Alaska Trends

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onprofit organizations strengthen Alaska in two distinct ways: pursuing their individualized missions for the benefit of their members or clients and generating a significant amount of economic activity. The Foraker Group—which is itself a 501(c)(3) organization—specializes in supporting Alaska’s nonprofits. As part of that mission, and with the support of Credit Union 1, it published Alaska’s Nonprofit Sector: Generating Economic Impact, a report that examines how nonprofits are participating in Alaska’s economy.

While they can be grouped as an economic sector, nonprofits operate in a variety of industries, which in some ways masks their aggregate effects. “We often lose sight of the scale of their impact because nonprofits are not considered to be a single industry,” the report states. “When the state tracks jobs, it classifies them by industries—oil and gas, tourism, healthcare—not by the sector where the work originates—nonprofit, government, or private.”

In Alaska Trends this month, we pull data from this excellent report that demonstrates how essential nonprofits are to the state, even without considering the critical services they provide like medical care, housing, utilities, art, religious and cultural expression, education, and recreation.

For those interested in the full report, it can be found at forakergroup.org/speak-up/nonprofit-economic-impact.

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The total income generated by Alaska’s nonprofits in 2019 was
$4B
$2.8B
Direct
$773M
Induced
$463M
Indirect
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75%
of Alaskans receive electricity from a nonprofit cooperative utility
3rd largest industry
The nonprofit sector supports a similar number of jobs as Alaska’s leading private industries when direct, indirect, and induced effects are combined.
Effect of the non-profit compered to other industries
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In 2019, nonprofits were responsible for
57,900 Jobs
nonprofits
by Mission
5% 501(c)(6) Business leagues like chambers of commerce
7% 501(c)(4) Civil leagues like Rotary clubs, employee associations
10% Other 501(c) Credit unions and utilities
78% 501(c)(3) Charitable organizations like the Food Bank of Alaska
NONPROFITS BY MISSION graph
Earned Income vs. Grants
Nonprofits leverage government funding to generate earned and charitable income

Other
Contributions and Grants
Earned Income
EARNED INCOME VS. GRANTS bar graph
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1 in 4
non-government jobs are tied to nonprofits
Essential Services
provided by nonprofits across the state include
Essential Services infographic