Economic Impact of Non-Profits in Frederick

A recent study issued by the Maryland Nonprofits Association called “Maryland Nonprofits by the Numbers” by Johns Hopkins Center for Civil Society, states that the nonprofit industry sector is the second largest non-government workforce in Maryland. The 2021 study goes on to state that the 30,880 statewide public-serving nonprofits employ 280,000 individuals paying $16 billion in wages. 

These impressive numbers come as no surprise here in Frederick. Non-profit organizations have long-been a cornerstone of our community life. As illustrated at the state level, these organizations offer important employment opportunities in the City. However, non-profits also critically serve as stewards of huge volumes of donated capital and volunteer hours. By converting these resources into needed goods and services, non profits provide significant economic relief to our local families and local government.

Below we take a quick look at some of the facts and figures of our local non-profit community:

  • There are approximately 1,000 non-profits based in Frederick County.

  • With 112 non profits registered as Frederick County Chamber of Commerce members, the non-profit sector is the largest industry sector represented in the local Chamber.

  • Non-profit organizations provide significant employment opportunities across Frederick. In a survey conducted in 2018 by the Chamber, the non-profit community was found to pay over $80 million in annual wages/salaries. Factoring in both inflation and local growth, this number is anticipated to have increased over the past 5 years.

    Today, three non-profits — Frederick Health Hospital, YMCA of Frederick County and Shepherd Pratt — rank on our City’s Top 20 Largest Employers list and together host over 4,000 employees.

  • The non-profit community is also pivotal to mobilizing resources community-wide. According to a report by ESRI, nearly 11,000 City residents have volunteered for charitable organizations within the last 12 months. This number represents more than 13% of the City’s entire population. An estimated 3,300 City residents also serve on a committee for a non-profit organization.

  • In addition to organizing volunteer hours, non-profits are stewards of sizeable monetary donations by our community. The 2018 Chamber study found that Frederick County’s philanthropic impact surpassed $50 million annually (as of 5 years ago). Currently, disposable income labeled as “Cash gifts to charities” by City residents alone is estimated to be nearly $20 million annually (ESRI).

  • Nonprofits play a key role in converting these donations into real services. Frederick’s non-profit organizations help address a diverse set of social problems and issues — including human/social services, education, arts/culture, and health & wellbeing.

  • The Chamber’s 2018 study estimated the value of local non-profits’ community services at more than $92 million annually. This impressive figure represents a major source of economic relief provided to both the local government and families/residents.


Interested in learning more about Frederick’s economy?

Explore our website at www.businessinfrederick.com.