The Massachusetts Human Services & Nonprofit Sector Report

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THE MASSACHUSETTS HUMAN SERVICES &
NONPROFIT
SECTOR
Produced by:
With support from:
Human Service Providers Charitable Foundation
THE MASSACHUSETTS HUMAN SERVICES &
NONPROFIT
SECTOR
TABLE OF CONTENTS The Massachusetts Human Services & Nonprofit Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Nonprofit Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Sources of Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Fields of Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Human Service Demographics by Type of Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Total Expenditures of Nonprofits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Human Services Geographic Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Nonprofit Geographic Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Massachusetts Foundations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 Charitable Contributions of Itemizers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
ACKNOWLEDGEMENTS
A number of organizations and people have made the production of this report possible. The Providers’ Council would like to thank the Human Services Providers Charitable Foundation, Inc. and the Public Consulting Group for their financial support in producing this report, which is so important to the human service and nonprofit sector. Without the financial backing from those organizations, the production and distribution of this report would not have been possible. The Council also must thank the National Council of Nonprofit Associations and the National Center for Charitable Statistics. The NCNA helped guide the design of this report and the NCCS provided many of the statistics used in this report. Both provided invaluable assistance that helped the Council in publishing a comprehensive report. The Council also needs to thank its staff, particularly Sara Morrison Neil, for her research and production of this report, and Bill Yelenak, for his review and editing.The document is a massive undertaking with many precise computations, and the staff at the Providers’ Council worked to provide the right information in all charts, graphs and text throughout. Lastly, the Council thanks you for reading this report, and our board and staff hopes that it helps to educate those decision-makers in the state about the importance of both human service and nonprofit organizations to the quality of life in Massachusetts. Sincerely,
Michael D.Weekes, President/CEO The Providers’ Council
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The Massachusetts Nonprofit Sector & Human Services
More than Charity
Nonprofit organizations also:
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Help to define the character of Massachusetts communities and improve the quality of life; active nonprofits provide strong incentives for remaining in or relocating to a given community. Help improve the work force. Many people gain valuable job training and work experience by volunteering with and working for nonprofit organizations; Attract foundation and federal grants into the state; Frequently hire underemployed or unemployed workers and often reduce labor force inequalities by offering upward mobility to otherwise disadvantaged groups; Provide a forum for concerned residents of Massachusetts to get involved and engaged in their local and state communities through volunteerism.
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he nonprofit sector in Massachusetts is large, diverse and growing. Nonprofits help create a caring community – one that strengthens and enhances the quality of life in this state.The tragedies of Hurricane Katrina and the Sept. 11, 2001 terrorist attacks underscored the importance of nonprofits that provide life-saving services during and after a disaster. After those events, it was apparent how many people depend on the services that nonprofits provide. But nonprofits do not only serve citizens and communities in times of crisis; they also address issues of concern every single day. Nonprofits in Massachusetts include emergency shelters, environmental groups, hospitals, universities, youth clubs and organizations working with the elderly, veterans and people with disabilities, to name a few.
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was followed by Arts, Culture and Recreation organizations and Education and Research organizations.
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Higher education institutions and hospitals particularly affect the finances of reporting public charities in Massachusetts.Institutions of higher education represent only 1 percent of reporting charities but account for 57 percent of all assets and 21 percent of expenses. Hospitals, also representing 1 percent of all reporting charities, account for 12 percent of assets and 31 percent of expenses. Human service organizations comprise almost a quarter of the sector, but have a lower proportion of assets. They account for $6.8 billion in assets or 4 percent of total charitable nonprofit assets in Massachusetts. Human services accrued $5.6 billion in expenditures, almost 11 percent of all nonprofit expenses. While nonprofits overall realized a 50 percent increase in revenues and expenses since 1994, human service organizations saw an increase of 75 percent. Massachusetts’ foundations represent 4 percent of all United States foundations, 2.5 percent of all United States foundation assets and 2.7 percent of all United States foundation giving.
