THE FORAKER GROUP REPORT ON THE ALASKA NONPROFIT … · There are 4,165 Alaska-based registered...

THE FORAKER GROUP REPORT ON THE ALASKA

NONPROFIT ECONOMY

A report on the economic importance of Alaska’s nonprofit sector conducted by the Institute of Social and Economic Research

University of Alaska Anchorage

by Scott Goldsmith

December 2006

Institute of Social and Economic Research

University of Alaska Anchorage 3211 Providence Drive

Anchorage Alaska 99508 907-786-7710

http://www.iser.uaa.alaska.edu

The Foraker Group Nonprofit Report December 2006

Institute of Social and Economic Research, University of Alaska Anchorage ii


Institute of Social and Economic Research, University of Alaska Anchorage iii

THE FORAKER GROUP REPORT ON THE ALASKA NONPROFIT ECONOMY

Table of Contents

I. WHAT IS THE NONPROFIT SECTOR? ........................................... 1 II. NUMBER OF NONPROFIT ORGANIZATIONS.............................. 5 III. THE DIFFERENT TYPES OF NONPROFIT ORGANIZATIONS ............................................................................. 9

a. Reporting Public Charities (501c3)......................................................... 9 b. Funding Intermediaries (501c3) ........................................................... 18 c. Civic Leagues and Social Welfare Organizations (501c4) ........................ 20 d. Member-Serving Nonprofits................................................................ 21 e. Non-Reporting Nonprofits .................................................................. 23 f. Non-Registered Nonprofits ................................................................. 25 g. Religious Congregations ..................................................................... 25

IV. REVENUE SOURCES OF SERVICE-PROVIDING NONPROFITS ................................................................................... 27

a. Public Charities ................................................................................. 27 b. Civic Leagues ................................................................................... 32 c. Member-Serving Nonprofits................................................................ 32 d. The Importance of Federal and State Grants........................................... 33

V. CONTRIBUTIONS............................................................................ 37 a. Individuals........................................................................................ 37 b. Businesses and Corporations ............................................................... 43 c. The Role of Foundations and Other Funding Intermediaries ..................... 43 d. Volunteers ........................................................................................ 49

VI. EXPENDITURES AND ASSETS ..................................................... 53 VII. EMPLOYMENT AND PAYROLL ................................................... 55 VIII. COMPARISON WITH NATIONAL TRENDS................................ 63 IX. ECONOMIC SIGNIFICANCE.......................................................... 69 X. NONPROFITS BY REGION............................................................. 73 XI. NONPROFITS BY COMMUNITY................................................... 79


Institute of Social and Economic Research, University of Alaska Anchorage iv

APPENDIXES (SEPARATE VOLUME) A. DATA SOURCES ...................................................................................................3 B. TAX-EXEMPT ORGANIZATION REFERENCE CHART ..................................5 C. DEFINING CHARITABLE ORGANIZATIONS.................................................13 D. ALASKA NATIVE NONPROFITS......................................................................15 E. NATIONAL TAXONOMY OF EXEMPT ENTITIES (NTEE) ...........................17 F. ISER AGGREGATIONS OF NTEE CATEGORIES ...........................................22 G. REPORTING ALASKA 5013C CHARITABLE NONPROFITS ........................23

a. Ranked by Expenditures ............................................................................24 b. Listed by Service Category........................................................................49 c. Listed by Location .....................................................................................73

H. REPORTING FUNDING INTERMEDIARIES....................................................96 a. Ranked by Expenditures ............................................................................96 b. Foundations Ranked by Assets ................................................................101

I. REPORTING CIVIC LEAGUES AND SOCIAL WELFARE ORGANIZATIONS (501C4)...............................................................................103

J. REPORTING MEMBER-SERVING NONPROFITS ........................................107 K. NONPROFITS IN ONE COMMUNITY—KODIAK.........................................116

a. Public Charities........................................................................................116 b. Member Serving.......................................................................................118

L. MONITORING THE NONPROFIT SECTOR ...................................................123


Institute of Social and Economic Research, University of Alaska Anchorage 1

I. WHAT IS THE NONPROFIT SECTOR? The nonprofit sector comprises those nongovernmental organizations, commonly known as 501c corporations, that are exempt from the federal corporate income tax. As such, they are a large and very diverse group, as reflected in the different categories identified in the federal tax code.

TYPES OF TAX-EXEMPT ORGANIZATIONS UNDER U.S. LAW Tax Code # Type of Tax-Exempt Organization Share of Total (1995) 501 (c)(1) Corporations Organized Under an Act of Congress 0.0% 501 (c)(2) Title-Holding Companies .6% 501 (c)(3) Religious, Charitable, Educational, Etc. 53.8% 501 (c)(4) Social Welfare 12.0% 501 (c)(5) Labor, Agricultural Organization 5.7% 501 (c)(6) Business Leagues 6.5% 501 (c)(7) Social and Recreational Clubs 5.6% 501 (c)(8) Fraternal Beneficiary Societies 7.9% 501 (c)(9) Voluntary Employees’ Beneficiary Societies 1.3% 01 (c)(10) Domestic Fraternal Beneficiary Societies 1.8 501 (c)(11) Teachers’ Retirement Fund 0% 501 (c)(12) Benevolent Life Insurance Associations .5% 501 (c)(13) Cemetery Companies .8% 501 (c)(14) Credit Unions .4% 501 (c)(15) Mutual Insurance Companies .1% 501 (c)(16) Corporations to Finance Crop Operations 0% 501 (c)(17) Supplemental Unemployment Benefit Trusts .1% 501 (c)(18) Employee-Funded Pension Trusts 0% 501 (c)(19) War Veterans’ Organizations 2.6% 501 (c)(20) Legal Services Organizations 0% 501 (c)(21) Black Lung Trusts 0% 501 (c)(25) Holding Companies for Pensions 0.1% 501 (d) Religious and Apostolic Organizations 00% 501 (e) Cooperative Hospital Service Organizations 0%

501 (f) Cooperative Service Organizations of Operating Educational Organizations 0%

521 Farmers’ Cooperatives .2%

Source: State Nonprofit Almanac, 1997, page 3.

Although comprising a broad array of activities, the entities in the nonprofit sector can be characterized by the following six characteristics: First, they serve some public purpose and contribute to the public good. Second, they involve some voluntary participation, typically in the form of a board of directors, but often involving voluntary labor as well. Third, they are self-governing—meaning that they have internal controls that are not



governed by outsiders. Fourth, they are not dedicated to generating profits for their owners through their activities, except that excess revenues may be reinvested in the mission of the organization. Fifth, they are institutionally separate from the government. And finally, they are organizations which typically secure legal standing as corporations chartered under state laws. This allows them to enter into contracts and carry on other functions. However, it is not necessary for a nonprofit to be chartered in this way. (The informal nature of many nonprofits makes it difficult to track and measure the total importance of the sector.) There are a number of different terms often used to describe these types of organizations, including charitable sector, independent sector, voluntary sector, tax-exempt sector, and civil-society sector. Each term emphasizes one aspect of these types of organizations, but does not tell the whole story. For example, charitable sector emphasizes the support these organizations get from private, charitable donations. But most get a considerable portion of their support from other sources. Independent sector emphasizes the fact that these organizations are neither private businesses nor government entities. But, in fact, most depend heavily on business or government for their support. Voluntary sector emphasizes the input of volunteers upon which many of these organizations depend. But most activity in the nonprofit sector is carried on by paid employees. Tax-exempt sector emphasizes the fact that these organizations are exempt from federal income taxes and most state and local property taxes. But a large number of tax-exempt entities fall outside the religious, charitable, and educational category exempt under federal law. And the civil-society sector emphasizes the citizen base of this set of organizations. But most nonprofits in the United States are not membership organizations. Although there are 26 separate groups of organizations that can claim exempt status,1 they can be divided into two basic categories—public serving and member serving organizations. Public-serving nonprofits, which make up about 70% of all nonprofits, are organizations that exist primarily to serve the public at large rather than their own members. They include service providers, funding intermediaries (including foundations), and religious congregations. The largest share of public-serving organizations, and an important focus of this report, consists of the religious, charitable, scientific, and education organizations exempt under Section 501c3 of the federal tax code and often characterized as “charitable organizations.” These charitable organizations are not only exempt from federal taxation but they are also eligible to receive tax-exempt donations from individuals and businesses. It is useful to further divide these charitable organizations into three functional categories—religious congregations, financial intermediaries, and service providers. Religious congregations are not required to register with the IRS to obtain tax-exempt

1 Political organizations are also tax exempt under Section 527.



status as 501c3 corporations, although many do and are included in descriptions of this sector. However, because of their unique purpose, they are generally not included in analyses of the importance of the nonprofit sector. In this report we generally exclude them from our analysis. Financial intermediaries, such as foundations, the United Way (federated funders), and professional fundraisers, function to generate philanthropic contributions from the public as well as to manage and distribute the proceeds to other nonprofit organizations for their use. As such they perform a special function separate from the majority of charitable organizations. The majority of charitable organizations are those involved in direct service delivery. These organizations, commonly referred to as public charities, serve the public interest in the broad areas of health care, social services, civic services, educational services, and cultural services. Since their revenues come from a diverse mix of government and private sources and they provide services to individuals, households, and other organizations at all levels of society, the term public charity is really too narrow and somewhat misleading for this sector. A smaller group of public-serving nonprofits is organized under Section 501c4 of the federal tax code and often characterized as “civic leagues and social welfare organizations.” Like most public charities, they are service-delivery organizations, but because they may be involved in lobbying and campaigning, they are not eligible to receive tax-exempt contributions. The member-serving organizations, which make up about 30% of all nonprofits, are those that are established for the benefit of their members. They include social and fraternal organizations, business and professional associations, labor unions, credit unions, and political organizations. This report is the first attempt to provide a comprehensive description of the nonprofit sector in Alaska. It is based upon a diverse collection of state and national data sources pieced together to create a comprehensive picture of the scope and importance of nonprofits. Research on the nonprofit sector of the economy is in its infancy, and consistent definitions and methods have not yet been clearly established for presenting information on this important part of the economy. Hopefully this report will help to increase public awareness of the contributions of the nonprofit sector to the economy of the state and lead to better information with which to measure its future growth and composition.





II. NUMBER OF NONPROFIT ORGANIZATIONS We estimate that there are about 6,000 nonprofit organizations operating in Alaska. Most of these are Alaska-based organizations that have registered with the Internal Revenue Service (IRS). However, in addition to these Alaska nonprofits, there are also many nonprofit organizations operating in the state, including some of the largest, that are registered outside of Alaska. Our estimate also includes numerous Alaska organizations that have not registered with the IRS—religious congregations and very small organizations with annual revenues less than $5,000.

NUMBER OF NONPROFITS OPERATING IN ALASKA IN 2004

TOTAL 6,000 REGISTERED WITH IRS FROM ALASKA 4,765 REGISTERED OUTSIDE ALASKA ? NOT REGISTERED ? Religious Congregations 600 Other ?

Source: National Center for Charitable Statistics, State Summary Profile, and ISER.

There are 4,165 Alaska-based registered nonprofits operating in Alaska (excluding registered religious congregations).2 3 About three-quarters of these are public-serving organizations—either charitable organizations (501c3) or civic leagues and social-welfare organizations (501c4), while the remainder are member-serving nonprofits (other 501c).

NUMBER OF REGISTERED ALASKA-BASED NONPROFITS IN 2004 (EXCLUDING RELIGIOUS

CONGREGATIONS) TOTAL 4,165

Charitable Organizations (501c3) 2,602 Public Charities 2,455 Private Foundations 147

Civic Leagues and Social Welfare Organizations (501c4) 591 Member Serving Nonprofits (Other 501c) 972

Source: National Center for Charitable Statistics, State Summary Profile downloaded from website 10/06. Note: Excludes 600 religious congregations that register with the IRS.

About half of the registered Alaska-based nonprofits have annual revenues of less than $25,000, which exempts them from the requirement of filing an annual informational tax return with the Internal Revenue Service (Form 990 or Form 990-PF). There were 2,062

2 These organizations applied for nonprofit status with the IRS by submitting Form 1023 or 1024. 3 The number of religious congregations is estimated to be 1,187, of which 600 have registered with the IRS. Religious congregations are not required to register, but many do.



reporting nonprofits and 2,103 nonreporting organizations among the 4,165 registered Alaska-based nonprofits.

FILING STATUS OF REGISTERED ALASKA-BASED NONPROFITS IN 2004 (EXCLUDING RELIGIOUS CONGREGATIONS)

IRS Filing Status Total Reporting Not Reporting TOTAL 4,165 2,062 2,103

Charitable Organizations (501c3) 2,602 1,364 1,238 Public Charities 2,455 1,282 1,173 Private Foundations 147 82 65

Other Tax Exempt (501c) 1,563 698 865 Civic Leagues and Social Welfare

Organizations (501c4) 591 214 377

Other 972 484 488 Source: National Center for Charitable Statistics, State Summary Profile downloaded from website 10/06.

The Alaska registered and reporting (filing an informational tax return) nonprofits account for most of the paid employment, revenues, expenditures, and assets of the nonprofit sector. The reported gross receipts of these nonprofits were $3.408 billion, and their combined assets were $5.510 billion.

REGISTERED AND REPORTING ALASKA-BASED NONPROFITS: RECEIPTS AND ASSETS IN 2004

Filers Gross Receipts

(million $) Assets

(million $) TOTAL 2,062 $3,407.708 $5,510.081

Charitable Organizations (501c3) 1,364 $2,237.740 $2,774.588 Public Charities 1,282 $2,157.686 $2,460.253 Private Foundations 82 $80.054 $314.335

Other Tax Exempt (501c) 698 $1,169.969 $2,735.493 Source: National Center for Charitable Statistics, State Summary Profile downloaded from website 10/06.

In this report we rely largely upon a database created especially for this project which builds upon, but differs from, the information in the foregoing table in two important respects.4 First, it includes a number of large nonprofits registered and reporting outside of Alaska. Although they are not Alaska nonprofits, these include some of the largest nonprofits operating in Alaska, such as the Providence Medical Center.5 Second, we re-categorized some Alaska nonprofits based on a detailed review of the database.6

4 The data file is constructed from the CORE files and Business Files of National Center for Charitable Statistics (NCCS). 5 Group exemptions and group returns may distort the picture of nonprofit organizations at the state and local levels based on the NCCS files. Parent organizations that file group returns for their affiliates report these finances in the aggregate. This has no effect on overall financial statistics at the national level, but does affect the number of organizations and the allocation of organizational finances at the state level. The



The result of this process of refining the data is a slightly different summary of the number and composition of Alaska nonprofits which includes all nonprofits operating in the state for which a recent IRS Form 990 is available.7

RECENTLY REPORTING NONPROFITS OPERATING IN ALASKA IN 2004

Number Revenues (million $)

Expenditures (million $)

Assets—End of Year

(million $) TOTAL 1,753 $3,770.093 $3,396.187 $6,170.103

PUBLIC SERVING 1,375 $2,900.939 $2,574.068 $3,678.575

Charitable Organizations (501c3) 1,207 $2,785.335 $2,471.296 $3,401.631

Public Charities 1,011 $2,506.390 $2,391.401 $2,399.470 Funding Intermediaries 196 $278.945 $79.895 $1,002.160

Civic Leagues and Social Welfare Organizations (501c4) 168 $115.605 $102.772 $276.944

MEMBER SERVING 378 $869.154 $822.119 $2,491.527

Source: NCCS Core Files and ISER. Note: Funding Intermediaries includes both Foundations and other organizations, such as United Way,

that primarily collect and distribute funds rather than directly deliver services.

finances of affiliated organizations included in group returns are not listed under the states in which they operate, but rather under the state in which the parent organization files. 6 We moved some charities into different categories within the major sectors, moved some charitable organizations into the civic-league category, and netted out the churches. In addition, we identified some public charities as being similar to private foundations. We combined those public charities with the private foundations to create a category called funding intermediaries. 7 Although the database covers the year 2004, the data for some organizations is for an earlier year.





III. THE DIFFERENT TYPES OF NONPROFIT ORGANIZATIONS

The nonprofit sector encompasses a broad range of activities. In this section, we describe each of seven major groups of nonprofits.

III.a. Reporting Public Charities (501c3) Reporting public charities8 are the larger public-serving and service-providing nonprofits that are eligible to accept tax-deductible contributions. There are 1,011 public charities, each with revenues of $25,000 or more, that report their finances each year to the IRS by filing an informational return (Form 990).9 The total expenditures of these public charities is $2.4 billion a year, and total employment is 27 thousand.10 As was the case for the nation as a whole, the number of reporting public charities increased only modestly (4 percent) between 1996 and 2004.11 As indicated below, however, both revenues and employment in the nonprofit sector increased rapidly during this period. Reporting public charities (excluding foundations and churches) can be divided into 5 categories based on function—health, social services, education, arts/culture, and civic.12 The largest numbers of organizations provide social services, but the largest share of expenditures is accounted for by those organizations providing health services. Civic, education, and arts/culture public charities are also large in numbers, but smaller in size and importance in terms of expenditures

8 Excluding churches and funding intermediaries that also are classified as 501c3 organizations. 9 The NCCS Core database, from which this information is taken, excludes 4 of the largest public charities operating in Alaska because they are registered in another state and have multi-state operations. These are Providence Health Care, Banner Health Care, Ketchikan Hospital, and the Salvation Army. We have estimated the annual expenditures of these organizations in Alaska based on their reported employment. Some other smaller public charities that we have not identified are also missing from the database, but various reviews suggest the effect of these missing organizations does not materially impact the aggregate results of our analyses. 10 Expenditure figures include service provision, management, and fund raising. 11 National Center for Charitable Statistics website. 12 This breakdown is based on the National Taxonomy of Exempt Entities (NTEE). A detailed explanation of this taxonomy, as well as the method we have used to aggregate the more detailed categories, is in the appendix.



