Pueblo -- Local non-profit agencies are
a cornerstone of Pueblo's economy, contributing more than $125 million and more
than 3,000 jobs to the county, according to the results of a survey released
today at a meeting of the Pueblo County Commission.
The study, which sought to estimate the economic impact of the local non-profit
sector, was conducted by University of Southern Colorado faculty members Dr.
Kevin Duncan, professor of economics, and Dr. Jay Goodman, assistant professor
of economics, in cooperation with the USC Hasan School of Business, Pueblo
County, and the Pueblo Capacity Builder's Group. The Pueblo County Department of
Housing and Human Services funded the project at a cost of $2,500. The study
emerged from discussions regarding the contributions of charitable organizations
not just to a community's quality of life, but to its economic well-being. In
December, 2002, the Pueblo Capacity Builders Group surveyed 275 of Pueblo's
largest non-profits regarding their 2001 income, revenue, and employment among
other factors.
"Most people recognize that nonprofits contribute significantly to a
community's quality of life through health care, youth and senior services, arts
and culture, among others, but this study clearly demonstrates that nonprofits
also are a major economic force in the local economy," said Loretta
Kennedy, chair of the Board of County Commissioners.
The 93 nonprofits in Pueblo County that responded to the survey indicated they
spent more than $81 million and provided 2,385 jobs to Pueblo in 2001. Nearly
$49 million originated from sources outside the area, such as state and federal
grants. These outside funds induced an additional $44 million in local spending
and created and supported 644 more local jobs. Thus, the total impact of the 93
nonprofits included in the study was more than $125 million and 3,029 jobs. This
impact is larger than either the Rocky Mountain Steel Mills ($101 million) or
USC ($64 million), two of the region's largest employers.
According to Goodman, "The $49 million in outside
funds brought to the region, combined with the estimated $44 million in
additional local spending those funds generated, amounts to more than $93
million in local income that would not exist without these agencies. This is in
addition to the vital role nonprofits play in providing important community
services."
The top 10 nonprofit groups account for 85 percent of the external funds spent
locally, according to the study. These nonprofits, in particular, provide a
double benefit to the citizens of Pueblo. The dollars brought into town are used
to provide a locally produced and consumed service.
In addition, the community benefits from the economic stimulus associated with
the local expenditure of the external funds. Local non-profits providing health
and human services combine for more than 75 percent of the total spending impact
and 71 percent of the total employment impact. In addition to providing more
than 5 percent of the jobs in Pueblo County and more than $41 million in total
employee compensation, these non-profits logged 579,844 hours of service by
volunteers.
Duncan warned that current fiscal constraints at the federal and state levels
have the potential to have an adverse effect on the local economy if funds to
these nonprofits are cut significantly.
"The economic role played by local nonprofits depends on the continued
availability of outside funds, especially from governmental sources," he
said. "These agencies are particularly sensitive to the ebb and flow of the
economy and to the resulting state and federal allocations."
The University of Southern Colorado is a regional, comprehensive university
emphasizing professional, career-oriented, and applied programs. Displaying
excellence in teaching, celebrating diversity, and engaging in service and
outreach, USC is distinguished by access, opportunity, and the overall quality
of services provided to its students.
