Putting the Nonprofit Sector on the Economic Map of the World Lester M. Salamon Johns Hopkins University ARNOVA Chicago November 2015 Lester M. Salmon, 2015
OUR METAPHOR
MAJOR DATA SOURCES ON THE U.S. NONPROFIT SECTOR Ø ECONOMIC CENSUS Ø IRS ADMINISTRATIVE DATA EOMF FORM 990 RETURNS
MAJOR DATA SOURCES ON THE U.S. NONPROFIT SECTOR Attribute IRS 990 NPI coverage/ identification Frequency Yes, but only filers Annual, but 2-3 year lag Economic Census Partial No educa/ Hospitals merged BUT: Every 5 years + 3 years to process Unit of analysis Classification system Organization Sui generis (NTEE) Establishment Universal (NAICS) Accuracy Problematic Uneven Precise
MAJOR DATA SOURCES ON THE U.S. NONPROFIT SECTOR Attribute IRS 990 NPI coverage/ identification Yes, but only filers Economic Census Partial No edu/ Hospitals merged BLS QCEW 97% of NPIs BUT: No separate ID Frequency Annual, but 2-3 year lag Every 5 years + 3 years to process Quarterly only 9 months to process Unit of analysis Organization Establishment Establishment Classification system Sui generis (NTEE) Universal (NAICS) Universal (NAICS) Accuracy Problematic Uneven Precise Precise
U.S. NP EMPLOYMENT vs. EMPLOYMENT IN SELECTED INDUSTRIES, 2010 Retail trade 14.5 Manufacturing NONPROFIT SECTOR* Construction Finance & insurance Wholesale trade Transportation Real estate Agriculture Mining Utilities *50 states and DC 1.9 1.1 0.7 0.6 3.9 5.5 5.5 5.5 millions of persons 10.7 11.5 Source: Lester M. Salamon, S. Wojciech Sokolowski, & Stephanie L. Geller, Holding the Fort: Nonprofit Employment During a Decade of Turmoil, (Johns Hopkins University, 2012). ccss.jhu.edu.
ANNUAL CHANGE IN EMPLOYMENT, U.S. NP vs. F-P, 2000-2010 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 -1.0% 3.3% -1.9% 2.8% -0.6% -6.2% PERCENT CHANGE 1.6% 1.8% 1.3% 1.9% 2.0% 2.2% 1.9% 1.0% 2.5% -1.1% 2.6% 1.2% -0.9% 0.8% Nonprofit For-profit Source: Lester M. Salamon, S. Wojciech Sokolowski, & Stephanie L. Geller, Holding the Fort: Nonprofit Employment During a Decade of Turmoil, (Johns Hopkins University, 2012). ccss.jhu.edu.
NP EMPLOYMENT AS A SHARE OF PRIVATE EMPLOYMENT, BY FIELD, 2010 % Nonprofit % Change in 1982 a 1997 b relative nonprofit share EMPLOYMENT Child day care 52 38-27% Job training 93 89-4% Individual & family services 94 91-3% Home health 60 28-53% Kidney dialysis centers 22 15-32% FACILITIES/ENROLLMENT Dialysis centers 58 a 32-45% Rehabilitation hospitals 70 a 36-50% Home health agencies 64 a 33-48% Health maintenance organizations 65 a 26-60% Psychiatric hospitals 19 a 16-16% Hospices 89 c 76-15% Mental health clinics 64 b 57-11% Higher education enrollments 96 d 89-7% Source: Lester M. Salamon, The State of Nonprofit America, (Washington, D.C.: The Brookings Institution Press, 2002).
CHANGE IN NONPROFITS SHARE OF EMPLOYMENT, SELECTED FIELDS, 1997-2007 FIELD CHANGE IN NONPROFIT SHARE Individual & family services -23 Community care facilities for the elderly -20 Home health care facilities -19 Specialty hospitals (other than psychiatric) -13 Outpatient facilities -8 Nursing care facilities -3 Other residential care facilities -3 Child day care -2 Source: Lester M. Salamon, Ed., The State of Nonprofit America, 2 nd Ed., (Washington, D.C.: The Brookings Institution Press, 2012).
