by Inventures
April 09, 2024
As professionals in the association industry, we deeply comprehend the wide-ranging impacts that nonprofit organizations have on our society. However, it is a vital component of our roles to recognize that not everyone grasps the pivotal role nonprofits play, especially when it comes to the economy. As association experts, we must take it upon ourselves to educate and enlighten others when the opportunity arises.
Typically, when one thinks about nonprofit organizations, they are associated with social causes benefiting the community through the arts, social justice, healthcare, education, and more. Communities thrive through both financial and volunteer investment by individuals with like-minded interests. However, what is often overlooked is the positive economic impact these associations have on the local economy. Depending on the size of the association, local may mean town, state, national, or even global impact.
In 2022, the IRS recognized more than 60,500 trade and professional associations, while also noting that associations encompass all industries, all professionals, all businesses, and all companies. According to the Council of Nonprofits, nonprofit organizations employ 12.3 million people in the United States alone, spend nearly $1 trillion annually for goods and services, attract other businesses due to a better quality of life in the communities they serve, and have a trickle-down effect that creates more jobs and tax revenue. For instance, the Council of Nonprofits also highlights art programming as a compelling example to use when educating individuals that are unfamiliar with the economic impact of associations.
"By attending a play at a local theater, you didn't just support the cast, crew, and administrative staff. You also likely provided a boost to local business. Did you pay for parking? Did you buy just the right earrings, shoes, or tie for the occasion? Did you go to dinner before the show or meet a friend afterwards? If so, you extended the economic impact of that theater, helping to create more jobs in the local economy, while also generating even more tax revenue for the local government."
-Council of Nonprofits
In addition to supporting the local community cause, you’re also supporting an industry or profession. The individuals who manage the theater you visited likely belong to a variety of associations including ticketing, theatre management, or furniture and supplies for theatres.
To gain a deeper understanding of the impact nonprofit social and professional organizations have, share examples that will resonate with individuals. For example, the Council of Nonprofits states that there is a “good chance” that you or a family member:
- Was born in a nonprofit hospital (as nearly half of America’s hospitals are nonprofits) and the doctors and nurses within those facilities belong to professional healthcare associations to maintain their licenses, receive continuing education, and stay updated on the best practices for patient care.
- Avoided and/or escaped diseases because of scientific research conducted by nonprofits, and the research may have been driven by an association of clinical lab managers or scientists who specialize in cellular therapies.
- Attended a nonprofit preschool, grade school, high school, college, or graduate school — and possibly with the support of a nonprofit scholarship, and the teachers within those schools are members of professional associations specific to their grade level or subject matter.
- Exercised your rights to vote, to education, to travel, and other rights protected under the laws that were secured and protected by nonprofits, and many professional associations advocate for these rights on behalf of their profession or industry.
- Visited historic treasures and public lands preserved by nonprofits, and the individuals who work in these public lands and parks are members of professional associations that help them face challenges of their day-to-day work to protect the environment, care for animals, and ensure a positive visitor experience.
It is important for people to recognize that being a nonprofit does not equate to lacking impact in our world. Nonprofits of all types act as catalysts, driving the discovery of new opportunities, devising solutions to challenges, and exerting significant influence on the economy. As stewards of the nonprofit sector, it is our responsibility to promote and educate people on the influential contributions associations make.
If you are interested in learning more about Inventures, contact Stan Moyer.