SOCIAL SERVICES:

Southern Nevada nonprofits suffer from huge funding gap, study says

Thu, Sep 25, 2014 (2 a.m.)

If you're a Nevada resident in need, a nonprofit organization in the northern part of the state can call on much greater resources to help you than one in the south, a new study says.

Nonprofits in Southern Nevada generated less than half the revenue per capita of those in the north during 2011, the Lincy Institute reported. The difference: $1,213 per capita in the south and $3,234 in the north. In addition, Lincy analysts said, Northern Nevada nonprofits also have significantly more assets per capita than their southern counterparts.

The northern nonprofits' economic advantage translates to higher wages for employees and less reliance on private philanthropy. The funding gap is so large it accounts for “all of the state’s underperforming metrics” — measurements such as effectiveness of services and the number of people served — that indicate the southern nonprofits’ operations are not up to par, the report’s authors concluded.

Some of the difference can be explained by the nature of the two regions, said the report’s lead author, Jessica Word, a UNLV associate professor in the school of environmental and public affairs. The economies are different, with the south relying more on tourism and gaming, and the north hosting more mining and serving as the headquarters for the state government.

Nonetheless, the “differences in revenue are stark,” Word said.

Southern Nevada is home to 72 percent of the state population but has 52 percent of the nonprofit organizations in the state. Southern Nevada gets 40 percent of the state distribution of federal grant money.

A May report from the Lincy Institute examined the distribution of federal grant money in the state, concluding that per capita distribution of federal dollars amounted to $1,664 in Washoe County and $772 in Clark County.

Although the number and variety of nonprofits in Nevada has grown rapidly with the state’s population, the number, size and financial capacity of the sector lags behind other states.

The number of registered nonprofits per 10,000 people averages 50 in the United States. In the Mountain West region the average is 41, and in Nevada the figure is 30. Overall, nonprofits in Nevada reported $1,631 in revenue and assets of $5,327 per capita, ranking dead last in the country with figures roughly half the national average.

But despite its comparatively small size, the nonprofit sector in Nevada ranks ninth in total employment, ahead of manufacturing, mining and finance.

“Most people think of nonprofits as nice things that people do to help other people,” Word said. “They don’t think of them as an economic driver or promoter of economic growth.”

However, with Nevada’s nonprofit sector one of the smallest in the nation per capita, there is room for growth and more economic input from the industry.

Nationwide, nonprofit jobs make up 10 percent of all private employment, compared with 4.5 percent in Nevada. Nonprofits are the third-largest employer in the United States.

“Continued growth in the sector will play a significant role in the economic health and vitality of the state and may provide resiliency in the face of future economic downturns,” the report states. “Growing Nevada’s nonprofit sector will pay dividends not only economically but will also enrich the lives of citizens and communities in the state.”

Even when it comes to nonprofit sector employment, Northern Nevada seems to get more than its fair share.

Northern Nevada accounts for 18 percent of the population but 40 percent of nonprofit employees. Meanwhile, Southern Nevada, with 72 percent of the state’s population, has 52 percent of the nonprofit workers.

The nonprofits that researchers examined included charitable organizations and other tax-exempt organizations such as political and community groups, health care nonprofits and other agencies.

Rural Nevada lags both north and south in terms of revenue and workers, with $1,085 per capita and 8 percent of nonprofit employees to serve 10 percent of the state’s population.

“Part of the what we have to do as a state is think about how we distribute dollars and funding proportionate to our population,” Word said. “It won’t be one to one, because there are factors like economy of scale to consider … but more thought needs to be put into the distribution of those resources.”

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