In 2010, public charities in Arkansas had a total economic impact of $13,505,145,972. Arkansas nonprofit organizations employed an estimated 93,095 individuals in 2010, representing nearly 7 percent (6.8%) of the state's available labor force. In addition to these impressive numbers, public charities in the state provide a host of services to Arkansans -- from educational opportunities to health care to housing, shelter, and food.
Nonprofit organizations are legal entities formed to provide services and programs. These organizations typically engage in activities without financial profit, although these organizations may retain excess revenue. Nonprofit revenue in excess of cost are untaxed and may be saved for future use. This report describes the Arkansas nonprofit sector in terms of its activities, composition, employment levels, and employee earnings. Upon providing a portrait of nonprofit organizations, the report offers an assessment of the nonprofit sector's economic effect on the state economy.
Data for this study are from the Urban Institute's National Center for Charitable Statistics (NCCS), and are comprised of IRS Form 990 and Form 990-EZ filings for all registered 501(c)(3) public charities in Arkansas with over $25,000 in total revenue per year. Data for calendar years 2006 through 2010 are analyzed for this study; data for 2011 and 2012 are not yet available.In examining only those organizations with more than $25,000 in revenue, this study represents approximately one-third of all nonprofits registered in Arkansas as no data are available for organizations with total revenue under $25,000 (these organizations are not required to file annual reports to the IRS). These data include information only for public charities, which are guided by 501(c)(3) rules. In doing so, this report excludes information about private foundations, churches, social and fraternal organizations, or other groups considered tax-exempt under other sections of the tax code. Consequently, results presented in this report actually understate the true effects of the nonprofit sector for Arkansas. Therefore, when discussing results about nonprofits in Arkansas, this research is addressing the effect of service provided by public charities only