NONPROFIT EMPLOYMENT vs. EMPLOYMENT IN SELECTED INDUSTRIES, WESTCHESTER COUNTY, 2013 NONPROFIT SECTOR Local government Retail trade Accomodation & food Administrative & support services Construction Finance Wholesale trade Manufacturing Transportation Management of companies Information Real estate Utilities Agriculture Source: Lester M. Salamon and Stephanie L. Geller, Westchester County Nonprofits: A Major Economic Engine, (Baltimore: Johns Hopkins University, 2014). Available at ccss.jhu.edu. 26,841 20,562 20,111 17,788 13,971 13,665 10,413 10,110 9,324 9,010 2,800 261 NUMBER OF PAID WORKERS 53,987 49,096 48,144
NONPROFIT EMPLOYMENT AS A SHARE OF TOTAL EMPLOYMENT, WESTCHESTER COUNTY, 2013 NONPROFIT PERCENT OF TOTAL EMPLOYMENT 13.6% 8.4% 13.1% 13.5% 15.0% WESTCHESTER Westchester COUNTY County United States NY City Nassau County NY State Source: Lester M. Salamon and Stephanie L. Geller, Westchester County Nonprofits: A Major Economic Engine, (Baltimore: Johns Hopkins University, 2014). Available at ccss.jhu.edu.
THE NEXT STEP: NONPROFIT WORKS
JOHNS HOPKINS NONPROFIT WORKS
JOHNS HOPKINS NONPROFIT WORKS
TREATMENT OF NONPROFIT INSTITUTIONS IN THE SNA Sectors of the SNA System Type of institutional unit Nonfinancial Corporations Sector S.11 Financial Corporations Sector S.12 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
GOING GLOBAL
CNP PROJECT COUNTRIES Canada Denmark Sweden Belgium United Kingdom France Germany The Netherlands Switzerland Finland Norway Austria Italy Czech Republic Poland Romania Slovakia Russia United States Mexico Colombia Brazil Chile Ireland Spain Portugal Peru Morocco Argentina South Africa Uganda Turkey Israel Ghana Lebanon India Egypt Kenya Thailand Pakistan Tanzania Australia Hungary Japan Korea The Philippines New Zealand
NONPROFIT WORKFORCE AS A SHARE OF EAP, BY COUNTRY 43-country average Netherlands Belgium Canada Israel United Kingdom Ireland New Zealand Sweden United States France Australia Denmark Japan Austria Norway Switzerland Germany Argentina Finland Chile Spain Italy 2.2% 2.5% 2.8% 2.6% 2.6% 2.8% 2.4% 3.3% 3.2% 5.6% 3.2% 7.0% 4.5% 3.7% 3.1% 2.4% 4.3% 1.5% 1.8% 2.2% 6.4% 2.7% 5.1% 4.9% 3.0% 5.9% 5.9% 2.6% 5.8% 6.2% 3.9% 5.5% 6.4% 3.1% 2.9% 3.0% 5.7% 5.0% 4.3% 4.3% 1.5% 8.6% 9.0% 7.3% 6.9% 6.8% 5.9% 10.1% 9.7% 2.3% 3.2% 10.3% 3.4% 5.8% 9.6% 9.6% 9.2% 9.0% 8.8% 8.8% 8.0% 7.8% 1.5% 13.1% 12.3% 11.8% 11.0% 10.9% 15.9% Paid workers Volunteers 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
NONPROFIT WORKFORCE AS A SHARE OF EAP, BY COUNTRY 43-country average Korea, Republic of Portugal South Africa Brazil Egypt Uganda Colombia Mexico Kenya Peru Hungary Tanzania Philippines Czech Republic India Morocco Russia Slovakia Pakistan Poland Romania 1.0% 1.3% 1.3% 1.7% 1.7% 1.7% 1.4% 1.4% 2.5% 1.4% 1.5% 1.2% 0.8% 0.8% 3.0% 2.7% 0.8% 0.8% 1.7% 1.2% 1.0% 1.0% 0.9% 0.7% 3.3% 3.1% 1.7% 2.0% 1.9% 1.9% 1.7% 1.5% 1.5% 2.2% 1.3% 2.4% 2.3% 2.2% 2.1% 2.1% 3.4% 3.3% 3.2% 4.2% 4.2% 5.5% Paid workers Volunteers 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
GLOBAL CIVIL SOCIETY, VOLUME 2
UN HANDBOOK ON NONPROFIT INSTITUTIONS
TREATMENT OF NONPROFIT INSTITUTIONS IN THE SNA Sectors of the SNA System Nonprofit Sector N = NPI Variable Production account Generation of income account Closing balance sheet Nonfinancial Corporations Sector S.11 Financial Corporations Sector S.12 General Government Sector S.13 Households Sector S.14 TOTAL NPI TOTAL NPI TOTAL NPI TOTAL NPI NPISH Sector S.15
