The invisible nonprofit sector: employs many, spends money in communities they serve.

• Author: Barbour, Tracy
• Position: SPECIAL SECTION: PHILANTHROPY IN ALASKA - Akeela Inc - Company overview

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Rosalie Nadeau has been serving the needs of the public through Akeela Inc. for more than 20 years. When she first joined the nonprofit organization, it had an $800,000 budget and 11 employees. Now it operates with a budget of $11 million and 140 employees. "Akeela is not a tiny program anymore," says Nadeau, executive director.

Akeela offers a variety of services for the prevention and treatment of substance and alcohol abuse in Anchorage and other Alaska communities. Founded in 1974, Akeela serves the community by striving to "enhance the ability of citizens and their families to succeed in life." It offers outpatient and residential treatment, transitional housing, tobacco prevention and education, and an Alcohol and Drug Information School.

"We deal with the segment of society that most people would like to pretend is not there," Nadeau says. "But if we don't deal with them, they could be creating mayhem on the streets, breaking into homes and costing (the state) huge amounts of money."

Akeela Inc. is among the large assortment of nonprofits that form an "invisible" sector of Alaska's economy. As of Sept. 26, there were 5,976 nonprofit corporations registered and in good standing in Alaska, according to the Alaska Department of Commerce, Community and Economic Development Division of Corporations, Business and Professional Licensing. Almost 25 percent of the State's registered nonprofits are religious organizations. However, Alaska nonprofits run the gamut, from charitable organizations to civic leagues and private foundations.

"Alaska nonprofits serve a wide range of beneficiaries, both on a membership level and public level," says Don Habeger, director of the Division of Corporations, Business and Professional Licensing* "The scope of who or what a nonprofit may serve is large, especially in such a demographically diverse state as Alaska."

Alaska has numerous active nonprofits that are unregistered or unincorporated. But to officially be recognized as a nonprofit in the state, organizations must complete the formal process for incorporation. In addition, some nonprofits are required to register with the IRS to obtain tax-exempt status, such as 501(c)(3) corporations, like Akeela. These nonprofits make up the bulk of organizations in the nonprofit sector. They're exempt from the federal corporate income tax and represent a large and diverse group that includes two dozen tax codes. For instance, the 501(c)(3) code includes rules and regulations for religious, charitable and educational organizations. The code for social welfare organizations, another significant type of tax-exempt organization, is 501(c)(4).

CHARACTERISTICS OF ALASKA NONPROFITS

Regardless of their tax-exempt status and activities, the entities that constitute Alaska's nonprofit sector share six common characteristics, according to The Foraker Group Report on...