Comptroller Stringer and Nonprofit New York Spotlight Nonprofit Sector’s Critical Contributions to New York City Economy

(New York, NY) – New York City Comptroller Scott M. Stringer and Nonprofit New York today released a new report analyzing the impact of the nonprofit sector on the local economy, creating a first-of-its-kind New York City Gross Domestic Product (GDP) figure for the nonprofit sector. The analysis provides a comprehensive overview of the state of this vital sector and its workforce before the COVID-19 pandemic, showing that the nonprofit sector employs over 660,000 people and generates more than $77 billion for the city’s economy – 9.4 percent of New York City GDP.

As part of this substantial contribution to the City’s economy, nonprofits employ almost 18 percent of New York City’s private workforce and account for nearly 5 percent of all businesses. They pay nearly $42 billion in wages each year and have workforces comprised primarily of women and people of color – making the sector an especially important employer as communities of color continue to be hard hit by COVID-19. As New York City grapples with the enormity of the path back from COVID-19, and the Federal government continues work on the HEROES Act in the coming weeks, Comptroller Stringer and Nonprofit New York urged that the needs of the nonprofit sector must be at the forefront of all relief and recovery efforts.

“The nonprofit sector cannot be sidelined during conversations about the city’s economic health and stability,” said Comptroller Stringer. “Our nonprofits provide essential cultural, educational, health and social services to millions of New Yorkers. While tough budgetary decisions must be made in this crisis, we cannot nickel and dime the very same nonprofits we will rely on to support our most vulnerable communities and we cannot afford to lose the jobs and revenue that the sector contributes. Any plan for New York City relief and recovery must prioritize our nonprofits who are the essential fabric of our social safety net.”

“At this profound and urgent moment, amidst a pandemic that has exposed the dangerous fragility of our social safety net, and an uprising for racial justice that has exposed deep and systemic racial inequality, New York’s nonprofits are a relentless, collective force for good,” said Meg Barnette, CEO of Nonprofit New York. “They have put their mission and communities first, managed immense change with no lead time, and found ways to respond to increased needs with diminished resources. But they cannot support families facing trauma, they cannot help organize for justice, they cannot lift up communities, indeed many cannot even survive without the relief, funding, and respect that reflect their critical role in our City’s economy and communities.”

The nonprofit sector was growing prior to COVID-19, with the number of nonprofit establishments increasing by 6.6% from 2013 to 2017, compared to 5.7% growth in all private New York City companies. There are more than 13,000 nonprofits with paid employees in New York City, or nearly 5% of all business entities.

However, since COVID-19 struck New York City, many nonprofits have suspended operations and some are at risk of closing permanently. Others have lost government funding or philanthropic contributions, have laid off staff, or have been forced to cut programs due to stay at home directives, insufficient staff and volunteers, or dwindling funding.

Drawing on U.S. Bureau of Labor Statistics data on the nonprofit sector, this new analysis revealed the following findings:

Nonprofits employ 662,025 people, or 18% of total private employment in the City

• More than one-third of Bronx workers are employed by nonprofits; 25% on Staten Island, 21.2% in Brooklyn, 15.7% in Manhattan, and 14.6% in Queens.
• Thirty-eight percent of nonprofit employees work in healthcare, 22% in education, and 19% in social services

New York City Nonprofits pay $42 billion in total wages per year

• Median nonprofit wage is $63,056, compared to $93,133 for all private sector workers in NYC

Most nonprofit workers are women and people of color

• 64% are women, 56% are people of color, 34% are foreign-born
• Nearly half (47%) of nonprofit workers are between the ages of 20 and 39

More than half of nonprofit establishments are religious, civic, and social services organizations

• Thirty-three percent are religious and civic organizations, 23% are social services organizations
• Another 13% of nonprofits are in the healthcare sector, 13% in education, and 5% in arts, entertainment, and recreation

Most nonprofit workers live in Manhattan and Brooklyn

• 31% live in Brooklyn, 29% in Manhattan, 21% in Queens, 16% in the Bronx, and 4% in Staten Island

Industries that employ nonprofit workers
New York City nonprofit employees work across a range of industries, from healthcare and education to social services and art and cultural institutions. The top ten industries employing 68% of nonprofit workers are below:

Nonprofit Occupational Groups
The top 10 nonprofit occupational groups accounting for 83% of nonprofit employees are below:

To read the full report, click here.

###