NYC Partnership economic impact analysis update, February 2002

NYC 9/11 Public Portal Document

NONPROFIT ORGANIZATIONS

While the four sectors mentioned above sustained the greatest damage in the private sector, nonprofit organizations also face serious financial problems, especially those groups that focus almost exclusively on providing social services to New Yorkers. This segment of the nonprofit world in New York accounted for $23 billion in revenue in 2000 and 5,700 organizations. This part of the nonprofit community plays a critical role, both as an advocate and as a major provider of the essential social services citywide and in communities. (The overall nonprofit sector is approximately 27,000 organizations, and it receives $80 billion annually in private and government support.)

While most organizations will experience a short-term drop in direct revenue from public and private sources, those nonprofits focused on youth, family and commimity development are likely to sustain a sharper, longer falloff in revenue. They rely heavily on government support, and the day-to-day services they provide can be taken for granted, especially when the nation’s attention is focused on nonprofits that deliver services that help people deal with the aftermath of September 11th.

SIX PRIORITIES TO ACCELERATE NEW YORK’S RECOVERY

Interviews with more than 200 leaders of the New York business community show that the private sector is committed to working collaboratively to solve these problems. New Yorkers are more united than at any time since the fiscal crisis in the 1970s. To be effective, their energies must be focused. We suggest the following priorities:

(1) Rapidly Develop a Plan for Lower Manhattan

New York City is clearly better off with at least two robust central business districts. By the same token, businesses need a variety of places to base their operations. Businesses have benefited from the attractive and competitive rents Lower Manhattan has provided for decades. In addition to fulfilling its historic role as the headquarters of the financial services industry. Lower Manhattan has attracted many small businesses and entrepreneurs who enhance and expand New York’s economy.

September 11th underscores the value of having more than one central business district. Many companies want to operate from a variety of locations to avoid concentrating all their employees and operations in the same place. Without the choice of at least two large New York City central business districts, many businesses may choose to place only some of their employees in New York City, moving the rest. (Note that the opportunity and ability to develop additional business districts in Brooklyn, Queens and on the far West Side would be enhanced by a full recovery in Lower Manhattan.)

New York City Partnership and Chamber of Commerce 15

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