Report: Nonprofits mean $11B a year to Maine economy

Photo / Courtesy Creative Portland Corp. Jennifer Hutchins, executive director of Maine Association of Nonprofits, released a study today showing Maine nonprofits contributed $11 billion to the state's economy.

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By Renee Cordes

One out of six Maine workers is employed in the nonprofit sector, nearly 14 times those working in agriculture (including fishing) and three times as many as in construction, according to a report published on Tuesday.

The study was released by the Maine Association of Nonprofits, whose Executive Director Jennifer Hutchins would like to see nonprofits, business and state legislators work together to address workplace shortages and other challenges facing the sector.

Using data from the Quarterly Census for Employment and Wages for 2015, the study found that nonprofits contribute about $11 billion a year to Maine’s economy through wages paid, retail and wholesale purchases and professional services contracts.

Maine nonprofits paid over $4.3 billion in wages in 2015, or 17.5% of the state’s total payroll. The wages translated into an estimated $264 million in personal income tax revenue for state and local governments and over $679 million in federal tax revenues. The nonprofit sector is now the third-largest employer in the United States.

“[In Maine], nonprofits are continually under pressure to do more with less, so I would just simply encourage our policy makers and our elected officials to have open, frank discussions [to ensure that groups providing vital community services] have the resources they need to hire the people they need,” she said.

“The challenge is to make sure that business, government and nonprofit leaders work together early and often on how best to allocate our limited resources in ways that will ensure the prosperity of all Maine,” she added.

In its latest biennial industry snapshot, the association notes that nonprofits employ more than 95,000 people in the state. That breaks down to one out of every six workers, exceeding the national average of one out of 10 workers.

The report looks at nonprofits classified by the Internal Revenue Association as 501(c) (3) organizations, of which 6,468 are registered in Maine. The bulk of these — 5,994 — are public charities such as schools, hospitals, social service agencies and environmental agencies. Another 474 are private foundations, typically controlled by a family or small group of individuals.

Most Maine nonprofits are very small, with three-quarters taking in less than $100,000 year in income — and rely heavily on volunteers.

The report was funded with support from the Maine Community Foundation, the Maine Health Access Foundation and the Unity Foundation. Its release coincides with Maine Nonprofit Week, with activities highlighting the sector’s impact and the 14th annual Nonprofit Day at the State House today (February 7).

MANP, founded in 1994, represents 800 nonprofits and 140 for-profit organizations. It is based in Portland.