INSTITUTIONALIZE CAPABILITIES
Belgium* Italy ** France* Sweden Canada* United States* Australia* New Zealand* Developed Countries Developing and Transitional Countries Committed Target Committed Target Europe Central Europe Portugal Norway* ** Germany North America Japan* Korea COMMITTED IMPLEMENTERS Asia Denmark Netherlands Spain United Kingdom Hong Kong Czech Republic* Slovakia Argentina ** Brazil* ** India* Thailand* Philippines Vietnam Kyrgyzstan* Korea Hungary ** Poland ** Russia Latin America Mexico* Chile Peru Uruguay Asia Bangladesh ** Other Africa and Middle East Israel* Cameroon Kenya Ghana Morocco South Africa ** Mali Uganda Nigeria Mozambique* UN Handbook commitments as of October 2011: 46 *Satellite account completed: 16 ** ILO Manual commitments as of October 2011: 8
NPISH VS. NPI CONTRIBUTION TO GDP, BY COUNTRY* AVERAGE Canada United States Belgium Japan France New Zealand Kyrgyzstan Portugal Czech Republic Thailand 0.7% 0.9% 0.8% 0.5% 0.8% 1.2% 1.7% 1.5% 2.2% 1.8% 2.0% 1.7% 2.0% 1.9% 2.8% 3.4% 3.3% PERCENT OF GDP 4.2% 5.1% 5.5% 5.5% NPISH NPI 6.9% * 10 countries; data on Israel, Mozambique, Australia, Norway, Mexico, and Brazil are not available. Source: Johns Hopkins Center for Civil Society Studies
CONTRIBUTION TO GDP, NPI vs. OTHER INDUSTRIES, 15-COUNTRY AVG. 7.8% 5.5% 6.0% 6.4% 4.5% NPIs Construction Utilites & mining Agriculture Transportation Source: The State of Global Civil Society and Volunteering: Latest findings from the implementa>on of the UN Nonprofit Handbook. (Johns Hopkins Center for Civil Society Studies, 2013).
ILO MANUAL ON THE MEASUREMENT OF VOLUNTEER WORK
NPI CONTRIBUTION TO GDP, INCL. VOLUNTEERS, BY COUNTRY 16-country average Canada Israel Mozambique United States Belgium New Zealand Japan Australia France Norway Brazil Kyrgyzstan Mexico Portugal Czech Republic Thailand 0.8% 0.8% 1.7% 1.9% 2.0% 2.0% 2.2% 1.6% 2.7% 2.0% 1.9% 2.8% 2.8% 2.3% 2.2% 2.5% 3.3% 0.6% 3.6% 0.9% 4.5% 3.6% 1.4% 4.2% 1.3% 3.4% 1.1% 5.1% 4.7% 4.6% 5.5% 0.7% 4.9% 5.2% 1.0% 5.3% 6.7% 6.6% 5.8% P E R C E N T O F G D P 7.1% 1.0% 8.1% 6.7% 7.1% 7.0% 6.6% PAID WORKERS VOLUNTEERS Source: The State of Global Civil Society and Volunteering: Latest findings from the implementa>on of the UN Nonprofit Handbook. (Johns Hopkins Center for Civil Society Studies, 2013).
Gifts in Kind Aquinas Growth Fund Charitable Remainder Trust NESTA Social Capital Partners (Canada) PHILANTHROPY S BIG BANG Bovespa Compagnia di San Paolo Social enterprise Venture philanthropy Pooled Income Funds Blended value Accion TechSoup Fidelity Charitable Gift Fund Mission investing Acumen Fund echodonations Calvert Foundation
ACTORS / TOOLS TYPES OF ACTORS Capital Aggregators Enterprise Brokers Secondary Markets Capacity Builders Online Portals Social Stock Exchanges Corp-Originated Charitable Funds Foundations as Philanthropic Banks Conversion Foundations Quasi-Public Investment Funds Funding Collaboratives TYPES OF TOOLS Loans / Credit Enhancements Bonds Securitization Equity Investments Micro Insurance Social Impact Bonds Social Investing & Purchasing Prizes, Crowd-sourcing Lester M. Salamon, Ed. The New Frontiers of Philanthropy, (New York: Oxford University Press, 2014).
LESTER M. SALAMON lsalamon@jhu.edu Website: ccss.jhu.edu Twitter: @JHUCCSS