Classified in: Business
Subjects: NPT, SVY, ECO

Report: Colorado's Nonprofit Sector Supports $62 Billion in Economic Activity

Gov. Polis, Nonprofit Leaders Share Economic Impact Report at Press Conference

DENVER, April 4, 2024 /PRNewswire/ -- Today, Governor Jared Polis joined nonprofit, business and community leaders, as well as elected officials to share the latest report about Colorado's robust nonprofit sector, which supports 260,000 workers.

The Colorado Nonprofit Economic Impact Report is developed every five years to track this vital sector of the state's economy. Some of the highlights of the findings included:

• The sector directly employs 182,000 people, supports 54,000 jobs in business-to-business activity and 26,000 jobs through household spending, which is 10 percent of all jobs.
• The total economic impact increased by 55% to $62 billion in 2024 from $40 billion in 2019. The sector contributes $25 billion to the state's GDP.
• Colorado is home to more than 34,000 nonprofits, with a majority of them providing services with annual budgets of less than half a million dollars.
• 2,000 foundations give more than $1.4 billion in grants annually.
• For this report, nonprofits are tracked by mission with Arts, Education & Science accounting for 28% of all nonprofit assets in Colorado, and Health & Public Safety with 20%.

"Colorado's nonprofits impact every community in our state with their life-changing services and major economic impact. Nonprofits in Colorado have played a key role in disaster recovery during wildfires, floods and more, and also continue providing much needed resources around everything from early childhood education to housing. Because of these organizations, more Coloradans have access to the support they need," said Governor Jared Polis.

"Nonprofits have faced immense challenges since our last report in 2019," said Paul Lhevine, president & CEO, Colorado Nonprofit Association. "They saw job losses during the pandemic and faced a slower recovery due to tight budgets, employee burnout and competition for higher-paying jobs in other industries. Nevertheless, it's encouraging to see the continued growth and strength of the nonprofit sector and the meaningful impact on the economic well-being of our state and its people."

"While nonprofits are sometimes seen as small, underfunded organizations, this report shows Colorado's nonprofit sector is too big to overlook and central to what makes Colorado a unique place to live," said Joanne Kelley, who will be retiring this month after serving for 15 years as CEO of Philanthropy Colorado. "It's worth noting that nonprofits buy and produce goods and services and pay taxable wages to their employees. And just like with other businesses these transactions have a ripple effect on our economy."

"Nonprofits are essential to our societal fabric, providing critical services and boosting employment and the economy. This report shows their impact in every region of our state," said Alex McHenry, Interim Co-Executive Director/Director of Civic Engagement at Community Resource Center. "Rural nonprofits face additional barriers to accessing funding and support, yet the demand for their services persists. It's imperative for nonprofit leaders, especially rural leaders, to be part of statewide policy decisions."

"From the Western Slope to the Front Range, all eight of Colorado's congressional districts see substantial economic and employment contributions from the nonprofit sector, making it critical to include nonprofit leaders in community and state decision-making," said Julie McCluskie, Speaker of the Colorado House of Representatives.

Press conference participants included:

• Governor Jared Polis
• Julie McCluskie, Speaker of the Colorado House of Representatives 
• Paul Lundeen, Minority Leader of the Colorado Senate
• Joanne Kelley, outgoing Chief Executive Officer, Philanthropy Colorado
• Paul Lhevine, President & CEO, Colorado Nonprofit Association
• Lisa Taylor, Board Chair, Colorado Nonprofit Association

The final report is found here and is designed to be a resource to raise awareness and advocate for policies that strengthen nonprofits and their ability to serve communities throughout Colorado.

Sponsors of the report include The Colorado Trust, The Boettcher Foundation, the Colorado Gives Foundation and El Pomar Foundation.

About Colorado Nonprofit Association
The Colorado Nonprofit Association's mission is to strengthen Colorado's nonprofits through education, connection and advocacy. Founded in 1986, we create efficiencies for nonprofits and serve as the voice of the nonprofit sector in Colorado. Through statewide partnerships and collaboration, our vision is for Colorado's nonprofits to ensure a high quality of life for everyone. 

About Philanthropy Colorado
Philanthropy Colorado is a dynamic statewide network with active involvement of more than 120 foundations and member organizations. With a vision for an equitable and sustainable future for Colorado, we work collaboratively to provide educational resources, peer exchanges and advocacy on behalf of a diverse Colorado foundation sector that invests more than $1.4 billion a year in the many nonprofits working to strengthen communities across the state.

About Community Resource Center (CRC)
CRC believes in the power of nonprofits to affect change and support thriving communities. Since 1981, we have been supporting individuals, organizations, and the networks that comprise our sector with meaningful capacity building to move their work forward. Our mission is to support, strengthen, and galvanize change-makers across the nonprofit ecosystem, working together to create a more equitable Colorado.

Contact: Barb Jones
[email protected]
303-765-4751