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This report summarizes data on Massachusetts’ nonprofits with particular attention to human services. Much attention is given to the condition of for-profit business and government in our state, but nonprofits fill a critical role as an independent sector.The primary sources for these data are the 2004 annual reports filed with the IRS by charitable nonprofits with more than $25,000 in annual gross receipts. This report is intended to educate industry professionals, policymakers, the media and the public on the size and scope of Massachusetts’ nonprofit sector and the vital role these organizations play.This report is also intended to build awareness of charitable giving in our state. Some highlights of this report, based on data reported in 2005 (the most recent data available), are:
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There were 9,713 reporting charitable nonprofits in 2004. Over the last 10 years, the number of reporting charitable nonprofits in Massachusetts has increased by 51 percent. Nationally, the nonprofit sector grew 68 percent between 1993 and 2003. Human service employment in Massachusetts grew 18 percent and added almost 15,000 jobs to the economy between 1999 and 2004, while overall labor employment dropped in Massachusetts. Expenditures by reporting charitable nonprofits totaled $52.1 billion, a 56 percent increase since 1994, and they held $161.5 billion in assets, a 141 percent increase since 1994. Human service organizations accounted for the largest percentage of charitable nonprofits in Massachusetts; this
These numbers, however, do not tell the whole story. In addition to the reporting 501(c)(3) organizations, there are 12,182 additional charitable organizations not required to file with the IRS because their limited finances exempt them from the reporting requirements. These include booster clubs, local PTAs, youth soccer, little leagues and numerous other small organizations that play an active role in our communities. Charitable nonprofits benefit us in ways that cannot easily be quantified.They are tools for community building, fostering a civil society and strengthening our social fabric, as well as essential to improving the quality of life in our state. Massachusetts’ residents have placed and will continue to place their trust in the responsiveness, performance and quality of services provided by these organizations.The Human Services Providers Charitable Foundation, Inc. and the Massachusetts Council of Human Service Providers, Inc. are pleased to present this report. It was completed in collaboration with the Urban Institute’s National Center for Charitable Statistics and the National Council of Nonprofit Associations in order to promote a better understanding and appreciation of our Commonwealth’s nonprofit community.
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Copyright©2007 by Massachusetts Council of Human Service Providers, Inc., all rights reserved.
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Nonprofit Demographics
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There were 9,713 reporting charitable nonprofits in 2004, a 4 percent increase from 2003. Over the last 10 years, however, the number of reporting charitable nonprofits in Massachusetts has increased by 51 percent. (Private foundations are not included but are discussed on page 11. Religious congregations are not required to report and are also not included.) Reporting charitable nonprofits had $52.1 billion in expenditures in 2004 (Fig. 1a). Higher education institutions and hospitals particularly affect the finances of reporting public charities in Massachusetts. Institutions of higher education represent only 1 percent of reporting charities but account for 57 percent of all assets and 21 percent of expenses. Hospitals, also representing 1 percent of all reporting charities, account for 12 percent of assets and 31 percent of expenses. The value of assets held reached $161.5 billion in 2004, which is a 141 percent increase from $52.7 billion in 1994 after adjusting for inflation (Fig. 1a). The number of human service organizations increased by 13 percent from 2003 to 2004 and has grown 42 percent over the past 10 years. Human service provider expenditures grew from $5 billion in 2003 to $5.6 billion in 2004, about a 12 percent increase. From 1994 to 2004, expenditures by human service providers increased by 76 percent after adjusting for inflation, and revenues increased by about the same amount. Nationally, the value of nonprofits’ assets and expenditures in Massachusetts are ranked third highest, following California and New York.Yet Massachusetts nonprofits rank seventh nationally for the number of nonprofits. Overall, charitable nonprofits saw an increase of approximately 50 percent in revenues and expenses between 1994 and 2004 after adjusting for inflation.
FIGURE 1a: Reporting Charitable Nonprofits in Massachusetts, 1994 – 2004
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Source: National Center for Charitable Statistics, Urban Institute.
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FIGURE 1b: Reporting Charitable Nonprofits in the Human Service Field in Massachusetts, 1994 – 2004
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Source: National Center for Charitable Statistics, Urban Institute.
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Sources of Revenue
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FIGURE 2a: Sources of Revenue for Reporting Charitable Nonprofits, 2004
Charitable nonprofits in Massachusetts receive 65 percent of their revenue from fees for services and goods. (Fig. 2a). Approximately 10 percent of total revenues for reporting charitable nonprofits came from “other” sources of revenue, such as interest on investments or sale of assets. Contributions made by individuals, corporations and foundations in 2004 comprised 24 percent of total revenues. The sources of revenue for human service providers in Massachusetts in 2004 closely resembles that of charitable nonprofits overall in 2004. Sixty-nine percent of their revenue is from program service revenue, or fees paid for services and goods, while contributions made by individuals, corporations, and foundations accounts for 27 percent of revenue. “Other” sources of revenue received by human service providers, however, is somewhat lower than that for charitable nonprofits overall, with this type of revenue only accounting for 4 percent of total revenue. Contributions from individuals, corporations and foundations may comprise a larger part of nonprofit organizations’ income in 2004 than in 2001. The contributions income category for nonprofits increased from 14 percent to 24 percent, while the “other” income category decreased from 31 percent to ten percent. In the human service field, the “other” category of income reduced from 25 percent in 2001 to four percent of all income by 2004, while the contributions increased from 10 percent to 27 percent, and program revenue increased just slightly from 65 percent to 69 percent. Since this data is taken from the IRS 990 forms, a change in the 990 instruction form may have caused this change. In 2004, the 990 instructions specified that in-kind donations should also be included under contributions.
