Minnesota's nonprofit sector continues to grow

Researchers say demand, increased awareness of nonprofits' role in society and civic-minded Minnesotans have helped the sector remain economically robust.

By Chao Xiong, Star Tribune

Last update: October 3, 2007 - 9:58 PM

Ten percent of Minnesota's workforce in 2006 was in nonprofit work, according to an upcoming report by the Minnesota Council of Nonprofits.

That's compared with the national average of 7 percent, and it's part of a 10-year pattern of growth that researchers predict will continue.

The report also shows that nonprofits last year generated $10.8 billion in wages in Minnesota.

"We are an important part of the economy," said Christina Wessel, who co-authored the report.

Researchers attributed the growth to a demand for nonprofit services, a heightened profile among nonprofit organizations and a growing desire among the workforce for civic-minded employment.

"The job isn't only about the pay," said Jon Pratt, the council's executive director. "It's also about how satisfying it is."

Pratt pointed to a new "public/nonprofit management major" at the University of Minnesota's Carlson School of Management as evidence of the sector's rising profile. The major was implemented this fall.

The council's data show mostly positive developments in the state's nonprofit sector: Overall, nonprofit wages were competitive with comparable work in the for-profit or government sectors, and could meet a family of four's basic needs.

Moreover, the number of nonprofit employment locations grew by 3 percent, and every region of the state saw an increase in nonprofit opportunities.

But in the seven-county metro area and southwest Minnesota, the report showed wages for nonprofit work lagged behind government and for-profit employment. In some regions of the state, wages for some nonprofit work were falling.

Southeast Minnesota experienced "well above average" weekly wages in nonprofit work, which researchers partly attribute to the Mayo Clinic in Rochester.

The number of nonprofits in the state dropped about 1 percent from 2005 to 2006, partly due to mergers, but local and national researchers said that's not a good gauge of the nonprofit sector's health. Overall well-being is best diagnosed by measuring the growth of employment, researchers said. According to the report, the number of Minnesota employees in nonprofit work grew from 260,948 in 2005 to 269,160 last year.

"It's pretty robust," Dr. Wojciech Sokolowski said of Minnesota's nonprofit workforce.

Sokolowski, a research associate at the Center for Civil Society Studies at John Hopkins University, co-authored a 2006 national report on nonprofits. Using data from 2004, the report showed that about 13 percent of Minnesota's workforce was employed in the nonprofit sector. Washington D.C. led the pack at 17.6 percent, and Nevada came in last with 3.7 percent.

Laurie Brickley, who has spent her 25-year career in nonprofit work, said Minnesota's nonprofit sector is buoyed by supportive corporate sponsorships and active community involvement.

"Minnesota is fortunate because nonprofits are really valued here," said Brickley, director of marketing for the Animal Humane Society.

Chao Xiong • 612-673-4391

Chao Xiong • cxiong@startribune.com