Characteristics of the Labour Market in British Columbia s Non-Profit Sector

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1 Characteristics of the Labour Market in British Columbia s Non-Profit Sector Report Prepared for: West Georgia Street Vancouver, BC V6B 4M9 Phone: URL: March 24, 2014 Prepared By: Ference Weicker & Company Ltd West Georgia Street Vancouver, BC V6B 4M9 Phone: URL:

2 EXECUTIVE SUMMARY FEATURES PURPOSE OF THE STUDY EXECUTIVE SUMMARY The purpose of this project has been to collect, analyze and present labour market information (LMI) related to the non-profit sector (NPS) in British Columbia. This project benefits the sector by: Making LMI data available to organizations in the sector which has not been available in the past; and Establishing a methodology that can be used to collect, analyze, and report on LMI data in the future. Based on input provided by the Vancouver Foundation and Step Up BC as well as a review of available secondary data, the study objectives were translated into a series of core research questions including: How does British Columbia s NPS compare to the Canadian NPS on key indicators? How many organizations are there in the sector and by sub-sector? What are the characteristics of these organizations and how is the sector evolving? Who works in these organizations (size, composition and characteristics of the workforce)? To what extent are volunteers engaged? What factors are the most critical determinants of whether people who are engaged in the NPS workforce and/or looking to enter the sector are able to build a career there? Are there expected to be staff shortages in the medium and longer-term? What strategies are organizations considering or implementing in response to potential shortages? METHOD OF STUDY The study utilized five major sources of data including: A review of secondary data including other data relevant to the NPS including data published by Statistics Canada, Industry Canada, Census Canada, BC Stats and others relevant to the non-profit sector in BC. A review of past reports, literature and other documents on major drivers of employment growth in the non-profit sector, the labour market outlook in the short and medium term, current and projected skills shortages, and possible strategies and actions to address skills shortages. Development of a comprehensive database of the non-profit organizations in BC. The International Classification of Non-profit Organizations (ICNPO) was used to define the NPS. Under this definition, non-profits are defined as organizations that are voluntary, organized, not for profit, self-governing and non-governmental. For the purpose of this project, several subsectors of the NPS were specifically excluded including business and professional associations, unions, student associations, hospitals and health authorities, universities and colleges, municipal libraries, and airports and harbour authorities. A variety of different sources were used to compile a database of non-profit organizations in BC including the names and addresses of non-profits organizations registered in BC obtained from the BC Registry, the most recent (2012) detailed Canada Revenue Agency (CRA) records for all registered charities that operate in BC, and a list of organizations (non-profit and for-profit) in the target sectors that are registered with WorkSafe BC. All three sources were merged into one population list which Characteristics of the Labour Market in BC s Non-Profit Sector Page i

3 EXECUTIVE SUMMARY FEATURES contained the names of all non-profits active in BC and identified all non-profits with paid employees. A survey of 1,464 non-profit organizations active in BC. invitations were sent to 10,022 non-profit organizations in the population list, of which 285 bounced back and did not reach the target. Among those that may have been reached, 19% (1,881) visited the website, 13% (1,273) fully completed the survey and 2% (186) substantially completed the survey. At a confidence level of 95%, the sample of 1,459 non-profit organizations that completed or substantially completed the survey achieves a margin of error of about ±2.5%. Telephone interviews with a sample of 30 subject matter experts. The subject matter experts included 16 representatives who could speak to the non-profit sector overall and 14 who were most familiar with one specific sub-sector within the non-profit sector. SUMMARY OF THE MAJOR FINDINGS Question 1: How many organizations are there in the sector and by sub-sector? What are the characteristics of these organizations and how is the sector evolving? There were 27,491 non-profit organizations operating in BC in 2012 (within the scope defined for this study), of which 11,483 (42%) are registered charities and 16,008 (58%) are other non-profit organizations (i.e. those not registered as charities). The largest sub-sectors in terms of number of organizations were religion (19% of organizations), arts and culture (16%) sports and recreation (15%), and social services (11%). On a percentage basis, the distribution of organizations across sub-sectors remained relatively consistent between the time of the last major survey of the non-profit sector in 2003 and Other characteristics of the non-profit organizations operating in BC are as follows: 51% of non-profit organizations in BC are based in the Vancouver/South Coast region, 21% are based on Vancouver Island, 18% are based in the southern interior, and 11% are located in the northern interior. In 2012, the 11,483 registered charities operating in BC reported aggregate revenues to CRA totalling $8.1 billion (an average of nearly $680,000 per organization). The leading sources of revenues were government (37%), financial donations eligible for tax receipt (21%), sales of goods and services (11%) and funding received from other charities (6%). Similar data is not available for non-profit organizations which are not registered charities. The results of the survey indicate that most other non-profit organizations are very small; 54% reported annual revenues of less than $25,000 per year and only 3% reported revenues of more than $1 million. The sources most commonly identified as an important source, or as the leading source of revenues included membership fees (52%), earned income generated from fees for services and the sales of goods (32%), private gifts including funding from individuals, foundations, the United Way, corporations and others (31%), and Community Gaming Grants from the provincial government (16%). Most non-profit organizations in BC are well established. A large majority (74%) of those surveyed had been in business more than 10 years, and over half (51%) had been operating in BC for more than twenty years. Only 20% of the organizations participating in the survey were created within the last 10 years. Other key trends, noted by subject matter experts, affecting the non-profit sector in recent years, Characteristics of the Labour Market in BC s Non-Profit Sector Page ii

