The Gentle Giant

Sarah Owen knew her job had advanced to a whole new level when she stepped into a walk-in refrigerator in the middle of the night and stared at the dozens of chickens waiting for her. She had just hours to turn this fowl nightmare into meals for more than 300 hungry people.

Owen, a part-time executive director at the Lee County Meals on Wheels, had been thrust into a lead role at its partner organization, The Soup Kitchen, upon the death of that charity's boss, hence the poultry duty.

Since that time, Owen, her staff and volunteers have expanded the operations and services of these agencies. They developed a crisis plan, pooled their volunteers and streamlined the overall operations. But the biggest step came this past summer, when The Soup Kitchen, Meals on Wheels, Faith In Action Caring for the Elderly and Hands & Hearts Childcare all merged under the umbrella of Community Cooperative Ministries Inc.

The rapid change at CCMI reflects what's happening all across Southwest Florida-more nonprofits setting up branches or headquarters here, more nonprofits growing and merging, and more nonprofits upgrading operations and management professionalism. All are vying for the many philanthropic dollars available in the region and serving a rapidly expanding population that is often split along socioeconomic lines.

The bottom line? Nonprofits are big business here.

While lots of people in Southwest Florida donate money and time to local nonprofit groups, it's a safe bet few of them fully comprehend the magnitude of the industry. Without a doubt, the business of nonprofits ranks right up with tourism, real estate and construction as one of the major tent poles supporting Southwest Florida's economy and rapid growth.

Don't believe it? Check out these eye-opening statistics.

According to the Urban Institute's National Center for Charitable Statistics, 343 Lee County nonprofits had assets of more than $876 million in 2002. Those same organizations spent nearly $386 million that year, most of it locally. The numbers are even more impressive in Collier. There, 216 nonprofits had more than $899 million in assets and spent more than $555 million that year.

Mind you, these numbers represent only charities that take in $25,000 or more a year. Thousands of smaller organizations across Florida aren't included.

"Of the 42,000 nonprofit 501(c)(3) organizations in Florida, only 14,000 have incomes of over $25,000," says Marina Pavlov, president of the Florida Association of Nonprofit Organizations, based in Miami Lakes. "The remaining 28,000 are under the radar. If each has an average of $15,000, that would be an additional $420 million."

In 2000, the Johns Hopkins Center for Civil Society Studies reported that Lee County nonprofits had more than 9,000 employees representing 5.6 percent of the county workforce. In Collier, more than 7,000 people are working for not-for-profit organizations, or NPOs, making up almost 7 percent of the workforce.

"People don't realize how immense the nonprofit sector is," says Pavlov. "Our studies have shown the number of people who work for nonprofits is similar to [that] in the construction industry. Construction is so visible. Think of all the roadwork and cranes you see. Now think of all the nonprofits working to help people, but they're not as visible," she says.

Casting a wide net

"Most people have the perception that the nonprofit work is dominated by small agencies run completely by volunteers. There certainly are a lot of agencies like that," says Cliff Smith, president of the Lee County United Way. However, there is another end to the nonprofit spectrum-one populated by some of the biggest players in the region, he points out.

Lee Memorial Health System is technically a nonprofit, along with its charitable arm, the Lee Memorial Health System Foundation. Parts of Florida Gulf Coast University count as a nonprofit. So does Edison College's foundation. Collier's NCH Healthcare System is a nonprofit. So are the David Lawrence Center and the Naples Philharmonic.

Add in churches, parochial schools and other religious organizations, and the list gets longer.

Most of these outfits are 501(c)(3)s-the most common Internal Revenue Service designation for a typical charity or similar organization. Some also have quasi-governmental status. Altogether, there are more than two dozen different types of nonprofits, according to the IRS, with varying degrees of tax exemptions and governing rules.

These local giants and others like them represent some of the largest employers in the area.

"We're like a shadow," says Carolyn Moore, the executive director of the Island Coast AIDS Network. "People don't realize the extent of what we do."