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Source: National Center for Charitable Statistics, Urban Institute.
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FIGURE 2b: Sources of Revenue for Reporting Charitable Nonprofits in the Human Service Field in Massachusetts, 2004
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Source: National Center for Charitable Statistics, Urban Institute.
IRS DEFINITIONS
Contributions from individuals, corporations and foundations. In 2004 the 990 form instructions specified that all donated items should be reported under this category, as well as all financial contributions. Government grants and contracts A grant or other payment from a governmental unit is treated as a contribution if its primary purpose is to enable the donee to provide a service to, or maintain a facility for, the direct benefit of the public rather than to serve the direct and immediate needs of the grantor, even if the public pays part of the expense of proving the service or facility. Examples: 1. Payments under government programs to nursing homes or homes for the aged in order to provide health care other services to their residents or 2. Payments to child placement or child guidance organizations under government programs serving children in the community. The general public gets the primary and direct benefit from these payments and any benefit to the governmental unit itself would be indirect and insubstantial as compared to the public benefit. Program Service Revenue Program Service Revenue includes income earned by the organization for providing a government agency with a service, facility or product that benefited that government agency directly rather than benefiting the public as a whole. Examples: A hospital would report all of its charges for medical services (whether paid directly by the patients or through Medicare, Medicaid, or other third-party reimbursement) and related charges for services. Program Service Revenue also includes income from programrelated investments. These investments are made primarily to accomplish an exempt purpose of the investing organization rather than to produce income. Examples are scholarship loans and low interest loans to charitable organizations, indigents, or victims of disaster or program related rental income. Other Includes membership dues and assessments, interest on savings and temporary cash investments, dividends and interest form securities, gross rent, other investment income, gains from sale of assets. (Internal Revenue Service, 2004 Form 990 Instructions, p.19-20)
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Fields of Service
Human Service organizations make up the largest proportion of Massachusetts’ reporting charitable nonprofits (25 percent). These organizations provide a variety of services ranging from day care services to job training, homeless shelter and soup kitchens (Fig. 3). The Arts, Culture and Recreation and the Education and Research fields have the next highest percentage of organizations in Massachusetts, each accounting for approximately one-fifth of the Massachusetts charitable nonprofit sector. Arts, Culture and Recreation organizations include museums, historic preservation programs, art and performing art schools, media organizations, summer camps and sports and recreation clubs. Education and Research organizations primarily include schools, including elementary, secondary and higher education institutions and research institutions (Fig. 3). Religious-related charitable nonprofits that provide specific programs, such as mental health services or day care, are categorized with organizations providing similar services that are not religious-affiliated. Nearly 25,000 charitable nonprofits are registered as tax exempt under 501(c)(3), but just over half are required to file an annual return with the IRS because they meet the filing requirement of over $25,000 in annual gross receipts. In addition, some of the 25,000 charitable nonprofits that are registered and not filing a return may no longer be in existence.
Source: National Center for Charitable Statistics, Urban Institute.
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Figure 3: Reporting Charitable Nonprofits in Massachusetts by Field, 2004
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Figure 4: The Massachusetts Nonprofit Sector, 2004
Registered with IRS Filing Annual IRS (over $5,000 in Report (over $25,000 gross receipts) in gross receipts) 24,962 4,068 20,894 10,183 1,854 1,832 1,425 5,072 12,780 3,067 9,713 2,988 344 535 634 1,475
Tax-Exempt Organizations Under 501(c)(3)* Private Foundations Charitable Nonprofits Under Other 501(c) Subsections 501(c)(4) social welfare 501(c)(5) labor/agricultural 501(c)(6) business leagues Other exempt organizations
*Does not include religious congregations.
Source: National Center for Charitable Statistics, Urban Institute.
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Human Service Demographics by Type of Service
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Figure 5: Number, Expenditures, and Assets of Reporting Charitable Nonprofits in the Human Service Field in Massachusetts by Type of Service, 2004
Source: National Center for Charitable Statistics, Urban Institute.
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The 2,402 human service organizations represent a quarter of all reporting charitable nonprofits in Massachusetts during 2004 (Fig. 3). These organizations provide a broad spectrum of services including youth development, childcare, housing services and family support.
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Just over a quarter of human service organizations provide employment and housing services, making it the largest human service field in Massachusetts. These organizations also account for the largest proportion of assets – 35 percent (Fig. 5).
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Organizations providing services for the elderly, while representing only 6 percent of the field, account for over 16 percent of total assets and about 11 percent of total expenses.