4 EXECUTIVE SUMMARY FEATURES included a shift in government funding away from core or operating funding to a greater focus on shorter-term, project-related funding, an increased emphasis on reporting and accountability, increased emphasis on fundraising and social enterprise activities to augment other sources of funding, and the continuing trend towards more sophisticated management practices, specialized skills (e.g., IT, database administrators, social network specialists, etc.), and more technologically advanced operations. Question #2: Who works in these organizations (size, composition and characteristics of the workforce)? Using the results of the survey with non-profit organizations, detailed employment data obtained from CRA on charitable organizations, and payroll data obtained from WorkSafeBC, it was estimated that, in 2012, of the total 27,491 non-profit organizations operating in BC in 2012, 7,823 (29%) had employees. Of the 7,823 non-profit organizations with employees, 73% (5,732) were registered charities and 27% (2,091) were other non-profit organizations. Fifty percent of all charitable organizations in BC and 13% of other non-profit organizations employed workers. In 2012, it is estimated that the sector employed 135,356 workers, of whom 87% (117,131) were employed by charitable organizations and 13% (18,225) were employed by other non-profit organizations. The average number of workers for each non-profit organization in BC was 5, while the average number of workers for each non-profit organization with employees was 17. Each registered charity with employees employed an average of 20 workers while each other non-profit organization with employees employed an average of 9 workers. Non-profit organizations in social service subsector (29%), religious sub-sector (18%), arts and culture sub-sector (15%), and education and research sub-sector (13%) account for the majority of employment within the non-profit sector The largest 2.4% of non-profit organizations accounted for 60% of employment in the sector and the largest 5.5% accounted for 77% of employment. Amongst non-profits with employees, the largest 9% accounted for 60% of employment and the largest 19% accounted for 77% of employment. Medium and large non-profit organizations employed an average of 123 workers, small organizations employed an average of 27 workers, and very small organizations employed an average of 5 workers. 1 In 2012, the sector paid $3.7 billion in salaries and wages to its employees, of which $3.3 billion (88%) was paid by registered charities and $431 million (12%) was paid by other non-profit organizations. The largest 2.4% of the non-profits in BC accounted for 71% of ($2.7 billion) all salaries and wages paid in the sector and the largest 5% of the non-profits accounted for 85% ($3.1 billion) of the payroll. According to the results of the survey, the key characteristics of workers in the non-profit organizations include: A majority of the existing workers are employed on a full-time basis (72%). Registered charities (74%) are more likely than other non-profit organizations (60%) to employ workers full-time. Part-time employees, on average, work 17.7 hours per week. Most employees in the sector (81%) work in service delivery positions at the program or project level providing direct services or producing products for clients, 10% work in support positions, 5% employed in sales, marketing and fundraising related jobs, and 3% work in other positions. Forty-one percent of those working in sales, marketing or fundraising positions, 35% of those 1 Medium and large organizations are defined as those with WorkSafe BC reported an assessable payroll of $1 million or more, small organizations are those with an assessable payroll of between $368,000 and $1 million, and very small organizations are those that have an assessable payroll of less than $368,000. Characteristics of the Labour Market in BC s Non-Profit Sector Page iii

5 EXECUTIVE SUMMARY FEATURES working support functions, 27% of those working in other positions, and 13% of those working in service delivery positions have others reporting to them (i.e. they hold an supervisory or managerial job). Very few non-profits are sufficiently large to have staff focused specifically on strategic planning, social media, HR and IT. Only 8% of non-profit organizations in BC have staff members who spend the majority of their working hours on strategic planning, 6% have staff members who spend the majority of their time on communication and social media, 5% have staff members focused primarily on human resources and 4% have staff focused primarily on information technology. The workforce consists largely of women between the ages of 25 and 54 who have been with the non-profit organization for at least two years. According to the organizations surveyed, women make up nearly three-quarters (74%) of the work force; 19% of the employees are under the age of 25, 61% are between the ages of 25 and 54, 20% are 55 years or older; 5% of the workers were identified as Aboriginal people and 6% were identified as having immigrated to Canada within the past five years. In addition, 45% of the workforce has a university education and 22% have professional credentials. The ratio of unionization is lower than the provincial average. Of those non-profits with employees, 10% report having unionized employees. The unionization rate is higher among registered charities with employees (11%) than among other non-profit employers (5%) and increases with the size of the organization. Nearly one-third (32%) of the non-profits surveyed reported employing contract workers. Registered charities reported an average of 2.3 contractors and other non-profit organizations reported an average of 0.8 contractors. On average, the contractors worked 28 weeks with the organization in the past year and an average of 13 hours per week. Approximately two-fifths (42%) of contractors have worked with the organization for more than one year. A majority of the contractors (71%) are employed in service delivery functions, 14% employed in support functions, 5% work in sales marketing and/or fundraising and 10% work in other positions. The non-profit organizations most commonly hire contractors because the positions are part-time or temporary and, to a lesser extent, because the cost of hiring a contractor is less than the cost of hiring an employee and the contractors were not willing or able to join the organization as an employee. Question 3: To what extent are volunteers engaged? According to the results of the survey, 86% of non-profits in BC regularly use volunteers in their operations. Volunteers most commonly contribute by serving on the board of directors (82%), assisting in marketing and fundraising activities (53%), helping to deliver services and products to clients (51%), providing support services such as accounting, finance, legal or communications (48%), and serving as the senior leadership (16%). On average, the non-profit organizations reported an average of 54 volunteers in their operations, of whom 17% spend more than 25 hours per month (equivalent to 300 hours per year) working for the organization. Non-profits find recruiting and retaining qualified volunteers to be somewhat difficult (an average rating of 2.9 on a scale of 1 to 5, where 1 is not at all difficult and 5 is very difficult). Characteristics of the Labour Market in BC s Non-Profit Sector Page iv

