The Estes Park nonprofit industry is an important economic player in the Estes Valley, contributing 10.3% — or $114 million in goods and services — to the local $1.1 billion annual GDP, according to a report issued last week by the Estes Nonprofit Network.
“Nonprofits are not just a sector up here. They are an economic industry,” said Cato Kraft, executive director of the organization. “Our nonprofits operate leanly and reinvest that money in the local economy.”
Kraft, along with Karen McPherson, outreach director, and Lucy Scott, an intern from Colorado State University majoring in economics, presented the information from the economic impact study conducted by Scott at a meeting of nonprofit stakeholders held Tuesday morning at the Presbyterian Community Church of the Rockies.
The data was also shared in a presentation to the Estes Park Town Board Trustees and will be summarized at the inaugural meeting of the Estes Women’s Business Network Tuesday night.
The study provided information about the employees who work in the nonprofits in the Estes Valley, 76% of whom live locally, compared to more than 30% of employees in the for-profit sector, according to a housing needs assessment conducted by the Estes Park Housing Authority two years ago, said McPherson.
In addition to the dollars raised, a regression analysis by Scott showed that volunteer contributions are valued at $8.2 million, with 3,951 volunteers reporting 226,000 hours of service and in-kind contributions, including reduced rent, adding another $2.8 million to nonprofit income.
The study surveyed 70 of the area’s 114 local nonprofits and drew data from IRS 990 filings. While 82% operate budgets under $500,000, 60% operate with less than $200,000.
Although one nonprofit, the YMCA of the Rockies, is an outlier that operates on a $45 million budget, the area’s other nonprofits are small, with median budgets of $132,000. “There is so much work happening on very shoestring budgets,” said Kraft.
“Nonprofits in Estes Park are not just nice to have, but they are essential economic drivers,” said Kraft. The Estes economy is primarily fueled by tourism, the area’s number one industry.
Dividing the nonprofits into six subgroups – community and education, youth and family, arts and culture, environment and recreation, health and wellness, emergency and human services – Kraft said for government organizations to replicate the services provided by nonprofits would require $146 million.
Challenges facing nonprofits include balancing increased demand for their services while navigating an unstable financial landscape dependent on philanthropy in addition to increasing operational costs, limited access to flexible funding, and shifting government and foundation grant opportunities, said Kraft.
Scott, a junior at CSU, is a 2020 Estes Park High School graduate. Her research was made possible through the Work-Based Learning Initiative Plan, a program of the Colorado Department of Labor and Employment, administered by the Fort Collins Area Chamber.
The Estes Nonprofit Network, which rebranded last year from the Estes Park Nonprofit Resource Center, also unveiled its newly revamped website last week.