Question

What is the non-profit sector and what is it's importance in the United States? What is the present size and scope? List 3-5 key trends in the non-profit sector that have changed in the last decade. What are the present recommendations on key policy issues for the non-profit sector to continue to strengthen its impact on key issues in the United States?

Answer 1

A non profit sector is a tax exempt organisation the benefits the broad public interest. Non profit organizations are a steady source of employment. Non profits are just businessess. They simply just receive preferential tax treatment. 2012 report prepared by Johns Hopkins University shows that 10.7 million people were employed in the non-profit sector in 2010 – 10.1 percent of total employment in the US that is United States.

According to the report, employment in non-profit sector had an average annual growth rate of 2.1 percent from 2000-2010 – a period in which the United States experienced two separate recessions. On the other hand, for-profits saw employment reduced by 0.6 percent annually across those 10 years.

Non-profits’ has huge economic contributions and are evident in the United States’ GDP. According to The Independent Sector, non-profits account for 5.5% of the GDP – the equivalent of $805 billion.

The impact of the non-profit organisations is indisputably far and wide-reaching and important to the United States’ economic well-being.