6 EXECUTIVE SUMMARY FEATURES Question 4: What factors are the most critical determinants of whether people who are engaged in the NPS workforce and/or looking to enter the sector are able to build a career there? According to the employers, the major competitive strengths that enable the non-profit sector to attract good people are the importance of the work that the sector performs, positive work environments which feature inclusive work and collaborative cultures, the opportunity to interact with clients and the general public, and flexible work arrangements such as the opportunity to work part-time/seasonally or job share. Despite these advantages, many employers consider themselves at a competitive disadvantage when competing for skilled employees with employers in government (noted by 44% of registered charities and 37% of other non-profit organizations) and in the private sector (noted by 40% of registered charities and other non-profit organizations). The competitive strengths of the non-profit sector as an employer are offset to some degree by: The comparatively low levels of wages and benefits that the sector can afford to pay to its employees. Using different methodologies, it was estimated that the average earnings in the non-profit sector are equal to about $39,000, which would rank the non-profit sector 17 th out of 20 sectors in BC in terms of average compensation. The average earning in the sector is higher compared to that of in trades, arts, entertainment and recreation and accommodation and food services sectors. The limited opportunities provided for employees to further advance in their careers. Most employers (71%) report spending less than three percent of the annual revenues of the organization on employee training including 41% that spend less than 1%. On average, it is estimated that the employers spend $13,180 annually on employee training. The level of job security provided to employees. Some of the factors that limit the level of job security is the small size of the organizations, the reliance on a narrow base of increasingly short-term funding (often from government), the seasonal or cyclical nature of many of the operations, and the temporary, part-time or contract nature of many of the positions. The demanding nature of the work can also be a disadvantage, requiring a wide range of skills and often being associated with high stress levels and long working hours. Employee turnover averages about 13%, which compares favourably to the average turnover rate reported for BC (16%) and nationally (17%) in The results of the survey indicate that there is a significant level of worker mobility between different employers in the non-profit sector. The extent to which non-profit employers attract each other s employees is reflected in the statistic that 51% of the employees hired by the non-profit organizations over the past 12 months were employed with another organization at the time of hiring, of which other employers in the non-profit sector (26%) and private sector (23%) were most common followed by government (2%). Question 5: Are there expected to be staff shortages in the medium and longer-term? What strategies are organizations considering or implementing in response to potential shortages? Employment in the sector is expected to grow moderately and steadily over the next five to ten years as the need for the services of the non-profits continues to increase and the organizations further develop alternative and innovative sources of funding. Of the non-profit organizations surveyed, 36% expect the number of people they employ to increase over the next three years, 36% expect the number of employees to stay the same, and 28% expect a decrease. The average number of workers employed is Characteristics of the Labour Market in BC s Non-Profit Sector Page v

7 EXECUTIVE SUMMARY FEATURES projected to increase from 13.8 at the time of the survey to 14.3 in three years. Continued growth of the sector combined the aging of the existing workforce will result in worsening labour and skill shortages. The positions that are expected to be most difficult to fill are senior staff and managerial positions that require complex skill sets (as many senior staff will be retiring soon); fundraising, marketing and sales positions (in order to find alternative source of funding to overcome funding shortages) that require experience, skills and certain personality characteristics; and sub-sector specific, high skilled and credentialed, licensed and recognized positions such as early childhood educators in the education sub-sector, social workers and psychologists in the social service subsector, pastors in the religious sub-sector, musicians and artists in arts and culture sub-sector, etc. Some of the factors that will make it difficult for the non-profit sector to address these shortages include the limited financial resources of many of the organizations (which are reflected in lower pay rates), greater unpredictability with the respect to job security, a general lack of qualified people in those positions, limited access to relevant and affordable education and training, and difficulties associated with transferring the skills and experience of available candidates to the non-profit sector. Non-profit organizations located in northern BC and rural regions will have difficulty attracting qualified people due to remote locations. To address the shortages, employers most commonly plan to expand the amount of internal or informal training or mentoring provided to employees (40%), increase the wages or benefits to make their positions more attractive to candidates (35%), restructure the work (31%), hire more casual workers or workers on a contract basis to do the work (30%), promote job openings more aggressively (24%), outsource certain functions or work to other organizations or companies (23%) and increase investment in formal or external training (19%). Some survey participants will also slow the rate of growth or reduce the size of the organization (14%), introduce or expand job sharing programs (13%) and increase investment in equipment or technology to reduce labour requirements (10%). Subject matter experts suggested a variety of actions that could be undertaken by the non-profit sector to address future shortages, including having organizations work more closely together in skills development as well as sharing of resources, developing training programs to address the most critical areas of shortages, creating umbrella organizations to represent the sector, engaging in on-going partnerships with other sectors such as the private sector, government and academia, conducting research and reporting intelligence, raising the public profile of the sector, and preparing and implementing an HR development strategy for the sector. Characteristics of the Labour Market in BC s Non-Profit Sector Page vi

