New Indiana University, IUN study finds nonprofits a major force in Region economy

The nonprofit sector is a major economic force in Northwest Indiana.

This is according to a new study from Indiana University in collaboration with Indiana University Northwest. Research conducted by the Indiana Nonprofits Project, in partnership with Indiana University Lilly Family School of Philanthropy and O'Neill School of Public and Environmental Affairs, found:

• In 2019, nonprofits employed 33,000 workers in Northwest Indiana, with a total payroll of $1.5 billion, about 11% of all paid employees and 10% of the total payroll in the Region. Nonprofit employment and payroll (adjusted for inflation) have grown considerably more than for-profit or government employment.
• Nonprofit employment trails employment in manufacturing and retail trade in the Region, but the gaps have narrowed considerably. Nonprofit payroll falls behind only manufacturing, and the gap has similarly narrowed.
• Most nonprofit employees, 63%, work in health care, with the rest mostly evenly distributed across social assistance, membership association, education, and all other industries. Nonprofits are important in health care and social assistance, accounting for about half of all employees in those fields.

“This report confirms the vital role that nonprofits play in creating a more prosperous region and a better quality of life for all who live here,” said Ken Iwama, IU Northwest chancellor. “As an anchor institution for Northwest Indiana, the impact and success of regional nonprofits is very important to us.”

He said community engagement is a cornerstone of the IU Northwest mission.

“We are eager to continue partnering with local nonprofits on community-based research and other collaborative opportunities to ensure that our region thrives,” Iwama said.

The report is part of a collection of new reports produced by the Indiana Nonprofits Project detailing the economic impact of nonprofits in four of Indiana’s economic growth regions. The reports are based on Quarterly Covered Employment and Wage data submitted by nearly all Indiana employers, according to IUN.