The Tribune

By REV C LANE GLAZE 

of One Eleuthera Foundation

After spending 13 years in the for-profit sector as both a CPA and private banker, I transitioned my full energies to the non-profit sector in early 2001. Over the years, I’ve come to realise just how many misconceptions people have about the sector.

In my role as a professor of practice in non-profit leadership at Clemson University, I spend much of my time addressing and clarifying the unique aspects of the US non-profit sector. Here are some intriguing facts about US non-profits that many of my students find most surprising —and you might too.

Historical roots run deep:

Much like in The Bahamas, non-profits in the US have a history that stretches back well before the nation was founded (1789). In fact, one of the earliest charities was established to support formerly enslaved people, and the oldest charity that still exists in the US is the First Scots’ Society, founded in Boston in 1657.

Volunteering with and for non-profits is also a long-standing tradition that Americans and Bahamians share. According to a study by the US Census Bureau and Americorps, 75.7 million (nearly one-third of the population 16 and up) formally volunteered through a non-profit organisation from September 2022 to September 2023, demonstrating the sector’s deep community roots.

The birth of modern non-profits:

The Peabody Education Fund is considered the first “modern” nonprofit in the US. Founded in 1867 after the Civil War, the PEF was launched with a $2m gift from George Peabody. Its mission was to educate poor whites and the formerly enslaved through education funding in the southern educational system and southern states.

Revenue earning potential and going beyond public good

Most people assume that all non-profits chartered in the U.S. must exist for the public good, but this is not necessarily the case. Many professional organisations and fraternal groups enjoy non-profit status, even though they exist for the benefit of a particular member group. Additionally, it is quite normal for nonprofits to earn revenue from the sale of items. Most of us, for example, have purchased items from a museum’s gift shop. These revenues, however, may be considered Unrelated Business Income (UBI), which may also be subject to federal and state income taxes.

“501(c)3” and “non-profit” are not synonymous:

All 501(c)3s are non-profits, but not all non-profits are 501(c)3s. Many people assume that the terms “501(c)3” and “non-profit” are synonymous. This is not the case, because many non-profits are covered under different sections of the Internal Revenue Code. There are 32 different types or categories of nonprofits prescribed in the US Internal Revenue Code. However, ALL non-profits have one thing in common: they are exempt from federal income taxes.

The NP sector is a major employer with significant economic power

The non-profit sector is far from a niche or “boutique” industry. According to the US Bureau of Labor Statistics, in 2022, over 300,000 non-profit entities accounted for 9.9 percent of all employment in the US. In other words, one in ten Americans works in the non-profit sector.

Likewise, the non-profit sector significantly contributes to the overall US economy. According to Independent Sector’s “Health of the Non-profit Sector Annual Review” published in December 2024, non-profits contributed more than $1.4 trillion to the US economy in 2023.

Further, choosing a career in the non-profit sector does not mean that you are signing up for a life of financial struggle. Many people enjoy long, rewarding careers in the industry, and CEOs of larger nonprofits typically earn quite comfortable salaries. For example, CEOs of US non-profits with more than $50m in expenditures earned an average of $364,564 in 2022 (according to Statista).

As I emphasise to my students, the private and government sectors are designed to do certain things well. That being said, there are specific roles and particular community development challenges that non-profits are best suited to address. As the non-profit sector continues to grow and evolve in The Bahamas, non-profits will continue to play an even more impactful role in the country and its development, just as they have in the US for nearly 400 years.

• Rev C Lane Glaze is president/chair of One Eleuthera Foundation of the US, a 501(c)3 based in the Carolinas that exists to support the work of the One Eleuthera Foundation and its partners. An ordained United Methodist minister and former CPA and private banker, Lane also serves as professor of practice in non-profit leadership at Clemson University.