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V O L . X X V N O. X X I G I V I N G G U I D E 2 0 1 9 – 2 0 2 0 10 W hen talking about a strong Maine economy, industries like marine resources, tourism and biotech justifiably top the list. Yet, the pursuit of a prosperous Maine requires deeper understanding of how communities thrive, including the wide variety of roles nonprofits play in sustaining and enrich- ing community health and vibrancy. Every day, nonprofits support Maine's future by focusing on early care and education and connecting youth with service and work opportunities. ey promote economic development by counseling and investing in entrepre- neurs and small businesses. ey provide an essential safety net of physical and mental health services for those in need, and they enrich our natural and built environments through environmental preservation and the arts. In a 2019 report, "Adding Up Impact: Maine Nonprofits at Work," the Maine Association of Nonprofits out- lines the economic impact of Maine's nearly 3,000 reporting public charities, which includes 501(c)3 organizations that are registered in Maine, file tax returns and operate for public-benefit purposes. Public charities are only part of the nonprofit sector, making up 73% of the total number of tax-exempt organizations in Maine. Public charities employ over 98,000 people, or one in six Maine workers, making this sector a more significant employer than nearly all other indus- tries in the state. Some 37% work in hospitals, 30% work in other health care and social assistance organizations and 18% work in education. Other types of nonprofit employment include profes- sional services, environmental protec- tion and the arts. Maine's nonprofit sector paid over $4.7 billion in wages in 2017, or 17.9% of the state's total payroll. ese wages translated in an estimated $271 million of personal income tax revenue for Maine's state and local governments and over $809 million in federal tax revenues. For instance, the Island Institute's annual payroll of over $3 million to 54 full-time employees, who are dedicated to the long-term sustainability of Maine's island and coastal communities. Maine nonprofits contribute $12 billion a year to the economy through wages paid, retail and wholesale pur- chases, and professional services con- tracts. While the number of charitable nonprofits in Maine has grown 5.5% over the last decade, expenditures have grown an average of 5.3% each year. Maine's art and cultural nonprofits alone generate over $150 million in annual economic activity, supporting over 4,000 full-time jobs. In Greater Belfast, Waterfall Arts is one of 20 arts groups contributing $2.7 million to the region's economy. Hospitals are significant economic drivers. While they represent fewer than 2% of charitable nonprofits, they account for the majority of the spend- ing, 56.1%. On the other hand, human service organizations, which care for vulnerable populations in every far- reaching corner of the state, represent a third of these organizations and only 10% of the spending, showing that many are very small and community-based, often relying on volunteers. Maine ranks in the Top 10 nation- ally for volunteerism. Representing more than a third of residents, nearly 425,000 people contribute 39 million hours and an estimated $948 million in time and talent to improve communities. Volunteers at the Jewish Community Alliance of Southern Maine contrib- ute 2,000 hours of services annually by distributing 53,000 pounds of food, 1,549 kosher meals on wheels and a quarter million diapers. Maine has one of the more robust nonprofit sectors in the country, work- ing closely with partners in government and business to ensure the health and well-being of all Maine residents. Yet as nonprofits are challenged by economic trends and are continually asked to do more with less, it remains important to fully comprehend their significance to Maine's future. For a closer look at the economic impact of Maine's nonprofit sector, "Adding Up Impact" is available at nonprofitmaine.org. J e n n i f e r H u t c h i n s , executive director of the Maine Association of Nonprof its, can b e r e a c h e d a t j h u t c h i n s @ n o n p r o f i t m a i n e . o r g Maine's economy needs nonprofits B Y J E N N I F E R H U T C H I N S C O M M E N TA RY Seven Congress Square, Por tland, Maine | (207) 775- 6148 | Por tlandMuseum.org Demonstrate your commitment to arts and culture and to your community by becoming a Business Member at the Portland Museum of Art. Perks of being a Business Member at the PMA include free admission, invitations to exhibition previews and special events, listings in "PMA Recommends" promotional materials, and more! Find out more at PortlandMuseum.org/BusinessPartners T im Rollins (United St ates, (1955–2018) and K . O. S. (United St ates, est ablished 198 4), A Midsummer Night's Dream (det ail), 2016, ink on late x saturated cellulose, printed by Maharam, 159 3/4 x 416 5/8 inches. Museum purchase with suppor t f rom the Maine Center for Creativit y, 2016.7. Maine nonprofits contribute $12 billion a year to the economy.