Charitable Sector Profile: Houston

Surplus Abounds for Charities in Houston

Charity Navigator's sixth annual study examined the differences that exist in the financial practices of charities located in 30 metropolitan markets across America. The 74 largest charities in Houston exhibited the following:

Large charities in Houston operate well within their budgets: Charities in Houston do not spend beyond their means. These charities report a median surplus of $818,975 in their most recent fiscal year. This represents the greatest surplus among all 30 metropolitan markets in the study, and is well above the national median of $255,526.

The overall ranking of Houston improves: Except for last year when this market slipped to 10th place, Houston’s philanthropic community has consistently ranked among the Top 5 for its overall fiscal health. This year, with a 56.74 median overall score (out of 70), Houston’s nonprofits possess the third highest rating in this study, outperforming 27 other markets - including Dallas. Only Miami (58.37) and San Diego (57.90) earned higher scores.

Houston’s largest charities are growing: The annual revenue growth rate seen among Houston’s charities increased from a median 4.3% (6th slowest) last year to 9.2% (4th fastest) this year. Similarly, the annual program expense growth rate for Houston’s charities increased from a median 5.5% (ranked 15th) last year to 6.5% (ranked 12th) this year.

Large charities in Houston are more efficient than large charities in other cities: Houston charities have the 5th best ‘organizational efficiency’ score among the 30 markets in the study. Four key indicators are used to determine how efficiently and responsibly a charity functions day to day and Houston’s charities excel in three of these: (1) high percentage of budget spent on programs and services (ranked 3rd), (2) low percentage of budget spent on administrative fees (ranked 2nd), and (3) low amount spent to raise a dollar in contributions (ranked 9th).

Houston’s nonprofit marketplace is focused on human services: 29% of the charities in Houston are classified as human services for their role in providing direct services to people in need. In contrast to Dallas’ high concentration of religious groups (20%), Houston has just 3% of such charities. Nationally, 20% of the largest charities in America are classified as human services and 7% are classified as religious.

Just under half of Houston’s charities have donor privacy policies: 49% of Houston’s charities have established guidelines to protect their donors’ confidential information. Nationally, 43% of charities have these policies.

FOR MORE INFORMATION CONTACT:
Sandra Miniutti, Vice President, Marketing
(201) 818-1288 x105
media@charitynavigator.org

  Median Value
Performance Metrics Houston National
Program Expenses 83.4% 80.7%
Administrative Expenses 7.7% 9.7%
Fundraising Expenses 7.9% 7.5%
Fundraising Efficiency $0.090 $0.100
Primary Revenue Growth 9.2% 6.6%
Program Expense Growth 6.5% 6.1%
Working Capital Ratio 0.71 0.70
Overall Score 56.74 54.26
  Median Value
Size Metrics Houston National
Total Revenue $6,118,901 $4,868,385
Total Expenses $5,652,154 $4,327,121
Excess (or deficit) $818,975 $255,526
Total Assets $8,405,149 $7,024,941
Total Contributions $4,482,944 $3,271,779
CEO Compensation $116,379 $114,038

Size & Wealth
Houston Charitable Market


Distribution of Houston Charities

© 2008 Charity Navigator. Note: all data is based on Charity Navigator's May 2008 Metro Market Charitable Analysis Study. These sector reports do not claim to represent median data for all charities. Charity Navigator is the largest evaluator of 501 (c) (3) charities in the U.S.