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Total Expenditures of Nonprofits
Seventy-nine percent of reporting charitable nonprofits in Massachusetts (7,632 organizations) had annual expenditures under $1 million (Fig. 6a). This is reflected across the country, where 77 percent of nonprofits had annual expenditures under $1 million. In contrast, only 9 percent of charitable nonprofits (884 organizations) reported annual expenditures greater than $5 million (Fig. 6a). These organizations, however, account for 90 percent of total expenditures for the Massachusetts charitable nonprofit sector. Not reflected in Figure 6a are the 11,181 small charitable nonprofits registered with the IRS but not required to file (52 percent of the total number of charitable nonprofits in Massachusetts). This group includes organizations such as youth sports leagues and rescue squads. In 2004, 70 percent of human service organizations (1,692) had expenditures of less than $1 million. In addition, over half of all human service organizations had expenditures of less then $500,000 (Fig. 6b). A greater percent (42 percent) of all nonprofits have budgets less than $100,000 than human service providers (28 percent). MA NONPROFITS
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Figure 6a: Reporting Charitable Nonprofits in Massachusetts by Expenditure Level, 2004
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Source: National Center for Charitable Statistics, Urban Institute.
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Figure 6b: Reporting Charitable Nonprofits in the Human Service Field in Massachusetts by Expenditure Level, 2004
Source: National Center for Charitable Statistics, Urban Institute.
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Human Services Geographic Distribution
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Figure 7a: Top 20 Locales by Reporting Charitable Human Service Providers, 2004
Number of Providers 292 25 101 58 31 32 27 38 40 42 33 27 34 30 26 31 32 75 28 80
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The top four locations with the most human service providers are Boston, Cambridge, Worcester and Springfield. Twelve percent of all human service organizations in Massachusetts are located in Boston. These organizations account for about a fifth of all assets and expenditures in the Massachusetts human service field. Boston and Cambridge combined account for 16 percent of human service organizations, nearly a quarter of total assets and over a fifth of total expenditures in the field.
City Boston Brockton Cambridge Dorchester Fall River Framingham Holyoke Jamaica Plain Lawrence Lowell Lynn New Bedford Newton Pittsfield Quincy Roxbury Somerville Springfield Waltham Worcester
Assets $1,369,470,038 $78,118,345 $298,759,878 $99,830,760 $58,865,551 $97,384,609 $55,076,674 $95,502,743 $100,244,256 $58,041,884 $104,999,792 $52,760,111 $90,195,202 $103,733,448 $110,149,065 $127,884,797 $83,724,159 $329,304,277 $41,550,641 $305,428,305
Revenues $1,074,694,540 $106,427,877 $181,484,224 $67,309,138 $81,327,075 $162,633,454 $56,753,081 $74,379,425 $167,019,099 $99,642,912 $120,378,923 $94,082,800 $122,049,940 $86,870,372 $87,021,220 $63,304,158 $86,865,430 $253,941,673 $58,781,000 $288,365,352
Expenditures $1,005,456,439 $104,285,589 $169,244,522 $62,941,125 $79,758,254 $159,259,967 $56,418,960 $73,134,506 $162,646,274 $94,584,906 $115,679,367 $94,668,189 $120,791,348 $85,783,596 $84,844,222 $59,785,641 $84,803,914 $252,134,985 $57,125,446 $284,648,814
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Source: National Center for Charitable Statistics, Urban Institute.
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Figure 7b: Reporting Charitable Human Service Providers in Massachusetts by County, 2004
Number of Providers 96 73 121 20 246 29 154 63 547 16 207 91 536 203 2,402 Assets $94,276,517 $223,606,285 $224,174,173 $26,475,940 $666,309,650 $35,321,197 $541,320,806 $165,074,821 $1,443,539,257 $16,546,222 $735,422,886 $167,167,085 $1,929,930,569 $558,844,914 $6,828,010,322 Revenues $94,092,194 $171,335,317 $288,724,456 $9,647,835 $668,953,356 $31,910,918 $422,881,158 $188,630,679 $1,258,671,813 $4,729,702 $531,163,107 $165,139,123 $1,409,094,026 $587,284,506 $5,832,258,190 Expenditures $90,883,023 $167,064,251 $286,286,994 $9,232,905 $645,257,529 $30,414,556 $429,671,711 $185,285,487 $1,211,437,563 $4,622,652 $523,601,015 $159,595,853 $1,327,030,026 $573,400,683 $5,643,784,248
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Approximately 23 percent of Massachusetts’ human service providers reside in Middlesex County. These organizations account for just over one-fifth of the field’s expenses, assets, and revenues. Suffolk County accounts just over one-fifth of human service providers in Massachusetts. These organizations account for 28 percent of assets and almost a quarter of revenues and expenses. Together, Middlesex County and Suffolk County account for almost half the total number of human service providers, and almost half of total expenses, assets, and revenues in Massachusetts.
County Barnstable Berkshire Bristol Dukes Essex Franklin Hampden Hampshire Middlesex Nantucket Norfolk Plymouth Suffolk Worcester Total
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Source: National Center for Charitable Statistics, Urban Institute.