8 TABLE OF CONTENTS i EXECUTIVE SUMMARY INTRODUCTION 1 Purpose of the Study 1 Method of Study 3 Challenges and Limitations 4 Structure of the Report SECONDARY DATA ON THE NON-PROFIT SECTOR IN BC 5 Number of Registered Non-Profits in BC 7 Characteristics of Registered Charities in BC 15 Wage and Benefit Data from Charity Village 16 Volunteering Data from Statistics Canada 18 Occupations Associated with the Non-Profit Sector 20 Key Issues Facing the Non-Profit Sector EMPLOYER SURVEY AND KEY INFORMANT INTERVIEWS 21 Characteristics of Non-Profits Surveyed 22 Changes in the Sector Over the Years 24 Characteristics of Current Employment 29 Use of Contract Staff 30 Recent Hirings 33 Projected Future Hirings and Skills Shortages 44 Use of Volunteers 46 Revenues 48 Summary of Results by Organization Size 49 Summary of Results by Sub-Sector

9 TABLE OF CONTENTS 53 CONCLUSIONS BY RESEARCH QUESTION APPENDICES A-1 List of Documents Reviewed A-2 LMI Data from WorkSafe BC and the Canadian Occupational Projection System A-27 Cross-Tabulation of Survey Results

10 LIST OF TABLES AND FIGURES TABLES 3 Table 1 Calculation of Survey Response Rate 5 Table 2 Estimated Number of Non-Profit Organizations by Sub-Sector, Table 3 Regional Distribution of Non-Profit Organizations 7 Table 4 Characteristics of the Charitable Organizations in BC 8 Table 5 Charitable Organizations by Total Revenues 8 Table 6 Sources of Reported Revenues 9 Table 7 Fundraising Methods Used by Charitable Organizations 10 Table 8 Sources of Revenues Reported by Charitable Organizations By Sub- Sector, 2012 ($ millions) 11 Table 9 Gifting to Other Organizations 11 Table 10 Reported Expenditures by Charitable Organizations 11 Table 11 Expenditures Reported by Charitable Organizations by Sub-Sector, 2012 ($ millions) 12 Table 12 Employment Characteristics 12 Table 13 Employment Characteristics by Sub-Sectors 13 Table 14 Employment Characteristics by Region 13 Table 15 Average Number of Employees and Average Salary 14 Table 16 Average Number of Employees and Salary Level by Sub-Sector 14 Table 17 Average Number of Employees and Salary Level by Region 15 Table 18 Average Number of Employees and Salary Level by Organization Size 15 Table 19 Average Number of Employees and Salary Level by Region 16 Table 20 Benefits Across Types of Employees 16 Table 21 Volunteer Rate and Distribution of Volunteer Hours, by Personal and Economic Characteristics, Population Aged 15 and Older, British Columbia, Table 22 Occupational Characteristics of the Non-Profit Sector 21 Table 23 Number of Organizations by Sector 22 Table 24 Regions on Which the Organizations Focus 22 Table 25 Use of Paid Employees, Contractors and Volunteers 23 Table 26 Number of Years in Operation 24 Table 27 Number of Workers Currently Employed 25 Table 28 Number of Workers Employed on a Full-Time or Part-Time Basis and on a Casual or Temporary Basis 25 Table 29 Composition of the Paid Work Force 26 Table 30 Percent of Employers With Workers in Selected Administrative Support Functions 26 Table 31 Composition of the Work Force by Gender 27 Table 32 Characteristics of the Work Force 27 Table 33 Employee Benefits 28 Table 34 Percent of Employees Receiving Benefits 28 Table 35 Expenditures On Training 29 Table 36 Employment of Contractors 30 Table 37 Composition of the Contract Workers 30 Table 38 Most Common Reasons for Using Contractors

11 31 Table 39 Growth in Employment over the Past Five Years 31 Table 40 Level of Staff Turnover 32 Table 41 Factors Contributing to Staff Turnover 33 Table 42 Source of New Employees 34 Table 43 Projected Growth in Employment Over the Next Three Years 35 Table 44 Expected Difficulties in Filling Positions 35 Table 45 Most Difficult Positions to Fill 37 Table 46 Factors Contributing to Future Shortages 38 Table 47 Programs Targeted at the Non-Profit Sector in BC 40 Table 48 Competitive Strengths of the Organization 41 Table 49 Competitive Position Relative to Other Types of Organizations 42 Table 50 Actions Organizations Will Take to Address Skill Shortages 44 Table 51 Use of Volunteers 45 Table 52 Types of Positions or Functions Commonly Filled By Volunteers 46 Table 53 Difficulties in Attracting Volunteers 46 Table 54 Sources of Revenue Most Commonly Identified by Organizations 48 Table 55 Revenues by Organization Surveyed 55 Table 56 Number of Organizations in the Non-Profit Sector, Table 57 Estimated Size of the Non-Profit Sector in British Columbia in Table 58 Average Number of Employees and Salary Level by Region FIGURES 6 Figure 1 Distribution of Non-Profits by Sub-Sector, 2003 and Figure 2 Percent of Non-Profit Organizations by Sub-Sector, Figure 3 Average Annual Full-Time Compensation by Sub-Sector

