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Human-Service Organizations Contribute $722 Million to Local Economy

From the Alliance for Human Services

Fort Wayne, Ind. – Nonprofit, human-service organizations contribute more than $722 million to the local economy each year, according to research released today by the Alliance for Human Services, an association of more than 50 nonprofit organizations.

The study also shows that Allen County’s human-service organizations are a major local employer and investor, paying a total of $382 million in wages each year and holding more than $552 million in assets.

The research was funded by the Community Foundation of Greater Fort Wayne and the Foellinger Foundation and was conducted by True North NPO and the University of Saint Francis.

The study examined the direct, indirect, and induced economic impact of the 373 human-service organizations serving Allen County. Other not-for-profit organizations, such as hospitals and churches, were not included in the study.

“It’s clear that our organizations are both impacting lives and the local economy,” said Steve Hoffman, executive director of Brightpoint and a board member of the Alliance for Human Services.

“This study shows that Allen County’s human service nonprofit sector is a vibrant, thriving force in our community that contributes substantially to the economy of Allen County,” Hoffman said.

Key findings of the study:

● The 373 human service organizations are a large and very important part of the nonprofit community and the economy of Allen County. They contribute more than $722 million to Allen County’s gross regional product (GRP).

● These human service organizations generate over $405 million in annual revenue and hold $552 million in assets.

● Despite being exempt from corporate income tax, these human service nonprofits generated approximately $4.1 million in direct, indirect, and induced taxes at the county level in 2016.

● The 373 human service organizations are a major economic force in Allen County, directly employing 11,174 workers, which is almost 1 out of 20 paid workers in the county. These workers earned more than $382 million in wages in 2016.

● Combined, human-service organizations are the second largest employment sector in the county. Compared to other sectors in the County, the human service nonprofit sector ranks 6th in terms of aggregate employment wages.

● Among the 100 largest human service nonprofits in Allen County, program services and investment income account for more than 50% of total revenue. Contributions, gifts, and grants from philanthropists, foundations, and businesses account for 46% of Allen County’s human service nonprofit sector revenue.

The complete report is available for download from www.allianceforhumanservices.org.

“Human service organization help thousands of people every year improve their lives, and the economic impact of that work benefits everyone who lives in northeast Indiana,” Hoffman said.

Economic Impact of Allen County’s Human Service Organizations