The Johns Hopkins Center for Civil Society Studies UN NONPROFIT HANDBOOK PROJECT. Lester M. Salamon

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1 UN NONPROFIT HANDBOOK PROJECT Lester M. Salamon

2 The Johns Hopkins Comparative Nonprofit Sector Project THE GLOBAL ASSOCIATIONAL REVOLUTION Forprofit Sector Civil Society Sector Government Sector

3 TREATMENT OF NONPROFIT INSTITUTIONS IN THE SNA Type of Institutional Unit Nonfinancial Corporations Sector S.11 Sectors of the SNA Financial Corporations Sector S.12 System General Government Sector S.13 Households Sector S.14 NPISH Sector S.15 Corporations C 1 C 2 Government Units G Households H Nonprofit Institutions N 1 N 2 N 3 N 4 N 5

4 The Johns Hopkins Comparative Nonprofit Sector Project C N P

5 The Johns Hopkins Comparative Nonprofit Sector Project PROJECT COUNTRIES United States Mexico Venezuela Colombia Brazil Norway The Finland Sweden Netherlands Germany Belgium Italy Czech Republic France United Kingdom Austria Poland Ireland Spain Morocco Egypt Lebanon Thailand India Israel Kenya Tanzania Uganda South Korea Pakistan Romania Slovakia Hungary Japan Argentina Peru South Africa The Philippines Australia

6 A Major Economic Force 37 Countries $1.6* trillion in operating expenditures 47.6 million FTE jobs 4.5% of economically active population 7.7% of non-agricultural employment * In 2002 U.S. dollars

7 If the Civil Society Sector Were a Country Country GDP (trillion $) United States $10.4 Japan 4.0 Germany 2.0 United Kingdom 1.6 Civil Society Sector Expenditures (37 Countries) 1.6* France 1.4 China 1.3 Italy 1.2 Canada 0.7 Spain 0.7 Brazil 0.5 Russia 0.3 * In 2002 U.S. dollars Source of GDP figures: World Bank

8 Millions of Employees The Johns Hopkins Center for Civil Society Studies Civil Society Organization Employment in Context 38 Countries Civil Society Orgs. Volunteers Paid staff 6 Utilities Transportation Construction

9 Employment in Civil Society Organizations vs. Largest Firms (37 Countries) Civil Society Organizations* Largest Private Companies 48 million 4 million * Including volunteers and religious worship organization workforce, where available.

10 Civil Society Workforce as % of Economically Active Population, by Country All countries % Netherlands Canada Belgium Ireland United States United Kingdom Israel France Norway Sweden Australia Germany Finland Austria Argentina Spain Japan Italy South Africa % % % % % % % % % % % Paid staff % Volunteers % % % % % % %

11 Civil Society Workforce as % of Economically Active Population, by Country All countries % Egypt Peru South Korea Colombia Uganda Kenya Tanzania Czech Republic Philippines Brazil Morocco India Hungary Pakistan Slovakia Poland Romania Mexico 1.1% 1.0% 0.8% 0.8% 0.8% 0.4% 1.6% 1.5% 1.4% 2.3% 2.1% 2.1% 2.0% 1.9% 2.8% 2.5% 2.4% 2.4% Paid staff Volunteers

12 The Johns Hopkins Comparative Nonprofit Sector Project NPIs AS A SHARE OF NATIONAL ECOCOMY 38 countries 4.5% Developed 7.4% Developing and Transitional 1.9% Anglo - Saxon 8.2% Welfare Partnership 7.8% Nordic 6.5% Asian Industrialized 3.3% Africa Latin America 2.5% 2.3% Other developing 1.7% Eastern Europe 1.1% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% Percent of cconomically active population

13 The Johns Hopkins Comparative Nonprofit Sector Project VOLUNTEER CONTRIBUTION TO GDP 38 COUNTRIES 38 countries 1.1% Developed 1.7% Developing and Transitional 0.5% Nordic 3.0% Anglo - Saxon Welfare Partnership 1.5% 1.5% Africa 1.2% Asian Industrialized Other developing Latin America Eastern Europe 0.5% 0.3% 0.3% 0.2% 0% 1% 2% 3% 4% Percent of GDP

14 The Johns Hopkins Comparative Nonprofit Sector Project FIELDS OF VOLUNTEER ACTIVITY, BY COUNTRY CLUSTER SERVICE FIELDS EXPRESSIVE FIELDS 37 countries 53% 41% Developed 45% 48% Developing and transitional 60% 35% Latin America 78% 20% Anglo - Saxon 58% 37% Africa 56% 33% Welfare Partnership 50% 45% Asian Industrialized 50% 30% Central / Eastern Europe 43% 50% Nordic 18% 79%

15 The Johns Hopkins Comparative Nonprofit Sector Project FIELDS OF VOLUNTEER ACTIVITY, AFRICA vs. 37 COUNTRIES 100% 90% 80% 70% 60% Other 11.1% Service fields* 38.5% Other 5.9% Service fields* 44.7% 50% 40% 30% 20% 10% Development 17.6% Expressive fields 32.8% Development 8.3% Expressive fields 41.1% 0% Africa 37 countries

16 The Johns Hopkins Comparative Nonprofit Sector Project CIVIL SOCIETY ORGANIZATION PAID VS. VOLUNTEER LABOR, 36 COUNTRIES Volunteers 44% Paid Workers 56% n=45.5 million (including religion)

