Kentucky Nonprofit Network released new data this week showing charitable nonprofits are a major driver of Kentucky’s economy and workforce, employing nearly one in 10 private-sector workers across the Commonwealth.
The data comes from KNN’s latest “More Than Charity” report, which finds charitable nonprofits employ 178,864 Kentuckians, making the sector the fourth-largest private-sector employer in Kentucky. Those jobs generate $11.9 billion in annual wages and $32.5 billion in economic activity benefiting communities across the state.
KNN unveiled the report during a legislative breakfast and press conference at the Kentucky State Capitol Annex Wednesday morning, joined by lawmakers and nonprofit leaders. A new interactive online data dashboard was also announced – available at kynonprofits.org/mtcdashboard – that allows data summaries by Kentucky county and Local Workforce area.
The report reflects 2024 employment and economic data and shows continued growth in the nonprofit sector. Compared with KNN’s previous report two years ago, nonprofit employment increased from roughly 163,000 jobs to nearly 179,000 today, highlighting the expanding role nonprofit organizations play in Kentucky’s workforce and economy.
“Nonprofits are a major part of Kentucky’s economy. Charitable nonprofits are not just charities, they are a major employer and economic engine in Kentucky,” said Rep. Samara Heavrin of Leitchfield, Republican co-chair of the legislature’s Nonprofit Caucus while speaking at the event.
In addition to the sector’s growth, nonprofit leaders say organizations across Kentucky are experiencing increased demand for services. According to research highlighted in the report, 77% of nonprofits expect demand for services to increase, while 45% report they cannot meet the full demand for services in their communities.
“Nonprofits are also facing things like workforce shortages, rising operational costs and funding uncertainty that’s at an all-time high,” commented Sen. Cassie Chambers Armstrong of Louisville, Democratic co-chair of the Nonprofit Caucus, during her remarks. “Despite all of these challenges, public trust in nonprofits remains high. More than 80% of all voters in the last election trust that charitable nonprofits will address their community needs and engage in nonpartisan policy work.”
Speakers also emphasized the wide range of services nonprofits provide in communities across Kentucky—from health care providers and food banks to housing programs, youth activities, disaster relief and arts organizations.
“Every Kentuckian, directly or indirectly, is receiving some kind of care through our nonprofits, and our nonprofits also strengthen our communities through our civic engagement, bringing people together to solve problems and attracting employers and investments,” said LeAnn Magre of Aetna Better Health of Kentucky, who co-sponsored the More Than Charity report.
Erica Jackson of Dean Dorton, another sponsor of the report, discussed how charitable nonprofits operate differently from for-profit businesses, with any surplus funds not going to owners or shareholders but instead, as required by law, being reinvested in mission-driven work.
Charitable donations are important sources of revenue for nonprofits, though nearly 9 in 10 nonprofit dollars come from program service income and government partnerships rather than donations, according to the report, underscoring the important role nonprofits play as partners with government in delivering services to communities statewide.
To see the full More Than Charity report, visit kynonprofits.org/advocate/morethancharity.
Kentucky Nonprofit Network