Kansas-City-Nonprofit-Impact-Report-2019

Kansas City Nonprofit Impact Study 2019 Kansas City Nonprofit Impact Table of Contents I INTRODUCTION Executive Summary Overview Methodology II NONPROFIT PRESENCE Sector Description Areas of Focus – NTEE Codes 10 Organizations by County and Zip Code 12 Nonprofit Density 14 Nonprofit Growth 15 III NONPROFIT FINANCIAL IMPACT NFPs by Revenue 19 Top 50 Largest Organizations – All Types 21 Contributions 23 Sources of Contributions and Income 24 Assets 25 Expenses 25 Payroll Taxes 26 IV WORKFORCE V FOUNDATIONS VI VOLUNTEERS SUMMARY APPENDIX Sources 27 29 30 30 31 Kansas City Nonprofit Impact SECTION I: INTRODUCTION Executive Summary • • • • • • • There are 12,569 registered nonprofits in the Kansas City (KC) area The combined annual revenue for KC nonprofits is more than $18.5 billion The combined annual net assets of KC nonprofits is $25.6 billion 11.3 percent of KC’s total workforce is employed by nonprofit organizations KC nonprofits paid nearly $5 billion in salaries and benefits in 2017 KC nonprofits paid over $275 million in payroll taxes in 2017 More than 840,000 people volunteer for registered KC nonprofits Overview The findings in this report demonstrate the remarkable depth and significance of KC nonprofits to the region’s overall economy and quality of life The report reveals the sector’s variety and vastness From small start-ups run by volunteers, to large, complex operations like hospitals and universities with thousands of employees, KC nonprofits help individuals and communities thrive The first part of this study provides a broad overview of the nonprofit sector, how organizations get started and become official at a state and federal level Next we provide a snapshot of the entire KC nonprofit sector; the number of groups, the type of work they perform and where they are located The third section examines the financial impact of the KC nonprofit sector in terms of employment, revenue generated, assets and expenses and its overall contribution to the economy The fourth section provides information on KC foundations, including the different types, their revenue and assets and where they give money The final section reports on KC nonprofit volunteers in terms of number of people and value of time donated Information in this study will help: • • • Provide a voice for organizations; Elevate the public’s knowledge and awareness; and inform legislators and policy-makers about the vibrant Kansas City nonprofit sector and its importance to this region Kansas City Nonprofit Impact The report was commissioned by Nonprofit Connect, a regional association in Kansas City that serves more than 5,000 professional members from over 700 organizations of all sizes Nonprofit Connect links the nonprofit community to education, resources and networking so organizations can more effectively achieve their missions The report was developed by BKD CPAs and Advisors, a national firm with industry expertise in nonprofit audits, accounting, taxes and governance We are grateful for the generous support of Nonprofit Connect Acknowledgements • • • • Nonprofit Connect: Luann Feehan, Jackie Baker BKD: Tondee Lutterman, Dan Prater, Cheryl Cooper, Laura Knese, Erin Rickert University of Missouri Kansas City: Dr David Renz, Dr Scott Helm Drury University: Dr Keith Coates Methodology There are many challenges associated with finding a precise count of nonprofit organizations Inconsistencies may result from varying definitions or criteria In addition, not all organizations file the same information forms, nor they submit reports at the same time throughout the year Information for nonprofit organizations was retrieved from the IRS Exempt Organization Business Master File Other sources of information include the U.S Census Bureau, the Bureau of Labor Statistics, the Bureau of Economic Analysis and Cause IQ This report examines registered nonprofit organizations within the Kansas City MO-KS Metropolitan Statistical Area (MSA) According to the Bureau of Labor Statistics this encompasses 14 counties: Kansas City Nonprofit Impact Exhibit Missouri: Bates, Caldwell, Cass, Clay, Clinton, Jackson, Lafayette, Platte, Ray Kansas: Johnson, Leavenworth, Linn, Miami, Wyandotte Source: MARC.org MSA information and Map SECTION II: NONPROFIT PRESENCE Sector Description Defining KC nonprofits is not easy, and for that reason many people lack a clear understanding of the organizations and their purposes Nonprofits are instrumental