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Tuesday, April 15, 2008

Nonprofit agencies tout contributions

A new report says the nonprofit sector contributes at least $183 million a year to the Roanoke Valley.

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Report

The Roanoke Valley nonprofit community believes it isn't getting the respect it deserves -- and agency officials say they aren't going to take it anymore.

Tired of their reputation as "takers" with their hands out, officials from several area agencies gathered Monday morning to argue they are also "givers."

At a news conference at the Council of Community Services office on Campbell Avenue, the Nonprofit Resource Center of Western Virginia released a report showing the nonprofit community generates an annual economic impact of at least a $183 million by bringing funding into the region from state and national sources.

Nonprofit leaders heralded the study as critical. They say it proves nonprofits are businesses as well, and should be involved in making economic development decisions for the region.

"We've never presented ourselves as a vital partner with business and government -- we should have an equal voice," said Karen Michalski-Karney, executive director of the Blue Ridge Independent Living Center.

But the study is far from complete.

Only 120 nonprofits, or 18.5 percent of the region's 650, responded to last summer's survey asking for detailed accounts of income generation, expenses, employees and volunteers.

The report's backers -- including Rupert Cutler, chairman of the NRC steering committee, and Pam Kestner-Chappelear, president of the Council of Community Services -- say they can't produce meaningful totals for the region because of the low response rate.

But Cutler said the NRC "believes the full impact is significantly higher than $180 million."

Kestner-Chappelear said she hopes publicity will encourage more organizations to take part next time the survey is conducted -- probably in a couple of years.

The study also didn't include Carilion Clinic. The health system, which brings in more than $1 billion a year, responded to the survey, but was left out to avoid skewing the results.

Regardless, the report is the first attempt to quantify the effect nonprofits have on the region's quality of life, officials said. Those effects include efforts to improve education, housing, the environment, health and health care, and their support of the arts.

Lee Wilhelm, chairman of the Roanoke Regional Chamber of Commerce, said the report will not only help attract new industry to the Roanoke Valley but also lure a better work force.

And Jane Conlin, director of human services for the city of Roanoke, said nonprofit organizations provide services the city would have to pay for otherwise.

Kestner-Chappelear said that the NRC isn't asking for seats at a particular table, but maybe the Roanoke Valley Economic Development Partnership could use a nonprofit representative to help "sell the area."

The report developed the $183 million figure with the help of data analysis from the Roanoke Valley-Alleghany Regional Commission.

Of the $220 million in income reported for fiscal year 2007 by the respondents, about half came from outside the region through state and federal grants and foundations. The analysis found the outside $110 million supports an additional $73 million in sales and economic activity.

The respondents said they employ more than 2,500 full-time employees, more than 1,700 part-time workers and have more than 32,000 volunteers providing free labor and services.

The survey included five counties -- Alleghany, Botetourt, Craig, Franklin and Roanoke -- and three cities -- Covington, Roanoke and Salem. It cost $3,500 to execute, Kestner-Chappelear said.

The Council of Community Services launched the NRC in 2006 to provide education and training for the local nonprofit sector, to foster collaboration between different nonprofit groups and to serve as a clearinghouse of information.

Cutler said the NRC is working also to develop a common grant application form for the area's largest grantors. He said streamlining the funding process will help nonprofits, especially those with small staffs, be more efficient.

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