Indiana nonprofits grow in traditionally for-profit areas

BLOOMINGTON, Ind. (AP) - A new report from Indiana University says the state's nonprofits are expanding into industries traditionally seen as being dominated by for-profit companies.

The (Bloomington) Herald Times (http://bit.ly/1C4IHUn ) reports that the IU study says nonprofits in nontraditional industries have experienced "remarkable growth" and that many gained market share.

The report focused on five so-called minor industries: finance, information, company management, scientific and technical services, and utilities. Nonprofit employment grew 29 percent from 1995 to 2011 in those industries, while for-profit employment rose just 2 percent.

"While nonprofits in these nontraditional industries are often overlooked and remain a small segment of Indiana's economy, they appear to be remarkably resilient and competitive," said Kirsten Gronbjerg, associate dean of faculty at IU's School of Public and Environmental Affairs.

Indiana nonprofit workers in those five industries also saw payroll growth of 74 percent and average wage growth of 35 percent in that time period. That's compared with payroll growth of 25 percent and average wage growth of 23 percent for workers at for-profit companies in those industries.

The nonprofit sides of the measured industries, with the exception of finance, didn't lose jobs or payroll during recession years of 2001, 2008 and 2009. The for-profit sides of all five industries were in decline in at least two of three recession years.

The finance industry, which also includes insurance, had the most nonprofit employees during the time of the study, averaging 3,888 workers.

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Information from: The Herald Times, http://www.heraldtimesonline.com