in feeding the hungry, educating children, rescuing abandoned animals, cleaning streams and housing the homeless They shelter victims of violence, provide opportunities to experience art and music and promote diversity and inclusion The sector includes museums, orchestras, fraternities and sororities, some day care centers, membership cooperatives, some credit unions and a variety of other types Their footprint can be found in virtually every neighborhood throughout Kansas City The sector is known by various terms: • • • • • • Nonprofit Charitable Civil Society Not-for-Profit Third Sector NGO (nongovernmental organization) Kansas City Nonprofit Impact Nonprofits are well known for their ability and desire to work alongside other sectors Organizations partner with for-profit companies, government agencies, religious congregations and schools to provide critical goods and services One of the first steps in formalizing an organization is to become incorporated Individual states grant this status to organizations, making them eligible to receive certain benefits such as exemptions from state sales and property tax Once incorporated, organizations can apply to the IRS for federal tax-exempt status To qualify for exempt status, organizations must one of the following: • • • • • • • • Advance education, religion or science Provide relief to the poor or distressed Promote health Promote youth sports Protect the environment Lessen the burden of government Erect or maintain public buildings, monuments or works Prevent cruelty to children or animals Others eligible for exemption include cooperative hospital service organizations, public safety or testing organizations, charitable risk pools, educational service groups and amateur sports Tax-exempt organizations are classified by the IRS under Section 501(c) of the U.S Tax Code There are 29 categories of 501(c), and two divisions – charitable (donations are tax deductible) and non-charitable All charitable organizations are classified as either a public charity or a private foundation Source: National Council of Nonprofits In some cases, organizations don’t have to apply for individual exemption The IRS allows a group exemption, where a central organization is tax-exempt and affiliated organizations can be exempt without applying individually Table Type 501(c)(1) 501(c)(2) 501(c)(3) Description or Purpose Corporations organized under acts of Congress, which includes federal credit unions, and serve as instrumentalities of the United States Corporations created to hold titles for property owned by another nonprofit Private foundations or public charities Organizations for any of the following purposes: religious, educational, charitable, scientific, literary, testing for public safety, fostering national or international amateur sports competition or prevention of cruelty to children or animals Contributions Deductible? Yes* No Yes Kansas City Nonprofit Impact Type 501(c)(4) 501(c)(5) 501(c)(6) 501(c)(7) 501(c)(8) 501(c)(9) 501(c)(10) Description or Purpose Civic leagues, social welfare organizations and local associations of employees, created to promote community welfare for charitable, educational or recreational purposes Labor, agricultural and horticultural organizations that are educational or instructive, including unions, created for the purpose of improving conditions of work, and products of efficiency Business leagues, chambers of commerce, real estate boards, etc., created for the improvement of business conditions Social and recreational clubs Fraternal beneficiary societies and associations, which provide payment of life, sickness, accident or other benefits to members Voluntary employees beneficiary associations, which provide payment of life, sickness, accident or other benefits to members Domestic fraternal societies and associations, which devote its net earnings to charitable, fraternal and other specified purposes, but NOT to provide life, sickness or accident benefits to its members Contributions Deductible? No No** No No Yes*** No Yes*** 501(c)(11) Teachers’ retirement fund associations No 501(c)(12) Benevolent life insurance associations, irrigation companies, telephone companies, etc No 501(c)(13) Cemetery companies Yes 501(c)(14) State-chartered credit unions and mutual reserve funds No 501(c)(15) 501(c)(16) 501(c)(17) 501(c)(18) 501(c)(19) 501(c)(21) 501(c)(22) 501(c)(23) Mutual insurance companies or associations which provide insurance to members substantially