Nonprofit Organizations

It may seem odd to some, but very natural to me – I’ve spent most of my life working for or with nonprofit organizations. Some folks wouldn’t think some of these organizations were nonprofit, but they are. Universities are; so are hospitals. Medical practices and clinical associations of them are awash in revenues and insurance claim dollars, but they still have to support enormous overheads and high salaries of professionals trained in very special fields.

Universities almost never generate a profit. Sure, they account for hundreds of millions of dollars in revenue, but the expenses are even larger. Government, foundation and donor dollars make up the difference. They remain in operation because of those vital dollars. And no, tuition and fee dollars don’t cover the full cost of educating a student.

Credit unions are nonprofit, member-owned financial cooperatives. They more than break even, but only to generate capital dollars that guarantee the safety and soundness of the financial institution itself. That is also the regulatory requirement. Still, a credit union easily turns over its asset base at least 10 times in a year. So, a $100 million credit union develops cash flow of $1.2 billion annually. That’s a lot of money, but it isn’t profit; it is assets in action, movement. And it is the basis of serving the membership in their savings, loans and financial transactions.

The Boys Scouts and Girl Scouts organizations are both nonprofits of long standing. So too are the many charities serving populations in need. Not populations who are necessarily broke, but in need. Those needs are often not met by other organizations or government agencies. Think about that for a moment. What nonprofits are at work in your community you haven’t given much thought to? Might they include: churches, women’s centers for emergency housing and safety, elder care, caregiver relief groups, education organizations, culture and arts programs, community gardening and beautification agencies, performing arts entities, and so many more? Animal shelters, too, and housing alternatives for low income seniors. The list goes on and on.

These groups and organizations are voluntary in membership, often totally volunteer in operations, and rely on private donations to operate. Think Lions, Kiwanis and Rotary Clubs, too.

I did a quick study of employment by these agencies (organizations large enough to actually hire staff), and they accounted for 13% of American jobs. That doesn’t account for the economic transaction volumes these organizations produce and require support jobs from vendors and other institutions.

Nonprofits represent a powerful economic engine in the economy. They also produce enormous cultural and social benefits to our communities. Almost all of these benefits come from voluntary associations and not government funding.

Who works on the problems of sex trafficking, labor trafficking, families of incarcerated family members, children with debilitating diseases without benefit of yet to be discovered pharmaceuticals? Who takes care of battered spouses and children. Who cares for families burned out of their homes, or victims of floods and other natural disasters. It is not all done by government agencies. Those entities coordinate relief efforts, but the real delivery of person-to-person aid is done by the American Red Cross and other United Way organizations.

I suppose the altruism of volunteer work attracts many volunteers to these organizations. Thank God for them and their organizations. It is a high measure of our humanity that nonprofit entities exist in the first place; it is a mark of excellence that so much caring is delivered to so many people for little or no cost.

If you are looking for a special sense of accomplishment, look to a local charity. Or find a need and start your own nonprofit. You will be a member of a huge army of Americans doing the same! And your efforts will be rewarded in so many ways!

June 14, 2018