Overview
In Vermont, the nonprofit sector plays a significant role in the state’s economy and employment landscape. This report, released by the US Bureau of Labor Statistics in August 2024, provides an analysis of nonprofit employment, wages, and sector distribution for calendar year 2022.
Note: This report only includes 501(c)(3) organizations, not other types of nonprofits.
Employment Statistics
Approximately 1 in 5 employees in Vermont are employed by 501(c)(3) organizations – the second highest percentage in the United States, trailing only Washington D.C.
The average annual wage for nonprofit employees in Vermont in 2022 was $62,510.
Sector Distribution
A substantial 66% of nonprofit employees are concentrated in the Health Care and Social Assistance subsector, which comprises 42% of the organizations in this dataset. The report found that the following subsectors employ most nonprofit workers: Educational Services; Religious, Grantmaking, Civic, Professional, and Similar Organizations; Ambulatory Health Care Services; Social Assistance; and Health Care and Social Assistance.
In several VT subsectors, more than 80% of employees work for nonprofit organizations vs non-501(c)(3) organizations. These subsectors include Home Health Care Services; Educational Services; Elementary and Secondary Schools; Outpatient Care Centers; Social Advocacy Organizations; and Colleges, Universities, and Professional Schools. The subsectors with the lowest percentages of nonprofit employees are Computer Systems Design and Related Services; Retail Trade; Accommodation and Food Services; Professional, Scientific, and Technical Services; and Administrative and Support and Waste Management and Remediation Services. In these subsectors, most employees worked for non-501(c)(3) organizations.
Wage Analysis
The US Bureau of Labor Statistics also included information on annual wages for both 501(c)(3) organizations and other organizations. This allows for a comparison of wages between both sectors.
Wage Ratio Analysis
The ratio of wages in 501(c)(3) relative to all non-501(c)(3) organizations were included as well. This wage ratio between nonprofit and non-nonprofit employees varies significantly across different subsectors. Nonprofit employees earn significantly less than their non-nonprofit counterparts in subsectors including Libraries, Archives, and Other Information Services; Business Schools and Computer and Management Training; Information; Scientific Research and Development Services; and Performing Arts Companies. Conversely, nonprofit employees earn significantly more in subsectors including Other Schools and Instruction; Health Care and Social Assistance; Offices of Physicians; Civic and Social Organizations; Social Assistance; and Individual and Family Services.
Overall, 18 subsectors within the nonprofit sector reported lower annual wages compared to non-nonprofit sectors, while 20 subsectors offering higher wages.
Conclusion
The nonprofit sector in Vermont is a vital component of the state’s employment landscape, providing substantial employment opportunities across different subsectors. Understanding these dynamics can help address workforce needs and improve compensation strategies within the sector.