In a groundbreaking initiative, the Alabama Association of Nonprofits (AAN) recently released its first “State of the Industry.” reportprovides a comprehensive glimpse into the structure of Alabama's nonprofit sector.
The report reveals that the majority of Alabama's nonprofits are small but efficient organizations led by highly educated and experienced CEOs or executive officers. These leaders are at the forefront of the state's nonprofit efforts, tackling Alabama's pressing social challenges with limited resources. Alabama's nonprofit organizations help provide essential services such as affordable health care, educational opportunities, environmental protection, cultural experiences, and basic necessities like food and shelter.
“This report measures organizational health and is key to nonprofit success. Healthy organizations include good leadership and management, an effective board of directors, strong finances, and strategic advocacy. , and an extraordinary focus on mission. Healthy organizations are more effective, efficient, resilient, focused, and proactive. Alabamians are more committed to nonprofits. “A healthy and vibrant nonprofit sector is essential to the prosperity of our state and communities,” said Daniel Dunbar, executive director of the Alabama Nonprofit Association.
However, the report also highlights some worrying disparities. This reveals a mismatch between the demographics of nonprofit leaders and the state's population, with an overrepresentation of whites in top positions. Interestingly, women hold most executive director/CEO roles, a trend that may be influenced by pay disparities in both the for-profit and nonprofit sectors.
Another notable finding is the limited lobbying efforts of nonprofit organizations. Despite the limitations of lobbying, such activities are critical to the systemic changes needed to address social problems.
Although not detailed in the report, geographic analysis shows that Jefferson and Shelby counties are central hubs for nonprofit organizations in Alabama.
This report serves as a reminder of the important role of nonprofit organizations in Alabama and across the nation. AAN, in collaboration with the Public Affairs Research Council of Alabama (PARCA), conducted an extensive survey of nonprofit executives to compile this report. The survey was conducted by PARCA staff with experience in the nonprofit sector and collected data from both AAN members and nonprofit organizations in other states.
“The report’s findings are a reminder that nonprofits are an essential part of life in Alabama and across the United States. We are committed to helping nonprofits support the people they serve. We look forward to continuing to contribute to ensuring you get the support you need. This report shows that AAN members are more likely to follow best practices and have more professional leadership and governance than average. That equates to healthier nonprofits and healthier communities,” Dunbar said.
Founded in 1996, the Alabama Nonprofit Association, originally known as the Alabama Nonprofit Resource Center, is a partnership between Alabama Power Company, United Way of Central Alabama, and the Community Foundation of Greater Birmingham. AAN is unique in Alabama and is dedicated to supporting the nonprofit sector through training, advocacy, and administrative support.
Alabama's nonprofit sector is a significant economic force, generating more than $10 billion in annual revenue, holding more than $20 billion in assets, and employing 5 percent of the state's workforce. The sector is made up of 5,578 active nonprofit organizations that are not only economic developers, but also human service providers, community builders, and change advocates. The dedication and selflessness of Alabama's nonprofit executives and volunteers contribute significantly to the well-being of our state, working tirelessly toward a shared vision of better lives for families across Alabama. Masu.
