 |
|
Georgia Quick Links Georgia's Top Five |
|
- Home
- News
- GeorgiaTrend’s Business Daily
- Business Daily Audio Interviews
- On The Record
- About Us
- FAQ
- Advertising on GDD
- Our Partners
|
Essential Links Business/Consumer Education Government Legal Lifestyles Media Nonprofit Transportation |
 |
|
|
On The Record |
|
|
|
|
|
|
Karen Beavor: "Nonprofits provide jobs and wages to nearly 200,000 Georgians, with a total payroll of about $6 billion dollars." |
Karen Beavor discusses the economic impact of nonprofits in Georgia with the staff of Georgia Daily Digest. (Editor's Note: This interview may be reproduced for distribution with credit given to GeorgiaDailyDigest.com.) GDD: This economic impact study is significant. What do you think are the two or three most significant findings in the report? Beavor: First of all, the study shows that the nonprofit industry is an important employer in our state. It provides jobs and wages to nearly 200,000 Georgians, with a total payroll of about $6 billion dollars. That’s a bigger payroll than the real estate, food and accommodations, or telecommunications industries. Indirectly, it employs about 600,000 people. By that I mean that for every one nonprofit job that exists, two additional jobs exist. Our research model predicts that, by 2035, this indirect employment will grow by 50 percent. Through 2035, we forecast that nonprofits will actually save state government $113.8 billion. That’s more than $3 billion per year. But the study also shows us what would happen fiscally if our state and local governments were forced to assume the responsibilities of Georgia nonprofits. We’d be looking at a budget deficit for state government of between $13 and $22 billion dollars per year, and a budget deficit for local governments of between $1 and $3 billion dollars per year, over the next 36 years. GDD: Surprisingly, nonprofits in Georgia produce 71 percent of nonprofit revenue, essentially people and governments buying nonprofit services. Is this a recent trend for nonprofits? Beavor: Nonprofit hospitals, museums, and universities—among others—have always charged fees for their services, so I don’t think of this as a “new” trend. There are more organizations, however, looking for ways to earn revenue. Given the economic downturn in recent years, and growing competition for limited funds, nonprofits must be creative in how they secure the resources to do their important work. GDD: What is the state’s relationship with nonprofits? Does the state do enough to support nonprofits? Beavor: State government does business with nonprofits—through contracts—just as it does with other types of businesses. And both sectors play key roles in our democratic process and exist to serve the public interest. I don’t think state officials, generally, completely understand what we do and how we contribute to the overall health of Georgia. If they better understood how nonprofits affect public policy and contribute to public welfare; how nonprofits can help government meet its public-interest objectives; and how our sector impacts the state’s economy, I think they’d do more to support and empower our organizations. GDD: GCN has a reputation for being entrepreneurial. Can you give us some examples of the services you offer nonprofits? Beavor: At the Center, we try hard to develop and deliver programs that meet nonprofits' most important needs -- that help them be more effective and efficient -- and that also help us to be financially sustainable. One example is Opportunity Knocks.com -- our national online jobs site, which helps nonprofits find and hire the people they need. This product provides a valuable service to nonprofits and it more than supports itself through the revenue it earns us. What's left over goes to support our other programs. Another example is our consulting program, which provides nonprofits with top notch, qualified consulting. Nonprofits get the expertise they need to be stronger, at rates they can afford, and we earn revenue, which we need to provide high-quality services to even more organizations. It's a great cycle. GDD: How many different types of nonprofits are there in Georgia and what services do they provide? Beavor: There are nearly 23,000 nonprofits in Georgia. They’re working in every county, providing every conceivable service—including healthcare, cultural programming, poverty relief, daycare, housing, environmental protection—you name it. They’re as small and local as booster clubs and PTAs as large as universities and hospitals, and they’re vital to the health of every Georgia community. GDD: What would you say are the two or three most critical issues facing nonprofits in Georgia? Beavor: First of all, nonprofits struggle to access the resources they need to do their important work. Not only is fund-raising a challenge, but the way nonprofits are capitalized is a problem as well. Our sector is also facing a leadership challenge, particularly as our baby-boomer leaders retire in the next few years. We need to attract, develop, and retain the best employees if we’re to make the biggest impact. Perhaps our biggest challenge is how to communicate about ourselves. So many people—people making important decisions—don’t understand who we are, what we do, and why we’re important to Georgia. We’re a huge sector, with a diversity of organizations, representing every cause and every point of view. We help make Georgia culturally and economically viable. While all that makes us very powerful, it also makes us hard to pin down. We need to develop ways we can communicate clearly—as a sector—about what we do and what we mean. I think The Economic Impact of Georgia’s Nonprofit Sector is a good start.