at cost Cooperative organizations to finance crop operations in conjunction with activities of marketing or purchasing associations Supplemental unemployment benefit trusts Employee-funded pension trusts created before June 25, 1959 Post or organization of past or present members of the armed forces Black lung benefit trusts, funded by coal mine operators to satisfy their liability for disability or death due to black lung diseases Withdrawal liability payment funds, which provide funds to meet the liability of employers withdrawing from a multiemployer pension fund Veterans’ organizations created before 1880, to provide insurance and other benefits to veterans No No No No No No No No Kansas City Nonprofit Impact Type 501(c)(25) 501(c)(26) 501(c)(27) 501(c)(28) 501(c)(29) Description or Purpose Title holding corporations or trusts with multiple parent corporations, which hold titles and pay over income from property to 35 or fewer parents or beneficiaries State-sponsored organizations providing health coverage for high-risk individuals State-sponsored workers’ compensation reinsurance organizations National railroad retirement investment trust, which manages and invests the assets of the Railroad Retirement Account Qualified health insurance issuers which have received a loan or grant under the CO-OP program Contributions Deductible? No No No No No * Contributions deductible if for public purposes ** Contributions not deductible except as a business expense *** Must have a purpose similar to a 501(c)(3) The IRS requires most tax-exempt organizations to file an annual information return, known as Form 990 Organizations choose the form type based on their gross receipts (the total amount they receive from all sources, without subtracting any costs or expenses) Table 990-N Organizations with gross receipts normally under $50,000 990-EZ Organizations with gross receipts less than $200,000 and total assets under $500,000 990 Organizations with gross receipts greater than $200,000 and total assets greater than $500,000 990-PF Private foundations, regardless of financial position Exceptions to the filing rule include church-affiliated organizations and governmental organizations In addition, some types of organizations are required to file a specific form regardless of the above thresholds For example, a section 509(a)(3) supporting organization is not eligible to file a Form 990-N even if gross receipts are normally less than $50,000 Information for Table includes data from IRS Forms 990, 990-EZ, 990-PF and 990-N (also known as e-postcard) Due to limited available information on Form 990-N, subsequent information and tables in this report contain data only from organizations filing IRS Form 990, 990-EZ and 990-PF Information represents the most recent fiscal year publicly available and is based on the IRS Business Master File (BMF) Authors of this report have no responsibility for including entities not included on the IRS cumulative list and therefore not part of the BMF Kansas City Nonprofit Impact Table 3: Kansas City Nonprofits: All Types (990, 990-EZ, 990-N and 990-PF) Type 501(c)(1) # % 0.04 Type 501(c)(10) # 159 % 1.27 501(c)(2) 53 0.42 501(c)(12) 0.06 501(c)(3) 9,322 74.3 501(c)(13) 74 0.59 501(c)(4) 477 3.80 501(c)(14) 0.02 501(c)(5) 269 2.15 501(c)(15) 0.02 501(c)(6) 504 4.02 501(c)(17) 0.02 501(c)(7) 1,200 9.57 501(c)(19) 159 1.27 501(c)(8) 241 1.92 501(c)(25) 0.01 501(c)(9) 59 0.47 501(c)(27) 0.01 Table 4: Kansas City Nonprofits: All Types (990, 990-EZ and 990-PF, excluding 990-N) Type 501(c)(1) # % - - Type 501(c)(10) # 17 % 0.60 501(c)(2) 27 0.96 501(c)(12) 0.18 501(c)(3) 2,210 78.54 501(c)(13) 12 0.43 501(c)(4) 90 3.19 501(c)(14) 0.11 501(c)(5) 100 3.55 501(c)(15) - - 501(c)(6) 179 6.36 501(c)(17) - - 501(c)(7) 61 2.17 501(c)(19) 27 0.96 501(c)(8) 30 1.07 501(c)(25) 0.04 501(c)(9) 52 1.85 501(c)(27) - - Excluding 990-N filers (organizations with annual gross receipts normally less than $50,000), there are 2,814 registered nonprofit organizations in the Kansas City MSA As expected, 501(c)(3) organizations are the most common type of nonprofit in Kansas City More than three-fourths of all organizations carry this well-known classification (public charities and foundations) The second most common type is 501(c)(6) Business Leagues These are business-promotion organizations such as chambers of commerce, real estate boards and professional associations The third largest group with 61 organizations is 501(c)(5) Labor and