12 LIST OF ACRONYMS BC COPS CRA CSGVP FTE HR ICNPO IT LMI NOC NPS NSNVO RRSP British Columbia Canadian Occupational Projection System Canada Revenue Agency Canada Survey of Giving, Volunteering and Participating Full-Time Equivalent Human Resources International Classification of Non-Profit Organizations Information Technology Labour Market Information and Intelligence National Occupational Classification Not Profit Sector National Survey of Non-Profit and Voluntary Organizations Registered Retirement Savings Plan

13 INTRODUCTION A. PURPOSE OF THE STUDY I. INTRODUCTION The purpose of this project has been to collect, analyze and present labour market information (LMI) related to the non-profit sector (NPS) in British Columbia. This project benefits the sector by: Making LMI data available to organizations in the sector which has not been available in the past; and Establishing a methodology that can be used to collect, analyze, and report on LMI data in the future. By involving non-profit organizations in the collection and dissemination of the results, the project is also helping to create a climate of cooperation and collaboration for collection of data, as well as build the capacity of organizations to use LMI to make more informed workforce planning decisions. Based on input provided by the Vancouver Foundation and Step Up BC as well as a review of available secondary data, the study objectives were translated into a series of core research questions including: How does British Columbia s NPS compare to the Canadian NPS on key indicators? How many organizations are there in the sector and by sub-sector? What are the characteristics of these organizations and how is the sector evolving? Who works in these organizations (size, composition and characteristics of the workforce)? To what extent are volunteers engaged? What factors are the most critical determinants of whether people who are engaged in the NPS workforce and/or looking to enter the sector are able to build a career there? Are there expected to be staff shortages in the medium and longer-term? What strategies are organizations considering or implementing in response to potential shortages? B. METHOD OF STUDY A detailed work plan was developed during the first phase of the project which determined what data was required to address each of the research questions, identified key data sources, and outlined the methodologies that would be used to collect the required data. The methodologies included: A review of available labour market information and other data relevant to the NPS including data published by Statistics Canada, Industry Canada, Census Canada, BC Stats and others relevant to the non-profit sector in BC. A review of past reports, literature and other documents on major drivers of employment growth in the non-profit sector, the labour market outlook in the short and medium term, current and projected skills shortages, and possible strategies and actions to address skills shortages. Appendix I contains a listing of the past reports, literature, labour market information, and other documents that were reviewed. Development of a comprehensive database of the non-profit organizations in BC. To ensure the results are broadly comparable with past national studies conducted by Statistics Canada and those in other jurisdictions, the International Classification of Non-profit Organizations (ICNPO) was used to define the NPS. Under this definition, non-profits are defined as organizations that are voluntary, organized, not for profit, self-governing and non- Characteristics of the Labour Market in BC s Non-Profit Sector Page 1

14 INTRODUCTION governmental. For the purpose of this project, several sub-sectors of the NPS were specifically excluded including business and professional associations, unions, student associations, hospitals and health authorities, universities and colleges, municipal libraries, and airports and harbour authorities A variety of different sources were used to compile a database of non-profit organizations in BC including the names and addresses of non-profits organizations registered in BC obtained from the BC Registry, the most recent (2012) detailed Canada Revenue Agency (CRA) records for all registered charities that operate in BC, and a list of organizations (non-profit and for-profit) in the target sectors that are registered with WorkSafe BC (all organizations that have paid employees in BC must register with WorkSafe BC). The names of all organizations registered with WorkSafe BC but which are not registered non-profits were removed from that list and then all three sources were merged into one population list which contained the names of all non-profits active in BC and identified all non-profits with paid employees. Through this process, it was determined that there were 27,491 non-profit organizations active in BC in 2012, of which 11,483 are registered charities and 16,008 are other non-profits. Of these 27,491 non-profit organizations, 7,837 have paid employees and are registered with WorkSafe BC. A survey of 1,464 non-profit organizations active in BC. In developing the questionnaire, efforts were made to ensure that the data collected on BC s non-profit sector would be comparable and compatible with similar data at the national level and in other provinces. Once the questionnaire was field tested, invitations were sent to 10,022 non-profit organizations in the population list for which addresses were obtained. The invitations provided target companies with a link to an online questionnaire and described other options for completing the survey questionnaire, including by telephone with a representative of Ference Weicker & Company. The addresses were obtained through a mixture of secondary sources (e.g. the CRA database, other databases, and a search of organization websites) as well as by telephoning a sample of non-profits for which telephone numbers were available but no address could be obtained. In searching for addresses, a particular focus was placed on organizations known to employ workers and particularly on larger employers (as reported in the WorkSafe BC data). Excluding the s determined to be inactive or where the respondent was out of office for the duration of the survey, a maximum of 9,737 non-profit organizations were contacted (this figure is overstated in that it cannot be assumed that, just because the invitation did not bounce back, the was necessarily received and viewed by the target recipient). As indicated in Table 1 below, 19% of the organizations that may have been reached responded in some way to the invitation to participate in the survey. Of the 1,881 companies that visited the website, 1,273 fully completed the survey and 186 substantially completed the survey (the respondent may have skipped several questions or a section which he or she perceived as not particularly relevant to their operation or for which they did not have data readily accessible). On average, the survey took 36 minutes for the respondents to complete. Table 1: Calculation of Survey Response Rate Province Total Organizations Contained in the Database 27,491 Characteristics of the Labour Market in BC s Non-Profit Sector Page 2

