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Fact Sheet: Michigan's Nonprofit Sector

Size and Nature: Michigan has 43,000 nonprofit organizations. Of these, 23,000 are 501(c)(3) nonprofits, which means their purpose is religious, educational, charitable, scientific, literary or cultural. Donations to 501(c)(3) nonprofits are deductible, on the federal level, within certain limits.

Scope: Michigan's nonprofit sector ranges from large institutions like Michigan State University or the University of Michigan to small groups like local food banks. Nonprofits work with every issue of concern to Michigan residents - from education to health, human services to the arts, economic development to the environment.  

Roles: Michiganians look to nonprofits to:

• Deliver services needed in the community;
• Provide avenues for citizens to get involved as volunteers;
• Serve as a testing ground for solutions to community problems;
• Develop public policy options for government to consider;
• Provide a voice for underrepresented citizens;
• Educate the public on issues facing our society;
• Provide structures for citizen participation in a free society; and
• Provide opportunities for religious worship.  

Economic Impact: Charitable organizations are sometimes called the "third economy" because of their financial prominence. According to the latest figures available:

• Nonprofits generate nearly $69 billion in total economic activity.
• The assets of Michigan nonprofits exceed $80 billion.
• The nonprofit sector provides about 380,000 jobs in Michigan, and generates an additional 135,000 jobs as a result of spending by organizations and their employees.
• The Michigan nonprofit sector is the fifth largest industry in terms of employment in the state.
• Michigan ranks ninth in the country in the number of charitable organizations, eleventh in the amount of assets, and eighth in the amount of annual expenditures.  

Giving and Volunteering: Michigan has a long and strong tradition of giving and volunteering. According to 2005 statistics:

• Eighty-six percent of Michigan residents made a charitable contribution last year.
• Women (87.1%) and men (84.9%) gave to charity at a similar rate. 
• Almost half of Michigan’s residents (48.9%) volunteered in 2005.
• Women were much more likely to volunteer than men in 2005 with 54.0% of women saying they gave their time compared to 43.3% of men.