COMPOSITION OF ALASKA PUBLIC CHARITIES

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

NUMBER (1,011) EXPENDITURES($2.4 BILL)

JOBS (27K)

healthsocial servicesciviceducationarts/culture

REPORTING PUBLIC CHARITIES OPERATING IN ALASKA

Expenditures

(Million) Number Employment

TOTAL $2,391.401 1,011 27,039 Health $1,435.047 159 15,841 Social Services $685.715 441 8,442 Civic $132.376 112 1,342 Education $84.686 137 931 Arts/Culture $53.577 162 481

Source: NCCS CORE Files and ISER. Nearly half of these public charities operate without salaried employees, but these tend to be the smaller organizations and they account for only 4 percent of total expenditures.



SIZE DISTRIBUTION OF ALASKA PUBLIC CHARITIES (EXPENDITURES)

0 100 200 300 400 500

>$100 MILLION

$10-$100 MILLION

$1-$10 MILLION

$ 100 THOUSAND-$1 MILL

$ 10-$100 THOUSAND

<$10 THOUSAND

PUBLIC CHARITIES WITHOUT SALARIED EMPLOYEES: NUMBER OF ORGANIZATIONS

Salaried Employees Share With No Salaried Employees

Total Yes No TOTAL 1,011 557 454 45%

Civic 159 96 63 40% Human Services 441 233 208 47% Health 112 91 21 19% Education 137 57 80 58% Art 162 80 82 51%

Source: NCCS and ISER.

PUBLIC CHARITIES WITHOUT SALARIED EMPLOYEES: EXPENDITURES (Million )

Salaried Employees

Share With No Salaried

Employees Total Yes No TOTAL $2,391.301 $2,303.300 $88.101 4%

Civic $132.276 $118.278 $14.098 11% Human Services $685.715 $649.053 $36.662 5% Health $1,435.047 $1,433.241 $1.806 0% Education $84.686 $56.808 $27.878 33% Art $53.577 $45.919 $7.658 14%

Source: NCCS and ISER. The five largest public charities have annual expenditures greater than $100 million. Thirty-six have expenditures greater than $10 million, and 188 have expenditures greater than $1 million. The largest 20 account for two-thirds of all expenditures of public charities, while the largest 100 account for 88 percent of total expenditures.



LARGEST REPORTING PUBLIC CHARITIES OPERATING IN ALASKA

Rank Name Location Cumulative Share

1 Providence Hospitals Anchorage 15.5% 2 Alaska Native Tribal Health Consortium Anchorage 26.4% 3 Banner Health Care—Fairbanks Hospital Fairbanks 32.1% 4 Yukon-Kuskokwim Health Corporation Bethel 37.1% 5 SouthCentral Foundation Anchorage 41.4% 6 Tanana Chiefs Conference Fairbanks 44.6% 7 Southeast Alaska Regional Health Consortium Juneau 47.4% 8 Central Peninsula General Hospital and FRC Soldotna 49.9% 9 Maniilaq Association Kotzebue 52.1%

10 Valley Hospital Association Palmer 54.1% 11 Norton Sound Health Corporation Nome 56.0% 12 Salvation Army Anchorage 57.9% 13 Bristol Bay Area Health Corporation Dillingham 59.5% 14 Ketchikan Hospital—Peace Health SE Ketchikan 60.9% 15 Hope Community Resources, Inc Anchorage 62.1% 16 Cook Inlet Tribal Council, Inc Anchorage 63.3% 17 Association of Village Council Presidents Bethel 64.5% 18 Kawerak, Inc Nome 65.5% 19 Arctic Slope Native Association, Ltd Barrow 66.4% 20 Rural Alaska Community Action Program Inc Anchorage 67.2%

Source: NCCS Core Files and ISER. Organizations in bold are registered outside Alaska. The largest public charities are mostly hospitals and Alaska Native health and social service nonprofits. Since these Native nonprofits are unique to Alaska,13 it is useful to present them split out from other public charities. The largest Native nonprofits generated nearly $1 billion of expenditures in 2004.

13 About 20 percent of Alaskans are Native American.



LARGEST ALASKA NATIVE NONPROFITS

Location Expenditures

(Million) TOTAL $980.146 Alaska Native Tribal Health Consortium Anchorage $270.647 Yukon-Kuskokwim Health Corporation Bethel $122.343 SouthCentral Foundation Anchorage $106.983 Tanana Chiefs Conference Fairbanks $78.484 Southeast Alaska Regional Health Consortium Juneau $67.945 Maniilaq Association Kotzebue $53.796 Norton Sound Health Corporation Nome $47.274 Bristol Bay Area Health Corporation Dillingham $39.502 Cook Inlet Tribal Council Inc Anchorage $29.015 Association Of Village Council Presidents Bethel $28.402 Kawerak Inc Nome $25.876 Arctic Slope Native Association Ltd Barrow $20.998 Bristol Bay Native Association Inc Dillingham $16.774 Fairbanks Native Association Fairbanks $16.142 Aleutian-Pribilof Islands Anchorage $13.821 Kodiak Area Native Association Kodiak $11.738 Chugachmiut Anchorage $11.217 Eastern Aleutian Tribes Inc Anchorage $6.033 Copper River Native Association Copper Center $6.777 Alaska Native Health Board Anchorage $3.747 Kuskokwim Native Association Aniak $2.631 Source: NCCS CORE Files and ISER.

Excluding these Native organizations, five of the ten largest public charities were hospitals. The remainder were social service providers.

LARGEST REPORTING CHARITABLE NONPROFITS OPERATING IN ALASKA EXCLUDING LARGEST NATIVE NONPROFITS

Location Expenditures (Million)

Total $795.987 Providence Hospitals Anchorage $380.833 Banner Health Care—Fairbanks Hospital Fairbanks $140.038 Central Peninsula General Hospital and FRC Soldotna $61.815 Valley Hospital Association Palmer $50.271 Salvation Army Anchorage $45.355 Ketchikan Hospital—Peace Health SE Ketchikan $36.451 Hope Community Resources, Inc Anchorage $29.654 Rural Alaska Community Action Program, Inc Anchorage $20.711 Anchorage Community Mental Health Services, Inc (Formerly SC Counseling Center) Anchorage $15.915 ARC of Anchorage Anchorage $14.944 Source: NCCS CORE Files and ISER. Organizations in bold are registered outside Alaska.



III.a.1. Health The largest public charities, accounting for about two-thirds of total public charity expenditures in Alaska, are health related. Most are service providers, including mental health and crisis intervention. A few smaller organizations are primarily involved with a particular disease or disorder, and there are also a few organizations involved in medical research.

HEALTH-RELATED PUBLIC CHARITY GROUPS

Group Number Expenditures (Million) Example

Health 51 $1,317.761 Blood Bank of Alaska Mental Health, Crisis Intervention 45 $111.744 Tok Area Mental Health

Council Diseases, Disorders, Medical Disciplines 14 $5.466 Alzheimers Disease Resource

Agency of Alaska

Medical Research 2 $.077 Alaska Cancer Research and Education Center

Source: NCCS CORE Files and ISER

HEALTH-RELATED PUBLIC CHARITIES: TOP 10 RANKED BY EXPENDITURES

Name Location Expenditures (Million)

Providence Hospitals Anchorage $333.982 Alaska Native Tribal Health Consortium Anchorage $281.164 Yukon-Kuskokwim Health Corporation Bethel $136.304 Banner Health Care—Fairbanks Hospital Fairbanks $122.810 SouthCentral Foundation Anchorage $120.215 Southeast Alaska Regional Health Consortium Juneau $74.828 Central Peninsula General Hospital and FRC Soldotna $64.678 Norton Sound Health Corporation Nome $53.533 Valley Hospital Association Palmer $51.135 Bristol Bay Area Health Corporation Dillingham $40.519 Source: NCCS CORE Files and ISER

III.a.2. Social Services

Public charities providing a broad range of social services are the largest category in numbers and the second largest in terms of total expenditures.14 The largest of these organizations rank among some of the largest public charities, and most of them are

14 The classification of organizations is somewhat arbitrary, particularly for those which provide a wide range of services, such as some of the Native organizations. We have changed some of the classifications in the NCCS CORE files database used for this study, but most remain as reported.



multipurpose health-service organizations that provide human services to the Alaska Native community.

SOCIAL SERVICES-RELATED PUBLIC CHARITY GROUPS

Group Number Expenditures (Million) Example

Human Services, Multipurpose, and Other 135 $507.712 Chugiak Senior Citizens, Inc. Youth Development 32 $45.983 Girl Scouts Susitna Council Employment, Job-related 20 $35.038 Assets, Inc Recreation, Sports, Leisure, Athletics 163 $34.011 Peninsula Oilers Baseball Club Housing, Shelter 48 $33.420 Habitat for Humanity Int’l, Inc. Crime, Legal-related 10 $14.975 Disability Law Center of Alaska Food, Agriculture, and Nutrition 8 $8.157 Kenai Peninsula Food Bank, Inc. Public Safety 25 $6.419 Ester Volunteer Fire Department Source: NCCS CORE Files and ISER

SOCIAL SERVICES-RELATED PUBLIC CHARITIES: TOP 10 RANKED BY EXPENDITURES


Tanana Chiefs Conference Fairbanks $78.484 Maniilaq Association Kotzebue $53.796 Salvation Army Anchorage $41.190 Cook Inlet Tribal Council, Inc Anchorage $29.015 Association of Village Council Presidents Bethel $28.402 Kawerak, Inc Nome $25.876 Arctic Slope Native Association, Ltd Barrow $20.998 Rural Alaska Community Action Program, Inc Anchorage $20.,711 Bristol Bay Native Association, Inc Dillingham $16.774 Fairbanks Native Association Fairbanks $16.142 Source: NCCS CORE Files and ISER



III.a.3. Civic Civic organizations comprise the third largest category of public charities in terms of numbers and expenditures. Of these, the largest are capacity-building organizations and aquaculture associations.

CIVIC-RELATED PUBLIC CHARITY GROUPS Group Number Expenditures

(Million) Example

Environment: Animal Related 39 $56.573 Prince William Sound Aquaculture Corp Community Improvement, Capacity Building 27 $38.749 The Foraker Group Environment: Environmental Quality, Protection, and Beautification 56 $19.760 Copper River Watershed Project Social Science, Technology Research Institutes 15 $9.405 Arctic Research Consortium of the U.S. International, Foreign Affairs, National Security 13 $4.120 Alaska World Affairs Council Public Societal Benefit, Multipurpose 5 $3.527 Nikolaevsk, Inc Civil Rights, Social Action, Advocacy 4 $.242 Law Project for Psychiatric Rights Source: NCCS CORE Files and ISER

CIVIC-RELATED PUBLIC CHARITIES: TOP 10 RANKED BY EXPENDITURES


Seward Association for the Advancement of Marine Science Seward $11.571 Prince William Sound Aquaculture Corp Cordova $9.107 Douglas Island Pink and Chum Incorporated Juneau $8.491 Southern Southeast Regional Aquaculture Association Ketchikan $8.362 Northern Southeast Regional Aquaculture Association, Inc Sitka $4.664 Valdez Fisheries Development Assoc Valdez $3.088 Regional Citizens Advisory Counsel Anchorage $2.742 Alaska Rural Partners, Inc Anchorage $2.561 Alaska Village Initiatives Anchorage $2.506 First Alaskans Institute Anchorage $2.362 Source: NCCS CORE Files and ISER



III.a.4. Education The education category includes not only elementary, secondary, and higher education (most “private” schools are really nonprofits) but also educational services and student services.

EDUCATION-RELATED PUBLIC CHARITIES: TOP 10 RANKED BY EXPENDITURES


Alaska Pacific University Anchorage $14.467 Ilisagvik College Barrow $10.573 Sheldon Jackson College Sitka $7.428 Southeast Regional Resource Center, Inc Juneau $6.963 Association of Alaska School Boards Juneau $2.939 Pacific Northern Academy, Inc Anchorage $2.753 Special Education Service Agency: a Public Agency Anchorage $2.597 Adult Learning Programs of Alaska, Inc Fairbanks $2.518 Little Red Schoolhouse, Inc Anchorage $2.303 Play N Learn Center Inc Fairbanks $2.248 Source: NCCS CORE Files and ISER

III.a.5. Arts/Culture

Organizations concerned with arts and culture tend to be smaller than the other major public-charity categories.

ARTS/CULTURE-RELATED PUBLIC CHARITIES: TOP 10 RANKED BY EXPENDITURES


Alaska Native Heritage Center, Inc Anchorage $4.818 Alaska Public Telecommunications, Inc Anchorage $4.073 Anchorage Concert Association, Inc Anchorage $3.108 Sealaska Heritage Institute Juneau $2.373 Koahnic Broadcast Corporation Anchorage $2.231 Alaska Center for the Performing Arts, Inc Anchorage $1.906 Alaska Humanities Forum Anchorage $1.891 Anchorage Museum Foundation Anchorage $1.810 Bethel Broadcasting, Inc Bethel $1.648 Silakkuagvik Communication, Inc Barrow $1.160 Source: NCCS CORE Files and ISER



III.b. Funding Intermediaries (501c3) The role of the funding intermediaries is to help generate private funding, to manage it once it is accumulated, and to make it available for use by the other charitable nonprofits. The three broad categories of funding intermediaries are foundations, federated funders, and professional fundraisers. There are 196 reporting funding intermediaries based in Alaska, including family foundations like the Rasmuson Foundation, corporate foundations like the CIRI Foundation, and federated funders like the United Way of Anchorage. Their expenditures for charitable purposes were about $80 million.

FUNDING INTERMEDIARIES: TOP 10 RANKED BY EXPENDITURES


TOTAL $79.895 Rasmuson Foundation* Anchorage $18.556 Greater Fairbanks Community Hospital Foundation, Inc Fairbanks $8.985 University of Alaska Foundation Fairbanks $8.824 United Way of Anchorage Anchorage $6.412 Alaska Conservation Foundation Anchorage $5.244 Bethel Community Services, Inc Bethel $4.776 Providence Alaska Foundation Anchorage $2.825 CIRI Foundation* Anchorage $1.621 Monroe Foundation, Inc Fairbanks $1.325 United Way of Tanana Valley Fairbanks $1.180 Source: NCCS CORE Files and ISER Organizations with asterisk are identified as foundations by IRS and report their financial activities on Form 990 PF.

Independent grant-making foundations are set up to administer an endowment typically left for charitable purposes by a single individual and to distribute all or some of the earnings from the endowment to nonprofit organizations pursuing public purposes. A second type of foundation is established by a corporation to manage charitable contributions. Several Alaska Native corporations have such funds, and numerous national and international corporations have foundations that distribute funds in Alaska, but there are few foundations established by Alaska-based corporations.



ASSETS OF THE LARGEST ALASKA-BASED FOUNDATIONS (Million)

TOTAL OF ALL FOUNDATIONS $535.270

Rasmuson Foundation $428.159 CIRI Foundation $46.287 Atwood Foundation, Incorporated $20.280 Doyon Foundation $7.281 Koniag Educational Foundation $5.116 Carr Foundation, Inc $3.489 Alaska Airlines Foundation $2.538 Marion G Weeks Foundation $2.414 Usibelli Foundation $2.185 Jami-Douglas Housing Corporation $1.963 Gottstein Family Foundation $1.631 Skaggs Foundation $1.554 Bristol Bay Native Corporation Education Foundation $1.247 Frances & David Rose Foundation $1.017 Igloo No 4 Foundation $.922 Marston Foundation $.675 Alutiiq Heritage Foundation $.637 Arctic Education Foundation $.582 Edna P McCurdy Scholarship Foundation $.557 Seligson Johnson Foundation $.507 Source: NCCS CORE Files, and ISER.

Federated funders, such as United Way, collect private donations on behalf of a number of service organizations. For the nation as a whole, United Way contributions represent about 2 percent of all private charitable donations to American nonprofits—about one-fourth as much as foundations. United Way focuses its support in the human services sector, and there it provides closer to 25 percent of all charitable support.15 Nationally there are numerous federated funders that solicit contributions in Alaska, but they are not included in this analysis. They include the American Cancer Society, the American Heart Association, and the American Diabetes Association.