Agricultural Organizations Other popular segments of KC nonprofits include 501(c)(4) Social Welfare Organizations – civic leagues or organizations operated exclusively for the promotion of social welfare, and 501(c)(7) Social and Recreational Clubs, organizations that provide a benefit of some type through membership These include golf courses, hobby groups, college fraternities and sororities and homeowner associations Kansas City Nonprofit Impact Exhibit 501(c) types 501(c)(1) 501(c)(2) 501(c)(5) 501(c)(6) 501(c)(3) 501(c)(7) 501(c)(9) 501(c)(12) 501(c)(14) 501(c)(17) 501(c)(25) 501(c)(4) 501(c)(8) 501(c)(10) 501(c)(13) 501(c)(15) 501(c)(19) 501(c)(27) Area of Focus – NTEE Codes The National Center for Charitable Statistics classifies organizations through the National Taxonomy of Exempt Entities (NTEE) This system is used by the IRS to categorize tax-exempt organizations NTEE categories are assigned according to each organization’s primary activity, mission or purpose There are ten broad groups, and within the groups there are hundreds of subcategories Table 5: Type # A Arts, Culture, and Humanities 159 B Education 294 Environment and AnimalC 52 Related E Health 266 I Human Services 760 Q International, Foreign Affairs 51 R Public, Societal Benefit 973 X Religion-Related 138 Mutual & Membership Y 100 Benefit Z Unknown or Unclassified 21 Total 2,814 % of total 5.65 10.45 1.85 9.45 27.01 1.81 34.58 4.90 3.55 0.75 10 Kansas City Nonprofit Impact Exhibit KC Nonprofit Growth 1998-2017 3000 2500 2000 1500 1000 500 1995 2000 2005 2010 2015 2020 KC Nonprofit Sector Change • • • 39.7% increase 1998 to 2008: from 1,687 to 2,357, increase of 670 organizations 18.2% increase 2008 to 2017: from 2,357 to 2,785, increase of 428 organizations 65.1% increase 1998 to 2017: from 1,687 to 2,785, increase of 1,098 organizations The KC nonprofit sector has had impressive growth over the past 20 years A slowdown occurred in 2008, likely due to the economic crisis referred to as the Great Recession The local and national economy was devastated, which led to record rates of unemployment and foreclosures While most business sectors experienced substantial layoffs, nonprofit employment increased, adding jobs every year A Bureau of Labor statistics report shows while private-sector employment was shrinking (7 percent drop between 2007 and 2010), nonprofits were expanding As seen in Table 11, the Kansas City nonprofit sector maintained a steady percent growth during this time Between 2005 and 2015, the nationwide growth rate of nonprofits was 10.4 percent During the same time period, Kansas City’s nonprofit sector growth rate was 21 percent Nonprofit Percent of Kansas City GDP The Gross Domestic Product (GDP) measures the total economic output of a region and is considered a reliable indicator of economic health According to the Bureau of Economic Analysis, the 2017 Kansas City GDP for all industries was more than $131 billion, the 33rd largest in the nation The nonprofit sector accounted for $18.5 billion or 14.15 percent of this total • • • Private Industries - $117.2 billion Nonprofit Organizations - $18.5 billion Government/Government Enterprises - $13.8 billion 17 Kansas City Nonprofit Impact Exhibit Kansas City All-Industries GDP 14% 11% Private industries - 75.4% Government -10.5% 75% Nonprofit - 14.1% The 2017 GDP for KC private industries was $117.2 billion The nonprofit sector accounted for $18.5 billion or 15.7 percent of this total Exhibit Kansas City Private-Industries GDP 15.7 Private Industries - 84.3% Nonprofit - 15.7% 84.3 Source: U.S Bureau of Economic Analysis 18 Kansas City Nonprofit Impact SECTION III: NONPROFIT FINANCIAL IMPACT Kansas City nonprofits are dynamic and robust Beyond their human and social value, they provide an incredible economic engine for the region Nonprofits by Revenue This section examines nonprofit total annual revenue Revenue is the amount of cash an organization generates, whereas income is what’s left over after expenses and losses Most organizations earn revenue through services provided, member fees and contributions Table 13: Revenue from KC nonprofit organizations Organizational Revenue Range Total of Range Zero - $49,999 $50,000 - $249,999 $250,000 - $499,999 $500,000 - $999,999 $1m - $4.99m $5m - $9.99m $10m> Revenue Total 7,153,707 111,270,842 168,332,543 236,239,539 1,036,597,315 921,304,808 16,082,048,772 18,562,947,526 Number Percentage 12.84 28.70 17.06 12.41 17.64 4.80 6.55 100 353 789 469 