The Top 100 Non-Profits in Portland Have $13 Billion in Assets

Tuesday, September 22, 2015

Brendan Murray, GoLocalPDX Contributor

Portland's 100 richest non-profits currently hold more than $13 billion in assets. The richest charity in the state is the Oregon Community Fund, which has assets in excess of $1.6 billion.

GoLocal reviewed data released by ProPublica, to compile the list of the wealthiest charities in Portland.

Medical and educational foundations dominate the list of the 100 wealthiest charities in the city. 24 of the top 100 were medical centers or foundations that provide medical services to their constituents. 16 of the top 100 were educational institutions such as schools, colleges and universities, including three of the top ten charities.

Mark Alfano, an Associate Professor of Ethics at the University of Oregon, told GoLocal that whether or not charitable organizations should be hoarding such large sums of money depends on how and why the foundation is saving it.

“In principle, there's nothing wrong with a non-profit saving up some assets,” Alfano said. “It's all a matter of what the investments are for, and where the money is invested. If the money is mostly spent on lavish salaries and perks for c-level staff, that's a problem.”

Schools and Hospitals

Aaron Renn, a senior fellow at the Manhattan Institute, told GoLocal that hospitals and schools, which dominate the richest non-profits in Portland, straddle a fine line of non-profit status.

“There's a legitimate question of well-endowed universities,” Renn said. "Are they really truly non-profit -- like a homeless shelter is a nonprofit -- in reality, no, but what are your criteria for determining a bona fide nonprofit versus an extremely wealthy entity able to generate a large endowment and high paid executives.”

Renn also pointed to the fact that many hospitals operate on a for-profit basis.

“I would draw this distinction -- these people produce a product that produces revenue, major revenue -- but don't forget, there are for-profit hospitals, as well as for-profit universities -- it's possible to run them for profit,” Renn said. “They're non-profit due to mission-related purposes, the nature of what they do doesn't require them to be nonprofit. By contrast, most performing arts are inherently non-profit, but because by the nature of what they do they couldn't operate at a profit.”

A Problem?

Alfano admitted that non-profits would better serve the community if their large holdings of investments and other capital were spent on meeting the needs of those they claim to serve. He also noted, however, that spending money at such a fast clip would leave most charities unable to pay their bills or keep operating.

Problems arise, Alfano said, when that money is not put to use serving the foundations’ constituencies, such as when leaders make large salaries or invest money in programs that run counter to their missions.

“If it's only ever reinvested, not put to some use, that's a problem,” Alfano said. “The concern relates to investments in companies that act contrary to the non-profit's mission, such as a sustainability charity investing in big coal or in logging companies, or simply morally repugnant, such as any allegedly moral charity investing in the tobacco industry, in companies like Nike that run sweatshops, or in companies that profit from the Israeli occupation of Palestine.”

Alexander Sager, a Professor of Business Ethics and Philosophy at Portland State University, told GoLocal that non-profit charities and organizations should use their money to work towards their mission statement

“I’m surprised about that,” Sager said of the large wealth of the charities. “It’s certainly puzzling on the surface. Charities and foundations should certainly be using their money in order to do the most good.”

Non-profits “Critical” to Any Community

Larry Kaplan, who owns and operates an advocacy service for non-profits, told GoLocal that even though they do not pay taxes, non-profits are an important part of any city.

“Local, community-based nonprofits are critical to the economic and civic vitality of any community,” Kaplan said. “They provide a wide range of social services that government fails to provide, as well as mitigate the impacts of economic and social disruption on communities."

Kaplan also said that charities and foundations are being asked to give more and more in recent years, hence the buildup of assets.

“Large nonprofits are under increasing pressure to step up because of their wealth, not only in the form of revenues for government but in the form of heightened civic engagement and greater contributions to local communities,” Kaplan said. “For example, after years of pressure, the University of Southern California has taken a very active role in revitalizing the neighborhoods around its campus and investing in programs that help local schools and service providers.”

Related Slideshow: #100 to #1: Portland’s Non-Profit Organizations with the Most Money

The following only includes organizations that filed a tax return for any fiscal year during the 2012 or 2013 calendar years.

The Top 100 Non-Profits in Portland Have $13 Billion in Assets

Schools and Hospitals

A Problem?

Non-profits “Critical” to Any Community

Related Slideshow: #100 to #1: Portland’s Non-Profit Organizations with the Most Money

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