Sector as a Whole Employs One in Ten Private Workers

CHICAGO, April 15, 2011 /PRNewswire-USNewswire/ -- Economic declines in Illinois' nonprofit sector are costing Illinoisans jobs and limiting their access to a wide variety of services at a time when demand for these services is increasing.

Yet, even during the current recession, the nonprofit sector remains a key player in the state's overall financial health, employing one in ten private workers and accounting for nearly $60 billion annually in expenditures for goods and services – nearly ten percent of the state's Gross State Product.

This and other new information about the nonprofit sector, its role in the state's economy and the impact of the recession are included in two new reports – A Vital Force in Illinois: The Nonprofit Economy 2011 and Economic Outlook 2011: Signs of Recovery but Challenges Persist – released today by Donors Forum, an association that provides research and other services to strengthen Illinois philanthropy and nonprofits. Copies of both reports can be found at www.donorsforum.org/Econ2011.

"Nonprofit organizations are active in every community in Illinois and play critical roles in all aspects of our lives. They further research to cure disease, they enrich our lives with art and culture, they provide healthcare to our parents and after-school programs for our kids, they give job training to neighbors who've lost their jobs, and, of course, they care for those who have the least – people who are hungry, sick and poor," said Valerie S. Lies, Donors Forum's President and CEO.

Though fewer organizations are reporting revenue declines and expenditure cuts than in the past, nonprofits surveyed by Donors Forum report that they are continuing to reduce staff, rely more on volunteers, and assign additional responsibilities to existing staff members. More than three quarters of these same organizations also report continued growth in demand for services in 2010, as the impact of the recession continues to be felt among Illinois families.

Chief among the economic challenges facing the nonprofit sector are losses in earned revenue and delayed payments for contracts with the State of Illinois, which totaled nearly $5 billion at the end of the State's fiscal year 2010.

Payment delays impacted human service agencies the most, but all categories of nonprofit organizations reported significant delays, including health, arts, and education organizations.

Donors Forum (www.donorsforum.org) provides resources and services – education, networking, research, library services, publications, advocacy, and leadership -- to strengthen philanthropy and nonprofits in Illinois.

SOURCE Donors Forum