When you spend a dollar at a local business, that dollar stays in the community, fueling job creation, economic growth and a stronger Arizona. Research shows that for every $100 spent at a locally owned business, approximately $43 stays in the local economy, compared to only $14 when spent at a national chain. But did you know that nonprofits function as local “businesses,” too? Like your favorite neighborhood coffee shop or bookstore, nonprofits create jobs, provide essential services and reinvest in the community — often in ways that directly impact your daily life.
The Economic Power of Local Spending
Supporting local businesses and suppliers is a powerful economic driver. Arizona is home to more than 500,000 small businesses, employing nearly 45% of the state’s workforce. When choosing to shop locally, consumers ensure these businesses thrive, keeping dollars circulating in the community rather than funneling it to out-of-state corporations.
Local businesses also give back at a higher rate than national corporations, donating an average of 250% more to local causes and charities. They sponsor youth sports teams, contribute to local schools and help fund community events. One of their biggest contributions often goes unnoticed: their support of Arizona’s nonprofit sector.
Nonprofits: The Local ‘Businesses’ You Might Not Think About
Arizona’s nonprofits are deeply embedded in the local economy, employing more than 166,000 people (approximately 10% of Arizona’s workforce) and contributing billions of dollars to the state’s GDP. Beyond their economic impact, nonprofits shape daily life in ways that are easy to overlook.
The arts and culture activities that enrich our lives, from local theaters to museums, are often nonprofit organizations. Homeless shelters, food banks and affordable housing programs provide essential support, keeping people off the streets and ensuring families have a place to call home. Reforestation and sustainability initiatives help maintain Arizona’s green spaces, reduce urban heat and improve air quality. After-school programs and scholarships empower Arizona’s youth, giving them the tools to succeed and build a brighter future. Healthcare and crisis intervention services offer critical support, ranging from mental health counseling to assistance for survivors of domestic violence. The list goes on and on.
A Stronger Community Starts with Local Support
Choosing to shop at an independent business, hire a local service provider or donate to a nonprofit strengthens the local economy and the community as a whole. It supports the teacher who needs school supplies, the family struggling to pay medical bills, the teen who needs a mentor and the elderly person relying on meal delivery for daily nutrition.
Nonprofits and small businesses are interconnected. Many Arizona businesses actively partner with nonprofits through sponsorships, employee volunteerism and donation-matching programs. By supporting one, the other benefits as well.
The next time you make a purchase or consider giving back, think local. We encourage you to take a look at Arizona Gives, too — there are many options to fulfill giving back. Your choices have a direct impact on the community around you, shaping the Arizona we all want to live in — one where businesses, nonprofits and individuals work together to build a thriving, sustainable future.
Contact AZ Impact for Good and Arizona Gives for ways to involve your business in giving back to the community.