15 INTRODUCTION Organizations For Which Addresses Were Obtained 10,022 Number That Could Not Be Contacted (e.g. bounced back or out of office during the term of the project) 285 Maximum Number of Organizations Contacted 9,737 Response Number % Completed 1,273 13% Substantially Completed 186 2% Respondents Included in Analysis 1,459 15% Begun But Not Substantially Completed or Completed After the Survey Was Closed (results not included in analysis) 422 4% Total Number of Respondents 1,881 19% Refused 182 2% Did Not Respond Within the Available Time 7,674 79% Total 9, % At a confidence level of 95%, the sample of 1,459 non-profit organizations that completed or substantially completed the survey achieves a margin of error of about ±2.5%. A more detailed description of the 1,459 non-profit organizations surveyed is included in Chapter III. Conducted telephone interviews with a sample of 30 subject matter experts. A population list was developed of 70 representatives believed to be familiar with human resources in the non-profit sector. Not all of these representatives believed they were in a position to comment on the labour market or were available for an interview. Interviews were conducted with 30 experts, which represent a response rate of 43%. The subject matter experts included 16 representatives who could speak to the non-profit sector overall and 14 who were most familiar with one specific sub-sector within the non-profit sector. Of these 14 subject matter experts, 4 were most familiar with the education and research sub-sector, 3 were most familiar with the development and housing sub-sector, 2 were most familiar with the environment sub-sector, 2 were most familiar with the philanthropic intermediaries and voluntarism sub-sector, 2 were most familiar with the sports and recreation sub-sector, and 1 was most familiar with the health sub-sector. C. CHALLENGES AND LIMITATIONS The major challenges that were faced and steps taken to mitigate the impact of these challenges are as follows: Timeline. The project was implemented under a very short timeline. The first invitation to the survey was distributed on January 29 th and the third and final reminder was sent on February 19 th. The survey started somewhat later than anticipated because of a delay in obtaining approval of the questionnaire and was closed earlier than expected to avoid overlapping with other research involving the non-profit sector which was beginning at the time. No up-to-date population list of organizations in the BC non-profit sector was available. A variety of sources were used to compile a population lists, including Freedom of Information Act requests to WorkSafe BC, Canada Revenue Agency and BC Registry in order to develop an up-to-date population database. To increase the number of non-profit organizations who could be contacted by , an extensive review of websites was undertaken complemented with telephone calls to non-profits to identify appropriate contact people and obtain addresses. The completion rate for the survey varies somewhat across questions. The response rate tends to be lower for the questions of less importance, which were contained in the later sections of the questionnaire. To reflect the level of response, the number of clients responding to any particular question is included in tables throughout this report. Characteristics of the Labour Market in BC s Non-Profit Sector Page 3

16 INTRODUCTION D. STRUCTURE OF THE REPORT This report is divided into four chapters. Chapter II uses secondary data to develop an overview of the non-profit sector in BC, including a description of the non-profit organizations, current workforce, recent and anticipated growth rates, leading sub-sectors, and key issues related to human resources. Chapter III summarizes the major findings of the employer survey and subject matter expert interviews related to the NPS labour market in BC. Chapter IV uses the results of the secondary and primary research to answer each of the study research questions. Characteristics of the Labour Market in BC s Non-Profit Sector Page 4

17 SECONDARY DATA ON THE NON-PROFIT SECTOR IN BC II. SECONDARY DATA ON THE NON-PROFIT SECTOR IN BC A. NUMBER OF REGISTERED NON-PROFITS IN BC 1, Number Registered By Sector The following table summarizes the distribution of non-profit organizations across various sub-sectors in BC. As indicated in the table, in 2012, there were 29,623 non-profit organizations operating in BC, of which 11,719 (40%) were registered charities and 17,904 (60%) were other non-profit organizations. Of the all non-profit organizations operating in BC, 2,127 (7%) fall under sub-sectors excluded from this assignment (i.e. business and professional associations and unions, student associations, hospitals and health authorities, municipal libraries, airports and harbour authorities and universities and colleges). Of the 27,496 non-profit organizations included in the scope of this project, 11,485 (42%) are registered charities and 16,011 (58%) are other non-profit organizations (i.e. those not registered as charities). In terms of sub-sector, non-profits are most commonly classified as religious organizations (19%), arts and culture organizations (16%) sports & recreation organizations (15%), and social services organizations. Table 2: Estimated Number of Non-profit Organizations by Sub-Sector, Sub-Sectors Sub-Sectors Covered Under This Assignment Charities Operating in BC Other Non-Profits in BC Total % Religion 4, ,280 19% Arts and culture 1,484 3,031 4,515 16% Sports and recreation 101 4,073 4,174 15% Social services 1,686 1,463 3,149 11% Housing and development 107 2,232 2,339 9% Philanthropic intermediaries and voluntarism promotion 1, ,130 8% Education and research ,662 6% Health ,427 5% Law, advocacy and politics 142 1,282 1,424 5% Environment ,088 4% International % Total Included in the Study 11,483 16,008 27, % Sub-Sectors Not Included in the Study Business and professional associations and unions 42 1,572 1, Student associations Hospitals & Health Authorities Universities/colleges/school boards/libraries The allocation of organizations listed in the population database to particular sectors was challenging given that the sector definition used in the various data sources varied by source and usually do not match up with the INCPO classification system. In some case, there was no basis for classification apart from the name of the organization. For the purposes of the population database, each organization was assigned to only one sector. Characteristics of the Labour Market in BC s Non-Profit Sector Page 5