17 The Johns Hopkins Comparative Nonprofit Sector Project SOURCES OF CIVIL SOCIETY REVENUE (34 COUNTRYAVERAGE) Philanthropy 12% Government 34% Fees 53%

18 THE PROBLEM Institutionalization Additional Variables Relationships with Other Sectors

19 RATIONALE A significant and growing force Increased policy interest

20 RATIONALE A significant and growing force Increased policy interest Distinctive features

21 Distinctive Features of NPIs Different production function Public-goods production Governance Revenue structure Staffing Tax treatment Legal treatment

22 THE SOLUTION System of National Accounts

23 The Johns Hopkins Comparative Nonprofit Sector Project

24 KEY REFINEMENTS IN HANDBOOK MEASUREMENT OF NPIs Satellite Account

25 TREATMENT OF NONPROFIT INSTITUTIONS IN THE SATELLITE ACCOUNT Variable Sectors of the SNA System Nonprofit Sector N=ΣNPI Nonfinancial Corps Sector S.11 Financial Corps Sector S.12 General Gov t Sector S.13 Households Sector S.14 NPISH Sector S.15 TOTAL NPI TOTAL NPI TOTAL NPI TOTAL NPI TOTAL NPI Production Account Generation of income account Closing Balance Sheet

26 KEY REFINEMENTS IN HANDBOOK MEASUREMENT OF NPIs Satellite Account Refined definition of NPIs

27 NPI HANDBOOK DEFINITION OF THE NONPROFIT SECTOR The Nonprofit sector consists of units that are: a. organizations; b. not-for-profit and non-profit-distributing; c. institutionally separate from government; d. self-governing; e. non-compulsory.

28 KEY REFINEMENTS IN HANDBOOK MEASUREMENT OF NPIs Satellite Account Refined definition of NPIs Volunteer labor Non-market output of market NPIs

29 KEY NPI SATELLITE ACCOUNT TASKS Expand business registers Add NPI Flags Expand establishment survey coverage/content Tap administrative records Conduct volunteering surveys

30 POTENTIAL DATA ON NPIs FROM SNA Structure Finances Output and impact

31 POTENTIAL DATA ON NPIs FROM SNA STRUTURE VARIABLES Entities Members Employees Volunteers Volunteer hours

32 POTENTIAL DATA ON NPIs FROM SNA FINANCIAL VARIABLES Expenses Operating expenses Other expenses Revenue From sales, fees, investments From government From private philanthropy Assets Liabilities

33 CIVINET Civil Society Information Network Action Plan 1. Dissemination/Briefings 2. Mobilization 3. Training 4. Technical Assistance 5. Monitoring 6. Refinement and Revision 7. Advisory Sessions 8. Data Assembly, Analysis and Reporting

34 PROGRESS TO DATE UN HANDBOOK IMPLEMENTATION Eurostat Workshop, December 2002 Briefings: EFC; ISTR; statistical offices in Brazil, Chile, Mexico, Morocco, New Zealand, Portugal, Kenya, UK, France European Commission DG XXIII Workshop, April 2004 Partnership agreement with United Nations Volunteers Partnership agreements with U.N. Economic Commissions for Latin America, Africa, Asia Latin American Regional Workshop, September 2004 African Regional Workshop, March 2005 Latin American implementers workshop, May 2005 International Advisory Committee Meeting, June 2005 Asian Regional Workshop, September 2005

35 U.N. Handbook Implementers and Target Countries Developed Countries Developing and Transitional Countries Europe Belgium + France + Italy + Netherlands Denmark Germany Central Europe Czech Republic + Slovakia+ Hungary Poland Russia North America Canada + United States + Latin America Argentina + Brazil +** Peru + Chile Mexico Asia Australia + New Zealand + Japan+ Hong Kong, China Korea Singapore Asia Kyrgyzstan +** Philippines +** China Bangladesh India** Thailand Vietnam Pakistan Other Israel + Africa and Middle East Kenya +** Morocco +** South Africa +** Egypt Mali ** Mozambique ** Tanzania Uganda As of August 26, committed (19) ** = UN Volunteers countries (9)

36 NPI SECTOR SHARE OF VALUE ADDED, BY INDUSTRY (in percent) INDUSTRY Italy Netherlands Education Health & social work Other community, social & personal service All other industries Total economy

37 Volunteer Share of Total NPI Employment, Selected Countries All Fields 15% 22% 32% Culture and Recreation 36% 59% 71% Education Health 3% 1% 5% 14% 16% 14% Belgium Canada Australia Social Services 7% 36% 50% Other 15% 36% 50% 0% 10% 20% 30% 40% 50% 60% 70% 80% Volunteer Share of NPI Employment

38 Gifts of Time as Share of Total Philanthropy, Selected Countries Country Volunteers as % of All Philanthropy 10% 20% 30% 40% 50% 60% 70% 80% Australia 73% Belgium 68% Canada 67%

39 Billions of Canadian $ The Johns Hopkins Center for Civil Society Studies Contribution to GDP, Volunteers vs. Selected Industries, Canada 15 $14.1 billion $12.8 billion 10 $6.1 billion 5 Volunteers Motor Vehicle Mfg. Agriculture

40 How Can Better Data on Civil Society Help? Visibility/Legitimacy Improve policy-making Increase transparency/accountability Improve National Accounts Chart NPO contribution to MDGs Spot trends/problems Reflect unique social and economic features of countries and regions