introduction to the nonprofit sector
TRANSCRIPT
Steven Ayer, MBAPresident of Common Good Strategies
March 16th, 2013
What is the nonprofit sector? What does the nonprofit sector look like in
Toronto? What trends are shaping the nonprofit
sector? What do you need to know about nonprofits
to act as consultants?
Please ask questions throughout!
Founder and President of Common Good Strategies
Help nonprofits and government do research on the nonprofit sector
Do marketing research and business planning Design technology development projects Have managed or worked on some of the
largest research projects on the Canadian nonprofit sector
Charities are endowed with a license by CRA if they do one of four things under a definition that goes back to early 1600s
Relieve poverty, promote education, promote religion or “other purposes beneficial to the community”
Nonprofits are organizations incorporated as such and do not distribute profits to shareholders
This side was borrowed from Alex Gill of the Mendicant Group’s presentation on this topic from March 24, 2012
Currently work for a nonprofit organization…
Currently serve on the board for a nonprofit organization…
Are a returning Endeavour volunteer…
SERVICE
Health care Education Social services Housing International Development
EXPRESSIVE
Arts and Culture Sports and Recreation Advocacy Interest Representation
(e.g. unions)
A study released last week from John Hopkins University comparing 16 countries with good data on their nonprofit sector found that: Canada had the highest percentage of GDP coming
from our nonprofit sector:
8.1%! (7.1% from paid staff, 1% from volunteers)
85% of our nonprofit sector was service-based (average was 73%)
10% expressive
5% Other
Source: JHU Comparative Nonprofit Sector Project
Money is essential to complete the work of most nonprofits
Most money is spent on compensation
▪ Volunteers are essential but often
insufficient
Many executive directorswere originally accomplishedfundraisers
Buyer and user are not the same! When demand goes up, revenue often does not
Understanding Board Dynamics are Essential Always remain objective when interviewing
clients Be very careful to ascertain how many
resources are genuinely available Be wary of promises of future staff time Make sure your solution is implementable! Do not over-complicate things Engage many stakeholders in the
organization!
10,978 Charities
8829 Operating Charities
2122 Foundations
$37.6 Billion in Total Revenue 270,473 Full-Time Employees 233,814 Part-Time Employees As for nonprofits, no one knows…
City # of Charities
TORONTO 3462
NORTH YORK 1857
MISSISSAUGA 898
SCARBOROUGH 834
ETOBICOKE 669
BRAMPTON 452
Other 64 communities 2806
Total 10,978
Category # of Orgs % of OrgsReligion 4,351 40%Welfare 2,639 24%Education 2,209 20%Benefit to the Community
938 9%
Health 691 6%Other 150 1%
Total 10,978 100%
Rank Name of Organization Total Revenue
1 TORONTO DISTRICT SCHOOL BOARD $2,869,172,3552 THE GOVERNING COUNCIL OF THE UNIVERSITY
OF TORONTO $2,410,292,000
3 UNIVERSITY HEALTH NETWORK $1,589,061,000
4 YORK REGION DISTRICT SCHOOL BOARD $1,211,831,926
5 TORONTO CATHOLIC DISTRICT SCHOOL BOARD $1,043,472,000
6 YORK UNIVERSITY $923,373,854
7DUFFERIN PEEL CATHOLIC DISTRICT SCHOOL BOARD $904,816,000
8 SUNNYBROOK HEALTH SCIENCES CENTRE $847,310,000
9 CANCER CARE ONTARIO $836,437,306
10 THE HOSPITAL FOR SICK CHILDREN $704,417,000
Top 1% 77% of revenue
This data encompasses all Charities in Canada, not just Toronto
(it is about the money)
# OF ORGS BY SIZE OF ORGS
4637
1701
681
662
344
0 2000 4000 6000
< $100,000
$100k - $250k
$250k - $1 mill
$1 million - $10 mill
$10 mill +
TOTAL REVENUE OF ORGS BY SIZE OF ORG
$151
$277
$1,112
$4,096
$31,955
$- $40,000
< $100,000
$100k - $250k
$250k - $1 mill
$1 million -$10 mill
$10 mill +
Millions
$41,882 $39,706 $41,323 $46,687
$52,142 $60,515
$70,757 $78,766
$68,466
$-
$20,000
$40,000
$60,000
$80,000
1 2 to 4 5 to 10 11 to 24 25 to 99 100 to 249
250 to 499
500 to 999
1000+
Number of employees
Average total compensation, full-time employees, by number of full-time employees, all charities, 2010
Source: A report I wrote on compensation for the HR Council yet to be released
Most nonprofits do not have staff Most nonprofits have very little resources Most nonprofit resources are spent on staff Most nonprofits cannot afford a consultant Most nonprofits RELY on volunteers Most small nonprofits are started to solve a
particular on the ground problem that is not being addressed by anyone else
59%
33%
10%11%
31%
63%
0%
10%
20%
30%
40%
50%
60%
70%
< $1 million $1 millon - $10 million
$10 million +
Charities Revenue Category
Fundraising Government
Note: Numbers do not add-up to 100% since other categories are missing
29.4%23.4%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
1991 1993 1995 1997 1999 2001 2003 2005 2007 2009
Source: http://www.imaginecanada.ca/files/www/en/researchbulletins/rb1501en.pdf
$1,826,887
$8,253,210
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
Source: http://www.imaginecanada.ca/files/www/en/researchbulletins/rb1501en.pdf
+ 352%
$351
$890
0
100
200
300
400
500
600
700
800
900
1,000
199
8
199
9
200
0
200
1
2002
2003
200
4
200
5
200
6
200
7
200
8
200
9
Fifth
Fourth
Third
Second
Top
+153%
Average donations by highest income quintile
The highest income quintile:• +$32,000 / year in after-tax income
The second highest quartile:• +$14,000 / year in after-tax income
The lowest income quartile:• +$4000 / year in after-tax income
28%
55%
0%
10%
20%
30%
40%
50%
60%
% of total charitable giving by tax filers coming from those with more than $80,000 in income, 1997 to 2011
Source: Cansim Table 111-0003
What trends might affect the organization you’re working with?
What might you do about it? Discuss with the group!
Be prepared to share!
