In NY, nonprofit jobs decline

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New York has seen a decline in the number of nonprofits, and the number of jobs in that sector. That’s according to a new report released by Thomas DiNapoli, the state’s comptroller.

“Nonprofits play an important role in our state and local economies and are an essential part of the fabric of the communities they serve, but their numbers are shrinking,” DiNapoli said in a news release last week about the report.

The challenge for many of these organizations stems from not only delayed contracts, but also delayed payments, the report found.

“Many nonprofits rely on government funding to support their services, and contract delays and slow payments have contributed to some of the challenges they face,” DiNapoli said. “Policymakers need to ensure state agencies process contracts and payments for nonprofits on time, so they can carry out the work on which so many New Yorkers rely.”

The report looked at the period between 2017 and 2022, during which the number of nonprofit jobs in New York dropped by 4.1%. Still, in 2022, there were more than 344,000 nonprofit organizations in the nation, with 33,536 of them in New York.

On Long Island, there were 3,204 nonprofits in 2022, 85 more than in 2017.  Yet there were 1,974 fewer jobs over this period, according to Mark Johnson, press secretary for DiNapoli.

In New York, nonprofits paid $96.8 billion in wages in 2022, ranking the state “among the highest in the nation,” according to DiNapoli.

“Nonprofits are vital to the well-being of our communities, yet the decline in services and ongoing challenges with delayed state funding are deeply concerning,” Alison La Ferlita, executive director of Bohemia-based Nonprofit Resource Hub, a trade association whose mission includes serving the nonprofit community.

“These payment delays create significant challenges for many organizations that depend on timely funding to operate,” she added. “When payments are delayed, cash flow is disrupted, compromising the ability of nonprofits to provide essential services such as housing assistance, mental health support, and education.”

La Ferlita went on to say that “The Nonprofit Resource Hub works closely with the sector to address these issues through advocacy, resource sharing, and partnerships designed to streamline funding processes. We remain steadfast in our commitment to supporting nonprofits, ensuring they can continue their critical work and strengthen the communities they serve.”

Healthcare and social assistance sectors comprised the largest share of nonprofits and jobs in New York. Additional sectors include educational services, professional and business services, leisure and hospitality, and other services, according to the report.

The state experienced a loss of 626 nonprofits between 2017-2019, and recovered 453 over the following three years, a net loss of 173 establishments through 2022, according to the report.

Prior to 2020, employment in nonprofits was growing in nearly every state and New York had the fourth highest increase with 32,348 additional jobs. During the pandemic, however, the number of jobs at nonprofits plummeted nationwide, with a loss of 580,426. Approximately one in five nonprofit jobs lost was in New York.

By 2022, employment at other private sector establishments nationally had fully recovered, but nonprofits were still struggling.

New York had the lowest nonprofit job recovery, according to the report, regaining just 7.4% of the jobs lost and fewer jobs than in 2017.