Posts tagged ‘Culture and Economic Prosperity in Greater Philadelphia’

October 5, 2012

Impact of Nonprofit Sector: More than Most People Think

Do you know the impact of your nonprofit organization?

Chances are, I probably got you thinking about the people your organization benefits, its core mission.

The public recognizes that reputable nonprofit organizations benefit the people they serve. However, people tend not to think beyond that impact. Even among nonprofit professionals, maybe even you, the focus tends to be on those served directly.

However, nonprofit organizations have a far broader impact. Yes, hospitals heal patients; universities educate students; symphony orchestras entertain audiences; museums expand our minds; disease research foundations seek cures. But, beyond their core missions, nonprofit organizations do much more for society.

Despite being tax exempt, nonprofit organizations generate tax revenue. They employ people, and those people pay income taxes and sales taxes. They help support local businesses such as furniture retailers, office supply stores, restaurants, hotels, and many others. Those businesses, in turn, pay taxes and employ staff.

Simply put, nonprofit organizations have a profound economic ripple effect. Their benefit to society goes far beyond those they serve.

Recently, the Greater Philadelphia Cultural Alliance sought to quantify the economic impact of the arts and cultural nonprofit organizations in the Philadelphia area. The result of GPCA’s effort is the report The Arts, Culture and Economic Prosperity in Greater Philadelphia. 

Generating 44,000 full-time equivalent jobs, Philadelphia’s arts and culture sector has a profound $3.3 billion impact on the region’s economy including $1 billion to local residents in the form of paychecks and household income and $169 million in tax revenues for state and local governments, according to the research report.

The report also compares Philadelphia against 181 other cities, regions and communities to show how Philadelphia and its cultural community stack up against the rest of the country. Among participating regions, Southeastern Pennsylvania’s cultural sector ranks first in job creation, accounting for 11 jobs per thousand residents, nearly double the national average.

GPCA says that key findings in the report are:

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