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Indiana Nonprofit Employment: 2005 Report

Nonprofit Employment Report #2
May 2005
Kirsten A. Grønbjerg, Project Director
Erich T. Eschmann

A Joint Product of the Center on Philanthropy at Indiana University, the School of Public and Environmental Affairs at Indiana University, the Indiana Business Research Center at Indiana University's Kelley School of Business, and the Johns Hopkins Center for Civil Society Studies


Click to read the press release for this study or the full report. Note: the full report is a large file (500 KB) and you will need a free copy of Adobe Reader to read the documents.

Introduction

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.

Key Findings

Major Updates from 2001 Analysis

  • 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.
  • 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.
  • 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.

Other Key Findings

  • 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.
  • The 228,000 nonprofit employees in Indiana earned about $6.6 billion in wages in 2003.
  • Nonprofit employment is not restricted to any one region of Indiana, but is distributed broadly throughout the state.
  • 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.
  • Most (88 percent) nonprofit employees work for charities, although only 58 percent of nonprofit employers are charities.
  • 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.
  • 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
  • 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.
  • The growth share and rate of growth in non-profit employment were concentrated in social assistance and educational services.
  • Rates of growth in nonprofit employment varied significantly among Indiana metropolitan regions.
  • Nonprofit employment grew steadily each quarter between 2000 and 2003, while there are notable seasonal fluctuations in for-profit and government employment.

Methodology

The report draws on data generated by the Indiana Department of Workforce Development through surveys of Indiana workplaces carried out under the national Covered Employment and Wages (CEW) 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's Kelley School of Business under a confidentiality agreement with the state.

For information about the methodology used in this report and for additional tables, please see the Appendices at the bottom of this page. 

Appendices

Our report includes several appendices with supplementary information. They include:

  • Appendix A: The ES-202 Unemployment Insurance Labor Market Information 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

Acknowledgements

This report was prepared as part of an ongoing project from the Indiana Nonprofits: Scope and Community Dimensions project made possible by the Efroymson Fund at the Indianapolis Foundation (an affiliate of the Central Indiana Community Foundation) through its support for the Efroymson Chair in Philanthropy; the Indiana University Center on Philanthropy through its Indiana Research Fund (supported in part by Lilly Endowment Inc.) and its ongoing support for the Efroymson Chair in Philanthropy; and the School of Public and Environmental Affairs at Indiana University through its ongoing support for the Efroymson Chair in Philanthropy.

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 Nonprofits: Scope and Community Dimensions project for helpful comments and suggestions.