Revenue/Employee of Largest Mass. Nonprofits Holds Steady
September 10, 2017 The 25 largest nonprofits in Massachusetts, on average, generated $140,046 in revenue for every employee last year, holding steady with the prior year, according to a newly published ranking of the states largest nonprofits.
Last year, a similar ranking of nonprofits, published by the Boston Business Journal (BBJ), showed that the largest Massachusetts nonprofits, measured by total assets, generated average annual revenue of $140,030 per employee, which represented a 13% decrease from the year before.
The ranking, published last week, is based on information for fiscal 2016 gathered by the BBJ. It is not an exhaustive examination of the full Massachusetts nonprofit sector, and excludes colleges, universities, hospitals, and health plans.
Combined assets of the top 25 nonprofits totaled $8.47 billion, up nearly 4% from $8.15 billion for the top 25 in 2015.
The 10 largest nonprofits in the new ranking, according to assets, were, in order, Combined Jewish Philanthropies of Greater Boston (CJP), Boston's Museum of Fine Arts (MFA), Peabody Essex Museum, Hebrew SeniorLife, WGBH, Boston Symphony Orchestra, American Student Assistance, Accion International, National Fire Protection Association, and the Isabella Stewart Gardner Museum.
Similar to the for-profit sector, revenue-per-employee in the nonprofit sector is influenced by the market served. More labor intensive organizations yield lower revenue-per-employee than less labor intensive nonprofits. In addition, the degree to which an organization depends on volunteers may enable it to rely on fewer paid staff.
CJP, which raises funds for a wide spectrum of Jewish organizations in the Boston area, topped the revenue-per-employee ranking for the sixth consecutive year, with $1.40 million per employee, down from last years $2.62 million.
Road Scholar this year ranked as the highest revenue generator with $292 million, up from $257 million last year.
In terms of assets, CJP, with $1.23 billion in assets, ranked as the largest Massachusetts nonprofit, edging out the MFA, the assets of which dropped slightly from last year's $1.19 billion to $1.11 billion.
Returning to the top 25 list this year was Accion International (No. 8), while The Institute of Contemporary Art/Boston moved off the list.
Following are the 10 most intensive users of volunteers among the largest Massachusetts nonprofits, as indicated by volunteers per employee, for organizations reporting total numbers of volunteers and employees, published by the BBJ: