Feature Article from Leadership Council for Nonprofits

Nonprofits Generate Billions in Economic Impact

Elizabeth Benson, Executive Director

Leadership Council for Nonprofits

Have you seen the news? Tristate nonprofit organizations not only provide help and an array of services to individuals and families throughout the region, but they also generate nearly $1.5 billion in economic impact, employ 24,000+ people and pay $751 million in annual wages. Indirect economic impact created by the sector brings the total to $2.9 billion!

A new study commissioned by The Human Services Chamber of Hamilton County with cooperation from Leadership Council for Nonprofits and OneSource Center for Nonprofit Excellence assessed the impact Greater Cincinnati’s nonprofit sector has on the local economy. Funding for the study was provided by Greater Cincinnati Foundation and Interact for Health.

Nonprofits are more than charity. In addition to the impact on quality of life produced by the organizations in the study, we return as much to the region's economy as comparably sized sectors. The nonprofit industry makes a much larger impact than most people would expect through employment, buying power, and tax revenue.

The study of 312 nonprofits in SW Ohio, N Kentucky and SE Indiana, performed by University of Cincinnati’s Economics Center, shows that in 2022, area nonprofits:

• Provided $1.4 billion of direct economic output and directly employed 24,003 individuals who earned wages of $751.4 million.
• Sustained another $1.5 billion of indirect economic output through which 17,020 additional individuals were employed with wages totaling $586 million.
• Created a total of $2.9 billion in economic output, which supported 41,023 jobs with $1.3 billion in total wages.
• Generated $87.1 million in earnings and sales tax revenue at the state, county, and municipal levels.

Beyond assessing economic impact, the study provides quantitative data that describes the size and scope of the industry that can help make the case for investing in, partnering with, and working for nonprofits in the region. Policy, funding, and popular support for the nonprofit sector are crucial to the ability to deliver on our collective missions. Support for competitive compensation that allows us to attract and retain qualified workers is an absolute necessity. Funding that helps nonprofits innovate and invest in learning and development is the only way to make systemic change, not simply react to the status quo. Policies from the local to the national level that serve families and revitalize communities reduce the strain on services.

We have shared this news with local policymakers and the wider nonprofit sector and it’s gotten attention in local media. You’re welcome to dig into the full report and see what you think. What do you make of the data? How else do you think we should use it? Drop us a line!