There’s a reason why the Commerce section has a column talking about nonprofits: In Jefferson County, nonprofits are major employers, providing jobs for hundreds of people.

These organizations play a crucial role in our local economy, contributing significantly to employment, community development, and overall economic growth in both direct and indirect ways.

There are over 400 registered nonprofits in Jefferson County and, while most are very small and volunteer-driven, an estimated 834 people are employed by nonprofits here, a number that doesn’t include contract workers and Jefferson Healthcare. These jobs range from highly skilled positions, such as healthcare professionals and educators, to administrative and support roles.

Beyond offering stable employment opportunities, our local nonprofits help grow a skilled workforce. For example, organizations like the Northwest Maritime Center and the Northwest School of Wooden Boat Building are critical to supplying our maritime industry with highly trained workers. This leads to job creation, higher wages, and overall economic growth.

Nonprofits play a pivotal role in creating an environment where businesses can grow. They provide essential services like childcare, affordable housing and elder care, all things that business owners and their families and employees need to thrive. They help create healthier, more stable communities, which attract businesses and foster economic growth.

Consider that currently more than 300 new units of affordable housing are under development in Jefferson County, many of which will be occupied by middle income workers. All of these are being developed by nonprofits like Habitat for Humanity of East Jefferson County, Olympic Housing Trust and Bayside Housing.

Nonprofits attract and engage people and resources from outside our community, driving tourism, among other things. From the Port Townsend Film Festival to Centrum’s weekly summer festivals, major events bring in thousands of people and dollars into our economy.

Further, nonprofits engage in fundraising activities that bring additional money into the community. Grants, donations and sponsorships from outside the area inject new funds into the local economy. This influx of money can have a multiplier effect, as it circulates through the community and stimulates further economic activity.

This spending supports the businesses and contributes to the overall economic activity in our community. Imagine the services and supplies that The Production Alliance needs to run the Jefferson County Jobs and Trades Fair, the Farm Tour, the Olympic Peninsula Apple and Cider Festival, and the many other events they organize.

Purchasing power and spending

Beyond direct employment and services, these organizations also contribute to the economy through purchasing power and spending. Nonprofits purchase goods and services from other local businesses, such as office supplies, construction services, and professional services.

In Washington, there are instances when nonprofits pay taxes like any other business. This includes business and occupation tax on gross revenues generated from activities that a regular business would provide. For example, Bayside Housing and Services runs Starrett House as a B&B in order to generate income for its housing programs. They pay taxes on that income. Additionally, nonprofits pay sales tax and they collect and remit retail sales tax on retail sales and services, such as the sale of merchandise.

Despite their significant economic contributions, nonprofits also face challenges that can impact their sustainability and effectiveness.

Funding is a perennial issue, as nonprofits often rely on donations, grants, and government funding, which can be unpredictable. Economic downturns can lead to decreased funding, just as the demand for nonprofit services increases.

And local surveys show that nonprofit employees here make significantly less than their counterparts in King County or Washington State, despite the fact that the costs of living here are similar.

Measuring the economic impact of nonprofits can also be complex. While direct impacts, such as employment and spending, are relatively straightforward to quantify, indirect impacts, such as social benefits and improved quality of life, are more difficult to measure.

The indirect impacts are crucial for understanding the full economic contribution of nonprofits.

Nonprofit organizations are vital to Jefferson County’s economy, providing essential services, creating jobs, and fostering community development. Their impact extends beyond immediate economic contributions as they influence social outcomes and drive solutions. They play an indispensable role in building a resilient and inclusive economic landscape and foster a thriving, equitable Jefferson County. Support a local nonprofit today.

Siobhan Canty is the CEO of Jefferson Community Foundation which resources local nonprofits, increases philanthropy, and connects people, ideas and resources to build a thriving Jefferson County for all.