341 485 132 180 2749* % of Total Revenue 0.04 0.60 0.91 1.27 5.58 4.96 86.64 100% *17 organizations reported negative revenue and are not included in revenue totals 48 organizations left this field blank – no data entered Due to limited available information, organizations filing 990-N are not included Exhibit Revenue Ranges $10m> $5m-$9.99m $1m-$4.99m $500,000-$999,999 $250,000-$499,999 $50,000- $249,999 0-$49,999 10 15 20 25 30 35 *Excludes organizations with zero revenue • • • 12.84% of all organizations are under $50k 41.54% of all organizations are under $250k 58.6% of all organizations are under $500k 19 Kansas City Nonprofit Impact Most organizations (58.6%) are small or mid-sized operations with annual revenue under $500,000 Although these organizations represent more than half of all nonprofits in the region, their combined revenue equals less than percent (1.55%) of the total revenue for the entire KC nonprofit sector As expected, there is a connection between organizational size and revenue Nearly all revenue comes from large organizations with annual revenue over $10 million This group accounts for only 6.55 percent of all organizations, yet they are responsible for almost 90 percent (86.64%) of the region’s total nonprofit revenue These are primarily hospitals, educational institutions and foundations No other revenue groups are even close The $1 million to $4.9 million group is next largest (5.58% of total revenue), and $5 million to $9.99 million is third largest (4.96% of total revenue) Revenue by Area of Focus (NTEE) Table 14: Revenue by Area of Focus (NTEE) Number % of Revenue 282,883,972 1,090,870,401 159 294 1.52 5.88 72,022,063 6,808,017,810 1,986,968,742 52 266 760 0.39 36.69 10.71 390,047,296 2,937,955,912 136,819,355 51 973 138 2.10 15.83 0.74 4,848,028,689 1,311,745 100 21 26.13 01 Total $18,554,925,985 2,814 100% NTEE category A B C E I Q R X Y Z Revenue Arts, Culture, and Humanities Education Environment and AnimalRelated Health Human Services International, Foreign Affairs Public, Societal Benefit Religion-Related Mutual & Membership Benefit Unknown $ The Health category, by a large margin, brings in more revenue than any other category Hospitals and medical centers account for most of these funds (Table 13) 20 Kansas City Nonprofit Impact Table 25: 50 largest organizations (all types) 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Name Government Employees Health Association Children’s Mercy Hospital St Luke’s Hospital of Kansas City Truman Medical Center Shawnee Mission Health Saint Luke’s Physician Group Greater Kansas City Community Foundation Olathe Medical Center Saint Luke’s East – Lee’s Summit Boilermakers National Funds Saint Luke’s Health System Greater Horizons Kansas University Physicians Missouri Valley Line Constructors National Electrical Contractors Association Health Care Foundation of Greater Kansas City Ewing Marion Kauffman Foundation CommunityAmerica Credit Union Saint Luke’s Northland Hospital Heart to Heart International Stowers Resource Management Saint Luke’s South Hospital Unbound Children International Fellowship of Christian Athletes University of Kansas Medical Center Research Institute Southwestern Line Constructiors Chapter National Electrical Contractors Association N.W Electric Power Cooperative Harvesters – The Community Food Network Veterans of Foreign Wars of the United States Rockhurst University American Academy of Family Physicians KVC Behavioral Healthcare Park University Stowers Institute for Medical Research Kansas City University of Medicine and Biosciences MRIGlobal Platte-Clay Electric Cooperative Revenue $ 3,904,412,574 1,655,102,903 804,692,774 556,725,200 491,158,072 370,019,391 357,863,417 281,353,631 272,506,698 262,889,556 232,629,291 226,443,750 216,602,851 207,030,698 203,929,352 177,021,276 162,869,543 149,325,922 138,486,995 137,750,486 136,540,020 135,064,795 124,741,177 119,179,284 110,291,793 109,683,636 109,553,097 104,838,238 102,350,802 92,637,250 91,478,664 91,329,247 86,087,314 85,642,656 80,257,866 76,452,611 71,839,062 21 Kansas City Nonprofit Impact 38 39 40 41 42 43 44 45 46 47 48 49 50 Name John Knox Village Pryor Learning Solutions Olathe Health Physicians University Physician Associates Dairy Promotion SkillPath R C Kemper JR Charitable Trust & Foundation Cameron Regional Medical Center Construction Industry Laborers Welfare Fund Alphapointe William Jewell College Hallmark Employee Benefit Trusts Commerce Swope Health Services