Nonprofits Are Big Business for County, State

RIO GRANDE — It may seem contradictory, but there’s a lot of money in nonprofits.
A pamphlet describing state charities as an “Economic Force” from New Jersey’s Center for Non-Profits, an umbrella organization for state charities, noted that nonprofits employ over 288,000 workers in this state, accounting for 7 percent of its workforce.
“In fact, more people work in nonprofits than in the construction industry, more than in transportation and public utilities — and more than in finance and insurance combined,” the pamphlet stated.
On a local level, nonprofits also have a large presence.
According to the National Center for Charitable Statistics (NCCS), a national database of nonprofit entities, there are 627 such organizations registered in this county with total assets of more than $304 million and annual revenues of $234 million, based on their latest reported tax filings.
Those sums of money are not spread evenly between the organizations — 387 or more than 60 percent had no reported assets. According to the Center for Non-Profits, 48 percent of New Jersey’s charities have incomes of less than $25,000.
Cape Regional Medical Center is the largest local nonprofit by far. It reported over $132 million in assets and nearly $113 million in revenue, accounting for more than a third of the county’s nonprofit wealth.
Following the former Burdette Tomlin Memorial Hospital on the list of this county’s wealthiest nonprofits were: Holy Redeemer Home Care, $24.6 million in revenue; Eastern Shore Nursing & Rehab, $20.5 million; Cape Counseling Services Inc., $12.5 million; and ARC of Cape May County, $7.7 million.
The NCCS breaks down this county’s nonprofits into public charities, bonding social clubs, private foundations and religious congregations.
The five richest bonding social clubs were: Wildwood Golf & Country Club, $3.9 million in assets; Avalon Yacht Club, $2.3 million; Yacht Club of Stone Harbor, $1.5 million; Ocean City Yacht Club, $1.5 million; and the Corinthian Yacht Club of Cape May, $1.2 million.
The five wealthiest private foundations were: Foster-Karney Trust Fund with $126,450 in grants awarded and $3.5 million in assets; Joseph L. Carley Foundation, $96,000 grants, $2.2 million assets; Shouvlin Foundation, $80,000 grants, $1.8 million assets; Caroline Doherty Foundation, $47,000 grants, $1.8 million assets; and the Ocean City Home Charitable Foundation $117,700 grants, $1.7 million assets.
According to NCCS, there are 58 registered congregations in this county. Their overall list, however, represents about 45 percent of the total since IRS registration of religious groups is not required.
Nonprofit organizations are classified by IRS sub-codes. A majority are classified 501(c)(3) entities — religious, educational, charitable, scientific, literary, public foundations and others. But there are several other sub-codes such as:
• 501 (c)(4) — civic leagues, social welfare organizations;
• 501 (c)(6) — business leagues, chambers of commerce, real estate boards;
• 501 (c)(7) — social and recreational clubs;
• 501 (c)(14) — state-chartered credit unions, mutual reserve funds; and
• 501 (c)(19) — organization of past or present members of the armed forces.
Throughout New Jersey there are over 42,000 nonprofit entities. Of those, 26,000 are public charities; 4,000 private foundations; and 12,000 other types of 501(c) organizations, according to NCCS.
The Center for Non-Profits categorizes the state’s charitable organizations by purpose. The biggest nonprofit category is for human services with 22 percent followed by public/social benefit at 21 percent, education at 18 percent and religion at 17 percent.
“Across New Jersey and the nation, the life of every individual has been touched — or will be touched — in some way by a nonprofit organization,” according to the Center for Non-Profits.
“Nonprofits enhance our daily lives by caring for our most vulnerable people; preventing diseases; protecting our parks and beaches; offering artistic and cultural enrichment; providing spiritual fulfillment; mentoring our children; educating youth and adults alike; organizing social change; providing vital services; from infancy through senior years; and serving as an outlet for generosity, creativity, grief and hope.”
Contact Hart at (609) 886-8600 Ext 35 or at: jhart@cmcherald.com