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Nonprofit Geographic Distribution
The top four locations with the highest number of nonprofits are Boston, Cambridge, Worcester and Springfield. Boston accounts for 14 percent of reporting charitable nonprofits, a quarter of assets and just over a third of revenues and expenses in Massachusetts. Cambridge – while it hosts only 5 percent of reporting charitable nonprofits in Massachusetts, 14 percent of nonprofit revenues and just over a tenth of nonprofit expenses – accounts for 45 percent of nonprofit assets in Massachusetts. Together, Boston and Cambridge account for almost one-fifth of reporting charitable nonprofits, over two-thirds of nonprofit assets and almost half of the revenues and expenses. MA NONPROFITS
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Figure 7c: Top Locales Reporting Charitable Nonprofits in Massachusetts, 2004
Number of Providers 85 87 1,402 116 437 85 127 85 117 104 89 102 93 122 84 109 82 177 114 228 Assets $1,800,840,416 $699,527,396 $40,837,967,373 $297,650,066 $72,624,896,328 $527,388,914 $258,096,250 $214,135,838 $342,443,927 $207,625,345 $512,968,547 $421,203,746 $724,458,945 $792,183,002 $312,431,667 $658,304,860 $1,703,917,635 $1,833,041,589 $1,378,985,159 $4,745,620,416 Revenues $377,691,898 $446,234,107 $20,382,031,891 $193,354,876 $8,197,538,150 $237,480,025 $207,409,121 $424,627,508 $316,482,081 $117,444,090 $132,328,182 $414,898,589 $629,758,103 $1,388,612,450 $236,372,686 $553,610,654 $694,858,567 $1,643,932,536 $561,862,618 $3,720,245,417 Expenditures $300,579,911 $426,957,896 $17,526,736,912 $174,429,092 $5,968,840,741 $222,509,040 $198,083,561 $414,579,179 $259,182,141 $116,239,234 $125,853,630 $396,204,660 $599,585,200 $1,356,954,086 $230,745,458 $535,741,753 $649,541,331 $1,585,590,258 $515,569,318 $3,479,460,255
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Locale Amherst Beverly Boston Brookline Cambridge Concord Dorchester Fall River Framingham Jamaica Plain Lexington Lowell New Bedford Newton Northampton Pittsfield Somerville Springfield Waltham Worcester
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Source: National Center for Charitable Statistics, Urban Institute.
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A quarter of all reporting charitable nonprofits reside in Middlesex County (2,471 organizations). Suffolk County, with 21 percent of reporting charitable nonprofits, is a close second (2,014 organizations). Middlesex County accounts for over a quarter of revenues (28 percent), more than half of assets (53 percent) and about a quarter of expenses (26 percent). Reporting charitable nonprofits in Suffolk County account for more than a third of the revenues (37 percent) and expenses (36 percent) and just over a quarter of total assets (27 percent) in Massachusetts. Together, Suffolk County and Middlesex County represent almost half of the nonprofits in the Commonwealth, over three-quarters of their assets and about two-thirds of total revenues and expenses.
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Figure 7d: Reporting Charitable Nonprofits in Massachusetts by County, 2004
Number of Nonprofits 465 301 439 86 906 133 430 320 2,471 62 889 419 2,014 778 9,713 Assets $1,609,267,953 $3,449,980,791 $1,972,614,398 $161,084,300 $4,266,437,337 $956,572,859 $2,698,906,211 $4,452,663,248 $84,955,849,400 $293,206,883 $6,470,175,034 $945,483,574 $42,811,413,690 $6,439,245,404 $161,482,901,082 Revenues $1,028,052,261 $1,111,681,716 $1,694,769,550 $62,572,958 $2,623,819,417 $283,887,686 $2,276,563,236 $1,125,387,164 $16,174,981,987 $56,752,689 $4,618,235,220 $944,894,133 $21,879,695,168 $4,899,066,226 $58,780,359,411 Expenses $966,886,911 $970,438,616 $1,619,022,918 $57,009,210 $2,489,514,218 $270,922,336 $2,228,430,415 $990,103,764 $13,496,132,044 $45,335,925 $4,470,483,565 $918,134,132 $19,008,449,278 $4,602,629,253 $52,133,492,585
County Barnstable Berkshire Bristol Dukes Essex Franklin Hampden Hampshire Middlesex Nantucket Norfolk Plymouth Suffolk Worcester Total
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Employment
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Figure 8: Percent of Nonprofit Employers per Industry
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Nonprofits comprise a large part of a few industries in Massachusetts. 90 percent of employers in the education industry are nonprofits, almost 70 percent of employees in social assistance industry are nonprofits and over 50 percent of health care employers are nonprofits (Fig. 8). These particular industries are important to the health and vitality of our families and communities.
