Nonprofit organizations exist to serve a wide variety of causes from helping stray animals to making sure that kids have a place to go after school. In addition to the social good that they do for a community, they can also be an economic driver as well. How do nonprofit groups help a regional economy and those who live within a specific area?
Nonprofit Groups Need to Buy Things to Run Their Programs
It is impossible to run a homeless shelter without first purchasing and furnishing a building. This means that they will need grout cleaning companies to come in and make the kitchen and bathrooms like as good as possible. They will also need grout cleaners and other cleaning professionals to make sure that shared spaces don’t become cesspools of bacteria and mildew. In addition to real estate, nonprofits buy school supplies, supplies to feed and shelter animals and anything else that a typical business would need to operate normally.
Nonprofit Groups Hire Workers
It is not uncommon for people to work for and get paid a salary by a nonprofit group. If you have ever worked for the YMCA, you have worked for a nonprofit that is aimed at helping the community. While most positions are part-time work that pays minimum wage, there is also a need for marketing and sales professionals and others who can command salaries north of $100,000 a year. That money is then spent on food, clothing and shelter that spurs demand that new companies then need to meet in the region.
Nonprofits Help Future Leaders Develop Their Skills Today
New hires for kitchen cabinet refinishing companies may be able to hone their skills and learn new ones by helping build homes for the homeless. In addition to the extra experience actually working on cabinetry, a volunteer job may be a great place to learn leadership skills that could result in a management role in the future. Some may even use what they have learned to start their own companies and provide additional employment opportunities in a given area.
Nonprofits Partner With Local and Regional Companies to Improve Visibility
Working with a nonprofit could give a small or startup company gain the visibility it needs to connect with customers in the area. In some cases, it may even help that company make a name for itself as a leading business in the region itself. That could help attract customers and their money from other parts of the state or the country, which could further enhance the reputation of the region. The nonprofit may also benefit because increased visibility may lead to more donations that are made possible because more people are working steady jobs with steadily increasing salaries.
Nonprofits Provide Educational Opportunities for Young People
In an area that may have few resources, it can be difficult to pay for a summer camp or a tutor to help with reading or writing skills. However, a nonprofit may be able to provide for those who need extra help with homework or want to learn more about a given subject during the summer or school breaks. In addition to helping kids learn and grow, it provides an opportunity for them to do something safe and productive. When communities are safer, property values increase and less is spent on jail cells and police officers.
A nonprofit organization can be valuable to an economy even if it doesn’t make money itself. It can use the money it takes in to provide programs, hire workers to run those programs and to purchase goods and services throughout the region. This spending stimulates demand that may help propel even the tiniest town or region to higher levels of prosperity.
By: Jennifer Livingston