Defining contracts between the state and charitable organisations in national accounts: a perspective from the UK

This paper explores the issues inherent in defining contracts for service delivery between the state and charitable organisations, and in differentiating them from grants. It begins by making the point that there is no one correct definition of a contract; rather, it is a function of its purpose. It then details our work in developing a definition of a contract within the national accounting tradition, as part of a study of the contribution of charitable organisations to the GDP of the United Kingdom. The paper ends by drawing some general conclusions from this experience.