15 Salamon, Lester M. America’s Nonprofit Sector: A Primer, the Foundation Center, 1999.



ASSETS OF LARGEST ALASKA FUNDING INTERMEDIARIES, EXCLUDING FOUNDATIONS

(Million) ALL FUNDING INTERMEDIARIES $466.891 Greater Fairbanks Community Hospital Foundation, Inc $223.772 University of Alaska Foundation $115.940 First Alaskans Endowment Fund $17.873 Providence Alaska Foundation $11.343 United Way of Anchorage $11.104 Alaska Kidney Foundation, Inc $10.731 Alaska Pacific University Foundation, Inc $10.675 Harvey Samuelsen Scholarship TR $6.414 Alaska Conservation Foundation $5.868 Alaska Community Foundation $5.755 Bethel Community Services, Inc $4.197 Anchorage Concert Foundation $3.655 Bethel Community Services Foundation, Inc $2.995 Monroe Foundation, Inc $2.752 Robert Aqqaluk Newlin Sr. Memorial Trust $1.953 Foundation of the ARC of Anchorage $1.883 Bartlett Regional Hospital Foundation, Inc $1.756 Anchorage York Rite Foundation, Inc $1.724 United Way of the Tanana Valley, Inc $1.535 August F Reetz Foundation $1.305 Source: NCCS CORE Files, and ISER. Although many of these organizations have foundation in their title, they are not classified as such by the NCCS.

III.c. Civic Leagues and Social Welfare Organizations (501c4) The second type of public-serving nonprofit organization is primarily engaged in the shaping of public policy through active advocacy activities. These organizations specialize in the identification, analysis, and development of potential solutions to public or community problems through issue advocacy, lobbying, and political activity. Public charities are allowed to engage in issue advocacy as well as some lobbying, but no political activity. Organizations that wish to devote substantial resources to lobbying and political activity may organize as 501c4 corporations. These corporations retain their tax-exempt status but are unable to receive tax-exempt contributions from individuals or corporations. Because of this, some organizations will form both 501c3 and 501c4 corporations and split their service and advocacy functions between the two. There were 168 reporting civic league and social welfare organizations in Alaska, with combined expenditures of nearly $103 million. This category is composed largely of Alaska Native village corporations and economic development councils. (Many Native villages are not represented in this category because of the small size of their operations.)



SOCIAL WELFARE ORGANIZATIONS: TOP 10 RANKED BY EXPENDITURES


TOTAL $102.772 Alaska Federation of Natives Anchorage $20.105 Alaska Clean Seas Anchorage $16.901 Coastal Villages Region Fund Anchorage $13.184 Norton Sound Economic Development Corporation Anchorage $6.199 Bristol Bay Economic Development Corporation Dillingham $5.271 Central Bering Sea Fishermen’s Association St Paul Isle $2.869 Norton Sound Seafood Products Anchorage $2.534 Juneau Economic Development Council Juneau $1.732 Alaska Chadux Corporation, Inc Anchorage $1.691 Native Village of Elim, Elim Native Store Elim $1.432 Source: NCCS CORE Files and ISER

III.d. Member-Serving Nonprofits Member-serving nonprofits fall into a number of different categories. Utility cooperatives, both electric and telephone, are the largest in Alaska in terms of expenditures. Most of the others serve employee, business, professional, or social groups. The different organizational types are distinguished by different numerals. For example, the utility cooperatives are 503c12 corporations. Their numbers have grown only modestly in the last decade.16

MEMBER-SERVING NONPROFITS

Category of 501d Number Expenditures (Million)

TOTAL 378 $822.119 12 Mutual Companies, Co-ops 24 $516.319 9 Voluntary Employee's Beneficiary Societies 19 $153.957 6 Business Leagues, Chamber of Commerce 147 $58.074 5 Labor, Agriculture, Organization 81 $50.461

14 State-Chartered Credit Union 2 $24.247 8 Fraternal Beneficiary Societies 31 $7.745

19 Post or Organization of War Veterans 26 $4.526 7 Social and Recreational Clubs 16 $3.706

10 Domestic Fraternal Beneficiary Society 20 $1.688 2 Title-Holding Companies 10 $.829

13 Cemetery Company 1 $.438 17 Supplemental Unemployment Benefit Trusts 1 $.128 Source: NCCS CORE Files and ISER

16 Web site of National Center for Charitable Statistics.



The largest electric and telephone utility cooperatives are in urban Alaska.

MUTUAL COMPANIES AND COOPS (501C12)—10 LARGEST


Chugach Electric Association, Inc Anchorage $178.370 Golden Valley Electric Association, Inc Fairbanks $90.677 Matanuska Telephone Association, Inc Palmer $59.409 Matanuska Electric Association, Inc Palmer $56.775 Alaska Village Electric Cooperative, Inc Anchorage $22.810 Kodiak Electric Association, Inc Kodiak $18.514 Homer Electric Association, Inc Homer $18.002 Copper Valley Electric Association, Inc Glennallen $12.515 Barrow Utilities and Electric Cooperative Barrow $12.115 Copper Valley Telephone Cooperative Valdez $12.057 Source: NCCS CORE Files and ISER

Voluntary employees’ beneficiary societies that include trust funds for health and other programs are second in importance as measured by expenditures.

VOLUNTARY EMPLOYEES’ BENEFICIARY SOCIETIES (501C9)—10 LARGEST


Alaska Electrical Health and Welfare Fund Anchorage $41.206 NEA–Alaska Health Insurance Trust Anchorage $37.079 Alaska Teamster-Employer Welfare Trust Anchorage $24.319 Alaska Public Service Employees Local Union No 71 Trust Fund Anchorage $14.654 Cook Inlet Health and Welfare Trust Anchorage $8.037 Southern Alaska Carpenters Health and Security Fund Anchorage $4.544 Alaska Hotel Restaurant and Camp Employees Health and Welfare TR Anchorage $4.282 Public Safety Emp. Association Health and Welfare Trust Anchorage $4.102 Tongass Timber Trust Ketchikan $3.302 Alaska Public Employees Insurance Group Trust Anchorage $2.496 Source: NCCS CORE Files and ISER



The category with the largest number of organizations is business leagues such as the Anchorage Economic Development Corporation.

BUSINESS LEAGUES (501C6)—10 LARGEST


Alaska Insurance Guaranty Association Anchorage $9.555 Anchorage Convention and Visitors Bureau Anchorage $6.482 Alaska Council of School Administrators Juneau $2.800 Alaska Manufacturers Association, Inc Anchorage $2.212 Fairbanks Convention and Visitors Bureau Fairbanks $1.761 Alaska State Hospital & Nursing Home Association Juneau $1.734 Anchorage Downtown Partnership, Ltd Anchorage $1.727 Associated General Contractors of America, Inc Anchorage $1.618 Anchorage Economic Development Corp Anchorage $1.353 Arctic Power Anchorage $1.293 Source: NCCS CORE Files and ISER

Labor organizations comprise the second largest group of member-serving non profits.

LABOR ORGANIZATIONS (501C5)—10 LARGEST


International Brotherhood of Electrical Workers Anchorage $7.206 International Brotherhood of Teamsters Anchorage $5.765 NEA–Alaska, Inc Juneau $4.954 American Federation of State, County, and Municipal Employees Anchorage $3.449 Anchorage Education Association Anchorage $2.401 Kodiak Regional Aquaculture Kodiak $2.057 Laborers International Union of North America Anchorage $1.884 United Brotherhood of Carpenters and Joiners of America Anchorage $1.603 Laborers International Union of North America Anchorage $1.544 Public Safety Employees Association, Inc Anchorage $1.407 Source: NCCS CORE Files and ISER

Most of the remaining member-serving nonprofits consist of various veterans groups (American Legion) and social clubs (Petroleum Club and Moose). In addition, there are two state-chartered credit unions that are organized as nonprofits. However, most Alaska credit unions are not state chartered and, consequently, not 501c organizations.

III.e. Non-Reporting Nonprofits Organizations with less than $25,000 in revenues are not required to file an informational Tax Form 990 with the IRS, so there is little information about the 2,103 registered but non-reporting Alaska nonprofits. This group includes both public-serving and member-serving organizations. Typical public-serving organizations are local PTA’s, 4H Clubs,



civil air patrols, garden clubs, and tribal councils. Typical member-serving organizations are professional societies, community councils, fraternities, business associations, and homeowners’ associations.

ALASKA REGISTERED NON-REPORTING NONPROFITS IN 2004 (EXCLUDING RELIGIOUS CONGREGATIONS)

TOTAL 2,103 Charitable Organizations (501c3) 1,238

Public Charities 1,173 Private Foundations 65

Other Tax Exempt 501c 865 Civic Leagues and Social Welfare Organizations (501c4) 377 Other 488

Source: National Center for Charitable Statistics summary data by state downloaded from Web site 10/06.

EXAMPLES OF REGISTERED NON-REPORTING PUBLIC CHARITIES (501C3)

Name Category Wasilla-Knik-Willow Creek Historical Society Arts Cordova Wolverines Booster Club Education Anchorage Audubon Society Environment Epilepsy Seizure Support Network Health Ketchikan Wrestling Club Human Services Japan America Society of Alaska International Veterans For Peace, Inc Public and Societal Benefit Parents Without Partners, Inc Human Services Source: NCCS Master Business File.

EXAMPLES OF REGISTERED NON-REPORTING

MEMBER-SERVING NONPROFITS Kachemak Bay Wooden Boat Society Paxson Community Affairs, Inc Filipino American Association of Juneau Bread Machine Industry Association Alaska Native Sisterhood Camp 19 Kenai River Professional Guide Association American Legion Post 19 Nome Pioneers of Alaska Igloo 16 Air Force Sergeants Association Hydaburg IRA Council Bristol Bay Volunteer Firemen’s Association, Inc Cold Bay Public Library Association National Association of Retired Federal Employees Craig Chapter 1928 Women of The Moose Ohio State University Alumni Association, Inc Native Village of Nikolski Military Order of the Purple Heart of the USA Source: NCCS Master Business File.



III.f. Non-Registered Nonprofits Organizations with revenues of less than $5,000 are not required to register with the IRS to operate as a nonprofit. The number of such small organizations that provide services to members or to the general public but are not required to register with the IRS is unknown.

III.g. Religious Congregations There are an estimated 1,200 religious congregations in Alaska. Although not required to do so, about half have chosen to register with the IRS and a few file an informational Form 990 report with the IRS. We have netted religious congregations out of the public charity figures (where they are categorized), but retained church-related organizations that serve the general public. These public-serving organizations are primarily social-service organizations—such as Lutheran Social Services of Alaska—or schools.17

17 This highlights the difficulty in categorizing some nonprofit organizations. A church-related school could conceivably be categorized under churches or under education. Similarly, many organizations that serve young people could be categorized as either youth-serving or according to their function; for example, recreation or art or culture.





IV. REVENUE SOURCES OF SERVICE-PROVIDER NONPROFITS

Revenues of Alaska service-providing nonprofits (excluding the revenues of foundations and other funding intermediaries which flow through to service providers) were nearly $3.5 billion in 2004. Public charities accounted for most of the total.

ALASKA SERVICE-PROVIDER NONPROFIT REVENUES IN 2004 (Million)

TOTAL $3,491.149

Public Charities (501c3) $2,506.390

Civic Leagues (501c4) $115.605

Member-Serving Nonprofits $869.154 Source: NCCS CORE Files and ISER

Revenues to support the operations of Alaska nonprofit organizations come from three main sources—fees and charges for services, government, and private giving. The shares vary considerably across the different nonprofit categories

IV.a. Public Charities In Alaska, government grants, particularly from the federal government, account for the largest share of revenues for public charities, providing about 57 percent of total revenues. Charges for services (fees) is next in importance, providing another 34 percent.18 Contributions from individuals, corporations, and foundations account for the remaining 9 percent.

18 Some of the revenues from charges for services provided also are paid by government.



REVENUE SOURCES: ALASKA PUBLIC CHARITIES

Government57.0%

Contributions9.0%

Charges34.0%

Source: ISER. This composition of revenues is in contrast to the nation as a whole where fees and charges at 54 percent comprise the largest revenue source, followed by government at 36 percent. Nationally, private giving accounts for about 10 percent of the total.19

REVENUE SOURCES: U.S. PUBLIC CHARITIES

Government36.0%

Contributions10.0%

Charges54.0%

Source: The Foundation Center.

19 Salamon, Lester M. America’s Non-Profit Sector: A Primer, The Foundation Center, 1999, p. 36.



The dominance of government grants as a revenue source for Alaska nonprofits is a result of the importance of federal programs in Alaska. The NCCS database allows us to identify revenue sources by type of public charity, except that government grants and contributions are combined into a single category (contributions, gifts, grants).20 The data do show that other sources of revenue, including membership dues, investment income, and other categories, contribute a very small share of total revenues in the aggregate.

PUBLIC CHARITY (501c3) SOURCES OF REVENUES

Amount (Million) Share Form 990

Reference NCCS

Reference TOTAL $2,506.390 100.0% TOTREV Contributions, Gifts, Grants* $1,569.141 62.6% line 1d CONT Program Service Revenue Including Government Fees and Contracts $841.066 33.6% line 2 PROGREV Membership Dues $14.889 0.6% line 3 DUES Investment Income (except Rent) $20.,458 0.8% line 4-5-7- INVINC Rent $5.081 0.2% line 6c NETRENT Sales of Assets $(2.225) -0.1% line 8 SALESECN Special Events $12.977 0.5% line 9c FUNDINC Sales of Inventory $9.628 0.4% line 10c GRPROF Other $35.315 1.4% line 11 OTHINC Source: NCCS CORE Files, and ISER. * IRS Form 990 contains separate data on government grants and contributions, but the NCCS CORE

files aggregate the two into a single category. If we net out the largest of the Alaska Native nonprofits from the list of public charities, the share of contributions, gifts, and grants—in total revenues of Alaska public charities—is even more dominant. They account for 74 percent of the total, while charges account for 24 percent.

20 The NCCS CORE database information on nonprofit sources of revenues does not distinguish between private and government contributions, gifts, and grants. Furthermore, private contributions to Alaska nonprofits can come both from residents and nonresidents. Information on contributions by Alaska individuals does not distinguish between church-related contributions and other 501c3 organizations. There is no summary available on the contributions by corporations and other businesses to Alaska nonprofits.



PUBLIC CHARITY (503C3) REVENUES: EXCLUDING LARGEST NATIVE NONPROFITS

21 Native Nonprofits Excluding Corporations Amount (Million) Share Amount (Million) Share Total Revenues $1,039.595 100.0% $1,466.795 100.0% Contributions, Gifts, Grants $765.060 73.6% $804.081 54.8% Charges $252.571 24.3% $588.495 40.1% Membership Dues – 0.0% $14.889 1.0% Investment Income(except rent) $7.810 0.8% $12.648 0.9% Rents $1.831 0.2% $3.250 0.2% Sales of Assets $.094 0.0% $ (2.319) -0.2% Special Events $.071 0.1% $12.206 0.8% Sales of Inventory – 0.0% $9.628 0.7% Other $11.459 1.1% $23.856 1.6% Source: NCCS CORE Files, and ISER.

The composition of revenue sources varies across the 5 major categories of public charities. Fees, service charges, and other commercial income are more important sources of revenue in the education, health, and civic categories of charitable nonprofits. These revenues include such things as private college tuition payments, charges for health care not covered by government health insurance, and other charges for services. Contributions, gifts, and grants are a more important source of revenues for human service and arts/culture organizations.

PUBLIC CHARITY REVENUE SOURCES: SHARES BY TYPE OF SERVICE

Health Human Services Civic Education Arts/

Culture REVENUES (Million) $1,520.728 $702.839 $134.435 $90.612 $57.776 Contributions, Gifts, Grants 60% 70% 59% 50% 66% Program Service Revenue Incl. Government Fees and Contracts 38% 24% 34% 41% 23% Membership Dues 0% 2% 1% 1% 2% Investment Income (except Rent) 1% 1% 1% 1% 4% Rents 0% 0% 0% 1% 1% Sales of Assets 0% 0% 0% 0% -3% Special Events 0% 1% 0% 2% 3% Sales of Inventory 0% 1% 2% 0% 2% Other 1% 1% 2% 4% 2% Source: NCCS CORE Files and ISER

At a more detailed level, there is also considerable variation in the importance of revenue sources across functional categories. Among civic public charities, contributions, gifts,



and grants account for almost all the revenues of the multipurpose organizations, but the majority of revenues of organizations involved with the well being of animals are derived from program service revenues.

CIVIC PUBLIC CHARITIES—SOURCES OF REVENUES

Multipurpose Research Capacity Building

Social Action

Inter-National Animals Environment

REVENUES (Million) $4.373 $9.959 $43.485 $.259 $4.310 $51.967 $20.082 Contributions, Gifts, Grants 95.1% 73.8% 71.8% 89.3% 81.2% 32.6% 76.9% Program Service Revenue Including Government Fees and Contracts 4.0% 21.3% 23.7% 5.9% 4.3% 58.8% 8.7% Membership Dues 0.1% 0.9% 0.3% 0.6% 6.3% 0.6% 1.7% Investment Income(except Rent) 0.3% 1.1% 1.5% 0.3% 1.0% 0.8% 0.6% Rents 0.3% 0.0% 0.4% 0.0% 4.0% 0.1% 0.1% Sales of Assets 0.0% 0.0% -0.2% 0.0% 0.3% 0.0% -0.2% Special Events 0.0% 0.3% 0.0% 0.3% 1.4% 0.3% 1.3% Sales of Inventory 0.0% 1.9% 0.0% 0.0% 0.4% 2.5% 8.9% Other 0.3% 0.6% 1.1% 3.9% 0.8% 3.9% 2.0% Source: NCCS CORE Files and ISER For the human services public charities the shares also vary by function. Recreational nonprofits obtain a significant share of their revenues from membership dues.

