Nonprofits Launching at Much Faster Rate Than Businesses

The nonprofit sector has grown at breakneck speed in recent years, far outpacing the expansion of private business and the overall economy, reports The New York Times.

The number of not-for-profit entities jumped by 25 percent from 2001 to 2011, according to the most recent data compiled by the Urban Institute, while the number of commercial firms rose by 0.5 percent. Nonprofits also increased hiring at a greater rate than businesses and by 2010 accounted for about 10 percent of the U.S. work force.

Economic and demographic factors have contributed to the increases, according to the Times, with an aging population driving expansion of hospitals and health systems and the Great Recession fueling demand for charities serving poorer Americans.

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