Total Revenue 71,671,910 71,526,103 69,882,596 67,094,037 64,718,134 63,536,392 62,025,486 59,425,034 57,989,921 57,423,185 56,858,076 54,869,573 54,229,751 $13,348,032,090 22 Kansas City Nonprofit Impact Contributions KC nonprofits generate funds to support operations and provide programs and services Most organizations earn income three main ways: 1) contributions, 2) fees for programs and services and 3) government contracts or reimbursements such as Medicare and Medicaid, especially for Health and Human Services organizations Some organizations bring in funds through other methods such as investments and business activities unrelated to their mission or purpose Organizations are required to report non-cash contributions, known as Gifts-in-Kind These are donations of products, but not cash Examples include items like clothing or food, or financial items like stock Donated services like office space or technology support are excluded from reporting on the Form 990 as non-cash contributions, so are not included in these figures, but are certainly also valuable to the organizations who receive them Table 26: Contributions by Type Total contributions 501(c)(2) $ 618,545 501(c)(3) 3,381,309,245 501(c)(4) 40,967,250 501(c)(5) 59,877,312 501(c)(6) 87,396,532 501(c)(7) 29,714,929 501(c)(8) 1,783,761 501(c)(9) 14,562,661 501(c)(10) 1,626,396 501(c)(12) 1,380,000 501(c)(13) 147,359 501(c)(19) 77,028,064 501(c)(25) 554,579 Total $ 3,696,966,633 % Total contributions 02% 91.46% 1.11% 1.62% 2.36% 0.80% 0.05% 0.39% 0.04% 0.04% 0.01% 2.08% 0.02% 100% 23 Kansas City Nonprofit Impact Sources of Contributions and Income As seen in the table below, Program Services generated the most income for KC nonprofits, bringing in $12.9 billion Investment income and dividends Non-cash contributions Unrelated business income, total Program services Normal grants, contributions, etc Government grants (contributions) Total Contributions Type Table 27: Sources of contributions and income 501(c)(2) $ 618,545 $ - $ 164,211 $ 10,605,671 $ 1,142,735 $ 75,625 $ 257,729 501(c)(3) 3,381,309,245 468,077,600 2,230,398,370 7,411,618,096 16,844,075 718,264,194 432,764,993 501(c)(4) 40,967,250 8,722,478 20,811,236 40,709,139 2,452,062 16,123,206 1,603,351 501(c)(5) 59,877,312 455,338 4,887,007 125,333,616 847,619 4,888,405 501(c)(6) 87,396,532 14,356,783 4,326,517 268,562,618 13,946,912 192,989 9,113,402 501(c)(7) 29,714,929 238,416 1,354,005 38,857,850 5,694,255 267,348 501(c)(8) 1,783,761 314,227 1,437,932 27,142 65,707 501(c)(9) 14,562,661 31,545 4,600,349,244 12,387,368 52,535,441 501(c)(10) 1,626,396 340,186 638,739 243,741 346,528 501(c)(12) 1,380,000 239,607,696 69,783,081 894,633 501(c)(13) 147,359 127,739 19,620 745,967 314,827 501(c)(14) 143,525,147 649,095 784,782 501(c)(19) 77,028,064 1,093 73,622,615 18,909,098 3,741,855 6,067,316 501(c)(25) 554,579 7,510 442 Total $3,696,966,633 $491,979,447 $2,336,269,539 $12,900,908,323 $127,759,940 $734,656,014 $509,904,904 24 Kansas City Nonprofit Impact Assets Nonprofit organization net assets represent the value of everything the organization owns and owes These funds are for mission accomplishment and are often targeted toward operation of specific programs or services provided Assets are categorized as either unrestricted, meaning they can be spent at the organizations’ discretion, or restricted, meaning they must be spent as specified by the funder Table 28 Type 501(c)(2) 501(c)(3) 501(c)(4) 501(c)(5) 501(c)(6) 501(c)(7) 501(c)(8) 501(c)(9) 501(c)(10) 501(c)(12) 501(c)(13) 501(c)(14) 501(c)(19) 501(c)(25) # Organizations 27 2,210 90 100 179 61 30 52 17 12 27 2,814 Net Assets $ $ % Total Net Assets 72,121,426 21,379,763,086 104,498,842 293,517,982 478,590,883 98,965,644 8,366,284 2,397,766,196 16,094,372 242,891,945 19,122,077 327,311,374 188,944,711 2,641,447 25,630,596,269 0.28 83.42 0.41 1.15 1.87 0.39 0.03 9.36 0.06 0.95 0.07 1.27 0.73 0.01 100% *18 charitable trust organizations listed as 501(c)(91) and (92) are within the 501(c)(3) category Expenses The day-to-day costs of running a nonprofit are similar to those of any type of business Nonprofit expenses include everything from program costs to overall operations and management • • Total Expenses - $17,152,169,335 KC nonprofit average expenses: $6,095,298 25 Kansas City Nonprofit Impact Table 29 Type 501(c)(2) 501(c)(3) 501(c)(4) 501(c)(5) 501(c)(6) 501(c)(7) 501(c)(8) 501(c)(9) 501(c)(10) 501(c)(12) 501(c)(13) 501(c)(14) 501(c)(19) 501(c)(25) $ Expenses 