Florida nonprofit organizations rank as the state’s fourth-largest work force and represent a significant economic presence in the Sunshine State, but still have some distance to go to catch up to their counterparts elsewhere in the United States, according to a new report commissioned by the Florida Philanthropic Network and prepared by Johns Hopkins University.

The study, Florida’s Nonprofit Sector: An Economic Force, was prepared by the Johns Hopkins Center for Civil Society Studies. The report is part of an ongoing program of policy research on the state’s nonprofit and philanthropic sectors by the philanthropic network (FPN).

Florida nonprofits employ six times the number of people employed by the state’s renowned agriculture industry, according to the report. With 380,000 paid workers and another 250,000 full-time equivalent volunteer workers, the Florida nonprofit work force exceeds that of the state’s real estate industry by more than 3 to 1, and its banking and insurance industry by nearly 50 percent.

Florida’s nonprofit sector generated more than $48 billion in revenues in 2005, the latest year for which data are available. The state’s paid nonprofit workers alone accounted for nearly $13 billion in wages as of 2005. This translates into significant sales tax revenues for Florida governments.

Though sizable, however, Florida’s nonprofit sector is proportionately smaller than its counterparts elsewhere in the nation, accounting for 4.9 percent of total employment versus a U.S. average of 7.2 percent and a Southeast average of 6.0 percent. Reflecting this, nonprofit expenditures per capita in Florida are nearly one-third less than in the nation as a whole. Nonprofit expenditures – in addition to payroll and other staffing costs – include a wide range of operating, program and capital spending, not unlike the expenses of for-profit businesses.

The report also says the Florida nonprofit sector has been growing somewhat faster in recent years than nonprofits nationally, a trend consistent with the findings of previous FPN research.

“The Florida nonprofit sector is clearly a much more significant economic force than many Floridians recognize,” noted Dr. Lester Salamon, study author and director of the Hopkins center. “But given the enormous challenges this state faces, the fact that its nonprofit sector lags its counterparts elsewhere should be a cause for concern, especially in view of the tightness of state and local budgets.”

Currently the nation’s fourth-largest state in population, Florida has been growing at a rate twice the national average and is projected to pass New York state as the nation’s third-largest state as soon as 2011.

Other key findings of the FPN report include:

• Florida’s nonprofit organizations are quite diverse. The largest proportion of organizations – 36 percent – is found in the civic and social field, including social advocacy and philanthropy. Another 20 percent are in arts and recreation, and 18 percent are in human services, youth services, and food and shelter.
• Yet the sector’s health field, while representing only 10 percent of the state’s nonprofit organizations, accounts for 60 percent of the sector’s expenditures. Hospitals alone, though representing only 1 percent of the organizations, account for nearly 50 percent of the expenditures. In other words, Florida’s nonprofit hospitals together spend almost as much as all other types of Florida nonprofit organizations combined.
• Florida’s nonprofit sector is also geographically diverse. Three regions – the Southeast, the Tampa Bay area, and East Central Florida – account together for 76 percent of Florida nonprofit employment. However, nonprofits account for a larger share of total employment in the Northeast and North Central regions than elsewhere in the state. Compared to a statewide average of 4.9 percent of total employment, nonprofits account for nearly 8 percent of total employment in the North Central region.
• Charitable activity in Florida, while significant, still falls below the U.S. average. Charitable contributions per $1,000 of adjusted gross income in Florida are $23.55, compared with $24.66 for the nation as a whole and $28.99 in New York. Similarly, the volunteer rate in Florida is only 18.6 percent as compared with 26.7 percent nationally and 23.7 percent in the Southeast.
• Growth is reflected across Florida’s nonprofit sector, but is particularly strong in the areas of social advocacy, civic ventures, youth and social services, and education. Between 1992 and 2005, expenditures by Florida nonprofits in the social advocacy field increased 1,827 percent.

“This report is a wake-up call for Floridians,” said Ruth Shack, chair of the Florida Philanthropic Network and president and CEO of the Dade Community Foundation. “Throughout Florida, continued growth has intensified the demand for the services and programs of nonprofit agencies. This report shows both the gaps and the untapped potential of our state’s nonprofits in responding to this demand. While we all can take pride in the enormous contributions our nonprofits are making, we also need to do more to bring the Florida nonprofit sector up to the scale it has achieved in other parts of our country. If we increase giving and volunteerism even just a few percentage points, the impact would be huge.”

The private nonprofit sector in Florida comprises private universities, schools, hospitals, clinics, day care centers, social service providers, symphonies, museums, art galleries, performing arts companies, environmental organizations and many others.

Dr. Salamon presented key findings of the new research to Florida Philanthropic Network members at a Miami briefing in anticipation of National Philanthropy Day activities scheduled this month in communities around the state. Full research findings will be published in early 2008.

About Florida Philanthropic Network

The Florida Philanthropic Network is a statewide coalition of grant makers working to strengthen philanthropy through cross-sector collaboration, research, education and public policy. Since its founding in 2002, FPN has commissioned research on the state’s nonprofit and philanthropic sectors. The newest study follows previous research reports including an overview of Florida philanthropy, a study of federal funding in the state, and an earlier analysis of the economic contributions of Florida nonprofits.

About the Center for Civil Society Studies

The Center for Civil Society Studies at the Johns Hopkins Institute for Policy Studies seeks to improve understanding and the effective functioning of not-for-profit, philanthropic, or “civil society” organizations in the United States and throughout the world in order to enhance the contribution these organizations can make to democracy and the quality of human life.