HUMAN SERVICES PUBLIC CHARITIES—SOURCES OF REVENUES

Multi-

Purpose Youth Recrea-tion

Public Safety Housing Nutrition Employ-

ment Legal

REVENUES (Million) $521.425 $46.009 $35.647 $6.648 $35.854 $8.147 $35.336 $13.772

Total Revenues 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Contributions, Gifts, Grants 76.3% 66.0% 25.7% 47.1% 57.8% 84.9% 55.7% 44.4% Program Service Revenue, Incl. Govt Fees and Contracts 20.3% 24.8% 40.6% 36.0% 38.3% 9.9% 38.5% 55.1%

Membership Dues 0.9% 0.6% 15.8% 4.1% 0.2% 0.1% 2.7% 0.0% Investment Income (except Rent) 0.7% 0.3% 1.0% 0.3% 1.9% 0.2% 1.4% -0.2%

Rents 0.4% 0.1% 0.2% 0.2% -0.3% 0.9% 0.5% 0.0%

Sales of Assets -0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 0.1% 0.0%

Special Events 0.4% 3.6% 8.3% 8.1% 0.3% 1.1% 0.4% 0.0%

Sales of Inventory 0.1% 3.4% 3.0% 0.5% 1.6% -0.2% 0.1% 0.0%

Other 1.1% 0.9% 5.3% 3.4% 0.8% 3.1% 0.5% 0.6%

Source: NCCS CORE Files and ISER In general, smaller organizations tend to be more dependent on contributions.



IV.b. Civic Leagues The revenues of civic league (501c4) nonprofits are more likely to come from program services and government fees and contracts (61 percent). Contributions, gifts, and grants account for only 21 percent of revenues.

CIVIC LEAGUES (501c4)—SOURCES OF REVENUES


Reference NCCS

Reference TOTAL $115.605 100% TOTREV Contributions, Gifts, Grants $24.380 21% line 1d CONT Program Service Revenue Including Govt. Fees and Contracts $71.030 61% line 2 PROGREV Membership Dues $4.609 4% line 3 DUES Investment Income (except Rent) $3.519 3% line 4-5-7- INVINC Rent $.171 0% line 6c NETRENT Sales of Assets $(1.854) -2% line 8 SALESECN Special Events $3.140 3% line 9c FUNDINC Sales of Inventory $5.816 5% line 10c GRPROF Other $4.539 4% line 11 OTHINC Source: NCCS CORE Files, and ISER. Note: Excludes 10 smaller organizations incorrectly classified by NCCS as 501c3 corps.

IV.c. Member-Serving Nonprofits

The revenues of member-serving 501c corporations (excluding 501c3 and 501c4 corporations) come mostly from program service revenues and membership dues. Contributions, gifts, and grants account for only 3 percent of revenues.

MEMBER-SERVING (501c)—SOURCES OF REVENUES


Reference NCCS

Reference TOTAL $869.154 100% TOTREV Contributions, Gifts, Grants $23.187 3% line 1d CONT Program Service Revenue Including Govt. Fees and Contracts $716.061 82% line 2 PROGREV Membership Dues $61.140 7% line 3 DUES Investment Income (except Rent) $10.950 1% line 4-5-7- INVINC Rent $5.063 1% line 6c NETRENT Sales of Assets $(.265) 0% line 8 SALESECN Special Events $3.433 0% line 9c FUNDINC Sales of Inventory $25.305 3% line 10c GRPROF Other $22.790 3% line 11 OTHINC Source: NCCS CORE Files and ISER



Among the member-serving organizations, there is considerable variation in revenue sources. Cooperatives get most of their revenues from fees while labor organizations rely heavily on membership dues.

MEMBER-SERVING 501C—SOURCES OF REVENUES BY FUNCTION 12 9 6 5 14 -

Mutual Companies,

Co-ops

Voluntary Employees’ Beneficiary

Societies

Business Leagues,

Chambers of Commerce

Labor, Agriculture

Organizations

State-Chartered

Credit Unions

Other*

REVENUES (Million) $541.254 $156.137 $62.890 $55.913 $27.558 $25.400 Contributions, Gifts, Grants 0.0% 0.1% 32.3% 2.0% 0.0% 6.1% Program Service Revenue Including Govt. Fees and Contracts 94.0% 96.7% 16.2% 25.0% 83.6% 35.1% Membership Dues 0.0% 0.8% 31.2% 67.9% 0.0% 8.5% Investment Income (except Rent) 0.5% 1.4% 0.6% 1.2% 14.3% 4.3% Rents 0.0% 0.0% 0.1% 0.0% 0.1% 18.5% Sales of Assets 0.0% -0.1% -0.1% 0.0% 0.0% 0.0% Special Events 0.0% 0.0% 2.7% 0.4% 0.0% 6.1% Sales of Inventory 4.2% 0.0% 0.4% 0.1% 0.0% 8.3% Other 1.2% 1.0% 16.6% 2.2% 2.3% 10.2% Source: NCCS CORE Files and ISER Note: Other includes 2, 7, 8, 10, 13, 17, 19.

IV.d. The Importance of Federal and State Grants

Federal government grants to the nonprofit sector in Alaska are roughly $1 billion annually.21 This total excludes federal government payments for services such as Medicaid payments. It also excludes federal grants to state government that flow through to nonprofits.

21 The Federal Assistance Award Data System (FAADS) of the U.S. Department of Commerce Bureau of the Census is an extensive database of federal financial assistance awards covering most agencies of the federal government. It reports grants and other awards by type of recipient, including two categories of nonprofit—Indian tribe and other non-profit. A review of the detailed award lists for Alaska reveals extensive misclassification of awards between these two categories as well as some misallocation of awards between nonprofits and the other two categories of recipient—government and private. ISER attempted to “clean” the raw data from the FAADS database to allocate financial awards to the appropriate category of recipient. This resulted in a very substantial reallocation from the Indian tribe category to other nonprofits. We did not review the government or private recipient categories to look for awards to nonprofits that might have been misallocated to those categories, but there likely were some nonprofit awards among those listings.



Most of the federal grants go to the public charities—particularly health and social services—but Native tribes and cooperatives also have received substantial amounts in recent years. Annual revenues from federal government grants increased rapidly during the 1990s and their growth has now slowed. Because of the rapid expansion of federal programs represented by this growth, tracking the growth in the flow has been difficult. The apparent dramatic swings in the total for the last 3 years is most likely a reflection of these data collection problems rather than a real year-to-year change of this magnitude.

FEDERAL GRANTS TO NONPROFITS IN ALASKA

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

1996 1997 1998 1999 2000 2001 2002 2003 2004

Other

Tribe

Source: Federal Assistance Award Data System (FAADS) and ISER. By 2004 the level of federal grants per person in Alaska was about 11 times the national average.

FEDERAL GRANTS TO NONPROFITS AND TRIBES IN 2004

Total (Million) Per Person United States $31,346 United States net Alaska $30,573 $106 Alaska $773 $1,189 Source: FAADS and ISER.

Aggregate data on the level, composition, and trend in state government grants funded from state sources to nonprofits are currently unavailable. The Alaska state budget does not distinguish between grants to local governments, school districts, and nonprofit organizations. The largest share of state grants in the operating budget is within the



Department of Education and consists of the school Foundation program, teaching and learning-support programs, and pupil transportation—all paid to school districts. The Departments of Health and Human Services and Community and Economic Development account for most of the rest of the grant activity within the state operating budget.22

22 Institute of Social and Economic Research, University of Alaska Anchorage, Citizen’s Guide to the Budget.





V. CONTRIBUTIONS Nationally, most private giving is done by individuals (83%) either directly or through bequests, with smaller shares contributed by foundations (12%) and corporations (5%).

COMPOSITION OF TOTAL CONTRIBUTIONS: 2005 U.S. AVERAGE

Individua ls76.5%

Corpora tions5.3%

Foundations11.5%

Bequests6.7%

Source: Giving USA 2006, Giving USA Foundation. The largest share of total contributions, 36 percent, went to religious organizations and 8 percent went to foundations. Netting out these categories as well as unallocated contributions left about 50 percent of total contributions that went to service-providing nonprofits.23

V.a. Individuals

Individual income tax returns filed by Alaska residents in 2004 reported itemized deductions for charitable contributions totaling $260 million. But since most Alaskans (those with modest incomes) do not itemize deductions on their tax returns, total contributions were considerably greater than this. National studies suggest that the contributions of non itemizers are about 23 percent as large as reported itemized contributions.24

FEDERAL PERSONAL INCOME TAX RETURNS: REPORTED ALASKA CHARITABLE CONTRIBUTIONS (Million $)

1996 1997 1998 1999 2000 2001 2002 2003 2004 $157.0 $198.1 $224.9 $227.9 $241.2 $238.1 $260.4

Source: National Center for Charitable Statistics at the Urban Institute and IRS.

23 Giving USA 2006, Giving USA Foundation, page 16. 24 Giving USA 2006, page 66.



The share of taxpayers who itemize their deductions is much lower in Alaska than the national average, so we would expect a larger share of contributions to go unrecorded in the data. If non-itemizer giving is 35 percent as large as itemizer giving in Alaska, and if contribution flows out of Alaska equal flows into the state, then personal contributions by Alaskans were roughly $350 million in support of Alaska nonprofits in 2004.25 Nationally, over half of personal contributions are made for religious purposes.26

COMPOSITION OF PERSONAL CONTRIBUTIONS: 2004 U.S. AVERAGE

Religion61.0%Help Needy

10.6%

Combined Purpose10.2%

Health5.0%

Education5.0%

Youth/Families1.7%

Arts1.5%

Environment1.0% Community

0.7%International

0.9%Other2.4%

Source: Giving USA 2006, Giving USA Foundation. If about half of total contributions in Alaska are made to religious congregations,27 then individual contributions in support of nonprofits in 2004 were about $175 million.28

25 This total would include contributions to foundations but not bequests. 26 Giving USA 2006, p.71. 27 Data from the consumer expenditure survey of the U.S. Department of Labor suggests the share of contributions from Alaskans to religious congregations is somewhat smaller than the national average, but firm data on the composition of giving at the state level is not available. Religious-related volunteer activities are a smaller share of the total in Alaska than is the case nationally. See the volunteer discussion below.



Tracing growth in individual contributions over time is complicated by changes in the federal tax laws and other factors that have changed the share of Alaska taxpayers who itemize their deductions and report their contributions from year to year. Not only has the total reported level of contributions been increasing, at between 6 and 7 percent per year, but the share of itemizers and the average reported charitable contribution have also been trending upward, suggesting an increase per person. Although this is a significant increase, the growth rate in individual contributions has been eclipsed in recent years by the increases in federal grants and the asset base of Alaska foundations. Income tax data are often used to compare giving in Alaska to other states even though significant differences in population characteristics, income, cost of living, and other factors across states make these comparisons suspect. At least 6 different methods have been used to do these comparisons. The first ranks states by the average contribution deduction on itemized returns.29 Alaska was ranked 30 among the states in 2004 with an average deduction of $3,062. Alaska’s rank falls to 45 when the average is calculated across all returns.

MEASURES OF AVERAGE CHARITABLE CONTRIBUTION PER TAX RETURN FILED

1996 1997 1998 1999 2000 2001 2002 2003 2004 RETURNS WITH ITEMIZED DEDUCTIONS Alaska $3,037 $3,303 $2,792 $2,930 $3,062

U.S. Avg. $3,441 $3,627 $3,029 $3,283 $3,509 AK Rank 34 33 29 30

RETURNS WITH CHARITABLE CONTRIBUTIONS Alaska $3,239 $3,365 $3,550 $3,734

U.S. Avg. $3,494 $3,461 $3,729 $4,011 AK Rank 28 22 29 30

ALL RETURNS Alaska $450 $488 $556 $605 $684 $684 $718 $694 $754

U.S. Avg. $961 $1,050 $1,052 $1,065 $1,106 $1,230 AK Rank 49 49 46 46 45 46 45 45 45

Source: National Center for Charitable Statistics at the Urban Institute and IRS. However, since Alaskans are considerably less likely to itemize than the national average, there is little reason to assume that the average characteristics of Alaska itemizers are similar to those in other states. Thus, these comparisons have little validity for Alaska.30 28 Some of the contributions of residents of other states provide financial support for Alaska charitable nonprofits, but some Alaska-resident contributions go outside the state. 29 The Urban Institute, Center on Nonprofits and Philanthropy, reports this information annually. 30 In 2004 the IRS reported that 25 percent of income tax returns from Alaska contained itemized deductions compared to the national average of 35 percent.



FEDERAL INCOME TAX RETURNS SHARE OF RETURNS WITH ITEMIZED DEDUCTIONS

1999 2000 2001 2002 2003 2004 Alaska 19.9% 20.7% 25.7% 23.7% 25% Share of Itemized Returns with Charitable Contribution Deductions 83.0% 82.6% 82.0% U.S. Avg. 27.9% 29.0% 35.1% 33.7% 35% Share of Itemized Returns with Charitable Contribution Deductions 87.5% 88.1% 87.5% Source: Internal Revenue Service.

The second method attempts to take into account ability to pay by ranking states by contributions as a share of adjusted gross income. On this measure Alaska falls near the bottom of the rankings—48 (in 2000). As with measures of average contribution, this method also suffers from the fact that a much smaller share of Alaskans itemize their contributions than those in most states.

FEDERAL PERSONAL INCOME TAX: ADJUSTED GROSS INCOME PER RETURN

1996 1997 1998 1999 2000 2001 2002 2003 2004 Alaska $31,932 $34,589 $38,257 $39,837 $42,477 $42,528 $42,650 $43,240 45362 U.S. Avg. $45,539 $48,470 $46,914 $45,974 $47,425 $50,912 AK Rank 33 26 25 28 Source: National Center for Charitable Statistics at the Urban Institute and IRS.

AVERAGE CHARITABLE CONTRIBUTION AS PERCENTAGE OF ADJUSTED GROSS INCOME

1996 1997 1998 1999 2000 2001 2002 2003 2004 Alaska 1.4% 1.4% 1.5% 1.5% 1.6% 1.6% 1.7% 1.6% 1.7% U.S. Avg. 2.1% 2.2% 2.2% 2.3% 2.3% 2.4% AK Rank 48 Source: National Center for Charitable Statistics at the Urban Institute and IRS.

The Generosity Index of the Center for Philanthropy attempts to account for both capacity and effort in measuring contributions and ranking the states. Accordingly, they rank states using a “having” index—which is adjusted gross income per return—and compare that to a “giving” index—which is the average contribution on returns with itemized deductions. The state rank depends upon the difference between the ranks on these two indexes; the rank for Alaska tends to fall in the middle range. However, its usefulness is also compromised by the fact that a much smaller share of Alaska taxpayers itemize their deductions than in other states, so contributions measured from the IRS tax returns will underestimate Alaska contributions to a greater extent than those of other states.



GENEROSITY INDEX: ALASKA RANKING 2000 2001 2002 2003

Having Index (a) 28 25 24 25 Giving Index (b) 29 27 21 28 Gap (a-b) -1 -2 +3 -3 Generosity Index (Rank of Gap) 25 24 24 25 Source: The Catalog for Philanthropy

However, if one were to look at returns with reported income over $200 thousand, one factor accounting for the low Alaska ranking becomes evident. Alaska does not have a large number of wealthy individuals with the capacity to be large contributors. The data show that Alaska ranked at or near the bottom among states in average adjusted gross income (AGI) for all tax returns filed with adjusted gross incomes exceeding $200 thousand (having rank). As a consequence, the average charitable contribution reported on these returns was also low, putting Alaska at the bottom of the giving rank. In spite of that, the generosity index rank for this share of the population was near the middle of the states, indicating a balance between capacity and effort.