Source: 2004 County Business Patterns, US Census
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Figure 9: Human Services Employment in Massachusetts
Employees 2004
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Human Services
Residential Mental Retardation, Mental Health and Substance Abuse Facilities Individual and Family Services Community Food and Housing, and Emergency and Other Relief Services Vocational Rehabilitation Services Child Day Care Services Total
Source: 2004 County Business Patterns, US Census
21,054 38,107 5,557 8,747 23,976 97,441
There are almost 100,000 human service employees in Massachusetts (Fig. 9). Human service employment is growing while employment in other industries is declining. Nationally, manufacturing employment decreased 17 percent between 1999 and 2004, and in Massachusetts, the decrease was even higher – almost 30 percent of employees left jobs in manufacturing. At the same time, human services employment has grown 25 percent nationally and in 18 percent in the state. (Fig. 10 and 11)
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Employment
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NONPROFIT EMPLOYMENT GROWTH
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Figure 10: Comparison of Employment Growth in Select Massachusetts and US Industries
Number of Employees US 1999 2,213,177 11,984,168 14,476,628 16,659,930 Number of Employees US 2004 2,757,662 12,339,123 15,351,431 13,821,976 Percent Change 25% Increase 3% Increase 6% Increase 17 % Decrease Number of Employees MA 1999 82,529 366,236 349,741 404,495 Number of Employees MA 2004 97,441 398,816 369,537 294,278 Percent Change 18% Increase 9% Increase 6% Increase 27% Decrease
Figures 10 and 11 reflect employment for both forprofit and nonprofit human service employers. This is the most recent employment data available. As indicated in Figure 8, the majority of the health, human services and education employers are nonprofits so the majority of employees are probably employed by nonprofits in these particular sectors. Massachusetts employment overall has only increased by less than one third of a percent, since 1999 (Fig. 11). Human services is one of the industry sectors that did increase significantly. Some other sectors showed similar rate of growth but only added hundred of jobs, like mining and forestry. Excluding those industries, human services, educational services, arts and entertainment, and construction were the top four industries that showed higher rates of growth and added thousands of jobs to the economy. Human services employment grew 18 percent, and added almost 15,000 jobs. Of those higher employment growth industries, educational services and human services are comprised mostly of nonprofit employers. According to the Economic Analysis Department in the Massachusetts Division of Unemployment Assistance, the projected fastest growing occupations between 2000-2010 include positions in computer, health and social services industries. Between 2000 and 2010, the number employed as personal and home care aides, and social and human service assistants is projected to grow by 45 percent. The number of home health aides is projected to grow by 42 percent in the same time period, and mental health and substance abuse social workers would increase by 33 percent. While these figures reflect the total growth in these occupations in for-profit and government as well as nonprofits, it shows growth that will probably have a large impact on human service providers in this decade. (Fig. 12)
Industry Human Services Health Retail Manufacturing
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Source: 2004 County Business Patterns, US Census
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Figure 11: Employment Growth in Select Massachusetts Industries
1999 2,971,052 1,010 1,080 14,707 111,489 404,495 148,348 349,741 71,203 115,593 207,677 44,466 214,495 78,509 156,481 444,092 82,529 39,613 233,332 2004 2,979,690 1,192 1,389 12,273 129,607 294,278 143,292 369,537 78,681 102,871 213,848 48,504 236,527 81,618 182,586 483,615 97,441 46,411 245,121 Percent change 0.29% 18.02% 28.61% -16.55% 16.25% -27.25% -3.41% 5.66% 10.50% -12.37% 2.97% 9.08% 10.27% 3.96% 16.68% 8.90% 18% 17.16% 5.05% Change in Number of Employees since 1999 8,638 182 309 -2,434 18,118 -110,217 -5,056 19,796 7,478 -12,722 6,171 4,038 22,032 3,109 26,105 39,523 14,912 6,798 11,789
Massachusetts Industry Total Forestry, fishing, hunting, and agriculture Mining Utilities Construction Manufacturing Wholesale trade Retail trade Transportation & warehousing Information Finance & insurance Real estate & rental & leasing Professional, scientific & technical services Management of companies & enterprises Educational services Health care and social assistance Human Services Arts, entertainment & recreation Accommodation & food services
Source: 2004 County Business Patterns, US Census
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Figure 12: The projected fastest growing occupations
H Personal and Home Care Aides 45% H Social and Human Service Assistants 45% H Home Health Aides 42% H Mental Health and Substance Abuse Social Workers 33%
Source: “The Massachusetts Job Outlook through 2010” Economic Analysis Department, , Massachusetts Division of Unemployment Assistance.
