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February 28, 2021
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Business Review Western MI
Business Review Western MI
Non-profit impact
(wgvu) -
Not-for-profit organizations are a large and growing sector of
western Michigan's economy, estimated by a new study at $2.2 billion in
annual economic impact in Kent County alone.

The number of not-for-profits in Kent County grew 4.9 percent between
2005 and 2006, according to the Community Research Institute at the
Dorothy A. Johnson Center for Philanthropy and Nonprofit Leadership
at Grand Valley State University.
Internal Revenue Service filings recorded 3,149 NFP filings, researchers

It's a baseline number to really be able to see how big the nonprofit
sector is in Kent County, and to really just take the sector into
account when we're talking about setting directions and planning for
economic growth in Kent County, CRI researcher Maria Gajewski said. It
really is a force to be reckoned with.

Researchers at the CRI estimated that not-for-profits employ about
40,280 in Kent County, with the county's largest employer Spectrum
Health itself an NFP.

Some 18,090 additional for-profit jobs are estimated to stem from NFP
employment in the county.

Elsewhere in western Michigan, the CRI counted 1,104 not-for-profits in
Ottawa County, accounting for $650 million in economic activity.
Researchers estimated employment there in that sector at 13,644, with
another 3,276 for-profit jobs due to the sector's multiplier effect.

In Muskegon County, there are 698 NFPs for $385 million in annual
economic activity, employing some 8,185 directly and 3,276 indirectly.

A 2006 CRI study found that the average salary for NFP executive
directors in Allegan, Kent, Ottawa and Muskegon Counties in 2005 was
$79,417 for men and $63,215 for women.
Three quarters of the NFPs with operational budgets over $5 million were
headed by men, the study found. Men also were more likely to have
tenures at their organizations longer than 10 years.

The average pay increase for NFP chief executives in 2005 was 4.4
percent, researchers found.

Average pay for program directors at organizations between $1 million
and $5 million in operating expenditures was $42,787.

Chief financial officers in that segment earned $54,671 on average and
development directors earned $53,545, the CRI reported.
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