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Nonprofit Organizations Grow Along With Economy

Orange County’s largest nonprofit organizations grew over a recent 12-month stretch as they combined to increase revenue by 9% to roughly $2.2 billion.

The latest annual growth is the fourth straight year of upward trends for nonprofit groups that have headquarters or significant operations here. It’s also the biggest year-over-year percentage jump since a downturn in 2009 and modest increases in subsequent years.

The steady increases are an indication of the reviving economy, which typically translates to increased giving.

Revenue figures for most of the entries are for 12 months through June. Others reported financial information through their fiscal years, which ended at various points, including August, December and March.

This week’s Business Journal list features 79 nonprofits, capturing a larger pool than previous lists. Some debuted as they each grew revenues past the $3 million threshold.

Three others appeared as a result of the Business Journal’s inclusion of hospitals and schools for the first time.

New No. 1

• That change brought Newport Beach-based Hoag Memorial Hospital Presbyterian onto the list at No. 1, with $969 million in revenue for the year ended Sept. 30, a 6% increase.

• Santa Ana-based Goodwill of Orange County had for years been the largest nonprofit here and is now No. 2, with 12% growth in 2012 revenue to $103 million.

The organizations, which account for 48% of the total revenue, served nearly 6.3 million people over the past year with the help of more than 171,700 volunteers.

Nonprofits continued to hire in OC, growing their collective employment base by 6% to about 15,600 as of October, following more modest growth a year ago.

The majority of the entities—49—reported increased revenues, with more than half notching double- or triple-digit gains. The Business Journal made estimates for four organizations, and 26 said their revenues decreased.

• CHOC Children’s Foundation in Orange jumped six spots to No. 6, with nearly $56 million in revenue through June versus $23 million a year ago. The foundation has 36 employees, up by 50%, and 900 volunteers, flat year-over-year.

• Santa Ana-based Orangewood Children’s Foundation had an 85% increase in revenue to $16 million, good for the No. 26 ranking, up eight spots from last year. The foundation had 70 employees as of last month, up 25%. Its volunteer base grew by 11% to 855.

Orangewood, primarily through board members and philanthropists Susan Samueli and Sandi Jackson, was behind the creation of The Academy, a charter high school in Santa Ana that opened to its first class of 120 freshmen in August.

• The Orange County unit of the Chicago-based Alzheimer’s Association debuted at No. 23, with $17.1 million in revenue through June, up from $2.6 million a year earlier. Most of the 550% jump—the largest percentage increase on the list—came from a donation by the late Helen Banas, who was a resident of Laguna Woods. She left $27 million to the national Alzheimer’s Association when she died, $17 million of which stayed with the local chapter.

“In addition to that, for the first time in our history, we had two seven-figure gifts,” said Jim McAleer, president and chief executive of the local association. “George and Julia Argyros gifted $2.5 million, and we had an anonymous donor give $1 million. The Argyros Foundation has been a supportive partner for about seven years now. We’re one of the many charities that they support, and last year they chose to do a leadership gift.”

The Alzheimer’s Association works to support research for a cure of the disease, as well as to provide care for affected individuals. It has made nine hires here over the year for a total of 39, “almost all in programs and services” roles, McAleer said.

“More people are calling, more people are coming to us,” he said. “We simply need more people [to cater to them], and we’ve invested heavily in that.”

Jamboree Housing

• Local nonprofit groups that had revenue decreases included Irvine-based Jamboree Housing Corp., which had $29.1 million in revenue through the 2012 calendar year, down about 24% year-over-year. The company, which is No. 15 on the list, is among the largest affordable-housing developers in California. It had a relatively large increase in revenue in 2011. The organization, as of October, had 27 employees, down by one from a year ago.

• Buena Park-based Giving Children Hope, No. 12, had a 21% drop in revenue through June, for a total of $30.5 million. The nonprofit trimmed its workforce by 10% for a total of 18 employees. It has 3,000 volunteers, up about 2% from a year ago.

• Tustin-based Orange County Rescue Mission fell 10 spots to No. 27, with $15.4 million in revenue through September, a 6% slip. The organization made eight hires in the past year, for a total of 95 employees. The number of volunteers for the Rescue Mission grew slightly to 3,000.


Download the 2013 OC’s LARGEST NONPROFITS list (pdf)

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