Charitable Sector Profile: Indianapolis

Indianapolis’ Charities Are in the Red

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 34 largest charities in Indianapolis exhibited the following:

Indianapolis’ philanthropic community is the only city reporting a median deficit: The first year this market was included in the study (2004), its charities reported the greatest median surplus. Since then, the surplus has steadily declined. This year, large charities in Indianapolis are the only ones reporting a deficit (-$12,783). Nationally, charities are reporting a median surplus of $255,526.

Nonprofit leaders in Indianapolis consistently earn less than those in other cities helping to keep administrative costs low: The median compensation awarded to Indianapolis CEOs is just $90,682 (ranked 30th). For each of the five years Indianapolis’ philanthropic marketplace has been included in the study, it has reported the lowest CEO compensation. Low salaries help these charities keep overhead costs down. While the national median is 9.7%, Indianapolis’ largest charities spend just 9.2% of their budget on administrative expenses (ranked 9th).

Indianapolis’ charities are among the slowest growing in the nation: With a median annual revenue growth rate of just 2.1% (ranked 30th) and a median annual program expense growth rate of 4.9% (22nd), Indianapolis has one of the slowest growing philanthropic markets in the study. This is well below the national medians for revenue growth (6.6%) and expense growth (6.1 %).

For the third time in the history of this study, Indianapolis’ charities rank second worst in the nation for their financial health: Indianapolis charities earn a median overall score of 51.03 (ranked 29th). Only Detroit scored lower (50.98). Previously, this marketplace ranked 13th worst (2004), 2nd worst (2005), 2nd worst (2006) and 4th worst (2007).

Indianapolis has one of the highest concentrations of human services charities: 34% of the largest charities in Indianapolis are categorized as human services for their role in providing direct services to people in need. Only Miami, St. Louis and Phoenix have a comparable concentration of human services charities.

Nearly half of Indianapolis' charities are committed to protecting their donors’ privacy: 49% of Indianapolis' charities have donor privacy policies that prevent them from selling or trading 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 Indianapolis National
Program Expenses 81.6% 80.7%
Administrative Expenses 9.2% 9.7%
Fundraising Expenses 8.5% 7.5%
Fundraising Efficiency $0.130 $0.100
Primary Revenue Growth 2.1% 6.6%
Program Expense Growth 4.9% 6.1%
Working Capital Ratio 0.71 0.70
Overall Score 51.03 54.26
  Median Value
Size Metrics Indianapolis National
Total Revenue $4,840,948 $4,868,385
Total Expenses $4,840,851 $4,327,121
Excess (or deficit) $-12,783 $255,526
Total Assets $8,920,734 $7,024,941
Total Contributions $2,923,593 $3,271,779
CEO Compensation $90,682 $114,038

Size & Wealth
Indianapolis Charitable Market


Distribution of Indianapolis 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.