Monday’s business headlines
INDIANAPOLIS (WISH) — In recognition of Martin Luther King Jr. Day on Monday, Jane King takes a look at the economic impact of America’s nonprofit organizations.
The nonprofit sector touches millions of Americans by providing employment, volunteer opportunities, and important services.
Many people would say that volunteers are priceless — but some researchers have tried to put a number on the impact volunteers have on the country’s economy.
In a 2013 study, economists at Columbia University found that for every $1 invested in national service, $3.95 is returned to communities in terms of higher earnings, increased output, and other community-wide gains.
Each year, an organization called The Independent Sector calculates the average value of one volunteer hour and publishes national and state-specific averages.
In 2022, the estimated value of a volunteer hour in Indiana was $26.76, while the national average was $29.95.
Nonprofits are also a major source of employment in the United States. Within the last decade, there were 12.3 million jobs in nonprofit organizations — that’s just over 10% of total U.S. private sector employment, according to the U.S. Bureau of Labor Statistics.
The nonprofit sector contributes nearly $1 trillion to the country’s economy, with assets greater than $5.17 trillion, government data shows. The Urban Institute expects these numbers to grow.
Volunteering also has benefits far beyond economics. It’s been shown to improve people’s mental and physical health, strengthen social connections, and create positive feelings about one’s community.
Hoosiers who want to make a difference by volunteering can visit the state’s official Serve Indiana website to learn more and get involved.