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The Impact of the Nonprofit Sector in North Dakota: Challenges and Opportunities

The Impact of the Nonprofit Sector in North Dakota: Challenges and Opportunities. Dr. Richard Rathge Professor and Director North Dakota State Data Center. Nonprofit Conference Economic Challenges: Anticipating Change Fargo, ND March 5, 2009. Presentation Objective:.

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The Impact of the Nonprofit Sector in North Dakota: Challenges and Opportunities

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  1. The Impact of the Nonprofit Sector in North Dakota: Challenges and Opportunities Dr. Richard Rathge Professor and Director North Dakota State Data Center Nonprofit Conference Economic Challenges: Anticipating Change Fargo, ND March 5, 2009 North Dakota State University, IACC Room 424, P.O. Box 6050, Dept. 8000 ,Fargo, ND 58108-6050 - Phone: (701) 231-8621 : http://www.ndsu.edu/sdc

  2. Presentation Objective: 1. To present demographic challenges facing ND’s nonprofit community. 2. To offer a contextual overview of the nonprofit community within the state. 3. To present key findings from an impact assessment of the nonprofit sector in ND and address opportunities. North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  3. Key Population Trends 1. Population consolidation 2. Rapidly shifting age distribution 3. Shifts in household composition This means who we serve and where we serve them is changing North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  4. Population • North Dakota’s population peaked in 1930 at 680,845. • The July 1, 2008 population estimate for North Dakota totaled 641,481, an increase of 3,577 persons from 2007. Source: U.S. Census Bureau, Decennial Census and the Population Estimates Branch, http://www.census.gov/popest/estimates.php North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  5. North Dakota Cass County 4 similar counties 40 similar counties McIntosh County North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  6. North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  7. North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  8. N.D. Rural-Urban Population Distribution, 1900-2020 Source: U.S. Bureau of the Census, Decennial Censuses. North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  9. North Dakota City Size: 2000 Source: U.S. Census Bureau, Census 2000. North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc Chart taken from the May 2002 Issue of the Population Bulletin, published monthly by the North Dakota State Data Center (Vol. 18, No. 5).

  10. North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  11. 14 12 10 8 6 4 2 0 0 2 4 6 8 10 12 14 A Maturing Age Distribution, 2000(National data) 85+ 80-84 75-79 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 5-9 0-4 Female Male Population (in millions) Source: U.S. Census Bureau, International Data Base. North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  12. 14 12 10 8 6 4 2 0 0 2 4 6 8 10 12 14 A Maturing Age Distribution, 2020 85+ 80-84 75-79 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 10-14 5-9 0-4 Female Male Population(in millions) Source: U.S. Census Bureau, International Data Base. North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  13. Baby Boomers enter system 1.825 million/yr or 5,000 a day (on average) Baby Boomers enter age 85 North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc Source: Older Americans 2004

  14. Persons Ages 65 and Older as a Percent of the Total Populationin North Dakota by County: 2000Source: U.S. Census Bureau, Census 2000 North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  15. Persons Ages 65 and Older as a Percent of the Total Populationin North Dakota by County: 2020Source: North Dakota State Data Center, North Dakota Population Projections: 2005 to 2020, Sept. 2002 North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  16. 2000 Census – Rural and Urban Population Distributionsby Age and Gender for North Dakota Traditional Babyboom X Generation Y Generation North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  17. Population of Persons Ages 0 to 9 and Ages 65 and OlderNorth Dakota: 1890 to 2020 North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  18. North Dakota Public K-12 Enrollment, 2004-2006 and 2008-2016 Projections Source: ND Department of Public Instruction North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  19. Change in North Dakota’s Labor Force by Age: 1970 to 2020 Note: The change in labor force participation was calculated for 2010, 2015, and 2020 by applying the 2006 ACS labor force participation rates to the population projections. Sources - U.S. Census Bureau: 1970, 1980, 1990 and 2000 Census; 2006 ACS. North Dakota State Data Center: North Dakota Population Projections by Age and Gender: 2010, 2015, 2020 North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  20. Households by Type North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  21. Household Types North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  22. Poverty Rates in North Dakota by County: 2007 Nearly 12 percent of North Dakotans had family incomes that fell below the federal poverty thresholds in 2007. Source: U.S. Census Bureau, Small Area Income and Poverty Estimates, www.census.gov/hhes/saipe Prepared by the North Dakota State Data Center.

