Summary of December 2010 Meeting Presentation

After the completion of the first stages of the economic impact study we are left with
some important questions to consider

• What do these projects say about the economic value of nonprofits in the Broome County area?
• How should the information be used to benefit SCNYED members?
• In what format(s) should these studies be presented and to whom?
• Who will take responsibility for creating the reports and public products needed to distribute these important findings?

Brief History of the Special Projects Committee
Two years ago, in reaction to the proposed Payment in Lieu of Taxes (PILOT) program that was being recommended by two mayoral candidates, the Special Projects Committee was given the task of gathering information on the economic impact of non-profits on the South Central New York area. Because of the diverse area that we serve and the amount of available information, we decided to focus on Broome County and expand into other counties in future years.

Additionally we decided that it was not enough to simply study the budgetary strength of non-profits. In many ways we could see that if we were to focus just on the economic impact side of the equation that we would be merely making the argument for PILOT to be imposed on non-profits. Instead we decided to focus on the economic impact, the way that non-profits provide mandated services that local municipalities would have to provide at additional expense to the taxpayer, and how non-profits help elevate the quality of life in our area and raise revenue for the areas they serve.

In 2008 we entered in an agreement with Binghamton University School of Public Administration and sponsored three different capstone projects. These students would supply the majority of the labor to complete the study. They were placed in four different placement sites and required us to raise $3,000 to pay the stipend of the student for a total of $12,000. We raised $11,000 of this through the generous contributions of the members of the South Central New York Executive Director’s Group. We also received a capacity building grant from NYCON for $1,000. We also applied for two additional grants that were not awarded.

Brief Summary of the Economic Data Collected from NFPs in 2010
Even with a small sample of non-profits organizations participating, it is apparent that the financial impact to the local community is significant. The data from 31 local organizations reveals that local non-profits generated over $80 million in revenue of which over half were funds imported into the local economy from sources outside Broome County. These 31 organizations reinvested nearly $65 million of that Revenue back into the local economy including $47 million in salaries. It is clear to see that in addition to the critical services our local non-profits provide to support the education, health, and improve the quality of life of our communities, they also have a positive financial impact as well.

Please join us in telling our story and consider adding your organizations financial information to this very important financial analysis. Without you information, it's not a complete story.

Summary of MPA Capstone Projects 2009-10
Two capstones, which conducted empirical research and analysis, studied the economic value and positive impact of nonprofits on the community. The first focused on “Volunteer Resources, Gaps and Recruitment”. Volunteers serve as a vital economic resource within our community, which saves public monies. Many nonprofit organizations depend on volunteers to accomplish their missions as efficiently and cost effectively as possible.

While the study examined the current practices within BC Council of Churches, the recommendations on how to effectively attract and enlist volunteers can be applied within many other organizational settings. Organization must first know the specific tasks to be accomplished by volunteers and the types of skills and interests needed. The recruitment appeals should be targeted, specific, and personal. Volunteer databases need to be kept up to date and include volunteer skill sets so that they can be matched with organizational needs (especially as needs change). Current volunteers can be retained and used more effectively if they are provided with development and training opportunities. To effectively target potential volunteers and provide clear expectations, volunteer position descriptions must be updated often and outline specific skills and aptitudes needed to complete tasks. Lastly, volunteers are more likely to be attracted to, satisfied with, and retained if they feel respected, can experience pride about their work, and understand how their contributions support the organizational mission.


The second capstone project examined “Nonprofit Collaboration and Contracting in Broome County” and contained two different foci. The first studied the views on collaboration held by nonprofit leaders in Broome County. The students found that attitudes about collaboration were similar across nonprofit organizations in the Broome County area, regardless of other factors. However, there were important differences in perceived benefits and disadvantages between collaborators and non-collaborators. A majority of nonprofit leaders felt that having another organization’s perspective in working through problems is a benefit of collaboration and improves the problem solving process. Recommendations from the study include: 1) conducting an additional investigation to discover why non-collaborators have negative perceptions of collaboration, 2) developing a best practices factsheet or collaboration model, and 3) forming a collaboration working group to discuss current issues and challenges encountered and serve as a vehicle to develop collaborative solutions.

The second focus of this capstone was on cost variation of social services delivered by government, as compared to those delivered by nonprofits through Broome County contracts. Their most significant finding was that from 2003-2008, contracted NFP agencies have provided roughly 85% of all county mental health and substance abuse services at a considerably lower cost per client rate, therefore helping to use tax dollars more efficiently. Recommendations include: 1) communicating cost analysis findings to community leaders, local government representatives, and general public to help disprove the myth that nonprofit organizations use tax dollars inefficiently; and 2) developing an ongoing relationship with the Binghamton University Public Administration Program, which will ultimately help tell the story of nonprofits in the region and improve ways that nonprofits relate to the community.