18 SECONDARY DATA ON THE NON-PROFIT SECTOR IN BC Sub-Sectors Charities Operating in BC Other Non-Profits in BC Total % Airport/Harbour Authorities Total 236 1,896 2, Total Non-Profits Registered in BC 11,719 17,904 29, Source: BC Registry and Canada Revenue Agency The figure below compares the distribution of non-profits by sub-sector as reported in the 2003 National Survey of Non-profit and Voluntary Organizations (NSNVO) to the population database prepared for this project. As indicated, the distribution has remained relatively consistent across sub-sectors between 2003 and 2012, although the reported number of non-profits in BC increased from 18,446 in 2003 to 27,491 in The apparent increase in the number of non-profits may be attributable, at least in part, to differences in how the population lists were constructed in 2003 and for this study. Figure 1: Distribution of Non-Profits by Sub-Sector, 2003 and 2012 Religion Arts and culture Sports and recreation Social services Housing and development Philanthropic intermediaries and voluntarism Education and research Health Law, advocacy and politics Environment International 11% 11% 10% 9% 10% 8% 9% 6% 8% 5% 4% 3% 5% 4% 4% 1% 1% 19% 21% 16% 15% 19% 0% 20% 2012 (n=27,491) 2003 (n=18,446) 2. Distribution of Non-Profit Organizations by Region A small majority of non-profit organizations in BC are located in the Vancouver/South Coast region, with roughly one-third of organizations located on either Vancouver Island or in the Thompson/Okanagan region. As indicated in the following table, 51% of non-profit organizations in BC are based in the Vancouver/South Coast region, 21% are based in Vancouver Island, and 14% are based in the Thompson/Okanagan region. Table 3: Regional Distribution of Non-Profit Organizations Charities Other Registered Regions of BC Total % Operating in BC Non-Profits in BC Vancouver/South Coast ,079 51% Vancouver Island ,641 21% Thompson/Okanagan ,730 14% Cariboo ,380 5% Kootenay ,135 4% Characteristics of the Labour Market in BC s Non-Profit Sector Page 6

19 SECONDARY DATA ON THE NON-PROFIT SECTOR IN BC Charities Other Registered Regions of BC Total % Operating in BC Non-Profits in BC Nechako % Northeast % North Coast % Total 11,483 16,008 27, % Source: BC Registry and Canada Revenue Agency B. CHARACTERISTICS OF REGISTERED CHARITIES IN BC An extensive profile of registered charities in terms of registration, status, revenues, expenditures, employment, and wages has been developed using data obtained from the Canada Revenue Agency on each registered charity which operates in the province. 1. Overall Characteristics The following table illustrates some of the characteristics of charitable organizations operating in BC. As indicated in the table, of the 11,483 charities operating in BC, 8,443 (74%) are registered in the province and 3,040 (27%) are registered somewhere else in Canada and yet operate in BC; 16% are subordinate to parent organizations and 80% operate as an independent entity; 7% are public foundations, 6% are private foundations, and 87% are charitable organizations. In 2012, 90% were actively delivering programs and services, with 7% declaring themselves as inactive. Table 4: Characteristics of the Charitable Organizations in BC Registration Charities # % Registered in BC 8,443 74% Registered somewhere else, but operating in BC 3,040 27% Total 11, % Subordination Subordinate to parent organization 1,878 16% Not subordinate to parent organization 9,198 80% Unknown 407 4% Total 11, % Activity level Active 10,371 90% Inactive 842 7% Unknown 270 2% Total 11, % Status Public foundation 771 7% Private foundation 724 6% Charitable organization 9,988 87% Total 11, % Source: Canada Revenue Agency Characteristics of the Labour Market in BC s Non-Profit Sector Page 7

20 SECONDARY DATA ON THE NON-PROFIT SECTOR IN BC 2. Funding and Revenues As indicated in the following table, of the 11,483 charitable organizations operating in BC in 2012, the largest proportion (32%) had annual revenues of less than $30,000 and 21% had annual revenues of between $30,000 and $99,999. Those with annual revenues exceeding $10 million dollars comprised only 1% of registered charities. Table 5: Charitable Organizations by Total Revenues Annual Revenues # of Charities % $0-$29,999 3,634 32% $30,000-$ ,451 21% $100,000-$249,999 2,006 17% $250,000-$499,999 1,183 10% $500,000-$999, % $1,000,000-$9,999,999 1,183 10% $10,000,000 and over 149 1% Unknown Total 11, % Source: Canada Revenue Agency In 2012, 95% of the charities operating in BC reported revenues to CRA with the aggregate revenues totalling $8.1 billion (an average of nearly $680,000 per organization). The largest proportion of revenues was obtained from government sources (37%), financial donations eligible for tax receipt (21%) and sales of goods and services (11%). Other sources of revenues included funding received from other charities (6%), non-tax-receipt eligible donations (2%), revenue from fundraising activities (2%), revenue from sources of outside Canada (1%) and other unspecified sources (18%). Table 6: Sources of Reported Revenues Revenue Generation Organizations % Revenues ($ million) % Reporting any revenue 11,947 95% $8, % Reporting no revenue 536 5% 0 0% Total 11, % $8, % Sources of Revenue Funding provided by any level of government 3,910 34% $2, % Financial donations eligible for tax receipt 9,055 79% $1, % Revenue from sales of goods and services 3,355 29% $ % Donations received from other charities 3,412 30% $ % Donations not eligible for tax-receipt (e.g., grants, in-kind) 5,994 52% $ % Revenue from fundraising (non-eligible for tax receipt) 3,746 33% $ % Sources outside of Canada 389 3% $54.6 1% Other (unspecified) 8,668 75% $1, % Total 11, % $8, % Source: Canada Revenue Agency Table 8 on the following page illustrates the revenues generated by charitable organizations by sub- Characteristics of the Labour Market in BC s Non-Profit Sector Page 8

