Research Results:
Indiana Nonprofit Employment Series

Indiana Nonprofit Employment: 2005 Report

Nonprofit Employment Report #2

Indiana University
School of Public and Environmental Affairs
Center on Philanthropy

Click here to read the press release for this study. Click here to access the full report Note: this is a large file (500 KB). You may wish to access separate sections of the report independently through links in the major sections below. Note, you will need a free copy of the Acrobat program to read any of these documents.

If you accessed the report before, July 11, 2005, click here to obtain corrections to several figures (Figures 13, 17, 22, 32, and 33) and related discussion in the original report. These corrections are now incorporated into the report.

Top | Introduction | Key Findings | Appendix | Acknowledgements

INTRODUCTION

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Nonprofit organizations make significant contributions to the quality of life for Indiana citizens by offering healthcare, education, job training, access to arts and culture, and opportunities for democratic participation. They are also a major force in the state's economy and in the economic health of all the state's regions.

This 2005 report presents new information on the size, composition, and distribution of paid employment in the private nonprofit sector in Indiana for the 2000-2003 period, and updates Report #1, which presented similar data for 1995, 2000, and 2001. It is part of a larger project on Indiana Nonprofits: Scope and Community Dimensions, currently underway at Indiana University, designed to provide solid, baseline information about the Indiana nonprofit sector.

The report draws on data generated by the Indiana Department of Workforce Development through surveys of Indiana workplaces carried out under the national ES-202 labor market information program administered by the U.S. Bureau of Labor Statistics as part of the unemployment insurance program. These data, compiled from quarterly reports submitted by employers in compliance with U.S. and Indiana law, were prepared for us by the Indiana Business Research Center at Indiana University under a confidentiality agreement with the state.

For information about the methodology used in this report and for separate tables with data for Indiana counties and metropolitan regions and for selected industries in which Indiana nonprofits are prominent, please see the Appendix at the bottom of this page.

Top | Introduction | Key Findings | Appendix | Acknowledgements

Key findings

Click here for detailed findings (now including corrections, as indicated above).

Major Updates from 2001 Analysis

1. Nonprofit employment increased by over 5 percent between 2000 and 2003, while for-profit employment decreased by almost 6 percent and government employment increased by nearly 3 percent during the same period (see pages 19-20).
2. The gap between nonprofit and for-profit payrolls narrowed between 2000 and 2003, as did the gap between nonprofit and government payrolls. Total nonprofit payrolls increased 17 percent, while for-profit payrolls increased 1 percent and government payrolls increased 10 percent (see pages 5-6).
3. The gap between nonprofit and for-profit average weekly wages decreased by $11 over the 2000-2003 period and the gap between nonprofit and government weekly wages decreased by $13 (see page 6).

Other Key Findings

4. The nonprofit sector continues to be a major economic force in Indiana, accounting for nearly 1 out of every 12 paid workers--more than are employed in the state's construction industry (see page 7).
5. The 228,000 nonprofit employees in Indiana earned about $6.6 billion in wages in 2003 (see page 9).
6. Nonprofit employment is not restricted to any one region of Indiana, but is distributed broadly throughout the state (see pages 10-11).
7. About half (52 percent) of nonprofit employment in the state is in health services, another 13 percent is in education, and 12 percent is in social assistance (see page 12).
8. Most (88 percent) nonprofit employees work for charities, although only 58 percent of nonprofit employers are charities (see page 13).
9. On average, weekly wages for nonprofit employees are 14 percent lower than those of for-profit workers and 13 percent lower than those of government workers (see page 14). However, nonprofit weekly wages are similar to for-profit wages in industries where nonprofit employment is concentrated (see pages 14-19).
10. The Indiana nonprofit sector grew notably faster than the for-profit sector between 2000 and 2003 and faster than the government sector between 2000 and 2002 (see page 19).
11. 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 at a slower rate (see pages 20-22).
12. The growth share and rate of growth in non-profit employment were concentrated in social assistance and educational services (see page 22).
13. Rates of growth in nonprofit employment varied significantly among Indiana metropolitan regions (see pages 23-24).
14. Nonprofit employment grew steadily each quarter between 2000 and 2003, while there are notable seasonal fluctuations in for-profit and government employment (see pages 25-26).

Top | Introduction | Key Findings | Appendix | Acknowledgements

APPENDICES

Our report includes several appendices with supplementary information. Click here to access the full set of appendices. They include:

• Appendix A: The ES202 Employment Insurance Labor Market Program
• Appendix B: Nonprofit Employment in Indiana, by Metropolitan Region, 2003
• Appendix C: Nonprofit Employment in Indiana, by County, 2003
• Appendix D: Distribution of Nonprofit Employment by Industry in Indiana, 2003
• Appendix E: Nonprofit Employment and Wages for Select Industries in Indiana, 2003
• Appendix F: For-profit Employment and Wages for Select Industries in Indiana, 2003
• Appendix G: Government Employment and Wages for Select Industries in Indiana, 2003
• Appendix H: Distribution of Indiana Nonprofit Employment by IRS Reporting Status, 2000-2003
• List of project publications and reports.

ACKNOWLEDGEMENTS

This report was prepared as part of an ongoing project on the Indiana Nonprofit Sector: Scope and Community Dimensions made possible by the support for the Efroymson Chair in Philanthropy by the Indianapolis Foundation at the Central Indiana Community Foundation and the Indiana University Center on Philanthropy's Indiana Research Fund, supported in part by Lilly Endowment Inc. We are grateful to Carol O. Rogers, Jerry Conover, and their staff at the Indiana Business Research Center for making the data on which this report is based available to us and for helpful comments on the draft. We also acknowledge the technical support provided by S. Wojciech Sokolowski, and Stephanie Lessans Geller at the Center for Civil Society Studies, Institute for Policy Studies, Johns Hopkins University. Finally, we thank members of the Advisory Board for the Indiana Nonprofit Sector: Scope and Community Dimensions project for helpful comments and suggestions.

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