  23. North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  24. Nonprofit Community in ND & MN • Distribution of nonprofits • Characteristics • Charitable giving North Dakota Association of Nonprofit Organizations Minnesota Council of Nonprofits (Jon Pratt) North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  25. Number of Charitable Nonprofits in North Dakota, 1996-2006 Source: National Center for Charitable Statistics, Urban Institute North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  26. Number of Minnesota Nonprofits Source: Minnesota Council of Nonprofits North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  27. Expenditures and Assets of Nonprofits in North Dakota, 1996-2006 Source: National Center for Charitable Statistics, Urban Institute North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  28. Expenditures by Minnesota Nonprofits Source: Minnesota Council of Nonprofits North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  29. Registration of North Dakota Nonprofits in 2006 North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  30. Distribution of Expenditures of Nonprofits in North Dakota, 2006 North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  31. North Dakota Employment in the Nonprofit Sector by Activity Area; 2004 Paid employment 12.5% of ND workforce Additional 2.3% unpaid full-time equivalents or 9,000 workers In thousands North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  32. Statewide Nonprofit Employment Source: Minnesota Council of Nonprofits North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  33. 501(c)(3) Public Charities in North Dakota by County: 2007 • The first number in each county represents the total number of 501(c)(3) public charities reported for that county. • The second number, in italics, represents the July 1, 2007 population estimate for that county. Sources: The Urban Institute, National Center for Charitable Statistics, NCCS Core File (Public Charities, circa 2007) and the U.S. Census Bureau, Population Division, Population Estimates Program. North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  34. North Dakota Nonprofits by Field, 2006 Source: National Center for Charitable Statistics, Urban Institute North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  35. North Dakota Foundations, 2006 North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  36. Average Charitable Contribution from Tax Filer who Itemized Deductions, 2006 (80% of ND taxpayers did not itemize) North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  37. Percent of Income Contributed by North Dakota Taxpayers, 2005 North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  38. Estimates of North Dakota Charitable Giving, 2001-2055 North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  39. Challenges Minnesota organizations are experiencing due to recession Source: Minnesota Council of Nonprofits Member Survey, 2008 North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  40. Nonprofit Sector Study • Methods and Approach • Examined North Dakota’s top 100 public charities & 66 foundations • Used IRS records (Form 990) • Developed financial performance measures • Fiscal • Mission • Sustainability North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  41. Key Findings • Resources highly concentrated • Management & general expenses high • Financial performance measures mixed Modest changes in approaches combined with partnerships can have high value impact on the nonprofit sector in North Dakota. North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  42. Concentration of wealth among North Dakota’s Top Public Charities: Assets vs Number, 2007 Assets Number Top 10% of public charities account for 59% of total assets 65% of total revenues 66% of total expenses North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  43. Impact of Potential Changes • Develop collaborative structure to leverage resources • Skills building • Fundraising • Marketing • Capacity building Consider: if the 10 largest charities redirected 1% of expenses to collaborative support, the amount available for leveraging would be $16,076,688. (This is equal to total revenues for the smallest 141 nonprofits in ND.) Note: 1% redirection for foundations = $127,839, (which would cover all revenues for the smallest 45 nonprofits). North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  44. Management and General Expenses among North Dakota Top Public Charities Distribution of Expenses: ND Top Public Charities • Average Management & General Expenses = 12.4% of total expenses • 35% of top public charities have a rate above 15% of expenses • 18% of top public charities have a rate above 20% of expenses • Average rate for foundations = 26% of total expenses North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  45. Impact of Potential Changes • Reduce management and general expense and redistribute to programming or collaborative leveraging Consider: if top public charities whose management & general expenses exceed 20%: reduced their rate by 5%, the savings would be $1,549,408 reduced their rate by 10%, the savings would be $3,098,817 If foundations whose management & general expenses exceeded 26%: reduced their rate by 5%, the saving would be $151,624 reduced their rate by 10%, the saving would be $303,266 North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  46. Financial Performance Mixed Fiscal Performance • 48% of public charities in our sample are financially weak. • Health care and human services have the lowest scores. • Largest charities (above $10 million) had the lowest scores • Mission Performance • Fewer than 10% of charities dedicate less than 70% of expenses • to programming. • Many charitable nonprofit rely heavily on program payments relative • to contributions for revenues. • Sustainability Performance • Uniformly high among public charities. North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  47. Impact of Potential Changes • Skills training and capacity building can strengthen nonprofit’s financial performance What is needed? Funds to assist nonprofits in capacity building Online resources that make location irrelevant Fundraising training to expanding contribution revenue sources Collaborative forums to assist nonprofits in all aspects of their program Leadership skills training North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  48. North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

  49. Nonprofit Presentation 2009 • Dr. Richard Rathge, Director • North Dakota State Data Center, Fargo, ND NDSU, IACC 424, Fargo, ND 58108-6050 • Richard.Rathge@ndsu.edu • Phone: (701) 231-8621 Fax: (701) 231-9730 • URL: www.ndsu.edu/sdc North Dakota State University, IACC Building, Room 424, Fargo, ND 58105 - Phone: (701) 231-8621 - URL: http://www.ndsu.edu/sdc

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