The Nonprofit Sector in South Dakota Whats New

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The Nonprofit Sector in South Dakota Whats New?

• South Dakota Community Foundation
• July, 2009

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Topics We Will Cover

• Statistics on Nonprofits and Philanthropy
• Trends
• Governance
• Accountability
• Public Perception
• Regulation

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The Statistics are Difficult to Substantiate

• Nonprofit sector very diverse, with few large
  players
• Government does not allocate resources to data
  collection on nonprofits on par with other
  economic sectors
• Employment data is kept by states some states
  limit how data can be used
• New reliance on NAICS system is a problem no
  distinct category for nonprofits

The Nonprofit Almanac 2008, Urban Institute
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Numbers Change, but Proportions Dont

• Gifts bequests 87 in 1970, 83 in 2000
• Giving as percentage of GDP constant at about 2
  over past 30 years
• Individual giving as percentage of annual income
  constant at about 2 over past 30 years
• Corporate giving as percentage of revenue
  constant at 1.2

Nonprofit Nation, Michael ONeill
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Nonprofits in the US

• Total 501(c) organizations - 1,855,067
• Total 501(c)3 organizations - 1,186,915
• Total 501(c)6 organizations - 89,409
• Nonprofits comprise about 8.5 of GDP
• Nonprofits comprise about 11 of employment

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Nonprofit Market is Vast

• 75 of US nonprofits have revenue under 1
  million
• Largest nonprofits revenues only 1.5 of annual
  giving
• Only ¼ of 501(c)3s file a Form 990/990-EZ

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Nonprofits in South Dakota

• 7,746 Organizations
• 7.2 Billion in Income
• 13.09 Billion in Assets
• 2007 SD State GDP35.7 Billion

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Nonprofits in Pennington County

• 814 nonprofits
• 960 million revenue
• 1.31 billion assets

www.taxexemptworld.com
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2007 charitable giving Total 306.39 billion
( in billions)
Corporations15.695.1
Foundations38.52 12.6
Individuals229.03 74.8
Bequests23.15 7.6
Source 2008 Giving USA
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Types of recipients of contributions, 2007 Total
306.39 billion ( in billions)
Environmentand animals6.962.3
Internationalaffairs13.224.3
Arts, culture, and humanities13.674.5
Foundations27.73 9.1
Unallocatedgiving 23.677.7
Public-society benefit22.657.4
Health 23.157.6
Religion 102.32 33.4
Humanservices 29.64 9.7
Education43.32 14.1
Source 2008 Giving USA
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Nonprofits in the News(usually for the wrong
reasons!)

• United Way of America William Aramony
• September 11 charity
• American Red Cross 9/11, etc.
• Pennies for Charity and state AGs
• Katrina
• Nonprofit hospitals
• University endowments
• Local Scandal du jour

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Regulatory Trends and Influences

• IRS Intermediate Sanctions
• Sarbanes-Oxley (SOX)
• Senate Finance Committee
• House Joint Tax Committee (hospitals)
• Panel on the Nonprofit Sector
• IRS Governance Best Practices (now included in
  2008 Form 990 questions)
• IRS Inquiry Letters (hospitals universities)

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Conclusions

• Nonprofit sector is big and influential
• Nonprofit sector is very splintered
• Perception of eroding confidence in charity
• Trends toward more public scrutiny
• IRS changing role reluctantly - from pure
  financial regulation to broader governance
  oversight

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Thank You!

• 818 S. Hawthorne Avenue
• Sioux Falls, South Dakota 57104-4537
• [phone] or (888) 4-SUMPTION
• www.sumptionandwyland.com