GENEROSITY INDEX: ALASKA RANKING BASED ON HIGH INCOME TAX RETURNS(>$200K)

2000 2001 2002 2003 Average Adjusted Gross Income $437,218 $409,970 $403,539 $432,193 Having Rank 48 50 50 46 Average Itemized Charitable Contributions $15,636 $13,067 $14,372 $14,773 Giving Rank 47 49 45 48 Generosity Index 23 22 20 29 Source: The Catalog for Philanthropy

Recently, the Generosity Index has been criticized as a measure of giving for a number of reasons, including the use of incomplete data on both the level of contributions and the amount of income in each state.31 A Boston College study attempted to correct for these shortcomings but stressed that any attempt to compare one state with another was, at best, a rough approximation. Contributions and income can be estimated using numerous valid methodologies that may give very different rankings of the states. The Boston College study placed Alaska giving in the bottom quartile of states for 2002 ranked by 3 measures—share of gross income, share of after-tax income, and share of after-tax income adjusted for cost of living. Another recent study by Giving USA attempted to compare actual contributions to an estimate of potential giving by state, calculate the difference, and rank the states based on the percentage by which their actual giving exceeded or fell short of their potential

31 John Havens and Paul. G Schervish, Geography and Generosity: Boston and Beyond, Center on Wealth and Philanthropy, Boston College, for The Boston Foundation, 2005.



giving. Based on the 3-year period 1999 to 2001, it found Alaska to be 19 percent ($752) below its potential giving per itemized return.32 The most recent attempt to rank states by contributions is the Wealth and Generosity Index published in late 2006 by the New Tithing Group, which ranks states by contributions as a share of investment assets.33 Based on their analysis, Alaska ranked 51 among the states for gifts as a share of assets for affluent filers (tax filers with adjusted gross income in excess of $200 thousand) and 28 for non-affluent tax filers. Their methodology was not included in their report. As is often the case, conditions in Alaska limit the value of these comparisons to other states. In addition to having one of the smallest shares of itemizers of any state, Alaska has one of the youngest populations in the nation and one of the most equitable distributions of income across households; also, Alaskans derive only a relatively small share of their income from nonwage income. These and many other factors influence charitable contributions in ways that are not accounted for in these attempts to rank the states. In 2004 only 25 percent of Alaska tax returns had itemized deductions compared to 35 percent nationally. Although the share of those itemizing who reported contributions was also smaller in Alaska than nationally (82% vs. 88%), the difference could be due to the age distribution of the population of Alaska. Combining the two percentages, the share of households filing returns where information on contributions is reported is much smaller for Alaska than for most of the rest of the United States. For example, among households with income between $50 and $75 thousand, the reporting share is only 35 percent for Alaska compared to 48 percent for the nation. It is wrong to assume, as do all the analyses based on tax-reported contributions, that the difference—13 percent of households in that income range—had no contributions whatsoever. For those who itemize, the average reported contribution was higher in Alaska than the national average, except among those with the highest incomes. Although not definitive, this suggests a healthy contribution rate among Alaskans. Bequests, dispositions of property by will, are another source of contributions to nonprofits. The itemized deduction data do not include this component of contributions. Nationally, this source of funds is less than 10 percent as large as direct contributions of individuals. Data on Alaska bequests are not available.

32 Giving USA Update, Issue 3, 2004, Research about Regional Differences in Giving. 33 See www.newtithing.org.



FEDERAL INCOME TAX DATA FOR 2004

Size of Adjusted Gross Income

Under

$50,000

$50,000 under

$75,000

$75,000 under

$100,000

$100,000 under

$200,000 $200,000 or more

ALASKA Share Itemize 10.2% 43.1% 58.6% 71.9% 68.9% Share of Itemizers Who Deduct

Contributions 70.2% 81.0% 85.7% 91.2% 97.1% Average Payment for Those Who

Deduct $2,111 $2,730 $3,183 $4,172 $15,567

Average Payment for All Taxpayers $151 $952 $1,597 $2,737 $10,413 Itemized Deductions as Share of

Adjusted Gross Income 0.8% 1.5% 1.9% 2.1% 2.4%

U.S. AVERAGE Share Itemize 17.9% 58.9% 77.4% 90.2% 93.2% Share of Itemizers Who Deduct

Contributions 77.1% 88.9% 92.3% 94.8% 96.7% Average Payment for Those Who

Deduct $987 $2,495 $2,923 $4,042 $21,246

Average Payment for All Taxpayers $274 $1,306 $2,089 $3,458 $19,150 Itemized Deductions as Share of

Adjusted Gross Income 1.4% 2.1% 2.4% 2.6% 3.5%

Source: Internal Revenue Service

V.b. Businesses and Corporations Aggregate information on the amount, the sources, and the recipients of corporate and other business contributions to Alaska nonprofits is not available. Evidence suggests that this source of contributions is small because of the limited number of large corporations within the state. An informal survey of a few of the largest corporations operating in the state showed that businesses contribute to a variety of public charities in many different ways. The contribution philosophy varies across different organizations as well. For example, TOTE (Totem Ocean Trailer Express) reported over $1 million in contributions in 2005 throughout Alaska where they do business. In addition to cash contributions, a portion of their contributions consist of in-kind shipping services. They also contribute to both the public and private universities within the state. Wells Fargo Bank donated more than $1 million in 2005. Major recipients included the public and private universities, the Arctic Winter Games, and the Alaska Native Heritage Center. Their focus changes somewhat from year to year. In 2006 two of the largest oil companies operating in the state, BP (BP Exploration Alaska, Inc.) and ConocoPhillips contributed a combined total of over $22 million in



cash to various Alaska nonprofits, including the University of Alaska, and other organizations such as local governments. Their annual contribution is based upon oil production and price as defined by a Charter Agreement that resulted from the ARCO BP merger in 1999. Some in-kind donations are not included in this total, and some of their donations fund capital expenditures rather than operations. Extrapolating from this small sample to an estimate of the total value of business contributions to Alaska charitable nonprofits is not possible, but it seems fair to say that the contribution of the large oil companies is a large part of the total. The total is likely to be in the range of $40 to $50 million for all businesses in a year of high oil prices such as 2006. This would mean that, compared to the national average, business contributions are a more important source of revenues in Alaska.

V.c. The Role of Foundations and Other Funding Intermediaries Nationally, foundations account for about 11 percent of private philanthropic contributions, or more than 20 percent if religious contributions are excluded. Although they account for a significant share of total charitable nonprofit contributions, foundations directly only account for about 2 percent of the total financial support of charitable nonprofits (because private charitable contributions account for only 10percent of the total income of charitable nonprofits). The largest foundation in the state accounts for about 80 percent of the aggregate assets of the foundations. Twenty foundations have assets in excess of $500 thousand, and eighteen more have assets between $100 and $500 thousand. The remaining foundations have assets of less than $100 thousand. The aggregate revenues of the 79 reporting Alaska nonprofit foundations were $199 million in 2004, consisting mostly of contributions but also including $24 million of investment earnings from the assets held by these entities.34 Total expenditures were much smaller—$25 million, mostly charitable donations to other nonprofits, both within and outside Alaska, as well as to various local governments. Total expenditures include about $3 million in administrative expenses. Expenditures were less than revenues because a large share of new contributions were directed to increase the size of the endowments of the foundations to provide for larger and more stable flows of donations in future years.35

34 Foundations fill out a different informational tax form, Form 990 PF, than other nonprofit corporations. 35 The aggregate level of revenues, expenditures, and assets of Alaska foundations has been increasing rapidly in recent years as the largest foundation in the state, the Rasmuson Foundation, evolves over time.



REVENUES, EXPENDITURES, AND ASSETS OF ALASKA FOUNDATIONS (Million)

Amount Form 990 PF Reference

Total Revenues $198.548 Part 1 Line 12a Contributions $175.496 Part 1 Line 1 Investment Income $23.523 Part 1 Line 2b Total Expenditures $24.983 Part 1 Line 26d Charitable Donations $21.643 Calculated Other Expenses $3.340 Part 1 line 24d Total Assets $535.270 Part 2 Line 16c Source: NCCS CORE Files, and ISER.

Most foundation contributions are to public charities in Alaska, but some also go to governments, individuals, and organizations outside the state. Twelve foundations had total donations exceeding $100 thousand, and a total of 20 had donations in excess of $50 thousand. Thirty-eight other foundations reported donations.

LARGEST ALASKA FOUNDATION DONORS (Million) Total for All Alaska Foundations $21.643 Rasmuson Foundation $17.183 CIRI Foundation $1.039 Atwood Foundation, Incorporated $.415 Arctic Education Foundation $.408 Doyon Foundation $.354 Carr Foundation, Inc $.332 Aleut Foundation $.160 Chugach Heritage Foundation $.159 Edna P McCurdy Scholarship Foundation $.136 Koniag Educational Foundation $.110 UIC Foundation, Inc $.105 Helen Snedden Public Parks Foundation $.100 Usibelli Foundation $.097 Skaggs Foundation $.086 Marion G Weeks Foundation $.083 HUNA Heritage Foundation Inc $.071 Waverider Encouragement Ministries $.065 Charindia Foundation $.060 Bristol Bay Native Corporation Education Foundation $.057 The Sholton Foundation $.052 Source: NCCS CORE Files and ISER. Total is net of expenses associated with charitable donations.

Foundations based outside Alaska also donate to Alaska nonprofits. In 2004, of the top 25 foundations reporting contributions in Alaska (contributions greater than $100 thousand),



only three were headquartered in the state.36 Furthermore, the flow into the state exceeds the flow of donations from Alaska foundations that go to organizations outside of Alaska. For example, in 2004 grants awarded by Alaska foundations, according to the Foundation Center, were $19 million compared to foundation grants received by Alaska nonprofits of $31 million.37

LARGEST FOUNDATION DONORS TO ALASKA NONPROFITS IN 2004

Name Foundation State Rasmuson Foundation AK BP Foundation Ill M.J. Murdock Charitable Trust WA Alfred P. Sloan Foundation NY The Robert Wood Johnson Foundation NJ The J. Willard and Alice S Marriott Foundation DC The William And Flora Hewlett Foundation CA Atwood Foundation, Inc. AK Alaska Conservation Foundation AK The Paul G. Allen Charitable Foundation WA The Wells Fargo Foundation CA The Ford Foundation NY Allen Foundation for the Arts WA The Carr Foundation, Inc. AK The Wilberforce Foundation WA Bill and Melinda Gates Foundation WA Lumina Foundation for Education, Inc. ILL The Williams Companies Foundation, Inc. OK The Bullitt Foundation WA Public Welfare Foundation, Inc. DC W. K. Kellogg Foundation MI Unocal Foundation TX AT&T Foundation NY The Hearst Foundation, Inc. NY The Nathan Cummings Foundation NY Source: The Foundation Center.

Foundation grants contribute to a wide variety of nonprofit organizations as well as governments and individuals. An example of the composition of the largest grant recipients in 2004 includes education, health, social service, cultural, and environmental organizations as well as the state of Alaska. The larger grants are more likely to be for capital projects rather than ongoing operations.

36 The Foundation Center Web site. 37 Ibid.



ALASKA RECIPIENTS OF LARGEST FOUNDATION GRANTS IN 2004

Name Amount Anchorage Community Land Trust $5,000,000 University of Alaska Foundation $1,733,150 University of Alaska Fairbanks $1,606,510 Nature Conservancy $1,020,000 Alaska Native Tribal Health Consortium $1,012,905 Interior Community Health Center $1,000,000 Fairbanks Summer Arts Festival $1,000,000 Yukon Kuskokwim Health Corp $683,790 United Way of Anchorage $633,098 University of Alaska Anchorage $602,497 City of Wrangell $600,000 Anchor Arms $600,000 Southcentral Foundation $563,000 Alaska Dept of Health and Human Services $485,550 Alaska Family Resource Center $483,658 Archdiocese of Anchorage $455,000 Alaska Pacific University $425,000 Foraker Group $350,000 Perseverance Theater $334,596 Anchorage Neighborhood Health Center $300,000 Source: The Foundation Center.

The number of Alaska foundations, as reported by the Foundation Center, has grown from 43 in 1997 to 62 in 2004. Over that time the assets of Alaska foundations have grown from $45 million to $629 million, primarily due to the growth of the Rasmuson Foundation.38

NUMBER OF ALASKA FOUNDATIONS 1997 1998 1999 2000 2001 2002 2003 2004 Total 43 45 50 58 63 64 62 62

Independent 25 24 27 34 37 41 36 36 Corporate 13 15 14 13 15 15 17 17 Community 1 2 3 3 3 3 3 3 Operating 4 4 6 8 8 5 6 6

Source: The Foundation Center. A corporate foundation often “flows thru” funds that accrue in one year to make grants the following year. A community foundation is a public charity supported by the pooled donations of a large number of donors that confines its contributions to a specific community or region. An operating foundation is primarily an operating organization devoted to a specific charitable activity.

38 Ibid.



ASSETS OF ALASKA FOUNDATIONS (Million $) 1997 1998 1999 2000 2001 2002 2003 2004 Total $45 $58 $60 $112 $253 $297 $302 $629

Independent $26 $27 $28 $76 $209 $232 $230 $552 Corporate $16 $26 $26 $30 $33 $54 $57 $58 Community $2 $4 $5 $7 $10 $10 $14 $19 Operating $1 $1 $1 $2 $2 $1 $1 $1

Source: The Foundation Center. A corporate foundation often “flows thru” funds that accrue in one year to make grants the following year. A community foundation is a public charity supported by the pooled donations of a large number of donors that confines its contributions to a specific community or region. An operating foundation is primarily an operating organization devoted to a specific charitable activity. Historically, Alaska foundation giving per capita has ranked near the bottom of the states due to the small size of the foundation asset base as well as the concentration of large foundations in some other states. In 2004 Alaska ranked 47th in total giving and 37th in giving per person at $46—compared to the national average of $108. It also ranked 43rd in foundation giving as a percentage of gross state product.39 With the rapid growth in total assets of Alaska foundations, the total contribution and per capita contribution should increase significantly in the coming years, moving Alaska higher in these rankings. Other funding intermediaries are typified by the various United Way organizations in the state that serve to channel contributions to nonprofits but do not maintain large financial assets that generate income.40 Other funding intermediary revenues were $81 million, with about 60 percent from contributions.

OTHER FUNDING INTERMEDIARIES REVENUES (Million)

Amount Share Form 990 Reference

NCCS Reference

TOTAL $80.897 100.0% TOTREV Contributions, Gifts, Grants $48.103 59.5% line 1d CONT Program Service Revenue Including Government Fees and Contracts $21.299 26.3% line 2 PROGREV Membership Dues $.096 0.1% line 3 DUES Investment Income (except Rent) $8.966 11.1% line 4-5-7- INVINC Rent $.039 0.0% line 6c NETRENT Sales of Assets $(1.247) -1.5% line 8 SALESECN Special Events $1.540 1.9% line 9c FUNDINC Sales of Inventory $.862 1.1% line 10c GRPROF Other $1.241 1.5% line 11 OTHINC Source: NCCS CORE Files, and ISER.

39 Ibid. 40 These funding intermediaries report financial activity to the IRS on Form 990.



Total expenditures of these other funding intermediaries were $55 million. This figure includes both donations to other organizations and the costs associated with fund raising and administration.41 It is not possible to distinguish donations to other organizations from program-related expenses for these nonprofits.

OTHER LARGEST FUNDING INTERMEDIARIES—EXPENDITURES (Million)

All Intermediaries $54.911

Greater Fairbanks Community Hospital Foundation, Inc $8.985 University of Alaska Foundation $8.824 United Way of Anchorage $6.412 Alaska Conservation Foundation $5.244 Bethel Community Services, Inc $4.776 Providence Alaska Foundation $2.825 Monroe Foundation, Inc $1.325 United Way of the Tanana Valley, Inc $1.180 First Alaskans Endowment Fund $1.087 For the Kids Foundation, Inc $.831 Medallion Foundation, Inc $.770 Robert Aqqaluk Newlin Sr. Memorial Trust $.742 Friends of the Haines Borough $.615 Kenai Peninsula United Way $.585 Alaska Pacific University Foundation, Inc $.546 United Way of Matanuska-Susitna Borough $.540 Bishops Attic Volunteers $.531 Alaska Kidney Foundation, Inc $.438 Kake Tribal Heritage Foundation $.411 United Way of Southeast Alaska $.397 Source: NCCS CORE Files and ISER

V.d. Volunteers

Over the 3-year period from 2003 to 2005, an average of 183 thousand Alaskans (38.9 percent of the population) were engaged in formal volunteer activities for an average of 52 hours (median), for a total of 25 million hours of volunteer time. Alaska ranked among the top states across all age groups for the share of the population volunteering.

41 The NCCS database does not contain data on the distribution of expenditures among program-related expenditures, administration, and fund raising although this information is reported on the IRS Form 990.



FORMAL VOLUNTEERING IN ALASKA: 2003 TO 2005

Rate State Rank Total Population 38.9 % 5 Seniors 65+ 31.0 % 13 Baby Boomers* 43.1 % 10 Young Adults 16-24 30.7 % 9 College Students 40.1 % 7 Intensity (Median Hours per Volunteer) 52 11 Source: Corporation for National and Community Service (based on the U.S. Bureau of Labor Statistics Consumer Expenditure Survey). *Born between 1946 and 1964.

This number of volunteer hours is equivalent to 12,514 full-time employees. Excluding religious-related volunteering, the full-time employment equivalent of formal volunteer hours was 9,423. This figure is also one-third as large as the number of paid employees in the nonprofit sector. The value of this unpaid contribution to the nonprofit sector is estimated to be $340 million.42 Alaska volunteer activities were distributed across all types of nonprofit organizations, but concentrated in educational and youth services (30.2 percent) and religious organizations (24.7 percent).