The Providers’ Council
Massachusetts Foundations
I
11
Figure 13: Overview of Massachusetts Foundations, 2004
Number of Foundations Assets Total Giving
N
Foundation Type
There were 2,695 foundations in Massachusetts in 2002 and the number increased by 2.1 percent to 2,752 in 2004. The total assets of Massachusetts’ foundations were over $13 billion and their giving totaled over $830 million. The 2,752 foundations in Massachusetts represented about 4 percent of all foundations in the United States in 2002.
N
Independent Foundations Corporate Foundations Community Foundations Operating Foundations Total in Massachusetts Total in United States Massachusetts as % of U.S.
Source: Foundation Center.
2,427 122 13 190 2,752 67,736 4.06%
$10,407,480,116 $693,514,544 $1,009,535,316 $899,613,646 $13,010,143,622 $510,480,908,000 2.55%
$626,553,066 $63,034,315 $86,694,456 $57,538,817 $833,820,654 $31,843,907,000 2.6%
N
I
Figure 14: Top 10 Massachusetts Foundations by Assets, 2004
N
Foundation Name
Assets
Foundation Type
Barr Foundation Boston Foundation, Inc. Yawkey Foundation II Edward C. Johnson Fund Fidelity Foundation The Oak Foundation U.S.A. The John Merck Fund The Highland Street Connection Amelia Peabody Foundation Amelia Peabody Charitable Fund Total
Source: Foundation Center.
$760,765,310 $571,623,382 $367,849,121 $280,101,038 $258,548,760 $241,476,885 $194,017,773 $174,287,765 $173,027,835 $145,657,024 $3,167,354,893
Independent Community Independent Independent Corporate Independent Independent Independent Independent Independent
The top 10 foundations had more than $3 billion in assets, which was about 24 percent of the total, 13 billion dollars, for Massachusetts’ foundations.
I
Figure 15: Top 10 Massachusetts Foundations by Total Giving, 2004
N
Foundation Name
Total Giving
Foundation Type
Boston Foundation, Inc. Genzyme Charitable Foundation, Inc. Barr Foundation Edward C. Johnson Fund Yawkey Foundation II The Oak Foundation U.S.A State Street Foundation Fidelity Foundation The John Merck Fund The Highland Street Connection Total
Source: Foundation Center.
$64,092,145 $39,941,220 $34,199,059 $19,368,388 $17,343,500 $13,453,957 $12,304,157 $11,946,743 $11,116,300 $9,191,889 $232,957,358
Community Operating Independent Independent Independent Independent Corporate Corporate Independent Independent
The top 10 foundations gave over $230 million or 28 percent of total giving, $833 million, by Massachusetts’ foundations.
The Providers’ Council
12
Charitable Contributions of Itemizers
The average charitable contribution of those who itemized deductions was $3,465 in Massachusetts in 2004. Compared to $2,913 average charitable contributions of itemizers in 2001, and after adjusting for inflation, this is almost a twelve percent increase in average charitable contributions of itemizers. The percent of income contributed by Massachusetts itemizers on average was about 2 percent in 2004, slightly lower than the national average of 2.3 percent, and lower than in Massachusetts in 2001 when itemizers contributed 2.74 percent of their income. Nationally, contributions of itemizers also decreased between 2001 and 2004, from 3.58 percent to 2.3 percent.
I
N
Figure 16: Charitable Contribution of Itemizers, 2004
N
N
Source: National Center for Charitable Statistics, Urban Institute
I
Figure 17: Charitable Contribution of Itemizers as a Percent of Income, 2004
Source: National Center for Charitable Statistics, Urban Institute
The Providers’ Council
Massachusetts Council of Human Service Providers, Inc.
