Michigan’s Nonprofit Sector Through the Recession

In 2008, Michigan Nonprofit Association took an in-depth look at the nonprofit sector through the Economic Benefits of Michigan’s Nonprofit Sector report. This study is a follow-up to determine how the nonprofit organizations last studied in 2008 have fared from third quarter 2006 to third quarter 2009. It looks at the impact Michigan’s recession has had on the sector—particularly in relation to employment numbers.

The study found the nonprofit sector actually increased employment nearly 2.7% (or 11,500 jobs) over the three year period.
This research tells us the nonprofit sector has remained resilient during the recession, and has the ability to adapt throughout worsening economic conditions.
Some potential reasons for this:

Increase in need for the services nonprofits provide.
Being mission-focused allows for organizations to take a different perspective on resources.
The sector is less likely to reduce staff to increase overhead, unlike a for-profit might.
Just because the sector is not cutting staff, that does not mean they have the adequate capital and resources to continue to operate this way long-term.

This research also found wages in the sector have increased 14.7%. This could be attributed to the following:

The continued professionalism of the sector.
More educational opportunities focused on nonprofit management, sector-specific fields.
Larger pool of potential workers due to the recession – more qualified people available.
Higher wages are necessary to attract qualified workforce.

Click here to download Michigan's Nonprofit Sector Through the Recession. (May 2010)

Prepared by Public Sector Consultants (www.pscinc.com)