DISTRIBUTION OF ALASKA VOLUNTEER HOURS ACROSS ORGANIZATION TYPES

Category Share Educational or Youth Service 30.2 % Religious 24.7 % Social or Community Service 12.5 % Civic, Political, Professional, or International 8.7 % Sport, Hobby, Cultural, Arts 7.8 % Other 4.5 % Hospital or other Health 3.9 % Public Safety 3.2 % Environment or Animal Care 2.8 % Type not Reported 1.6 % Source: Corporation for National and Community Service

42 Giving and Volunteering in the United States, the Corporation for National and Community Service, 2005. The estimate of total value is based upon an hourly wage in the independent sector of the economy of $18.04. This wage is applied to volunteering net of religious groups.



In contrast, nationally the largest share of volunteer hours—34.8 percent—was attributable to religious organizations. Alaska volunteers were twice as likely as the national average to engage in general labor.

ALASK VOLUNTEERS: PRIMARY ACTIVITIES

Share of Volunteers

General Labor, Transportation 44.3% Coach, Referee. Tutor, Mentor 37.8%

Fundraiser 32.0%

Collect, Prepare, Distribute Food 29.9%

Professional or Management Assistance 25.7%

Usher, Greeter, Minister 24.5% Source: Corporation for National and Community Service





VI. EXPENDITURES AND ASSETS Nonprofit expenditures were $3.4 billion in 2004, almost identical to revenues.43

NONPROFIT EXPENDITURES IN 2004 (Million $) Expenditures TOTAL $3,396.187 Public Charities (501c3) $2,391.401 Funding Intermediaries (501c3) $ 79.895 Civic Leagues and Social Welfare (501c4) $102.772 Other 501c $ 822.119 Non-Reporting X Not-Registered X Churches X Source: NCCS CORE Files and ISER.

Nonprofit expenditures can be divided into 3 functional categories as well as payments to affiliates based on IRS reporting requirements. But detail on the composition of expenditures in the aggregate or by type of nonprofit is not available beyond the fact that most expenditures fund program services with small shares going to other categories of expenses including management, fundraising, and payments to affiliates.

CATEGORIES OF NONPROFIT EXPENDITURES CATEGORY FORM 990 LINE Functional Expenses 44a

Program Services 13 and 44b Management and General 14 and 44c Fundraising 15 and 44 d

Payments to Affiliates 16 TOTAL EXPENSES 17

Aggregate information on fund-raising expenditures shows that it is a small share of total spending for all major categories of public charities—half of 1 percent. The percentage is slightly higher for 501c4 corporations (1.2 percent), but only 0.1 percent for other 501c corporations.

PUBLIC CHARITY EXPENDITURES FOR FUNDRAISING (Million $)

Total Health Human Services Civic Education Arts/

Culture TOTAL $2,391.401 $1,435.046 $685.715 $132.376 $84.685 $53.577 Fund Raising $10.986 $.899 $6.750 $.974 $.380 $1.981 Fund Raising % 0.5 % 0.1 % 1.0 % 0.7 % 0.4 % 3.7 % Source: NCCS CORE Files, and ISER.

43 Capital expenditures are excluded from this total.



Total nonprofit assets at the end of 2003 were $6.1 billion, mostly divided between the public charities and other member-serving nonprofits.

ASSETS OF NONPROFITS IN 2003 (Million $) Start of Year End of Year

TOTAL $6,170.103 Public Charities (501c3) $2,253.576 $2,399.700 Funding Intermediaries (501c3) $1,002.161 Civic Leagues and Social Welfare (501c4) $253.682 $276.944 Other 501c $2,304.547 $2,491.527 Source: NCCS CORE Files and ISER.

Public charity assets were concentrated in the health and human services categories.

ASSETS OF PUBLIC CHARITIES IN 2003 (Million $)

Total Health Human Services Civic Education Arts/

Culture Start of Year $2,253.6 $1,047.1 $725.1 $232.2 $111.9 $137.3 End of Year $2,399.5 $1,166.2 $731.5 $226.5 $124.7 $150.6 Source: NCCS CORE Files, and ISER.

Assets of the 501c4 corporations were $254 million at the start of the year and $277 million at the end. Most of the assets of the member-serving nonprofits were concentrated in the utility cooperatives and the state-chartered credit unions.

ASSETS OF OTHER 501C CORPORATIONS (Million $) Number Start of Year End of Year $2,304.547 $2,491.527 Mutual Companies, Co-ops 12 $1,603.613 $1,730.979 Voluntary Employee's Beneficiary Societies 9 $86.010 $89.642 Business Leagues, Chambers of Commerce 6 $43.141 $48.531 Labor, Agriculture Organizations 5 $59.922 $61.533 State-Chartered Credit Unions 14 $402.247 $447.314 Fraternal Beneficiary Societies 8 $15.069 $15.213 Post or Organization of War Veterans 19 $6.067 $6.048 Social and Recreational Clubs 7 $2.814 $2.981 Domestic Fraternal Beneficiary Societies 10 $12.032 $12.791 Title-Holding Companies 2 $66.555 $68.242 Cemetery Companies 13 $1.997 $2.346 Supplemental Unemployment Benefit Trusts 17 $5.080 $5.908 Source: NCCS CORE Files, and ISER.



VII. EMPLOYMENT AND PAYROLL Alaska nonprofits employed 30,895 workers in 2004—10.3 percent of the total.44 This compares to 17,093 in 1990 when nonprofit workers comprised 7 percent of the total.

ALASKA EMPLOYMENT HISTORY 1990 2000 2001 2002 2003 2004

Total Workers 245,379 281,532 292,214 293,134 295,732 301,137 Private

Private for Profit 155,598 180,240 183,115 180,161 189,638 187,331 Private not for Profit 17,093 25,962 28,435 29,813 26,868 30,895

Government 72,688 75,330 80,664 83,160 79,226 82,911 Item: Private not for Profit % 7.0% 9.2% 9.7% 10.2% 9.1% 10.3% Source: U.S. Census (includes employed civilians aged 16+). Growth in the number of nonprofit workers has outpaced the rest of the economy since at least 1990. Between 1990 and 2000, there was a 52 percent increase in nonprofit workers compared to 16 percent for the private for-profit sector and 4 percent for government. Since 2000 growth in nonprofit workers has continued to outpace the other sectors of the economy.

ALASKA EMPLOYMENT GROWTH Change Percent Change 1990-00 2000-04 1990-00 2000-04 Total Workers 36,153 19,605 14.7% 7.0% Private

Private for Profit 24,642 7,091 15.8% 3.9% Private not for Profit 8,869 4,933 51.9% 19.0%

Government 2,642 7,581 3.6% 10.1% Source: U.S. Census

The total payroll of the nonprofit sector is $1.151 billion. The public charities account for about 90 percent of the total employment in the nonprofit sector—27,039.45 Funding intermediaries together with the civic league and social welfare organizations account for 904 additional jobs. Other 501c categories (all except 501c3 and 501c4) together account for 2,161 jobs. Excluded from this count are any paying jobs in nonprofit organizations that do not file a tax return, are not registered with the Internal Revenue Service, or are a religious congregation.

44 Nonprofit employment data are available from the U.S. Census, including the American Community Survey and the Census of Business, which is published every 5 years. We can also estimate employment from the NCCS database. 45 These detailed estimates of employment are estimates derived from the NCCS database and differ slightly from the U.S. Census estimate.



COMPOSITION OF NONPROFIT PAYROLL AND EMPLOYMENT

Expenditures (Million)

Payroll (Million) Employment

TOTAL $3,396.187 $1,151.404 30,104 Public charities(501c3) $2,391.401 $1,007.102 27,039 Funding intermediaries(501c3) $79.895 $12.227 338 Civic Leagues and Social Welfare (501c4) $102.772 $20.497 566

Other 501 $822.118 $111.5790 2,161 Non Reporting X X X Not-Registered X X X Churches X X X Source: NCCS CORE Files and ISER. Note: Payroll includes compensation and salaries.

Among the public charities, the health sector accounts for the majority of jobs and payroll, and the wage rate is higher than in the other sectors. Social services is the second largest employer and has the second largest payroll as well. The other three public charity sectors are all much smaller in terms of both payroll and jobs.

PUBLIC CHARITY EMPLOYMENT DETAIL Payroll

(Million $) Annual Wage Employment

TOTAL $1,007.102 27,039 Health $636.049 $39,464 15,841 Social Services $282.977 $31,786 8,442 Civic $18.773 $28,074 595 Education $29.176 $29,084 931 Arts/Culture $16.531 $29,781 481 Source: NCCS CORE Files and ISER.

Among other nonprofits (non-501c3 and -501c4), the public utilities—electric and telephone—organized as co-ops have the largest payroll, the highest wage, and the most employment. All remaining categories combined employed 1,055 workers, also at a relatively high wage.

OTHER 501c EMPLOYMENT DETAIL Payroll

(Million) Wage Employment

TOTAL $111.579 2,161 Mutual Companies, Co-ops $69.118 $62,469 1,106 Labor Organizations $15.828 $40,463 391 Business Leagues $14.173 $40,463 350 Credit Unions $6.948 $39,276 177 Other $5.511 $40,463 136 Source: NCCS CORE Files and ISER.



The wage rate in the sector of the economy within which the nonprofit sector operates varies across categories. The electric co-ops have relatively high wage rates as do some of the occupations in the health category. The lowest wages are in the social assistance category.

WAGE RATES IN INDUSTRIES WITH NONPROFIT FIRMS (2004)

Monthly Annual Private Nonprofit (service producing ) $2,846 $34,154 Power Generation, etc. $5,206 $62,469 Depository Credit Intermediation (Credit Unions) $3,273 $39,276 Education Services $2,424 $29,084 Out-Patient Health Care $3,272 $39,261 Hospitals $3,872 $46,467 Nursing and Residential Care $2,182 $26,182 Social Assistance $1,842 $22,104 Museums, Zoos, Parks, etc. $2,482 $29,781 Grant Making, Giving Services. $3,018 $36,219 Social Advocacy Organizations $2,415 $28,982 Civic, Social Organizations $2,211 $26,534 Business, Professional, Labor $3,372 $40,463 Source: Alaska Dept of Labor, Employment and Earnings data, ISER.

In the aggregate, the private nonprofit wage rate in 2004 of $2,846 per month was below that of the government and the private for-profit sectors of the economy. However. it was about equal to the average of the service-producing component of the private for-profit sector, which was $2,763.

2004 WAGE RATE COMPARISON Sector Monthly Annual TOTAL $3,218 $38,615 Government $3,477 $41,719

Federal $4,813 $57,759 State $3,342 $40,104 Local $2,955 $35,464

Private for Profit $3,171 $38,047 Goods producing $4,683 $56,194 Service producing $2,763 $33,160

Private Nonprofit (service producing ) $2,846 $34,154 Source: Alaska Dept of Labor, Employment and Earnings data, ISER.

The estimated private nonprofit wage was calculated as the average of several sectors of the economy weighted by the estimated number of workers within each category believed to be employed in nonprofit firms. (See following table for categories and adjustment factors for each category.)



WORKER CATEGORIES AND AMOUNTS USED

TO CALCULATE NONPROFIT WAGE NAICS Description Workers Payroll

(Million Adj Adjusted Workers

Adjusted Payroll

Monthly Wage

SUM 44,585 $1,616.9 30,610 $1,045.5 $2,846

221100 Power Generation, etc. 1,381 $86.3 1 1,381 $86.3 $5,205 522100 Depository Credit Intermediation 3,938 $154.7 0.1 393 $15.5 $3,273 610000 Educational Services 2,005 $58.3 0.9 1,804 $52.5 $2,423 621000 Out Patient Health Care 13,574 $532.9 0.5 6,787 $266.5 $3,271 622000 Hospitals 8,608 $400.0 0.6 5,164 $240.0 $3,872 623000 Nursing & Residential Care 2,671 $69.9 1 2,671 $70.0 $2,181 624000 Social Assistance 7,826 $172.9 1 7,826 $172.9 $1,842 712000 Museums, Zoos, Parks, etc. 374 $11.1 1 374 $11.1 $2,481 813200 Grant-making, Giving Services. 309 $11.2 1 309 $11.2 $3,018 813300 Social Advocacy Organizations 779 $22.6 1 779 $22.6 $2,415 813400 Civic, Social Organizations 2,098 $55.7 1 2,098 $55.7 $2,211 813900 Business, Professional, Labor 1,022 $41.4 1 1,022 $41.3 $3,371 Source: ISER. Historically, the service-producing wage rate has fluctuated in the range of 55 percent to 60 percent of the goods-producing wage rate, except during exceptional periods such as the pipeline construction years.46

46 The service-producing wage in this calculation includes both its for-profit and nonprofit components.



The largest nonprofit firms are among the largest employers in the state according to the ranking presented each year in the Department of Labor “Trends 100”. In 1994 there were 14 public charities among the 100 largest private employers and in 2005 there were 19 public charities. (There were also 2 large utility cooperatives on the list.)

PUBLIC CHARITIES LISTED AMONG ALASKA’S LARGEST COMPANIES (PART 1)

Employment Name Purpose 1994 1995 1996 1997 1998 1999 Providence Health Care System in Alaska Health care 1,918 1,998 2,261 2,844 2,971 3,027 Yukon-Kuskokwim Health Corp. Health care 572 652 669 689 489 523 Banner Health System—Fairbanks Hospital (Lutheran Health Systems) Health care 938 973 1,012 1,114 1,090 1,090 Alaska Native Tribal Health Consortium Health care SouthCentral Foundation Health care 263 308 440 Southeast Alaska Regional Health Corporation (SEARHC) Health care 425 482 522 558 574 556

Tanana Chiefs Conference Social Services/ Health Care 537 555 525 557 610 609

Maniilaq Association Health care 414 447 375 379 397 423 Hope Community Service Social Services 322 343 364 364 429 433 Valley Hospital Health care 327 330 365 427 455 488 Norton Sound Health Corporation Health care 336 345 386 412 420 413 Assets (AK Special Ed and Training) Social Services 262 279 280 332 352 312 Salvation Army Alaska Social Services 354 300 352 375 349 357 Bristol Bay Area Health Corporation Health care 296 301 308 325 349 334 Access Alaska Social Services Ketchikan General Hospital Health care 284 300 309 307 346 348 Frontier Community Services Social Services Rural Alaska Community Action Program Social Services 269 286 293 292 ARC of Anchorage Social Services Association of Village Council Presidents Social Services Providence Extended Care Center Health Care 326 333 Fairbanks Native Association Social Services 300 SouthCentral Counseling Center Health care Source: Alaska Department of Labor, Alaska Economic Trends.



PUBLIC CHARITIES LISTED AMONG ALASKA’S LARGEST COMPANIES (PART 2)

Employment Name Purpose 2000 2001 2002 2003 2004 2005 Providence Health Care System in Alaska Health care 3,098 3,369 3,417 3,556 3,518 3,685 Yukon-Kuskokwim Health Corporation Health care 593 940 1,110 1,217 1,346 1,372 Banner Health System Health care 1,138 1,191 1,204 1,243 1,287 1,346 Alaska Native Tribal Health Consortium Health care 381 544 752 919 1,104 1,200 SouthCentral Foundation Health care 675 749 886 947 1,023 1,098 Southeast Alaska Regional Health Corp. (SEARHC) Health care 578 621 669 705 754 804 Tanana Chiefs Conference

Social Services/ Health Care 594 632 669 671 621 559

Maniilaq Association Health care 446 489 520 569 576 557 Hope Community Service Social Services 448 506 537 540 561 634 Valley Hospital Health care 481 467 500 538 558 X Norton Sound Health Corporation Health care 412 415 420 428 432 458 Assets Social Services 341 352 385 392 386 391 Salvation Army AK Social Services 371 394 392 394 376 345 Bristol Bay Area Health Corporation Health care 335 344 351 359 358 347 Access Alaska Social Services X X X X 340 338 Ketchikan General Hospital Health care 348 323 307 310 335 350 Frontier Community Services Social Services X X 293 330 327 314 Rural Alaska Community Action Program Social Services 299 335 349 336 323 313 ARC of Anchorage Social Services 272 313 307 300 286 306 Assoc. of Village Council Presidents Social Services X 259 306 317 269 271 Fairbanks Native Association Social Services 273 268 271 X X X SouthCentral Counseling Center Health care X 250 X X X X Alaska Pacific University Education 281 x x x X X Source: Alaska Department of Labor, Alaska Economic Trends.

A historical comparison of size and rank for the public charities on the list today (2005) shows that some were already close to their current size ten years ago (Tanana Chiefs Conference); some have always been on the list, but have increased in size (Yukon-Kuskokwim Health Corporation); and some were not on the list ten years ago (Alaska Native Tribal Health Consortium).