MCHSP BOARD OF DIRECTORS
• Judy Beckler St. Mary’s Women and Children’s Center • Barbara Brown Amego, Inc. • Charles Carr Northeast Independent Living Program • James Cassetta Work, Inc. • Robert Coard Action for Boston Community Development • Stan Connors Bay Cove Human Services • Ralph Cooper Veterans Benefits Clearinghouse • Lyndia Downie Pine Street Inn • Danielle Ferrier Rediscovery, Inc. • Tom Fisher Community Care Services • Donald Fletcher The Association for Community Living • John Gardiner Worcester Comprehensive Child Care Services • Joanne Hilferty Morgan Memorial Goodwill Industries • Diane Iagulli Delta Projects, Inc. • David Jordan Seven Hills Foundation • Donald Kozera Human Resources Unlimited • Gary Lamson Vinfen Corporation • John Larivee Community Resources for Justice • Leslie Laurie Tapestry Health • Joseph Leavey Communities for People • William Lyttle The Key Program • Steve McCafferty Children’s Study Home • Sheri McCann Central Middlesex Arc • Gerard McCarthy North Shore Arc • Sandra McCroom Roxbury Youthworks, Inc. • Thomas McLaughlin Grant Thornton, LLP • Michael Moloney Horace Mann Education Associates • Dan Nakamoto North American Family Institute • Pamela Ogletree Children’s Services of Roxbury • Andy Pond Justice Resource Institute • Dora Robinson MLK Jr. Community Center • Orlando Rodriguez Centro Las Americas • William Rodriguez La Alianza Hispana, Inc. • Randal Rucker Family Service of Greater Boston • Donna Sabecky Community Connections • Kenneth Singer Berkshire County Arc • Susan Stubbs ServiceNet, Inc. • William Taylor Advocates, Inc. • Sue Todd Pathways for Children • James Ward Early Childhood Centers of Greater Springfield • Gerry Wright Community Care Center
MCHSP OFFICERS
Chair: Barbara Brown Chair Elect: John Larivee Vice-Chair: Randal Rucker Treasurer: Gary Lamson Assistant Treasurer: Sue Stubbs Clerk: Sheri McCann Assistant Clerk: William Taylor President Emeritus: Gerald Wright President: Michael D. Weekes
STAFF
• Tracy Jordan Fiscal Coordinator • Sara Morrison Neil Research and Education Associate • Alberto Perez Administrative Assistant • Ruth Perry Membership Development Associate • Christine Power Director of Membership Development • Michael Ripple Director of Operations • E. Jane Smith Editor, The Provider • Michael Weekes President/CEO • Bill Yelenak Communications/Development Manager
About the Massachusetts Council of Human Service Providers, Inc.
The Massachusetts Council of Human Service Providers (The Providers' Council) is a statewide association of private, community-based, care-giving organizations which provide educational, health and human services.The Providers' Council provides high quality public policy advocacy, communications and information, education and training, research and business partnership services to add value to our members and to help them reach their objectives. The Providers' Council was created in 1975 to influence and direct policy change. As the state's largest human services trade association, it is widely recognized as the official voice of the private provider industry. As a membership organization,The Providers' Council is supported primarily by its members and its business partners. It is governed by a diverse board of directors who are committed to the values of the corporation and who support our broader community of caregivers. Our core values of fairness, respect and dignity for the disenfranchised are the cornerstone to our history of sustainable community-based solutions. Our mission, to promote a healthy, productive and diverse human service industry, is bolstered by these essential values. To find out about membership benefits and our current events go to our website at www.providers.org.
Providers’ Council 250 Summer Street, Suite 237 Boston, MA 02210 617.428.3637 617.428.1533 fax www.providers.org
About the Human Services Providers Charitable Foundation, Inc.
The Human Services Providers Charitable Foundation, Inc. a 501(c)(3) organization, is the Providers' Council's research and education arm. Its mission is to promote the vision and values of community care, improve community care practices, encourage leadership development, and disseminate information which informs public policy and enhances public awareness. The Foundation is funded by the tax deductible gifts of corporations, foundations and individuals. If you would like to support our work, please send your tax deductible gift to: The Human Services Providers Charitable Foundation, Inc., 250 Summer Street, Suite 237, Boston, MA 02210 For more information call 617-428-3637.
About the Public Consulting Group
Public Consulting Group (PCG) is a Boston-based consulting company that provides business solutions exclusively to the health care, human services and education industries. For twenty years, PCG has assisted private providers, state and local agencies, school systems and the federal government to improve financial, technology and mission-critical program outcomes. For more information, visit the PCG website at PublicConsultingGroup.com.
About the National Council of Nonprofit Associations
With a mission to advance the vital role and capacity of the nonprofit sector in civil society and support and give voice to state and regional associations of nonprofit organizations, the National Council of Nonprofit Association (NCNA) serves as a credible voice and champion for the nonprofit sector. A 501(c)(3) membership-based organization, NCNA represents a network of more than 40 state and regional associations of nonprofits serving over 22,000 charities nationally. For more information please visit www.ncna.org
About National Center for Charitable Statistics
The National Center for Charitable Statistics (NCCS) is the national repository of data on the nonprofit sector in the United States. Its mission is to develop and disseminate high quality data on nonprofit organizations and their activities for use in research on the relationships between the nonprofit sector, government and the broader civil society. Working closely with the IRS and other government agencies, private sector service organizations and the scholarly community, NCCS builds compatible national, state and regional databases and develops uniform standards for reporting on the activities of charitable organizations. The Center was established in 1982 and has been a project of the Center on Nonprofits and Philanthropy (CNP) at the Urban Institute since July 1996, when it was transferred from the research division of the Independent Sector. For more information, visit www.nccs.urban.org.
This document contains information and statistics from many sources, including the National Center for Charitable Statistics, Urban Institute; the 2004 United States Census (County Business Patterns); the Massachusetts Division of Unemployment Assistance; and the Foundation Center.The Council thanks these organizations for their assistance.