Indiana Nonprofit Employment: 2003 Report

Nonprofit Employment Report #1
July 2003
Kirsten A. Grønbjerg, Project Director
Hun Myoung Park 

Nonprofit organizations contribute to the quality of life for all Indiana citizens through the health care, education, job training, nursing home care, access to arts and culture, and opportunities for democratic participation that they offer. What is not widely appreciated, however, is that nonprofit organizations are also a major force in the state's economy, and in the economies of all the state's regions.

As part of the Indiana Nonprofits: Scope and Community Dimensions study, this report serves to provide new information on the size, composition, and distribution of paid employment in the private nonprofit sector in Indiana for 1995, 2000, and 2001.

Click to access the full Indiana Nonprofit Employment: 2001 Report (416 KB). You will need a free copy of Adobe Reader to read this report.

Click to read a news release on this report; a summary in the July 2003 issue of Indiana Business Report; a summary in the July/August issue of INContext; or a special supplement for the Bloomington metropolitan area.

Key Findings

  • The nonprofit sector is a major economic force in Indiana, accounting for nearly 1 out of every 13 paid workers-more than are employed in the state's non-durable manufacturing industry, about half again as many as are employed in construction, and at about the average for many other states. 
  • The 222,000 nonprofit employees in Indiana earned about $6 billion in wages in 2001. 
  • Nonprofit employment is not restricted to any one region of Indiana, but is distributed broadly throughout the state. 
  • About half (49 percent) of nonprofit employment in the state is in health services, another 17 percent is in social services and 12 percent is in education. 
  • Most (88 percent) nonprofit employees work for charities, although only 55 percent of nonprofit employers are charities. 
  • Average weekly wages for nonprofit employees are 19 per-cent lower than those of for-profit workers and 18 percent lower than those of government workers. However, nonprofit weekly wages are similar to for-profit wages in industries where nonprofit employment is concentrated. 
  • The Indiana nonprofit sector grew notably faster than the for-profit or government sectors between 1995 and 2001. 
  • Overall wages for nonprofit employees in Indiana also increased faster than those of employees in for-profit or government organizations, although average weekly wages increased by a smaller amount. 
  • The growth in nonprofit employment was concentrated in health services, but rates of growth were higher for nonprofit social services and educational services. 
  • Rates of growth in nonprofit employment varied significantly among Indiana metropolitan regions.