Affluence pays-to a degree

It's easy to figure that the abundance of wealth in Southwest Florida means nonprofits here are rolling in dough. From wealthy retirees in places like Naples, Sanibel and Captiva to the many real estate and financial institutions with operations here, the region has its fair share of monies available for charitable giving.

Ernie Bretzmann, executive director of the United Way of Collier County, puts it succinctly. "Affluence does make a difference," he says. "Many folks who are affluent like to support nonprofits, and the affluence here will also attract nonprofits to our area."

But the situation is not that cut-and-dried. Although some organizations are able to attract top-dollar donors in Southwest Florida, others have to fight for every penny.

Meg Geltner, the general manager for The Salvation Army of Lee County, has worked in nonprofits for more than 20 years. She says giving patterns in Southwest Florida are similar to those in communities across the state. Some, such as Miami-Dade and Broward, have even created taxes to support nonprofit agencies in their areas.

Geltner says that on our coast, the gap between the haves and the have-nots is reflected in which charities receive the most attention and the most money. "It's very simple to raise money for trendy causes. The Phil, arts and culture in Collier County-they get great support. In Lee County, look at the success of fundraising for the Children's Hospital or for Florida Gulf Coast University," Geltner says. "Then you look at not-for-profits like Big Brothers Big Sisters or the Boys & Girls Clubs. They are struggling financially."

Growth means more money-and complications

Just as Southwest Florida has grown in amazing leaps and bounds over the past 10 years, so too have many nonprofits. However, few have experienced the rocket-like trajectory of the Naples Children and Education Foundation, the organization behind the annual Naples Winter Wine Festival.

In 2000, a group of 18 wealthy Neapolitan couples decided to hold a wine festival to raise some money for the Boys and Girls Clubs of Collier County and the Youth Haven, a residential facility for abused children.

The first festival was held in 2001 and raised a stunning $2.2 million for the grateful charities.

Fast-forward five years, when the 2006 event raised $12.2 million, distributed to 18 area nonprofits. "Our growth is due to the success of our fundraiser," says Dawn Montecalvo, NCEF's executive director. "We have raised so much money, we have a responsibility to the community to be good stewards of those funds."

Rapid growth can take smaller nonprofits to a critical point in their organization's history. Lee United Way's Smith says he has seen many grassroots organizations thrive on the passion and enthusiasm of their volunteer staff-to a point. As a nonprofit grows and gets more sophisticated, one of two things usually happens-it either gets stuck on a plateau or it brings in professional help to push it to the next level.

"If you double the number of people you help, if you double the number of programs, then you sometimes need to go to the next level of expertise to be productive," Smith says.

This help can include a paid staff, such as an executive director, assistant directors, marketing staff, financial staff and support staff.

The NCEF and the Naples Winter Wine Festival started with volunteers, and then hired one full-time staffer the first year. Today there are five full-time staffers, including a recently hired grant administrator who oversees the festival's contributions to many charities supported by the NCEF.

"There's a need for staff, a need to focus on the growth of the organization to make sure the standards we created are kept," Montecalvo says. "It's important to work with your board to keep you focused on your missions and goals. Treat [the nonprofit] like a business and work with your board to treat it like a business."

Meager salaries? Not always.

A stereotypical description of a typical nonprofit might include a mostly volunteer staff, working feverishly in an office furnished with card tables and folding chairs. The few paid staff members work for a pittance, comforting themselves with the knowledge that they are helping people and making a difference.

In reality, large nonprofits operate out of fully functioning offices replete with computers and other high-tech equipment. The paid staff members, especially the top positions, are often comfortably compensated-something that sometimes surprises donors.

"Nonprofits are run by volunteers, right? Wrong! Nonprofits are actually run by professionals, [including] doctors, lawyers, social workers and teachers," Pavlov says. "In Florida, of the $38 billion spent [by nonprofits], $10 billion is for employee-related expenses. No machine can ever take care of a child, a senior or a disabled person."

Edward Morton, CEO of NCH Healthcare System, earned more than $712,000 in 2004. Samira Beckwith, president of Hope Hospice, will make $220,000 this year. In 2004-2005, David Schimmel with the David Lawrence Center was paid $144,000 base. (The salary information was provided by the organizations.)