Nonprofits are essential to the communities they serve. But did you know that they’re also important to the United States economy as a whole? People often underestimate the importance of nonprofits to the overall functioning of the economy. However, they play an integral role in contributing to its stability and mobility.
Due to nonprofits’ impact in their communities and beyond, funding for these organizations is crucial to not only the organization itself but also to the economy from the top-down. Keep reading below to learn about the three specific reasons nonprofit foundations are important to the economy.
1. Provide a Steady Source of Employment
Contrary to popular belief, nonprofits run similarly to other for-profit corporations. Every nonprofit organization needs specialized employees to handle their day-to-day operations. From web developers and accountants to fundraising experts and market researchers, nonprofits provide employment and a steady source of income for many working members of society. The addition of jobs in itself is a benefit to the overall economy, as it keeps people employed and revenue flowing. While COVID-19 had a major impact on the decline of nonprofit employment, jobs in the nonprofit sector are expected to continue rising as the world recovers from the pandemic over the next few years.
2. Consume Third-Party Goods
Not only do nonprofits provide goods and services to their communities, but they also consume goods and services. Nonprofits, just like for-profit organizations, need things like computers, utilities, real estate, internet, and other goods to run their everyday operations and routines. According to the 2019 Global NGO Technology Report, 48% of nonprofits in the U.S. and Canada increased their spending on technology in 2019. Therefore, it’s clear that nonprofits are contributing to necessary economic stimulation on a daily basis. This is why funding for nonprofits is so important.
3. Create Endless Facets for the Economy
Yes, nonprofits create endless facets for the economy. How? By providing the jobs, goods, and revenue discussed above, the nonprofits are indirectly creating facets because people have more money to spend. Nonprofit employees not only use their income on necessities like car insurance and rent, but they use their additional income on luxury goods, entertainment, and experiences. Therefore, the jobs provided by nonprofits support increased spending on consumer assets that contribute to the economy.
Overall, nonprofits are an essential and beneficial aspect of economic stability. That’s why we at Better Benefits Consultants are passionate about providing nonprofit funding. Our goal is to provide the funds needed to keep the focus on your organization’s mission to support your community. To learn more and apply for funding today, head to betterbenefitsconsultants.com/non-profits to get started!