Report: Evidence of Long Term Economic Impact of the Nonprofit Sector

There has been much focus the past few years on the impact of the economy on philanthropy and nonprofits, but relatively little on the overall impact that nonprofits have on the economy (save some state/local level analysis).  But a recent look at nonprofit operations and economics has concluded that private grantmaking has a greater impact than previously assumed – so says new research from The Philanthropic Collaborative.

The report, Economic Impacts of 2010 Foundation Grantmaking on the U.S. Economy takes a closer look at the $38 billion in foundation grants dispersed throughout the United States in 2010. The authors found positive impacts of the funding at the immediate and short term levels, specifically in wages and jobs, revenue and Gross Domestic Product  (GDP) growth. In the midst of the recent recession the foundation monies resulted in the immediate creation of approximately half a million jobs. More notable than that however, was that the study identified long term impacts,  including creating  partnerships between organizations to encourage local entrepreneurship and grow the presence of for-profit businesses over time. The authors conclude that nonprofit activity does have long-term economic impact, reflected in both the GDP and the country’s employment rate.

The complete report, including eight community-level case studies of diverse initiatives and programs, is available at  The Philanthropic Collaborative’s website.