11,419,892 10,879,168,356 82,236,246 201,282,900 699,723,760 86,041,326 4,613,676 4,687,226,830 3,087,073 236,905,292 1,178,712 148,712,215 109,901,517 671,540 Payroll Tax for KC Nonprofits • Total annual payroll taxes: $272,224,045 Payroll taxes for nonprofits are much the same as that of a for-profit business Nonprofits withhold Social Security, Medicare, federal, state and local taxes from employees’ wages Organizations are required to match Social Security and Medicare, and must pay federal and state unemployment insurance Organizations failing to pay payroll taxes can have their tax-exempt status revoked by the IRS and can be held responsible for paying back delinquent payroll tax debts Table 30 Type 501(c)(2) 501(c)(3) 501(c)(4) 501(c)(5) 501(c)(6) 501(c)(7) 501(c)(8) 501(c)(9) 501(c)(10) 501(c)(12) 501(c)(13) 501(c)(14) 501(c)(19) 501(c)(25) $ Payroll Taxes 16,636 247,107,872 2,022,805 4,896,896 7,277,091 2,806,178 38,786 5,944,392 29,701 24,272 3,887,365 1,165,973 6,078 26 Kansas City Nonprofit Impact SECTION IV: WORKFORCE OF KC NONPROFIT ORGANIZATIONS According to a 2018 report by Johns Hopkins University, the nonprofit sector is the nation’s third largest workforce Only two other industries – retail trade and manufacturing – have larger workforces KC nonprofits are a major presence in the Kansas City workforce, accounting for more than 11 percent of all private employment Organizations provide income to other businesses which results in substantial sales and income tax for local governments • • • • • 117,196 KC nonprofit employees $4,959,117,705 KC nonprofit salaries and benefits in 2017 $1,762,301 salaries and benefits average per KC organization annually 11.36% KC employees work in nonprofits 10.1% U.S employees work in nonprofits (above-cited Johns Hopkins report) Table 31: KC nonprofit workforce employees and compensation Area of Focus - NTEE category Arts, Culture, and Humanities Education Environment and Animal-Related Health Human Services International, Foreign Affairs Public, Societal Benefit Religion-Related Mutual & Membership Benefit Unknown Total # Employees 3,811 15,275 1,513 46,881 36,809 599 7,311 2,791 2,205 117,196 Salaries/Benefits $ 83,659,698 446,749,712 31,506,221 2,930,960,330 868,587,116 37,675,472 379,583,434 49,806,702 130,525,568 63,452 $ 4,959,117,705 % of total 1.69 9.01 0.64 59.10 17.51 0.76 7.65 1.00 2.63 0.01 100% 27 Kansas City Nonprofit Impact Table 32: KC nonprofit workforce by county State MO KS KS MO MO MO KS KS MO MO MO MO MO KS County Jackson Johnson Wyandotte Platte Clay Clinton Leavenworth Miami Lafayette Cass Ray Bates Caldwell Linn # Employees 75,411 23,895 3,509 4,177 4,063 1,263 1,627 1,312 952 609 183 130 14 51 117,196 Compensation $ 3,349,941,671 998,138,423 207,973,412 143,803,833 94,618,425 49,581,605 42,864,965 40,215,559 17,883,035 9,734,931 2,343,514 1,299,595 369,812 348,925 $ 4,959,117,705 According to the Bureau of Labor Statistics, in all industries there are 1,031,620 employees in the 14-county KC region Tables 33-34: MO County Bates Caldwell Cass Clay Clinton Jackson Lafayette Platte Ray All Nonprofit Industries Total Total 3,701 130 1,841 14 25,939 609 104,865 4,063 4,017 1,263 367,666 75,411 8,555 952 45,579 4,177 4,326 183 Nonprofit % of all industries 3.51 0.76 2.35 3.87 31.44 20.51 11.13 9.16 4.23 KS County Johnson Leavenworth Linn Miami Wyandotte Total All All Nonprofit Industries Total Total 342,420 23,895 21,125 1,627 2,157 51 8,387 1,312 91,042 3,509 1,031,620 117,196 Nonprofit % of all industries 6.98 7.70 2.36 15.64 3.85 11.36% (The BLS does not routinely separate data on nonprofit organizations from data on private business enterprises) • • • $55,991,784,000 - Total of all wages of all KC employment $4,959,117,705 - Total of all KC nonprofit wages 8.85% of all wages are nonprofit employees 28 Kansas City Nonprofit Impact SECTION V: FOUNDATIONS There are 582 grantmaking foundations in Kansas City, giving more than $800 million in 2017 Community foundations are public charities They get their money from multiple sources, such as other foundations, individual donors or government entities These foundations engage in substantial grantmaking, directly or through special restricted funds Private foundations usually derive their money from an individual or family In some cases, the family members have a significant role in the foundation’s control Some private foundations (sometimes referred to as “Operating Foundations”) exist to support their own