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Facts about the California Nonprofit Sector

Contents:
Overview, nonprofits by region
Nonprofits by field
Nonprofit employment
Philanthropic activity
More data...

Overview
Over 144,000 nonprofit organizations in California have obtained tax exempt status with the IRS. California is home to 10.2% of all nonprofits in the United States, and more charities than New Jersey, North Carolina, Massachusetts, Virginia, and Hawaii combined. 107,385 of these organizations (74.3%) are public charities, registered as 501(c)3 organizations (The remainder are membership organizations and trusts). This makes approximately 3 charities per 1,000 people in California.

Region
501(c)3 Orgs
Other 501(c) Orgs
Total
Los Angeles/South Coast
40,342 
79.7%
10,261 
20.3%
50,603
Bay Area
26,729 
73.6%
9,591 
26.4%
36,320
San Joaquin Valley
7,529 
65.7%
3,936 
34.3%
11,465
San Diego Metro
8,577 
75.3%
2,808 
24.7%
11,385
Inland Empire
7,589 
74.8%
2,551 
25.2%
10,140
Sacramento Metro
6,049 
66.8%
3,006 
33.2%
9,055
Central Coast
5,323 
71.0%
2,171 
29.0%
7,494
Far North
4,411 
65.3%
2,349 
34.7%
6,760
Sierras
837 
63.9%
472 
36.1%
1,309
TOTAL
107,386 
74.3%
37,145
25.7%
144,531

California nonprofits by field
The table below breaks down the sector by activity classification (NTEE code). California's nonprofit sector fits the nationwide pattern - health, human services, & education are the financial giants of the sector, while arts and public benefit organizations are great in number but not finances.

Activity
#
%
Total Revenues
(in millions)
Total
Expenses
(in millions)
Total Assets
(in millions)
Arts, Culture & Humanities
10,515
10.4
$2,835.4
$2,414.9
$7,012.9
Education
16,947
16.8
$4,657.8
$4,120.8
$10,274.0
Higher Education
409
0.4
$12,697.0
$11,024.2
$38,228.9
Environment
3,181
3.2
$1,204.0
$1,082.5
$2,712.1
Health
6,258
6.2
$29,322.4
$28,765.4
$14,969.1
Hospitals
291
0.3
$38,311.2
$36,537.5
$40,034.7
Human Services
24,776
24.6
$16,093.7
$15,599.8
$21,389.6
International
1,538
1.5
$2,170.8
$1,998.7
$842.4
Mutual Benefit
340
0.3
$449.0
$398.1
$1,077.2
Public and Societal Benefit
8,582
8.5
$3,718.6
$3,497.7
$6,037.4
Religion
22,309
22.1
$1,181.1
$956.4
$2,131.2
Unknown
5,765
5.7
$46.3
$34.6
$82.6
TOTAL
100,911
100
$112,687.2
$106,430.7
$144,792.1
Foundations*
6,475
--
$15,774.0
$10,893.0
$85,619.8
Table reports for 501(c)3 organizations only. Counts of organizations are from the IRS Exempt Organizations Master File. Total Revenue, Expenditures, and Assets are from the NCCS Core File circa 2004. *Foundations, supporting organizations, and federated giving programs are excluded from totals to prevent double-counting of monies that are granted to 501(c)3 operating charities.

Nonprofit Employment
In 2004 there were 893,061 nonprofit employees in California, which is one out of every 17 paid workers. Nonprofits employ more people than the state government or the construction industry in California. Employment data is based on analysis by the California Employment Development Department in conjunction with the Johns Hopkins Center for Civil Society Studies.

California Nonprofit Employment, 2004 (Second Quarter Average)

Region
Employment
Total Wages
(in Millions)
Average Hourly Wage
Far North 28,807 3.2% $201.6 $12.84
Sacramento Metro 49,810 5.6% $511.6 $18.07
Sierras 3,228 0.4% $26.7 $13.10
Bay Area 231,068 26.0% $2,542.0 $19.57
San Joaquin Valley 75,207 8.4% $604.1 $15.33
Central Coast 33,479 3.8% $273.2 $13.91
Inland Empire 50,786 5.7% $452.4 $16.75
South Coast 337,289 37.9% $3,392.5 $17.21
San Diego 80,649 9.1% $651.3 $14.15
TOTAL 890,323 100% $8,655.3 $15.66
Note: Mono County data was withheld for confidentiality. The total above excludes out of state firms with CA employees and others with unknown addresses. Nonprofit employment was determined by matching nonprofit employer identification numbers (EINs) from the Internal Revenue Service Exempt Organizations Master File to ES-202 data.

The majority of California’s nonprofits (62%) employed less than 10 people in 2004, amounting to only six percent of all the state’s nonprofit workers. The largest nonprofits, those with staffs of more than 250 people, comprised less than 2% of all the organizations in the state, yet they employ 50% of the workers. This skewed distribution of jobs does not exist for California businesses on the whole.

Philanthropic Activity
California foundations have grow tremendously in number and activity over the decade - New York is the only state with more philanthropic resources. In terms of growth, California exceeds the US philanthropic community overall in all categories of growth. For example, total grants nationwide increased 190.8% between 1997 and 2001, while in California we saw an increase of 203.3% for the same period. The table below, based on data from The Foundation Center's FC Stats website, illustrates some of this growth.

 

Number of Foundations

Total Grants

Giving Per Capita

Year

(In Millions)

California

National

1997

3,646

$2,010.9

$62

$69

2003

6,160

$3,759.7

$106

$104

         

Increase

2,514

$1,748.8

$44

$35

% Change

69.0%

87.0%

71.0%

50.7%

Note:All 1997 dollars are adjusted to 2003 constant using the Inflation Calculator from the Bureau of Statistics website.

According to The Foundation Center, approximately two-thirds of California philanthropic giving is directed to California nonprofits, which amounted to $2.35 billion in 2001. Not surprisingly based on nonprofit sector trends noted above, health receives the most funding from California grantmakers, followed by education, human services, and arts. However, California grantmakers provided larger shares of support for the environment, science, and technology than US foundations overall.

More Data...
The Institute can provide additional data analysis about the sector through the California Nonprofit Database.

Sources (in order of appearance):
2004 IRS Business Master File, downloaded May 2005.
State of California, Department of Finance, E-1 City / County Population Estimates, Sacramento, California, May 2005.
Definitions of CA Regions taken from Public Policy Institute of California, California Counts: Population Trends and Profiles, Vol. 3, No. 5.
Revenues, Expenses, & Assets from 2004 Core Files, National Center for Charitable Statistics, Urban Institute.
Nonprofit Employment data from custom analysis provided by the California Employment Development Department, Labor Market Information Division.
FC Stats website and California Foundations: A Profile of the State's Grantmaking Community (2001), The Foundation Center.

Note: Due to the nature of IRS data, the following caveats apply to these figures. Churches, religious schools, and religious organizations, and organizations with annual revenues less than $5,000 are not required to file for tax exempt status with the IRS. Additionally, organizations with revenues between $5,000 and $25,000 are not required to file annual tax returns. Therefore, these estimates may underestimate the number of small organizations in the state. On the other hand, nonprofit closures are not recorded immediately and may not be reflected in this data.