The Philadelphia Foundation to Determine Impact of Nonprofits

Study will be first-ever financial profile of nonprofits in the five-county

                                   region



    PHILADELPHIA, Aug. 14 /EMWNews/ -- The Philadelphia Foundation, a

leading center for philanthropy in Pennsylvania, has commissioned a study

from the Economy League of Greater Philadelphia to better understand the

state of nonprofits in Southeastern Pennsylvania (Bucks, Chester, Delaware,

Montgomery and Philadelphia counties).



    "According to recent data, more than a quarter of non-governmental jobs

in Philadelphia and slightly over 15% of these jobs in the five-county

region are nonprofit employees," says R. Andrew Swinney, President of The

Philadelphia Foundation. "While the economic significance and workforce

enrollment of the regional nonprofit sector is substantial, and

considerably greater than national averages, the state of financial health

of the nonprofit community and its value to the Greater Philadelphia region

are unknown."



    In this two-part study, the Economy League will first conduct an

overview of nonprofits through qualitative and quantitative methods. They

will then focus on their financial performance, stability and

sustainability.



    "With the volatile nature of today's economy, it is a critical time to

gauge the financial strength of nonprofits in Southeastern Pennsylvania,"

says Swinney. "The nearly 10,000 active nonprofits in the region provide

vital services for a vast number of people and are on the frontlines

helping those in need."



    However, many nonprofits are operating with no or minimal financial

reserves or endowments. The Foundation's ultimate goal is to help

nonprofits build their capacity so that they can move toward becoming more

self-sustaining and less vulnerable to economic swings.



    The initial results of the seven-month study will be delivered in

December, with a full report due to The Philadelphia Foundation during the

first quarter of 2009. The study overview will consist of data from

economic censuses, the National Center for Charitable Statistics and other

sources. Aggregate measures of size and employment will be compiled to

develop a database of nonprofits.



    Financial performance will be characterized based on a series of key

indicators such as tax returns, an examination of assets and liabilities,

financial ratios and peer group analysis.



    The research will:



    -- Benchmark the current state of economic health of the region's

nonprofit community



    -- Quantify measures relating to the value and impact of the nonprofit

sector in the region



    The intent of the research is to:



    -- Identify challenges, risks and opportunities relating to the

effectiveness and sustainability of the region's nonprofit community



    --Develop tools for analyzing trends relating to the financial health

of the local nonprofit sector



    -- Identify potential opportunities and risks



    "We're charting new territory," says Steven Wray, Executive Director of

the Economy League of Greater Philadelphia. "The study commissioned by The

Philadelphia Foundation is an important step in quantifying the strength

and capacity of a sector that contributes to a significant part of the

region's economy."

    About The Philadelphia Foundation



    The Philadelphia Foundation is Southeastern Pennsylvania's leading

center for community philanthropic engagement and is committed to improving

the quality of life in Bucks, Chester, Delaware, Montgomery and

Philadelphia counties through 750 charitable funds established by its

donors since 1918. The Philadelphia Foundation improves the community by

advancing change, leading on issues of importance, forging meaningful

relationships and providing knowledge, resources and stewardship.



    About the Economy League of Greater Philadelphia



    The Economy League of Greater Philadelphia is an independent,

nonpartisan, nonprofit organization dedicated to research and analysis of

the region's resources and challenges with the goal of promoting sound

public policy and increasing the region's prosperity. ELGP is an affiliate

of the Pennsylvania Economy League, Inc., with offices in Harrisburg,

Wilkes-Barre, and Pittsburgh. For more information, visit

http://www.EconomyLeague.org.