charitable causes and not provide funding to any outside activities or purposes While other private foundations (referred to as “Non-operating Foundations”) not provide any programs or services, but exist primarily to support other charitable organizations Table 35: Foundation Type Community Foundations Non-Private Single Support Foundations Other Non-Private Foundations with full-time employees Other Non-Private Foundations without full-time employees Private Foundations with full-time employees Private Foundations without full-time employees Total Grant $ Given Total Assets % Grants Given to Asset Ratio 631,423,738 $380,955,247 $ 3,198,078,246 11.91% 60.33% 20 53,157,709 35,310,925 554,145,512 6.37% 66.43% 26 107,201,681 70,873,219 194,709,473 36.40% 66.11% 72 54,113,761 34,625,701 262,615,807 13.18% 63.99% 37 320,362,243 164,291,213 3,798,634,470 4.33% 51.28% 417 335,951,114 133,661,438 2,160,226,469 582 $1,502,210,246 $819,717,743 $10,168,409,977 6.19% Average 8.06% 39.79% Average 54.57% Total Revenue # 10 $ % Grants Given to Revenue 29 Kansas City Nonprofit Impact SECTION VI: VOLUNTEERS Volunteers supply millions of hours of unpaid labor to KC nonprofits each year, helping the organizations accomplish their work The volunteers’ generous donation of time and talent is a lifeline for organizations with limited resources KC nonprofit organizations reported having 841,502 volunteers Harvesters, the community food network, had 78,000 – far more volunteers than any other KC nonprofit Their volunteers logged an impressive 177,000 hours in one year Three other organizations had more than 50,000 volunteers each, while eight others reported having at least 10,000 each Table 36: Total KC Nonprofits # nonprofit volunteers # organizations using volunteers % organizations using volunteers Avg # volunteers per organization 2,814 841,502 509 18% 1,653 When removing the top ten organizations, the overall average changes considerably The total becomes 199,781, and the average is 400 volunteers per organization Each year the Independent Sector, a well-known national organization, releases a report on the value of volunteer time Value of a volunteer hour: National: Missouri: Kansas: $25.43 $23.96 $23.35 (2015 data from the Corporation for National and Community Service reported Kansas City, MO-KS had 513,587 volunteers The 2017 figure of 841,502 represents a 63.85 percent increase in the threeyear period.) SUMMARY This report provided an overview of Kansas City-area nonprofit organizations and the incredible value they bring to individuals and communities While there remains a lack of clarity about some organizations and their work, it is clear their impact is touching lives Some of these results are visible and can be seen immediately Some work, however, is more of a long-term investment and may not be fully realized for years But all of them, whether visible now or decades later, are changing lives for KC citizens today and for future generations 30 Kansas City Nonprofit Impact APPENDIX Sources Data Type Mid-America Regional Council National Council of Nonprofits IRS U.S Bureau of Labor Statistics Natl Center for Charitable Statistics Statistical Atlas U.S Census Bureau IRS Johns Hopkins University Center for Civil Society Studies IRS Mid-America Regional Council IRS U.S Bureau of Economic Analysis Source https://www.marc.org/DataEconomy/Metrodataline/pdf/KCOPKC_CSA.aspx https://www.councilofnonprofits.org/what-is-a-nonprofit https://www.irs.gov/pub/irs-pdf/p557.pdf https://www.bls.gov/opub/mlr/2016/article/nonprofits-inamerica.htm) www.nccs.urban.org Year(s) 2017 Location in Document Exhibit No date provided 2019 Table 2016 Exhibit 2017 https://statisticalatlas.com/metro-area/Missouri/KansasCity/Population#figure/county) https://factfinder.census.gov/faces/tableservices/jsf/pages/ productview.xhtml?pid=PEP_2018_PEPANNRES&prod Type=table https://www.irs.gov/charities-non-profits/employment-taxesfor-exempt-organizations http://ccss.jhu.edu 2017 https://www.irs.gov/charities-non-profits/exemptorganizations-business-master-file-extract-eo-bmf https://www.marc.org/DataEconomy/Metrodataline/General-Information/StatisticalAreas#msa https://www.irs.gov/charities-non-profits/charitableorganizations/organizations-not-required-to-file-form-1023 https://apps.bea.gov/iTable/iTable.cfm?isuri=1&reqid =70&step=1#isuri=1&reqid=70&step=1 No date provided 2017 2018 Table No date Section provided IV No date provided 2018 Commissioned by Nonprofit Connect 31