EVOLUTION OF TODAY’S LARGEST PUBLIC CHARITIES Employment and Rank Among Private Firms

Name Purpose 1995 2000 2005 Number Rank Number Rank Number Rank

Providence Health Care System in Alaska Health care 1,998 2 3,098 2 3,685 1 Yukon-Kuskokwim Health Corporation Health care 652 24 593 32 1,372 8 Banner Health System Health care 973 13 1,138 8 1,346 10 Alaska Native Tribal Health Consortium Health care 381 60 1,200 13 SouthCentral Foundation Health care 675 25 1,098 15 Southeast Alaska Regional Health Corp. (SEARHC) Health care 482 44 578 34 804 25 Hope Community Service Social Services 343 67 448 50 634 36

Tanana Chiefs Conference

Social Services/ Health Care 555 33 594 31 559 43

Maniilaq Association Health care 447 47 446 51 557 44 Norton Sound Health Corporation Health care 345 63 412 53 458 52 Assets Social Services 279 87 341 73 391 66 Ketchikan General Hospital Health care 300 81 348 70 350 74 Bristol Bay Area Health Corporation Health care 301 80 335 75 347 76 Salvation Army Alaska Social Services 300 82 371 66 345 77 Access Alaska Social Services 338 80 Frontier Community Services Social Services 314 87 Rural Alaska Community Action Program Social Services 299 81 313 88 ARC of Anchorage Social Services 272 91 306 92 Association of Village Council Presidents Social Services 271 100 Source: Alaska Department of Labor, Alaska Economic Trends.





VIII. COMPARISON WITH NATIONAL TRENDS As a share of employment, nonprofits are much more important in Alaska than in the United States as a whole. In 2004 10.3 percent of employed Alaskans worked for a nonprofit, compared to 7.2 percent for the nation as a whole.

EMPLOYMENT SHARES IN 2004 Alaska U.S. (thousands) Total Workers 301,137 134,259 Private

Private for Profit 187,331 104,566 Private Not for Profit 30,895 9,719

Government 82,911 19,974 Share of Total

Private for Profit 62.2% 77.9% Private Not for Profit 10.3% 7.2% Government 27.5% 14.9%

Source: U.S. Census Bureau, American Community Survey, Table S2408. In 2000, Alaska, at 9.2 percent, was ranked 10th in the nation in the share of nonprofits in total employment.

NONPROFIT SHARE OF TOTAL EMPLOYMENT RANKED BY STATE

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Vermon

t

Rhode

Islan

d

New York

Alaska

Illinois

Indian

a

Nebras

kaOhio

Delaware

West V

irgini

a

Virgini

a

Colorad

o

Wyoming

Idaho

Alabam

a

North C

arolin

a

Mississ

ippi

Nevad

a

Source: U.S. Census of Population 2000 (excluding District of Columbia).



The nonprofit share of employment has been increasing in Alaska for at least the last 14 years, while it has changed very little in the United States as a whole.

TRENDS IN EMPLOYMENT SHARES: ALASKA VS. UNITED STATES

1990 2000 2004 ALASKA Shares

Private for Profit 63.4 % 64.0 % 62.2 % Private not for Profit 7.0 % 9.2 % 10.3 % Government 29.6 % 26.8 % 27.5 %

U.S. AVERAGE Shares Private for Profit 78.1 % 78.2 % 77.9 % Private not for Profit 6.7 % 7.2 % 7.2 % Government 15.2 % 14.6 % 14.9 %

Source: U.S. Dept of Commerce, Bureau of the Census. These different trends correspond to differences in the growth rate of nonprofit employment in Alaska compared to the United States as a whole. In Alaska, nonprofit employment increased 51.9 percent between 1990 and 2000, while private for-profit employment grew only 15.8 percent and government employment by only 3.6 percent. In contrast the nonprofit sector employment grew 19.8 percent in the United States, while the private for-profit sector grew by 12.3 percent and government by 7.7 percent. Since 2000 the same patterns have continued with faster overall employment growth in Alaska, with the nonprofit sector growing almost 5 times as fast as the private for-profit sector.

ALASKA EMPLOYMENT GROWTH Change Percent Change 1990-00 2000-04 1990-00 2000-04 Total Workers 36,153 19,605 14.7% 7.0% Private

Private for Profit 24,642 7,091 15.8% 3.9% Private not for Profit 8,869 4,933 51.9% 19.0%

Government 2,642 7,581 3.6% 10.1% Source: U.S. Census.

U.S. EMPLOYMENT GROWTH Change Percent Change 1990-00 2000-04 1990-00 2000-04 Total Workers 14,040,310 4,537,948 12.1% 3.5% Private

Private for Profit 11,149,660 3,062,610 12.3% 3.0% Private not for Profit 1,534,397 424,538 19.8% 4.6%

Government 1,356,253 1,050,800 7.7% 5.6% Source: U.S. Census.

The higher concentration of employment in the nonprofit sector in Alaska is mirrored in the higher concentration of nonprofit organizations per capita in Alaska compared to the



nation as a whole. Alaska has 7.5 nonprofits for every 1,000 people, compared to 5.1 for the United States as a whole. That pattern of high density exists across all the major nonprofit categories with the exception of foundations, where Alaska has only half the U.S. average number based on population.

NONPROFITS PER 1,000 POPULATION IN 2004 ALASKA UNITED STATES

ALL REGISTERED NONPROFITS 7.5 5.1 501c3 Public Charities 4.8 3.0

Reporting 2.0 1.2 Operating 1.9 1.0 Supporting 0.1 0.2

Not Reporting 2.8 1.9 Item: Congregations 1.9 1.4

501c3 Private Foundations 0.2 0.4 Grant Making 0.2 0.4 Operating 0.0 0.0

Other 501c 2.5 1.7 Civil Leagues 0.9 0.4 Fraternal 0.3 0.3 Business Leagues 0.5 0.3 Labor 0.3 0.2 Social Clubs 0.2 0.2 War Vets 0.2 0.1 Other 0.1 0.2

Source: NCCS. In general, with the exception of foundations, the broad distribution of nonprofits across categories is similar to the U.S. average.



COMPARISON OF ALASKA WITH THE UNITED STATES 2004 ALASKA UNITED STATES Number Share Number Share ALL REGISTERED NONPROFITS 4,765 1,397,263

501c3 Public Charities 3,055 64% 822,817 59% Reporting 1,282 27% 317,689 23%

Operating 1,187 25% 272,236 19% Supporting 95 2% 45,453 3%

Not Reporting 1,773 37% 505,128 36% Item: Congregations 1,187 25% 385,874 28%

501c3 Private Foundations 147 3% 102,881 7% Grant Making 135 3% 98,529 7% Operating 12 0% 4,352 0%

Other 501c 1,563 33% 471,565 34% Civil Leagues 591 12% 119,515 9% Fraternal 186 4% 87,833 6% Business Leagues 344 7% 71,470 5% Labor 171 4% 58,362 4% Social Clubs 98 2% 56,494 4% War Vets 96 2% 35,097 3% Other 77 2% 42,794 3%

Source: NCCS. Measured by either gross receipts or assets, Alaska nonprofits tend to be much smaller than the U.S. average. For example, the average gross receipts of Alaska nonprofits in 2004 was $1.683 million compared to $4.266 million for the entire United States. Furthermore, on a per-capita basis Alaska nonprofit activity measured by gross receipts and assets is smaller than the average for the nation.

PUBLIC CHARITIES FILING IRS RETURNS IN 2004 ALASKA UNITED STATES

Number 1,282 317,458 Gross Receipts (Million) $2,158 $1,354,309 Total Assets (Million) $2,460 $2,457,002 Average Gross Receipts (Million) $1.683 $4.266 Average Total Assets (Million) $1.919 $7.740

Per Capita Gross Receipts $3,398 $4,961 Total Assets $3,874 $9,000 Population (000) 635 273,000

Source: NCCS. Finally, the concentration of activity among nontaxable firms in several sectors of the economy is higher than the U.S. average and has continued to increase over time. A



demonstration of this is that the concentration ratios for Alaska shown below have all increased between 1997 and 2002.

CONCENTRATION OF NON-TAXABLE ACTIVITY BY INDUSTRIAL SECTOR IN ALASKA

Non-Taxable Share of Sector Sector Establishments Revenues Payroll Employees

1997 Professional (54) 2% 1% 1% 1% Education (61) 35% 59% 62% 41% Health/Social Services (62) 27% 63% 65% 70% Art (71) 20% 12% 16% 11% Other Services (81) 31% 35% 31% 33%

2002 Professional (54) 2% 2% 2% 2% Education (61) 52% 64% 63% 59% Health/Social Services (62) 30% 67% 68% 73% Art (71) 21% 15% 23% 17% Other Services (81) 33% 36% 34% 37%

Concentration Ratio (Ratio of 2002 to 1997) Professional (54) 1.32 1.99 1.47 1.84 Education (61) 1.48 1.09 1.01 1.45 Health/Social Services (62) 1.11 1.06 1.04 1.04 Art (71) 1.02 1.26 1.38 1.52 Other Services (81) 1.07 1.03 1.07 1.12 Source: U.S. Department of Commerce, Census of Business.

The ratios of the nontaxable share of different industries between Alaska and the U.S. average shows not only the higher concentration of nontaxable activity in Alaska but also its growing importance relative to the U.S. average.47

47 Concentration ratio calculated as the ratio of the nontaxable share in Alaska to the nontaxable share in the United States as a whole.



NONTAXABLE CONCENTRATION RATIOS: ALASKA / UNITED STATES

Establishments Revenues Payroll Employment 1997

Professional (54) 1.68 0.18 0.44 0.44 Education (61) 2.03 2.19 2.71 1.80 Health/Social Services (62) 1.53 1.19 1.26 1.29 Art (71) 1.04 0.64 0.81 0.45 Other Services (81) 1.62 0.90 1.21 1.40

2002 Professional (54) 2.77 0.84 0.78 1.01 Education (61) 2.35 2.31 2.44 2.17 Health/Social Services (62) 1.55 1.30 1.33 1.37 Art (71) 0.98 0.76 1.05 0.63 Other Services (81) 1.68 0.95 1.12 1.42

Increase in Alaska Relative to U.S. 1997-2002 Professional (54) 1.65 4.57 1.78 2.29 Education (61) 1.16 1.05 0.90 1.21 Health/Social Services (62) 1.01 1.09 1.05 1.06 Art (71) 0.94 1.20 1.31 1.39 Other Services (81) 1.04 1.05 0.93 1.02 Source: U.S. Dept of Commerce, Census of Business.

Finally, comparing Anchorage with the rest of the state, we see that nonprofits are more dominant in their industries outside Anchorage than inside Anchorage, except for the Arts category.48

NONTAXABLE CONCENTRATION RATIOS IN 2002: OTHER ALASKA / ANCHORAGE

Establishments Revenues Payroll Employment Professional (54) NA NA NA NA Education (61) 1.30 1.42 1.69 1.57 Health/Social Services (62) 1.80 1.33 1.28 1.20 Art (71) 0.87 0.73 0.73 1.16 Other Services (81) 1.32 1.24 1.01 1.34 Source: U.S. Dept of Commerce, Census of Business

48 Concentration ratios calculated as the nontaxable share in Anchorage, compared to the rest of Alaska.



IX. ECONOMIC SIGNIFICANCE The economic significance of the nonprofit sector in Alaska goes beyond the direct expenditures, payroll, and employment of the organizations that comprise the sector, although these are clearly an important part of the economy of the state.

DIRECT NONPROFIT ECONOMIC IMPORTANCE Expenditures

(Million) Payroll

(Million) Employment

TOTAL $3,396.187 $1,151.404 30,104 Public Charities(501c3) $2,391.401 $1,007.102 27,039 Funding Intermediaries(501c3) $79.895 $12.227 338 Civic Leagues and Social Welfare (501c4) $102.772 $20.497 566

Other 501c $822.119 $111.579 2,161 Non-Reporting X X X Not-Registered X X X Churches X X X Source: NCCS CORE Files, and ISER. Note: Payroll includes compensation and salaries

One important and unique aspect of the economic value of the nonprofit sector is the volunteer activity that takes place through formal nonprofit organizations. The full-time equivalent number of jobs represented by the number of hours Alaskans spend volunteering (excluding church-related volunteering) is estimated to be 9,423, nearly one-third as much as the total paid employment in the nonprofit sector. The value of this volunteer activity is estimated (based on national average wage rates) to be $340 million per year.49 The importance of nonprofits varies by sector within the economy. Nonprofits are most prevalent (compared to private firms) in the health-care and social-services sectors where 73 percent of private-sector employment is among not-for-profit firms. The share is also high for education.

CONCENTRATION OF NONTAXABLE ACTIVITY BY INDUSTRIAL SECTOR IN 2002

Establishments Revenues Payroll Employment Professional (54) 2% 2% 2% 2% Education (61) 52% 64% 63% 59% Health / Social Services (62) 30% 67% 68% 73% Art (71) 21% 15% 23% 17% Other Services (81) 33% 36% 34% 37% Source: U.S. Dept of Commerce, Census of Business.

If we consider the nonprofit sector as an economic enterprise, its total impact on the economy, measured by jobs and payroll, is substantially more than its direct impact

49 Corporation for National and Community Service.



shown in the foregoing table. This is because the payroll and other expenditures of nonprofit firms produce jobs throughout the economy of Alaska. Although it is not possible to precisely estimate the total contribution of nonprofits because we do not have complete information on the amount and composition of purchases by nonprofits from other businesses within Alaska, we can provide some initial estimates—in the following two tables.50 The first table is an estimate of the economic significance of public charities in Alaska, by four areas of the state as well as the state total. The public charities themselves employ 27,039 workers. The additional employment in the state that is the result of both nonprofit-worker spending of payroll and nonprofit-firm purchases from other businesses is an additional 15,027 jobs (the indirect and induced effect). These jobs, the result of the “economic multiplier,” tend to be more concentrated in urban areas than the public charity jobs themselves that are more evenly distributed across the state. Total employment attributable to the nonprofit sector is 42,066. The associated payroll is $1.471 billion.

ECONOMIC SIGNIFICANCE OF PUBLIC CHARITIES IN ALASKA (Million $)

State Southeast Southcentral Southwest North I II III IV Total Effect

Output $1,578.8 $160.4 $1,069.5 $131.9 $217.1 Payroll $1,471.2 $174.1 $867.8 $170.0 $259.2 Employment 42,006 4,974 24,867 4,815 7,409

Direct Effect Total $$ Impacting Economy

$1,482.7 $180.4 $824.2 $184.7 $273.4

Payroll $1,007.1 $124.2 $587.5 $127.2 $188.3 Procurement $455.6 $58.2 $256.7 $57.5 $85.2

Employment 27,039 3,334 15,235 3,415 5,054

Total Indirect and Induced Effect Output $1,578.8 $160.4 $1,069.5 $131.9 $217.1 Payroll $464.1 $49.9 $300.3 $42.8 $71.0 Employment 15,027 1,640 9,632 1,400 2,355

Item: First Round Effect of Procurement Spending Output $455.6 $56.2 $256.7 $57.5 $85.2 Payroll $168.3 $20.7 $94.8 $21.3 $31.5 Employment 5,100 629 2,874 644 953

Direct Effect Multipliers (BEA Definition) Payroll 1.46 0.17 0.86 0.17 0.26 Employment 1.56 0.18 0.92 0.18 0.27

Source: ISER.

50 This analysis is based on the ISER input-output model of the Alaska economy.



A similar analysis for all public-serving nonprofits in Alaska in the next table shows that the total number of jobs attributable to this slightly broader definition of the nonprofit sector is 43,458 with an associated payroll of $1.519 billion.

ECONOMIC SIGNIFICANCE OF PUBLIC-SERVING NONPROFITS IN ALASKA (501C3 + 501C4) (Million $)

State Southeast Southcentral Southwest North I II III IV Total Effect

Output $1,630.1 $165.6 $1,104.2 $136.2 $224.1 Payroll $1,519.0 $179.8 $896.0 $175.6 $267.6 Employment 43,458 5,139 25,689 4,975 7,655

Direct Effect Total $$ Impacting Economy

$1,510.2 $186.2 $850.9 $190.7 $282.3

Payroll $1,039.8 $128.2 $585.9 $131.3 $194.4 Procurement $470.4 $58.0 $265.0 $59.4 $87.9

Employment 27,943 3,446 15,745 3,529 5,223

Total Indirect and Induced Effect Output $1,630.1 $165.6 $1,104.2 $136.2 $224.1 Payroll $479.1 $51.5 $310.1 $44.2 $73.3 Employment 15,515 1,693 9,945 1,446 2,432

Item: First Round Effect of Procurement Spending Output $470.4 $58.0 $265.0 $59.4 $87.9 Payroll $173.7 $21.4 $97.9 $21.9 $32.5 Employment 5,266 649 2,967 665 984

Direct Effect Multipliers (BEA Definition) Payroll 1.46 0.17 0.86 0.17 0.26 Employment 1.56 0.18 0.92 0.18 0.27

Source: ISER. Because the nonprofit sector in Alaska is partially supported by instate revenue sources—including individuals, businesses, foundations, and government—we cannot consider it to be one of the “basic” sectors of the Alaska economy. However, a large share of revenues comes from outside the state, largely from the federal government but also from individuals, businesses, foundations, and other nonprofits in other states. Furthermore, in-state supporters—including individuals, businesses, and foundations—can always shift their contributions outside the state to other nonprofits. Our analysis demonstrates not only the contribution of the nonprofit sector to the overall economy but also its dependence on external funding sources.





