Louisville is home to 2,038 501(C)(3) organizations, according to the results of Center for Nonprofit Excellence‘s 2016 Greater Louisville Survey of Nonprofits, which were published Thursday in a 22-page report.
The sector represents $10.5 billion in annual revenue, up 35 percent since fiscal year 2011, which is approximately 15 percent of the gross metropolitan product of the metro area, the center says.
While that sounds very impressive, keep in mind that the survey revealed that $7.9 billion, or 73 percent, of that revenue is generated by area hospitals; $2 million is generated by charities; and $769,000 by foundations.
On average, private funding represents close to half of all charity funding. Salaries and benefits account for around 65 percent of a charity’s budget, according to the survey.
Board service in the Louisville area is fair to middling, according to the survey. Nonprofits were asked to rate their board’s performance in a variety of categories and to a category the averages were B to C.
What’s more, there is a high rate of board vacancies in Louisville. This chart lays it out by type of nonprofit:
The racial and gender demographics of Louisville’s nonprofit board member is largely in line with the national demographics for boards, although based on Louisville’s demographics women and people of color in all categories except “other” are underrepresented.
According to the CNPE survey: “Nonprofit organizations in Greater Louisville are growing to meet the additional need, with 59 percent reporting that they expanded services in FY 2015. However, the sector is clearly experiencing a financial strain in doing so, as 34 percent of nonprofits ended the fiscal year with a deficit.”
Only a small number of the more than two thousand nonprofits responded, however. The survey contained 27 questions sent to 514 area nonprofit executives. From April 11 to June 6 this year, it received 180 total responses and 153 complete responses.
According to the conclusion of the sampling in this report, Louisville’s nonprofit scene is “strong,” good and growing. The data show that the areas of challenge in the community include “resource development, board diversity and performance, as well as meaningful outcomes measurement and program evaluations.”
IL will have a link to the full report as soon as it is posted online. The survey was made possible with the support of Brown-Forman.
The CNPE has more than 450 member organizations to which they offer consultations, professional development, events and more.