“The Critical Role of Nonprofits in New York”

New York’s Comptroller released an interesting and apparently well-researched report on nonprofits in the empire state. According to the report, nonprofits are concentrated  in 10 states and New York ranks second (probably behind Delaware) in terms of the number of nonprofit organizations.    Here is a short excerpt:

January 2025

Nonprofit organizations exist for a variety of purposes and provide a wide range of services. Some, commonly thought of as charities, are organized to provide services to the poor or disabled. Others include hospitals, nursing and rehabilitation homes, educational institutions, theaters, and athletic leagues. Many serve as partners to state and local governments.

Nonprofits also play an important role in state and local economies. In 2022, there were over 33,500 nonprofits in New York operating in nearly every industry. Nonprofits provided over 1.3 million jobs with $96.8 billion in total wages, ranking the State among the highest in the nation for these measures. In the aggregate, nonprofit organizations represented 5 percent of New York’s private sector establishments, but more than 20 percent of private sector jobs in several regions in the state.

However, nonprofits in New York have been shrinking since 2017, both in number of establishments and in number of jobs, while expanding in the rest of the nation. In all the State’s regions, nonprofit employment in 2022 was lower than in 2017.

Annual wages paid by New York’s nonprofits in 2022 grew at higher rates than those nationally and the private sector; however, nonprofit wages are substantially lower than those of public and private sector employees in New York. In contrast, nonprofit wages are far more comparable to public and private wages in the rest of the nation.

As institutions that are on the ground in communities across the state, nonprofits provide integral services to vulnerable populations in ways that are targeted, trusted and culturally responsive, and are relied upon by all levels of government. However, the process by which government funding is provided is not always timely; in 2023, over half the State’s contracts with nonprofits were executed late. Without a contract, nonprofits cannot receive the funding they require. Policymakers should ensure contracts are processed within the timeframes provided by law, allowing nonprofits to more easily fulfill their vital role in New York’s economy.

. . . 

Nonprofits Play Important Role in New York State’s Economy In 2022, there were over 344,000 nonprofit establishments (“nonprofits”) nationwide with over half (51.5 percent) concentrated in 10 states. Nearly 1 in 10 of these nonprofits were located in New York, ranking the State second, with 33,536 nonprofit establishments. Nonprofits have a greater presence in New York than in many other states. While nonprofits in the U.S. accounted for 3.1 percent of all private sector establishments, in New York, the concentration was 5 percent. In 2022, nonprofits provided 12.8 million jobs nationwide, nearly 1 in every 10 private sector jobs nationally. With 1.3 million jobs, New York has the greatest number of nonprofit jobs, 10.6 percent of the national total. In New York, just over 1 in every 6 private sector jobs were at a nonprofit. Figure 1 summarizes the key figures and New York’s performance. See Appendix A for nonprofit establishments and employment for every state.

darryll k. jones