NEW JERSEY’S NON-PROFIT SECT
OR
ECTOR
AN
ECONOMIC
FORCE
for strengthening the Garden State
2009-2010 E DITION
A
PUBLICA
TION OF
PUBLICATION
MADE
POSSIBLE BY
Center for Non-Profits
1
A
VITAL PART OF LIFE
Chances are your life has been, or will be, touched by a
non-profit organization. Non-profit organizations
educate our children, preserve our parks, and care for
our ailing. People turn to non-profits in need and to
channel their own generosity and creativity. At some
point, perhaps even without realizing it, nearly every
New Jerseyan will benefit from what non-profits do to
protect, restore, or enhance the wellbeing of our people
and our communities.
But New Jersey’s non-profit sector does more than
provide services and reflect our values. It is also a critical
economic force in the state, creating thousands of jobs
and pumping billions of dollars into the economy.
This pamphlet provides an overview of New Jersey’s
non-profit community, offering a glimpse into what we
do and why it matters.
A DIVERSITY OF INTERESTS AND AIMS
New Jersey’s non-profits serve a broad array of needs,
positively affecting virtually all aspects of our lives.
New Jersey 501(c)(3) Organizations by Purpose (2)
CA TEGORY
#
A r ts/Cultur e /Hum anitie s (e.g.,
historica l societies, museums, perfor ming or
v isua l a rts)
2,731
8.7%
5,762
18.3%
885
2.8%
2,421
7.7%
7,356
23.3%
a dv oca cy, community-building, phila nthropy,
science, technolog y, socia l science)
6,310
20.0%
Re ligion (religion-related organizations)
5,378
17.1%
668
2.1%
31,511
100.0%
Educ ation (elementary, secondary and
higher educa tion, student ser v ices a nd infor ma l
educa tion. )
Envir onm e nt/A nim als (e.g.,
env ironmenta l protection, conser v a tion, a nima l
rescue. )
He alth (health, treatment, nursing, hospitals,
disea se, resea rch, menta l hea lth)
Hum an Se r vic e s (crime, legal, food, jobs,
a griculture, housing, sa fety, recrea tion, youth
a nd fa mily, residentia l/independence ser v ices)
Public , Soc ie tal Be ne fit (civil rights,
WHAT
WE ARE
This report focuses on the largest segment of the nonprofit community: the charitable, religious, and educational organizations and foundations also referred to by
their IRS classification, 501(c)(3).
Food pantries, child care centers, animal shelters, food
pantries, hospitals – all of these are types of non-profits.
But while their goals are diverse, certain traits are shared
by all 501(c)(3) orgnaizations. They are:
n
Committed to advancing a public or community
interest rather than private financial gain.
n
Governed by a board of trustees that is responsible
for the financial and ethical stewardship of the
organization
n
Non-partisan
n
Held accountable through special reporting obligations and restrictions
n
Exempt from certain state and/or federal taxes
n
Permitted to receive tax-deductible donations.
Non-profits may fund their programs through donations,
grants, dues, fees for service, contracts and other
sources. The proportion of revenue that comes from
each source can vary greatly between organizations.
2 Center for Non-Profits
%
Othe r or Unc lassifie d
TOTA L
A COMMUNITY
-BASED OPERA
TION
COMMUNITY-BASED
OPERATION
New Jersey’s non-profit sector is comprised mostly of
community-based groups launched by passionate,
creative individuals. The vast majority have yearly
budgets of less than $1 million, and most of these have
budgets under $100,000.
New Jersey 501(c)(3) Organizations by Revenue
$5 million-10 million
1%
Over $10 million
2%
$1 million-5 million
5%
n=22,205
$500,000-1 million
4%
$100,000-500,000
13%
Under $25,000
58%
$25,000-100,000
17%
Source: IRS Business Master File, October 2009
A
WHY
FORCE IN NUMBERS
There are more than 31,000 nonprofit, 501(c)(3) organizations in New
Jersey, according to the IRS. (1)
A ST
ATEWIDE PRESENCE
STA
Not surprisingly, New Jersey’s non-profits are located
where the population concentration is greatest. Still,
charitable organizations are found in communities large
and small throughout the state.
IT MATTERS
SUPPOR
TING PEOPLE AND COMMUNITIES
SUPPORTING
Non-profits enhance our daily lives by caring for our
most vulnerable people; preventing disease; protecting
our parks and beaches; offering artistic and cultural
enrichment; providing spiritual fulfillment; mentoring
our children; educating youth and adults alike; organizing for social change; providing vital services from
infancy through senior years; and serving as an outlet for
generosity, creativity, grief and hope. The non-profit
community serves fundamental needs and is often the
source of innovative solutions to pressing problems.
New Jersey 501(c)(3) Organizations by County (2)
COUN TY
Atla ntic
Bergen
Burlington
Ca mden
Ca pe Ma y
Cumberla nd
E sse x
Gloucester
Hudson
Hunterdon
Mercer
Middlesex
Monmouth
Morris
O cea n
Pa s s a i c
Sa lem
Somerset
S usse x
Union
Wa rren
TO TAL
#
%
871
3,608
1,397
1,703
392
456
4,114
641
1,296
592
2,524
2,120
2,280
2,114
1,652
1,343
253
1,316
525
1,933
373
31,503
2.8%
11.5%
4.4%
5.4%
1.2%
1.4%
13.1%
2.0%
4.1%
1.9%
8.0%
6.7%
7.2%
6.7%
5.2%
4.3%
0.8%
4.2%
1.7%
6.1%
1.2%
100.0%
PROVIDING JOBS
n
New Jersey non-profits employ over 288,000
workers—more than 7% of the state’s work
force.(3)
n
More people work in non-profits than in the
construction industry, more than in transportation and public utilities—and more than in the
finance and insurance industries combined.(4)
STRENGTHENING ECONOMIES
n
New Jersey non-profits combined have over $67
billion in assets and over $39 billion in income.(2)
n
New Jersey public charities spent a combined $33
billion in 2007, much of it inside the state. (2)
HELPING PEOPLE HELP EACH OTHER
…through philanthropy:
New Jerseyans have demonstrated consistent support for
the work of non-profits.
