Florida Nonprofit Sector Provides Payroll of $27.5 Billion Annually; Employs 5% of State's Workforce
The Florida Nonprofit Alliance (FNA), which advocates on behalf of nonprofits and seeks to create a more vibrant community for nonprofits, today released its 2023 Economic Impact of Florida's Nonprofits report, indicating growth within the nonprofit sector since FNA's last report in 2020.
The Florida nonprofit sector continues to grow in terms of revenue, with 22,710 nonprofits generating more than $116 billion in annual revenue, compared to $105 billion in 2020. These 22,710 nonprofits employ an annual average of 456,800 employees, or 5% of the state's workforce, and pay annual wages of $27.5 billion.
"While the sector has grown in terms of revenue, ranking Florida as the seventh highest in revenue in the nation, we rank 48th in nonprofit revenue per 1,000 households, highlighting the need for ongoing investment in the nonprofit sector," said Sabeen Perwaiz, president and CEO of FNA. "Florida is one of the fastest growing populations in the nation and our infrastructure is struggling to keep up. The nonprofit sector makes up for that gap, yet our growth is not on-par with the state's growth, indicating the need for investment."
In employment size, the nonprofit sector compares to the construction and manufacturing industries at 6% and 4% respectively as a percentage of Florida's total workforce, indicating the economic power of the nonprofit sector. The largest nonprofit sub-sector employer by far is nonprofits focused on providing health-related services at 43%, or 197,900 employees. Additional breakdowns of employees and average annual and hourly wages by social function (e.g., health, environment, education, etc.). are available in the report.
"As we work to grow Florida from the 16th to 10th largest global economy, a vibrant nonprofit sector is vital to our continued economic growth and diversification," said Mark Wilson, president and CEO, Florida Chamber of Commerce. "Nonprofits enable private sector strategies and solutions at a time when it is becoming clear government is often too slow and bureaucratic to compete with the speed, focus, and nimbleness of the private sector."
The report also compares nonprofit data from Florida's eight regions with households that fall below the federal poverty threshold or are classified as asset limited, income constrained, employed (ALICE), as nonprofits play an essential role in providing these households with essential services such as food, clothing, shelter, and other needs. According to the latest income study conducted by United for ALICE, 45% of households in Florida are below the ALICE threshold or federal poverty time, with DeSoto County having the highest percent of households below the ALICE threshold at 65%. Nine other counties have ALICE households at 60% or higher.
Statewide, there are an average of 2.6 nonprofits per 1,000 households, ranking Florida as 48th among the 50 states and the District of Columbia. However, in the top 10 counties where households at or below the ALICE threshold are most prevalent, the number of nonprofits per household notably decreases. In these 10 counties, the average number of nonprofits per household decreases to 1.9 ? yet it's these largely rural counties that generally have the greatest need and generally require higher levels of nonprofit support.
"The analyses strongly indicate the need and opportunity for nonprofit organizations to grow and develop in the state as a whole and in communities with higher levels of need," said Tony Carvajal, board chairman of FNA and president and CEO of the Association of Florida Colleges. "While the public and private sectors in Florida's economy often draw attention, it is important for policymakers, the business community, and individual and corporate donors to recognize not only the economic strength and importance of the nonprofit sector, but also the gaps in our state that need to be filled."
The report also breaks down revenue, assets, and income by region in Florida, as well as the percentage change since FNA's last report in 2020. Of note, the northwest and south-central regions ? which are generally more rural areas of Florida ? decreased in revenue by 5% and 4% respectively since 2020, while the other six regions increased by 15% or more, with the northeast region increasing the most at 28%.
Additional analyses, insights, and data are accessible in the full report here.
The Jessie Ball duPont Fund generously funded the research and production of this year's report.
About Florida Nonprofit Alliance
The Florida Nonprofit Alliance (FNA) is a statewide coalition of nonprofits focused on research, collaboration and advocacy. Our mission is to inform, promote and strengthen Florida's nonprofit sector. We provide a collective voice at the state and national levels, educating elected officials and constituents, and serve as a central resource and referral center for and about nonprofits. Visit www.flnonprofits.org.
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