According to a new Indiana University report, some 68 percent of Indiana nonprofits are part of the religious and charitable sector. Of these, 34 percent are secular charities, 22 percent are congregations, and the remaining 12 percent are other faith-based organizations. These percentages closely resemble those from a similar survey of Indiana nonprofits in 2002.
The report, “Indiana Nonprofits: Faith-based Organizations – Dimensions and Challenges” uses data from a 2017 survey (the most recent data available) of 1,036 nonprofits that was conducted by the Indiana Nonprofits Project.
The report examines these organizations on several dimensions – basic organization factors, financial resources and challenges, human resources and challenges, demand for services and management challenges, and participation in advocacy and advocacy challenges. The report also examines differences among denominations with particular attention paid to Mainline Protestant and Evangelical Protestant congregations.
According to the report, key organizational factors (age, formalization, and funding profile) help account for the differences among congregations, faith-based organizations, and secular comparison charities, as well as denomination types.
Congregations differ significantly from other faith-based nonprofits in three dimensions – they are older, less formalized, and depend more on donations. Other faith-based nonprofits differ significantly from secular charities in four dimensions – they are larger, less formalized, rely more on donations, and are more likely to be located in central city metropolitan counties. Compared to secular charities, congregations are older, larger, less formalized, use less external IT tools, depend more on donations, and are more likely to be located in central city metropolitan counties. Congregations and faith-based nonprofits also have fewer board members and fewer board vacancies than secular comparison charities.
Other findings show that membership has declined for many congregations (42 percent) over the last three years, along with revenue (37 percent) paired with an increase in expenses (48 percent).
“These findings are consistent with national studies showing declines in religious participation,” notes Kirsten Grønbjerg, Director of the Indiana Nonprofits Project and Distinguished Professor at Indiana University. “There are also notable differences in demand for services, with congregations less likely to report greater demand for services than faith-based nonprofits and secular charities.”
When comparing how denominations differ on basic organizational dimensions, the report finds that Mainline Protestant congregations are significantly older, less formalized, and rely less on donations than Evangelical Protestant congregations.
Although there are some differences among congregational denominations there are relatively few significant differences.
“These findings suggest that overall trends or dimensions that distinguish congregations from other faith-based organizations or secular comparison charities appear to be pervasive across various denominations. They are not limited to one particular type of denomination,” Grønbjerg said.
About the briefing
This briefing is the seventh n a series of reports from the Indiana Nonprofit Survey, Round III produced by the Indiana Nonprofit Sector: Scope and Community Dimensions project, designed to inform local community leaders and policymakers. The analysis a joint effort of the O’Neill School of Public and Environmental Affairs and the Lilly Family School of Philanthropy. The briefing’s co-authors are the director of this project, Kirsten Grønbjerg and Payton Goodman (IU MPA), with the assistance of Nick Norman and Sher Khashimov, IU alumni.
About the O’Neill School of Public and Environmental Affairs
The Indiana University O’Neill School is a world leader in public and environmental affairs and is the largest school of public administration and public policy in the United States. In the 2021, “Best Graduate Public Affairs Programs” by U.S. News & World Report, the O’Neill School ranks first in the country. Four of its specialty programs are ranked in the top-five listings, including nonprofit management, ranked first.
About the Lilly Family School of Philanthropy
The Indiana University Lilly Family School of Philanthropy at IUPUI is dedicated to improving philanthropy to improve the world by training and empowering students and professionals to be innovators and leaders who create positive and lasting change. The school offers a comprehensive approach to philanthropy – voluntary action for the good – through its academic, research, and international programs and through The Fundraising School, Lake Institute on Faith & Giving, Mays Family Institute on Diverse Philanthropy and the Women’s Philanthropy Institute.
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