A Five-Year (2003 - 2005) Analysis of the Non-Profit Sector in El Paso County, Texas

Released August 2009

THE INFORMATION CONTAINED HEREIN SHALL NOT BE REPRODUCED OR DISCLOSED IN WHOLE OR IN PART EXCEPT WHEN SUCH USER POSSESSES DIRECT, WRITTEN AUTHORIZATION FROM HELIX SOLUTIONS.

Helix Solutions has conducted strategic planning and evaluation services for clients in El Paso, Texas including the College of Health Sciences/School of Nursing at the University of Texas at El Paso (UTEP), United Way of El Paso County, Ysleta Independent School District, Creative Kids, Inc. and Paso del Norte Health Foundation. In order to learn more about the non-profit sector in our market area, we decided to conduct a study of the non-profit organizations in El Paso County and determine how these organizations have evolved over the last five years (2003-2008). Although data about non-profits do exist, we found that the information and analysis of non-profit organizations in El Paso are limited, especially when compared to Texas. Using data obtained from the National Center for Charitable Statistics (NCCS) and the Internal Revenue Service (IRS), we were able to portray El Paso’s changing face of non-profit organizations.

The findings of this study have utility in addressing the following questions:

  • How does El Paso non-profit community compare with the State of Texas?
  • Are we adequate, inadequate, or how do we compare with statewide indicators?

Using the data available from NCCS, we employed the location quotient (LQ) approach as the economic analysis technique to compare El Paso County’s non-profit revenue share to the State of Texas’s non-profit revenue share. As previously mentioned, two data sets were used to analyze the landscape of El Paso’s non-profit sector and facilitate the creation of the profiles. In addition, the study utilized the National Taxonomy of Exempt Entities – Core Codes (NTEE-CC), which is an organizational classification system arranged in twenty-six classes, called major groups. An analysis of the El Paso non-profit sector examines the organizational distribution in twenty-six major codes.

Significant findings of the study are:

  • Approximately 55% the total public charities in El Paso County registered with the IRS are classified in either of the following types of organizations: religion-related (23.5%); education (20.5%); or arts, culture, and humanities (10.5%).
  • As of January 2008, the El Paso County non-profit community reported a total of $643 million in total revenue and $603 million in assets, while the State of Texas reported over $55 billion in revenues and $114 billion in assets.
  • In El Paso County, the employment sector accounted for approximately 45% of total revenue while the human services sector contributed 20%.
  • Nearly 63% of the public charities in El Paso produce annual revenues of a quarter of million dollars or less while only seventeen percent or sixty-six organizations generate total revenue of a million dollar or more per year.
  • El Paso County’s non-profit community increased its total annual revenue from $463 million in 2003 to $643 million as of January 2008, which outpaced Texas and the United States.
  • Over 40% of the non-profit sectors in El Paso County have LQ ratios less than 0.75, an indicator that these industries receive less revenue share when compared to the State of Texas.

The full report provides details for the following findings:

  • Identifies the top three sectors in El Paso County with the highest five year growth, finds four new sectors reporting zero revenue in 2003 and in 2008 reporting a total income of over $2.5 million, and finds seven sectors reporting less revenue between 2003 and 2008.
  • Average Annual Growth Rate (AAGR) by Non-Profit Sectors is reported for El Paso County.
  • Revenue Location Quotient (LQ) Ratios are reported by El Paso County Non-Profit Sectors and the LQ Ratio
  • Percent Change by Non-Profit Sector in El Paso County (Revenue) is reported between 2003-2008.
  • Fiscally challenged non-profit sectors in El Paso County were identified utilizing defined decision rules using the Average Annual Growth Rate (AAGR) for revenue, LQ ratio technique, and the percentage change of LQ over time as primary indicators.

The study provides insight for El Paso County Non Profits to ask themselves, “What are the implications of these findings?” or “What does this mean for El Paso’s non-profit organizations?” The significance may be that it is time for non-profits to review their strategic plan and better understand their organization’s strengths, weakness, threats, and opportunities.

Helix Solutions is available to assist non-profit organizations and government agencies to develop strategic plans as well as to provide program evaluation services. The strategic planning process and the resulting plan may enhance the organization’s effectiveness and efficiency, improve understanding, promote learning, all of which result in better decision making.

If you feel your organization can benefit from a full and FREE COPY of the report that includes tables and figures, please feel free to download a copy (download icon located on the top of this page). If you have any questions or comments about the document, contact the undersigned:

Christopher Villa
Phone: 915/526-2042
Email: christopher.villa@gmail.com