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Nonprofits are small business employers too

Last week, an article in The Nonprofit Quarterly caught our eye. In a whip-smart expose, writer Tim Delaney discussed the failure of the Council of Economic Advisors (CEA) to acknowledge nonprofits as small employers. In short, a recent CEA study on the economic impacts of health care reform on small businesses completely excluded nonprofit employers as part of this group, reporting only on employers that are non-tax-exempt.

Nonprofits employ 15 million people and, as a sector, account for 11-12% of the nation’s GDP. Over 93% of these organizations have budgets of less than $1 million dollars. If these aren’t not small employers, who is?

The bottom line is this: nonprofits deserve recognition as a major source of employment in this country.

One source of support to get this message across to government is the V3 campaign, a grassroots movement that is determined to ask every candidate for higher office—from small town mayoral contenders to presidential nominees—to provide details about their experience with nonprofits and their plans for partnering with, and strengthening the nonprofit sector if they are elected. The V3 website has some great ways that anyone can support the nonprofit sector, and get the message out that nonprofits are a viable and essential part of the U.S. workforce, economy, and spirit.

Here’s to a more visible, recognized, and valuable nonprofit sector!



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