Idaho’s Secret Economic Engine

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By Amy Little

Amy Little. Photo courtesy of the Idaho Nonprofit Center
Amy Little. Photo courtesy of the Idaho Nonprofit Center

Move over real estate brokers, finance and insurance professionals, crop and animal production workers and a host of other industries. Did you know that Idaho’s charities employ more people than any of those sectors? You read that right. With 54,305 employees, Idaho’s charities are one of the best-kept secrets fueling our state economy.

Did you know that Idaho charities make up more than 10 percent of all private-sector jobs? And that those charities pay $3.9 billion in total aggregate compensation and are ranked sixth place as an industry based on actual employment?

According to The Economic Impacts of Idaho’s Nonprofit Organizations, produced by University of Idaho Research Economist Professor Steven Peterson, Boise State University Economics Professor Don Holley and Don Reading of Ben Johnson Associates, the total spending in 2014 by Idaho charities was $4.7 billion, up from $4.4 billion in 2013. When you include the multiplier of 1.61, in which one dollar spent by charities creates $1.61 of new spending in the community, you start to see the gigantic economic impact charities have on Idaho’s economy. All of this happens while charities are out there making a difference, changing a life, or saving the planet.

There are 7,443 registered nonprofit organizations in Idaho, of which almost 5,000 (62 percent) are “public charities,” which I refer to as “charities.” These are organizations that receive their IRS tax exemption under subsection (3) of Section 501 (c.) Indeed, you may have heard them labeled as “501(c)(3)s.” The IRS defines these organizations as charitable because they serve the public through educational, religious, scientific, relief of poverty and other beneficial activities. Major categories include arts and culture, education, environment, hospitals, health, and human services.

According to Volunteering in America, more than 451,000 Idahoans volunteered in 2014, totaling 51 million hours of service. Indeed, nearly 36 percent of Idaho residents are volunteers, ranking Idaho as second in the U.S for volunteerism. No wonder Idaho charities get so much bang for their buck.

People in Idaho are generally aware of the Idaho Nonprofit Center’s largest program, “Idaho Gives,” a 24-hour statewide online giving day held the first Thursday in May. We also convene an annual statewide nonprofit conference, host local and regional trainings, support regional nonprofit networks and champion our sector during Idaho Nonprofit Awareness Month.

The Idaho Nonprofit Center also commissions research projects such as a wage and benefit survey and a state of the sector report. We are the voice of our sector on issues at the statehouse that impact the way we do business.

Take just a moment to imagine what your community might be like without nonprofits in it. There would be no zoo, symphony, homeless shelter, food bank, YMCA or ballet, just for starters. Nonprofits do many things that you may not even think about. Support your favorite nonprofit today through a gift of your time, talent and treasure.

Amy Little is the executive director of the Idaho Nonprofit Center.