This Past Week at Holland Rotary

Matthew Downey, the services program director for the Johnson Center for philanthropy at Grand Valley State University, discussed the challenged that non-profits are facing today.

Kay Hubbard and Matthew Downey

Matthew Downey, the services program director for the Johnson Center for philanthropy at Grand Valley State University, discussed the challenged that non-profits are facing today.

Overall, there has been unprecedented growth in the last 20 years in the non-profit sector.  In the 1980s, there were less than 1,000,000 non-profits in the United States.  In 2010 there were just fewer than 2,000,000 nationally.

A 501(c) is a tax exempt entity with the IRS. A 501(c) 4 is a membership non-profit such as Rotary Club.  A 501(c) 6 is a chamber business association.  Most of the non-profits fall under the category of 501(c) 3.  This area has seen the most growth in the non-profit sector. 

The IRS approves about 8 501(c) 3s every working hour.  There are more non-profits than ever before, and this means that there is more competition in regards to raising money. 

Nationally, organizations get their funds in the following ways:  73% comes from individuals, 14% from foundations, 8% from bequests, 5% from companies.  Individuals statistically say, “Because of the poor economy, I am giving the same as years past.” Individuals also say, “Because the poor economy, I’m giving more.” 

In Ottawa County, the median annual household gift is $3,495.  The top recipients have been The Van Andel Institute, West Michigan University, Helen DeVos Children’s Hospital, Calvin College, Kalamazoo College, Grand Rapids Christian School Association, Spectrum Health, and the Meijer Foundation.

54% of critical service organizations experienced a significant increase in demand for services over the past few years.  These organizations have had to rely more on volunteers and reduce their working staff.  The Johnson center helps on-profits enhance their quality and helps with fundraising, managing volunteers, and organization.