21 SECONDARY DATA ON THE NON-PROFIT SECTOR IN BC sector. As indicated, the leading sub-sectors in terms of revenues include social services organizations (accounting for 25% of the total), religious organizations (21%), philanthropic intermediaries (15%), and education and research organizations (14%). Sports and recreation (0.3%), international organizations (1%), and those focused on environment (2%), law, advocacy and politics (2%) and housing (2%) were the sub-sectors with the lowest revenues. Religious organizations and philanthropic intermediaries accounted for most of the donations eligible for tax receipts, whereas educational and research institutions generated the highest amount of donations not eligible for tax receipts. Government funding was concentrated among the social service and health sub-sectors. Charities in education and research, arts and culture, social service, and religious organizations, proved most adept at generating revenue from the sale of goods and services. Government funding is one of the largest sources of revenue for charities in BC. In particular, funding from government sources accounted for 86% of all revenues for charities in the law, advocacy and politics sub-sector, 66% of charities in the health care sub-sector, 63% of revenues for charities in the social service sector, and 56% of revenues for charities in the housing and development sub-sector. About 58% (6,700) of charities operating in BC report being engaged in fundraising activities. As indicated in the following table, collection boxes, charitable sales, funding events, targeted pitching, corporation sponsorships, advertisements, mail campaigns, auctions, online donation and draws and lotteries are the most commonly used fundraising methods. Table 7: Fundraising Methods Used by Charitable Organizations Funding Methods # of Charities % Collection plate/boxes 2,664 40% Sales 2,300 34% Fundraising dinners/galas/concerts 2,207 33% Targeted contacts 1,514 23% Targeted corporate donations/sponsorships 1,485 22% Advertisements/print/radio/TV commercials 1,327 20% Mail campaigns 1,195 18% Auctions 1,016 15% Internet % Draws/lotteries % Planned-giving programs 554 8% Tournament/sporting events 480 7% Telephone/TV solicitations 190 3% Cause-related marketing 105 2% Door-to-door solicitation 85 1% Other 1,469 22% Source: Canada Revenue Agency Characteristics of the Labour Market in BC s Non-Profit Sector Page 9

22 SECONDARY DATA ON THE NON-PROFIT SECTOR Sector Tax Receipt Donations Table 8: Sources of Revenues Reported by Charitable Organizations by Sub-Sector, 2012 ($ millions) Non Tax- Receipt Donations Other Charities Govt. Sources Sales of Goods and Services Outside Canada Fundraising Other Total % Social $98.8 $43.4 $62.2 $1,281.5 $172.8 $1.5 $23.1 $351.4 $2, % services Religion $782.4 $76.1 $197.4 $211.4 $109.3 $13.3 $20.8 $285.0 $1, % Intermediaries $510.0 $52.7 $151.0 $72.8 $27.4 $12.2 $71.5 $341.5 $1, % Education and research $146.2 $102.5 $40.5 $425.9 $254.7 $17.1 $16.8 $167.7 $1, % Health $65.1 $10.4 $22.0 $527.5 $61.1 $2.1 $23.3 $84.6 $ % Arts and culture $46.1 $21.4 $16.4 $168.3 $204.4 $1.9 $26.0 $79.3 $ % Housing and development $3.1 $0.6 $0.6 $105.3 $12.7 $0.1 $0.2 $66.4 $ % Environment $48.5 $10.6 $21.1 $41.2 $20.6 $3.3 $7.2 $26.4 $ % Law. advocacy and $2.8 $0.7 $1.4 $143.2 $2.6 $0.3 $1.6 $14.0 $ % politics International $17.4 $2.1 $9.0 $2.2 $1.0 $2.8 $1.3 $19.4 $55.2 1% Sports and $1.5 $0.4 $0.7 $4.1 $6.2 $-- $2.1 $7.5 $ % recreation Total $1,721.8 $320.8 $522.3 $2,983.4 $872.7 $54.6 $194.0 $ $8, % Source: Canada Revenue Agency Thirty-seven percent of charities provide donations or transfer funding (e.g. grants) to other organizations. Table 9: Gifting to Other Organizations # of Charities % Made gift donations or transferred funds to other organizations 4,210 37% Did not make gift donations or transferred funds to other organizations 7,273 63% Total 11, % Source: Canada Revenue Agency Most charities (90%) limited their activities and programming operations to Canada. In 2012, only 9% of charitable organizations operating in BC also provided funding (an average of $152,000) for activities outside of Canada. 4. Expenditures The following table details expenditures made by charitable organizations in As indicated in the table, the 10,960 charities (95%) operating in BC reported total expenditures of $7.5 billion. Spending on charitable activities accounted for 69% of all expenditures, while administration and management accounted for 11%. Additionally, 12% of the total was spent on gifts to other organizations, 3% on fundraising, 0.05% on political issues, and 6% on other unspecified activities. Characteristics of the Labour Market in BC s Non-Profit Sector Page 10

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