The Economic Impact of NYC Nonprofit Organizations

July 2, 2020

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Introduction

New York City’s nonprofit sector is a critical driver of the City’s economy. Nonprofit organizations provide essential cultural, educational, health and social services, and employ a substantial percentage of the City’s private workforce. Nonprofits generate billions of dollars for the local economy and tax base each year through wages, employment taxes, programmatic and operating spending, and indirect employment. New York City Comptroller Scott Stringer’s Office, in collaboration with Nonprofit New York, analyzed the economic impact of the nonprofit sector and presents new data on its contributions in these pages. As Federal, State and City governments continue to take legislative and budgetary actions to promote our economic recovery from COVID-19, the role and stability of the nonprofit sector must be prioritized. Our City’s economy will depend on it.

$77.7 B/Yr
Contribution

to the NYC economy
(9.4% of NYC GDP)

662,025
Workers

Almost 18% of all NYC workers

13,062
Establishments

Nearly 5% of all businesses

NYC Nonprofit Establishments

Chart 1
Chart 2

Employment and Wages

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Chart 5
Chart 6

Who are NYC Nonprofit workers?

64%

Women

34%

Foreign-Born

56%

People of Color

Race And Ethnicity

Chart 7

Where do they live in NYC?

Age

Chart 8

What industries employ NYC nonprofit workers?

Top 10 Nonprofit Industries (68% of nonprofit employees)

Industry Nonprofit Employees Share of Total Nonprofit Employees
General Medical and Surgical Hospitals, and Specialty (Except Psychiatric and Substance Abuse) Hospitals 59,592 12.3%
Civic, Social, Advocacy Organizations, and Grantmaking and Giving Services 53,174 11.0%
Colleges, Universities, and Professional Schools, Including Junior Colleges 53,115 11.0%
Elementary and Secondary Schools 50,818 10.5%
Individual and Family Services 40,597 8.4%
Religious Organizations 21,272 4.4%
Home Health Care Services 13,610 2.8%
Child Day Care Services 11,555 2.4%
Museums, Art Galleries, Historical Sites, and Similar Institutions 11,508 2.4%
Outpatient Care Centers 11,381 2.4%

What do NYC nonprofit workers do?

Top 10 Nonprofit Occupational Groups (83% of nonprofit employees)

Occupational Group Nonprofit Employees Share of Total Nonprofit Employees
Education, Training, and Library Occupations 74,721 15.5%
Management Occupations 67,982 14.1%
Office and Administrative Support Occupations 62,144 12.9%
Healthcare Practitioners and Technical Occupations 47,193 9.8%
Community and Social Service Occupations 41,495 8.6%
Healthcare Support Occupations 31,371 6.5%
Business Operations Occupations 20,975 4.3%
Arts, Design, Entertainment, Sports, and Media Occupations 18,337 3.8%
Building and Grounds Cleaning and Maintenance Occupations 18,328 3.8%
Personal Care and Service Occupations 16,104 3.3%

Sources & Notes

The data for this report are drawn from the U.S. Bureau of Labor Statistics (BLS) Research Data on the Nonprofit Sector.  The latest available data is for 2017.  The BLS uses its Quarterly Census of Employment and Wages (QCEW) combined with the Internal Revenue Service’s Exempt Organization Business Master File (EOBMF).  The QCEW includes all employers who pay into their State’s unemployment insurance fund.  Only full-time employees of 501(c)(3) nonprofits are included in this data.

The number of reporting entities in the QCEW data is smaller than the number in the IRS EOBMF for two reasons: First, because only 501(c)(3) organizations are included (and not other types of exempt organizations, such as 501(c)(4)s), and second, because the reporting level for the QCEW is a “firm,” which is an economic unit that may include multiple establishments in the EOBMF file.

Demographic data for this report are drawn from American Community Survey (ACS) 1-year estimates published by the U.S. Census Bureau.  The latest available data is for 2018.  All data sourced from the ACS measures nonprofit workers living in New York City who reported being an “employee of a private not-for-profit, tax-exempt, or charitable organization.”

Estimate of the contribution to NYC gross domestic product is based on input-output final demand multipliers from the Bureau of Economic Analysis.

What are Nonprofits?

NYC nonprofits are government partners, service providers, cultural organizations, advocates and much more. More than half of NYC nonprofit establishments are religious, civic, and social services organizations.

Growing Nonprofit Employment

NYC nonprofit employment grew by 5.4% from 2013 to 2017. Total private employment in NYC grew by 12.2%.

NonProfit Employees by industry, 2017

NYC Nonprofits employ 662,025 people.

NonProfit Employment as Percent of Total Private Employment, 2017

Nonprofit employment is nearly 18% of total private employment in the City. Over one-third of Bronx workers are employed by nonprofits.

NonProfit Total Wages, 2017

NYC 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.

$242 billion
Aug
2022