n
In 2007, New Jersey reporting charities received
over $6 billion in gifts, grants and contributions.(5)
n
In 2007, itemized deductions included over $5.8
billion donated to charities, with an average of
$3,551 per tax return. (Since many taxpayers give but
don’t itemize, actual charitable giving totals are considerably
larger.) (6)
n
In 2006, New Jersey ranked 15th in the nation for
average contribution for all returns.(7)
n
The average charitable deductions for New Jersey
households increased by 12% between 2001 and
2006.(7)
Center for Non-Profits
3
….and through volunteerism:
Perhaps there is no better evidence of the meaning that
non-profits hold in our lives than the substantial contributions we make through volunteerism.
n
Over 1.5 million New Jerseyans volunteered a
total of 162.5 million hours of their time to nonprofit causes in 2008.(8)
n
Over 21% of New Jerseyans volunteer at least
once a year with a group of their choice. (8)
n
The estimated dollar value of volunteer services
in New Jersey in 2007 was $24.48 per hour. (9)
NATIONAL
PRESENCE
New Jersey’s charities rank in the top third of all states
along many important economic dimensions:
Ranking of New Jersey among all states (2)
Cate gor y
# of orga niza tions
Rev enues
Asse t s
E xpenses
Support from
contributions, gifts
a nd gra nts
Contributions, gifts
a nd gra nts pa id
Public Char itie s
1 0 th
1 0 th
2 0 th
1 0 th
Foundations
9 th
7 th
7 th
4 th
1 6 th
-
-
4 th
GROWING FFAST
AST
n
The number of 501(c)(3) organizations in New
Jersey increased by 72% between 1998 and 2008.
n
Nearly 70% of New Jersey 501(c)(3) organizations
were formed in 1990 or later.(2)
Between 1998 and 2007 in New Jersey:
n
The revenues of reporting public charities grew by
55%.
n
The expenses of reporting public charities increased by 49%.
n
Contributions, gifts and grants from private and
government sources increased by 82%. (10)
1501 Livingston Avenue
n
North Brunswick, NJ 08902
n
OUR
CHALLENGES
The recent economic downturn has demonstrated how
much New Jersey relies on its non-profit community: as
more people lose their jobs, homes, and sense of
stability, record numbers have turned to non-profits for
support. Despite significant growth and accomplishments, non-profits are straining as funding pools shrink
and demand for services increases.
Non-profits have identified board recruitment and
governance, organizational capacity/infrastructure,
attracting and retaining quality employees, high benefit
and insurance costs, and the need for increased giving/
volunteering incentives as top issues affecting their shortterm ability to weather the recession, and the sector’s
long-term health.(11)
A vibrant non-profit community will be vital as we work
together toward economic recovery to build a stronger
New Jersey.
Data Sources:
(1) Internal Revenue Service, Business Master File, October 2009.
(2) Internal Revenue Service, Business Master File, October 2009, as analyzed by
The Urban Institute, National Center for Charitable Statistics (NCCS), http://
nccsdataweb.urban.org. Most financial data circa 2007, based on Form 990
information filed within the previous 24 months. Generally, religious
organizations are exempt from filing annual information returns with the IRS,
and groups with gross receipts of less than $25,000 were exempt from annual
IRS filings prior to 2008. In this report, “non-profits” or “501(c)(3)
organizations” includes both public charities and private foundations.
“Reporting public charities” refers to those 501(c)(3) organizations, excluding
private foundations, that must file annually with the IRS.
(3) Internal Revenue Service, Business Master File, October 2009. This chart
includes reporting public charities, private foundations and charities classified
by the IRS as exempt from annual reporting because their annual gross
receipts were under $25,000.
(3) Employment in America’s Charities: A Profile, by Lester M. Salamon and S.
Wojciech Sokolowski (Baltimore: Johns Hopins Center for Civil Society
Studies, December 2006, www.jhu.edu/ccss).
(4) New Jersey Department of Labor, NJ Nonfarm Wage and Salary Employment by Industry, Annual Averages 1990-2006.
(5) NCCS Core Files (Public Charities, circa 2007).
(6) IRS Statistics of Income, May 2009, www.irs.gov/pub/irs-soi/07in31nj.xls .
(7) National Center for Charitable Statistics, based on IRS Statistics of Income
Bulletin, July 2008.
(8) Corporation for National and Community Service, Volunteering in America
2009, New Jersey Summary, www.volunteeringinamerica.gov/NJ .
(9) Independent Sector, “Value of Volunteer Time,” www.independentsector.org.
(10) NCCS Core Files (Public Charities, circa 2007 and 1998).
(11) Center for Non-Profits, New Jersey Non-Profits 2009: Trends and Outlook,
March 2009; Center for Non-Profits, 2009 New Jersey Non-Profit Economic
Trends Update, October 2009.
732/227-0800
n
Fax 732/227-0087 n www.njnonprofits.org
Copyright © 2009 Center for Non-Profit Corporations, Inc.
4 Center for Non-Profits