X. NONPROFITS BY REGION There are registered nonprofits in every Alaska census area and almost all contain organizations large enough to file returns with the Internal Revenue Service. They tend to be concentrated in the larger urban areas.

CHARITABLE ORGANIZATIONS (501C3) BY REGION: 2004

Region and Census Area

Registered with IRS

Filing Tax

Return

Gross Receipts (Million)

Assets (Million)

Gross Receipts Per Registered Organization

TOTAL 3,200 1,365 $2,237.938 $2,776.246

URBAN 2,527 1,090 $1,686.648 $2,244.786 $667,451 Anchorage 1293 582 $1,024.509 $1,205.092 $792,351 Fairbanks 413 180 $242.335 $491.981 $586,769 Juneau 253 123 $183.384 $266.884 $724,836 Matanuska-Susitna 254 82 $102.996 $107.929 $405,495 Kenai 314 123 $133.424 $172.900 $424,916 RURAL 486 206 $128.599 $162.276 $264,607 Denali 17 8 $1.702 $3.573 $100,142 Haines 35 12 $1.747 $6.043 $49,900 Ketchikan 83 35 $18.262 $21.207 $220,025 Kodiak 76 32 $30.226 $23.879 $397,713 Prince of Wales-Outer Ketchikan 20 10 $1.120 $1.092 $55,984 Sitka 69 41 $29.933 $47.405 $433,807 Skagway-Hoonah-Angoon 21 5 $.430 $.425 $20,482 SE Fairbanks 29 10 $4.106 $2.472 $141,599 Valdez-Cordova 88 36 $30.380 $42.286 $345,226 Wrangell-Petersburg 45 15 $10.268 $13.764 $228,181 Yakutat 3 2 $.425 $.129 $141,548 REMOTE RURAL 187 69 $422.591 $369.183 $2,259,847 Aleutians East 3 1 $.209 $.034 $69,727 Aleutians West 13 8 $5.758 $7.256 $442,933 Bethel 36 13 $179.900 $167.386 $4,997,233 Bristol Bay 7 0 0 0 – Dillingham 21 8 $69.938 $63.547 $3,330,373 Lake and Peninsula 7 0 0 0 – Nome 29 12 $87.383 $57.960 $3,013,193 North Slope 26 13 $16.894 $6.596 $649,772 Northwest Arctic 12 5 $59.379 $64.300 $4,948,274 Wade Hampton 9 3 $.545 $.600 $60,538 Yukon-Koyukuk 24 6 $2.585 $1.505 $107,713 Source: NCCS Business Master File of 501c3 organizations Note: Excludes 4 organization without location identified.



ALASKA CENSUS AREAS

Ranked by employment, Anchorage has the largest share of the total. In 2000 42.2 percent of the nonprofit employment was in Anchorage. Fairbanks, Mat-Su, Kenai, and Juneau, together with Anchorage, accounted for 75.8 percent of the jobs. However, nonprofit jobs were reported in every census area in 2000, even where there were no tax returns filed by nonprofit organizations. Although the number of nonprofit workers is smaller in the smaller rural census areas than in urban Alaska, the importance of nonprofit jobs is greater in rural areas, as measured by the nonprofit share of total regional employment. In 2000 in the Nome Census Area, 18.4 percent of the jobs were in nonprofit firms—twice the average for the state. Other rural areas including Dillingham, Northwest Arctic Borough, and Bethel had very high concentrations of nonprofit workers. This is primarily due to the importance of health and social service organizations in the regional centers in these census areas. However, some of the other smaller census areas such as Denali, the Aleutians, Prince of Wales, and Skagway-Hoonah-Angoon had very small nonprofit employment shares.



NON PROFIT EMPLOYMENT BY CENSUS AREA IN 2000

Census Area Nonprofit

Jobs Share of

State Total Cumulative

Share Anchorage Municipality, Alaska 10,951 42.2% 42.2% Fairbanks North Star Borough, Alaska 3,238 12.5% 54.7% Matanuska-Susitna Borough, Alaska 2,008 7.7% 62.4% Kenai Peninsula Borough, Alaska 1,934 7.4% 69.8% Juneau City and Borough, Alaska 1,553 6.0% 75.8% Bethel Census Area, Alaska 843 3.2% 79.1% Sitka City and Borough, Alaska 656 2.5% 81.6% Ketchikan Gateway Borough, Alaska 634 2.4% 84.0% Valdez-Cordova Census Area, Alaska 587 2.3% 86.3% Nome Census Area, Alaska 571 2.2% 88.5% Kodiak Island Borough, Alaska 466 1.8% 90.3% Northwest Arctic Borough, Alaska 418 1.6% 91.9% North Slope Borough, Alaska 328 1.3% 93.2% Dillingham Census Area, Alaska 318 1.2% 94.4% Yukon-Koyukuk Census Area, Alaska 249 1.0% 95.3% Wrangell-Petersburg Census Area, Alaska 214 0.8% 96.2% Wade Hampton Census Area, Alaska 191 0.7% 96.9% Aleutians West Census Area, Alaska 143 0.6% 97.5% Southeast Fairbanks Census Area, Alaska 135 0.5% 98.0% Prince of Wales-Outer Ketchikan Census Area, Alaska 132 0.5% 98.5% Haines Borough, Alaska 79 0.3% 98.8% Skagway-Hoonah-Angoon Census Area, Alaska 76 0.3% 99.1% Aleutians East Borough, Alaska 58 0.2% 99.3% Lake and Peninsula Borough, Alaska 57 0.2% 99.5% Denali Borough, Alaska 52 0.2% 99.7% Bristol Bay Borough, Alaska 38 0.1% 99.9% Yakutat City and Borough, Alaska 33 0.1% 100.0% Source: U.S. Census of Population 2000, Table p 51.



NON PROFIT EMPLOYMENT CONCENTRATION BY CENSUS AREA IN 2000

Census Area Share of Total in

Census Area Nonprofit

Jobs Nome Census Area, Alaska 18.4% 571 Dillingham Census Area, Alaska 18.0% 318 Northwest Arctic Borough, Alaska 17.2% 418 Bethel Census Area, Alaska 15.4% 843 Sitka City and Borough, Alaska 15.1% 656 Valdez-Cordova Census Area, Alaska 13.2% 587 North Slope Borough, Alaska 11.0% 328 Yukon-Koyukuk Census Area, Alaska 10.9% 249 Wade Hampton Census Area, Alaska 10.5% 191 Lake and Peninsula Borough, Alaska 9.8% 57 Kenai Peninsula Borough, Alaska 9.5% 1,934 Juneau City and Borough, Alaska 9.4% 1,553 Alaska 9.2% 25,962 Fairbanks North Star Borough, Alaska 9.2% 3,238 Ketchikan Gateway Borough, Alaska 9.0% 634 Anchorage Municipality, Alaska 8.7% 10,951 Matanuska-Susitna Borough, Alaska 8.0% 2,008 Haines Borough, Alaska 8.0% 79 Kodiak Island Borough, Alaska 7.6% 466 Yakutat City and Borough, Alaska 7.5% 33 Wrangell-Petersburg Census Area, Alaska 7.1% 214 Southeast Fairbanks Census Area, Alaska 7.0% 135 Bristol Bay Borough, Alaska 6.5% 38 Denali Borough, Alaska 6.2% 52 Aleutians East Borough, Alaska 5.3% 58 Skagway-Hoonah-Angoon Census Area, Alaska 5.2% 76 Prince of Wales-Outer Ketchikan Census Area, AK 5.0% 132 Aleutians West Census Area, Alaska 4.4% 143 Source: U.S. Census of Population 2000, Table p 51.

NON PROFIT EMPLOYMENT CONCENTRATION BY REGION IN 2000

Region Share of Total in

Region Nonprofit

Jobs Urban 8.8% 19,684 Rural 9.2% 3,064 Remote Rural 12.7% 3,214

STATE 9.2% 25,962 Source: U.S. Census of Population 2000, Table p 51.



The importance of nonprofit employment follows the same pattern across the Alaska Native Corporation regions.

NON PROFIT JOBS BY NATIVE CORPORATION REGION IN 2000

Native Regional Corporation Share of Total Jobs in Region Nonprofit Jobs

Bering Straits 18.4% 571 NANA 17.2% 418 AHTNA 16.8% 211 Calista 14.2% 1,034 Bristol Bay 14.0% 403 Chugach 12.2% 680 Arctic Slope Alaska 11.0% 328 Sealaska 9.4% 3,370 Doyon 9.1% 3,661 Cook Inlet 8.6% 14,612 Koniag 7.6% 466 Aleut 4.6% 201 Source: U.S. Census of Population 2000, Table p 51.





XI. NONPROFITS BY COMMUNITY Public charities of sufficient size to file a tax return with the Internal Revenue Service are widely distributed across 74 different Alaska communities, demonstrating that they are an important part of the social as well as economic fabric of the entire state.

REPORTING PUBLIC CHARITIES IN 74 PLACES Location Number Share Location Number Share

Total 1,011 100.0% Anchorage 388 38.4% Cooper Landing 2 0.2% Fairbanks 128 12.7% Copper Center 2 0.2% Juneau 90 8.9% Denali 2 0.2% Wasilla 36 3.6% Elmendorf AFB 2 0.2% Sitka 34 3.4% Ester 2 0.2% Ketchikan 29 2.9% McGrath 2 0.2% Homer 27 2.7% Nikiski 2 0.2% Soldotna 22 2.2% Ninilchik 2 0.2% Kenai 21 2.1% Sand Point 2 0.2% Eagle River 20 2.0% Ward Cove 2 0.2% Kodiak 18 1.8% Allakaket 1 0.1% Palmer 14 1.4% Anchor Point 1 0.1% Haines 11 1.1% Aniak 1 0.1% Barrow 10 1.0% Big Lake 1 0.1% Valdez 10 1.0% Eagle 1 0.1% Bethel 9 0.9% Eklutna 1 0.1% Seward 7 0.7% Emmonak 1 0.1% Chugiak 6 0.6% Fort Yukon 1 0.1% Craig 6 0.6% Gustavus 1 0.1% Glennallen 6 0.6% Hollis 1 0.1% Petersburg 6 0.6% Hoonah 1 0.1% Cordova 5 0.5% Kasilof 1 0.1% Dillingham 5 0.5% Klawock 1 0.1% Galena 5 0.5% Mekoryuk 1 0.1% Nome 5 0.5% Moose Pass 1 0.1% Talkeetna 5 0.5% Nenana 1 0.1% Unalaska 5 0.5% Nikolaevsk 1 0.1% Wrangell 5 0.5% Portage Glacier 1 0.1% Auke Bay 4 0.4% Russian Msn 1 0.1% Delta Junction 4 0.4% Seldovia 1 0.1% Healy 4 0.4% Shishmaref 1 0.1% Kotzebue 4 0.4% Stebbins 1 0.1% North Pole 4 0.4% Sterling 1 0.1% Douglas 3 0.3% Unalakleet 1 0.1% Houston 3 0.3% Willow 1 0.1% Skagway 3 0.3% Yakutat 1 0.1% Tok 3 0.3% Source: NCCS CORE Files and ISER







The expenditures of these 1,011 public charities also directly contribute to the economic life of these 74 communities.

REPORTING PUBLIC CHARITY EXPENDITURES BY LOCATION

Location Expenditures Percent

State

Location Expenditures Percent

State

Anchorage $1,236,292,962 50.2% North Pole $646,858 0.0% Fairbanks $300,045,394 12.2% Nenana $440,227 0.0% Juneau $161,169,829 6.5% Healy $437,514 0.0% Bethel $155,783,856 6.3% Auke Bay $429,311 0.0% Soldotna $78,421,967 3.2% Sand Point $396,972 0.0% Nome $74,376,152 3.0% Ninilchik $366,429 0.0% Palmer $65,785,976 2.7% Ester $291,923 0.0% Dillingham $57,141,172 2.3% Emmonak $290,966 0.0% Kotzebue $54,607,397 2.2% Nikiski $278,924 0.0% Ketchikan $54,599,006 2.2% Nikolaevsk $273,256 0.0% Barrow $36,287,144 1.5% Kasilof $259,746 0.0% Sitka $27,840,142 1.1% Houston $257,110 0.0% Wasilla $24,791,069 1.0% Elmendorf AFB $229,499 0.0% Kenai $18,141,284 0.7% Allakaket $209,364 0.0% Kodiak $16,714,468 0.7% Fort Yukon $197,396 0.0% Homer $14,749,521 0.6% Sterling $186,988 0.0% Seward $14,698,760 0.6% Shishmaref $169,821 0.0% Cordova $11,973,325 0.5% Russian Msn $166,816 0.0% Petersburg $7,034,446 0.3% Gustavus $165,685 0.0% Copper Center $6,858,172 0.3% Mekoryuk $111,460 0.0% Valdez $6,775,001 0.3% Stebbins $84,270 0.0% Unalaska $5,283,681 0.2% Anchor Point $81,879 0.0% Glennallen $4,469,088 0.2% Ward Cove $80,763 0.0% Chugiak $3,688,857 0.1% Cooper Landing $78,034 0.0% Aniak $2,631,382 0.1% Unalakleet $76,332 0.0% Talkeetna $2,325,120 0.1% Willow $75,211 0.0% Wrangell $1,885,391 0.1% Moose Pass $73,392 0.0% Eagle River $1,823,668 0.1% Big Lake $70,289 0.0% Delta Junction $1,640,983 0.1% Seldovia $60,886 0.0% Tok $1,600,084 0.1% Eagle $41,596 0.0% Haines $1,520,634 0.1% Eklutna $39,497 0.0% Douglas $1,438,571 0.1% Hoonah $37,250 0.0% Craig $1,384,240 0.1% Yakutat $29,583 0.0% Skagway $1,121,216 0.0% Klawock $15,738 0.0% Denali $965,538 0.0% Portage Glacier $14,394 0.0% Galena $862,357 0.0% Hollis $8,073 0.0% Mcgrath $727,691 0.0% Source: NCCS CORE Files and ISER







Charitable organizations, both large and small (501c3 including both public charities and funding intermediaries), can be found in 137 Alaska communities. In many small rural places there may be a single nonprofit, usually a Native tribal organization51.

REGISTERED CHARITABLE ORGANIZATIONS IN 137 PLACES Anchorage 1,181 Hoonah 6 Whittier 1 Fairbanks 364 Anchor Point 6 Unalakleet 1 Juneau 227 Nenana 5 Tununak 1 Wasilla 128 Naknek 5 Tetlin 1 Eagle River 92 McGrath 5 Tenakee Springs 1 Homer 80 Ft. Richardson 5 St. Marys 1 Palmer 78 Cooper Landing 5 St. George Island 1 Ketchikan 77 Trapper Creek 4 Shishmaref 1 Soldonta 72 Sutton 4 Saxman 1 Kodiak 69 Salcha 4 Savoonga 1 Sitka 67 Port Alsworth 4 Saint Marys 1 Kenai 64 Ouizinkie 4 Russian Mission 1 Seward 36 Houston 4 Pt. Hope 1 Valdez 34 Hope 4 Port Lions 1 Haines 33 Eielson AFB 4 Port Graham 1 North Pole 31 Denali Park 4 Pelican 1 Chugiak 29 Cantwell 4 Old Harbor 1 Bethel 29 Yakutat 3 Nunapitchuk 1 Dillingham 25 Thorne Bay 3 Nikolaevsk 1 Cordova 22 Spenard 3 Mt. Village 1 Wrangell 21 Northway 3 Minto 1 Petersburg 20 King Salmon 3 Mekoryuk 1 Nome 20 Kake 3 McCarthy 1 Talkeetna 17 Galena 3 Lake Minchumina 1 Glennallen 17 Ester 3 Levelock 1 Girdwood 15 Eagle 3 Kwethluk 1 Barrow 15 Brevig Mission 3 Kotlik 1 Craig 14 Aniak 3 Knik 1 Delta Junction 13 Anaktuvuk Pass 3 Klukwan 1 Auke Bay 13 Ward Cove 2 King Cove 1 Unalaska 12 Wainwright 2 Kaktovik 1 Nikiski 12 Two Rivers 2 Iliamna 1 Kotzebue 12 Takotna 2 Hyder 1 Tok 11 Stebbins 2 Hooper Bay 1 Douglas 11 Slana 2 Hollis 1 Copper Center 10 Sand Point 2 Elim 1 Willow 9 Point Hope 2 Eklutna 1 Skagway 9 Nuiqsut 2 Egegik 1 Healy 9 Moose Pass 2 Coffman Cove 1 Elmendorf AFB 8 Klawock 2 Chiniak 1 Ninilchik 7 Indian 2 Chignik 1 Big Lake 7 Gustavus 2 Chickaloon 1 Sterling 6 Gakona 2 Angoon 1 Seldovia 6 Fort Yukon 2 Allakaket 1 North Pole 6 Emmonak 2 Alakanuk 1 Kasilof 6 Central 2 Akiak 1 Source: NCCS Business File for 501c3 Corporations

51 This list is compiled from the most current Business File from the National Center for Charitable Statistics containing 3,217 entries.







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