 90 of operas orchestras d Value Guardian role e f Know thy nonprofit sector a http www youtube com watch v 0myNj8BHt 4 Types of nonprofits a b For example a 501 c 3 nonprofit is exempt from federal income tax if it has any of Charity philanthropy Kellogg Gates John James Knight Foundations IRS classifies nonprofits into 38 Internal Revenue Codes IRCs IX X these purposes charitable religious educational scientific literary testing for public safety fosters amateur sports competition prevents cruelty to children or animals Six additional 501 categories d e f k n q c Types of nonprofits a 38 IRCs b Twenty six 501 c categories from 1 19 21 23 25 28 c d Four 509 a categories 1 2 3 4 e Two other nonprofit categories 521 a 527 f g Great majority of nonprofits are registered under 501 c 3 h HANDOUT i Types of nonprofits IRS Publication 557 XI XII a In the mid 1990s IRS began to use the National Taxonomy of Exempt Entities NTEE system to classify nonprofits into functional areas b Types of nonprofits The 10 broad NTEE categories c Scale of the sector Sources NCCS CCSS a The U S has the largest strongest nonprofit sector in the world b About 1 58 million nonprofits are registered with IRS 2009 These include c 1 million public charities including 385 874 religious organizations d 120 000 private foundations operating grant making community e 464 000 other types of nonprofit organizations such as chambers of commerce fraternal organizations and civic leagues f HANDOUT Scale of the sector a 284 B In 2009 the sector had total assets worth 4 3 T revenues of 1 87 T and expenditures of about 1 89 T b The sector employs about 10 of the national work force c Millions work as volunteers 26 3 of Americans over 16 volunteered in 2010 15 B hrs d Only about 40 of nonprofits have annual revenues of 25 000 or more Form 990 e Only about 6 operate with annual budgets of 10 M or more f Scale of the sector a Sources of revenue b 23 from contributions Americans contribute about 200 billion directly to nonprofits 35 5 to religious organizations c 71 from fees for services government contracts and grants in public service delivery major service fields health human services and education d 6 from other sources e About 23 of federal public service budget comes to the nonprofit sector Recent trends a Creating for profit subsidiaries b Subcontracting from for profits c Partnering with for profits cause marketing d Adopting corporate strategic planning marketing and evaluation models e Creating Low Profit Limited Liability Corporations L3C The nonprofit sector in Florida a Fourth largest state nonprofit sector in the U S XIII XIV XV XVI XVII b 75 418 registered nonprofits 2009 c 48 552 in 1999 55 growth 84 for 501c3s d One nonprofit for every 265 Floridians e Nation s highest percentage of senior 65 population 17 6 in 2000 increases the demand on the sector 250 000 FTE volunteers 18 6 volunteer rate 350 nonprofits with 25K annual revenue 2 5 B total assets 2 84 B total revenue Employs 23 458 10 of population 20 of workforce 65 with Shands Payroll 1 1B Average salary 45 521 26 236 volunteers 50 on heath education human services f Nonprofits with 25k 25 069 37 g Total annual revenue 61 B assets 117B h Charitable contributions per 1000 AGI 23 55 The nonprofit sector in Florida a Distribution by field of operation b Represents the fourth largest workforce in the state c Employs six times the number of people than the state s agriculture industry d About 380 000 employees 4 9 of the state total 1 out of every 20 workers e 4 of employment in North Central FL f g 13 B in payroll Distribution of FL Nonprofit Employment Source Florida s Nonprofit Sector An Economic Force CCSS 2008 a b c d e f g h i Preparing the nonprofit sector workforce a Task oriented jobs b University based education social work nursing music c Technical training special counseling therapy etc d e Program