The vast majority of Alaska’s registered 501(c)3’s are simple “mom and pop” operations. Of the 5,700 charities, only 1,000 have an employee, that’s according Dennis McMillian, CEO of the Foraker Group.
McMillian told the Kenai Chamber of Commerce yesterday said the number of Alaskan non-profits has been declining since 2010 when there were 7,000 registered charities: one for every 100 people. That’s twice the national average.
Local businessman Mike Sweeney testified to the giving nature of Alaskans, especially during times when the economy is uncertain…
Sweeney: “It’s a big part of our community and to continue giving, because the economy might be a little lower, but whatever anybody can do. They’ve got this Pick.Click.Give, and that’s a good way to give a little dollars if you have it. At that time of the year, you get a check and it’s an easy way to do it. I think my business might be affected some by the economy, but I don’t plan to change any of my giving or anything like that. And that’s how he presented a lot of the things that are done in Alaska. Delta is number one, Sitka and the Kenai Peninsula are in the top. We’re just a good community.”
McMillian said Alaskan charities have learned how to be more self-sustaining in recent years, dropping their reliance on federal funding by $460 million over the past five years while increasing their earned revenue. State-supported programs like Pick.Click.Give have helped.
The non-profit sector indirectly supports 63,000 jobs in Alaska, making up 13.5% of the state’s GDP.
Since the 2013 controversy over the IRS’ heavy-handed dealings with some political non-profits, McMillian said it’s easier than ever to get a 501(c)3 designation.