Nonprofits impact on local communities should not be ignored

January 31, 2014

Nonprofits impact on local communities should not be ignored

The Nonprofit Alliance of Monterey County is set to conduct a study on the quality of life impact that nonprofits have on the local community, according to The Californian. The study was previously conducted in 2005 and found local-area nonprofits employ thousands of people, provide services to 3 million and have an economic impact of $1.5 billion each year.

The 2005 study, "For the Common Good: The Economic Impact of Monterey County's Nonprofit industry," will be expanded upon to include the impact organizations have on local political, social, technological, legal and environmental issues. The economic impact will be also be examined again.

However, leaders are expanding the study in part to show that economic impact is only one factor in how nonprofits affect their local communities. In addition, leaders also believe it's important to examine how local organizations were so successful and resourceful during the hardships of the Great Recession.

"It's been almost 10 years. We need to get an idea of the size, scope and structure of nonprofits. They are big business here. We have a big impact here," Larry Imwalle, executive director of the ACTION Council of Monterey County, told the newspaper.

Nonprofits have proven they can create successful business models
The recent recession was a testament to the resiliency of nonprofits across the country. Many organizations found themselves with a greater need for their services, but less funding from both governmental grants and private donors. For many, this meant they either had to get creative or close their doors.

One way that nonprofits can reduce costs is by opting out of state unemployment insurance pools. Unemployment funding was hit hard during the recession and the resources needed to boost fund balances is raising the cost to many employers. Nonprofits that opt out and become self-reimbursing employers can avoid many of these costs.

However, electing to fulfill their obligation to SUI on their own comes with risks. Before undertaking the procedure, nonprofits should consult with professionals to determine the best method for alternative funding and an estimate of how much they can save. For nonprofits that are still trying to repair their own budgets following the recession, opting out of SUI pools is a good way to reduce budget expenditures. 

For information on how your organization can cost-effectively meet its unemployment insurance needs, contact First Nonprofit Companies at or visit


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