Size and Nature: Michigan has 38,000 nonprofit organizations. Of these, 19,000 are 501(c)(3) nonprofits, which means their purpose is religious, educational, charitable, scientific, literary or cultural. Donations to 501(c)(3) nonprofits are deductible, on the federal level, within certain limits.

Scope: Michigan's nonprofit sector ranges from large institutions like Michigan State University or the University of Michigan to small groups like local food banks. Nonprofits work with every issue of concern to Michigan residents - from education to health, human services to the arts, economic development to the environment.

Roles: Michiganians look to nonprofits to:

• Deliver services needed in the community;
  
• Provide avenues for citizens to get involved as volunteers;
  
• Serve as a testing ground for solutions to community problems;
  
• Develop public policy options for government to consider;
  
• Provide a voice for underrepresented citizens;
  
• Educate the public on issues facing our society;
  
• Provide structures for citizen participation in a free society; and
  
• Provide opportunities for religious worship.

Economic Impact: Charitable organizations are sometimes called the "third economy" because of their financial prominence. Together, the annual budgets of the more than 1 million nonprofits in the country amount to $700 billion. In Michigan, the nonprofit sector spends about $27.5 billion annually, and roughly 95 percent of this remains within the state. According to the latest figures available:

• The assets of Michigan nonprofits exceed $60 billion.
  
• The nonprofit sector provides about 380,000 jobs in Michigan, an average annual wage of $26,000, and nearly $10 billion in personal income annually.
  
• The Michigan nonprofit sector is the fifth largest industry in terms of employment in the state.
  
• Michigan ranks ninth in the country in the number of charitable organizations, eleventh in the amount of assets, and eighth in the amount of annual expenditures.

Giving and Volunteering: Michigan has a long and strong tradition of giving and volunteering. According to 2001 statistics:

• Almost 90% of Michigan adults made a charitable contribution during the past year.
  
• There is a strong association between giving and volunteering, with 96.3% of volunteers also making charitable donations.
  
• Half of Michigan's adult population volunteered during the past year (50.2%).