Tax-based research and data on non-profit organisations

Tax-exempt, non-profit organisations represent a significant and growing sector within the US economy. Between 1975 and 1990, assets of tax-exempt organisations increased in real terms by over 150 per cent while the revenue increased by over 227 per cent. This compares to a growth in real GDP of 52 per cent over the same period. A variety of tax policy issues on tax-exempt organisations and the non-profit sector can be addressed using several sources of data collected by the IRS from federal information and tax returns of exempt organisations. The Statistics of Income (SOI) Division, using sample data, conducts studies of many of the different components of the tax-exempt sector, including non-profit charitable organisations, organisations exempt under sections 501(c)(4)-(c)(9), private foundations and 4947(a) charitable trusts, and the unrelated business income of tax-exempt organisations. Income statement, balance sheet and other financial data, as well as a great amount of non-financial information, are collected in these SOI studies. The primary purposes of this article are: first, to document the role of the non-profit sector in the US economy and the evolving growth and change within the sector from the mid-1970s through to the present; and, second, to describe the ongoing SOI studies of tax-exempt organisations, the products and services available through SOI, and the future statistical plans at SOI for data collection and analysis of tax-exempt organisations and the non-profit sector.     

The possible role of the non-profit sector in Hungary

A common feature of most non-profit theories is their concentration on the service-providing role of non-profit organisations, and the neglect of their redistributional role. At the cost of some simplification, there are two possible public policy responses to social inequalities: (1) the welfare state model with welfare redistribution under government control; and (2) the non-profit-based model — a large network of private organisations heavily supported by the government and complemented by government delivery of services. After 40 years of state socialism, Hungary now faces some important questions. What will be the role of the new voluntary sector? What are the possibilities of following the Western European route — a version of the welfare state model — or the American way — a non-profit-based model bolstered by ‘third-party government’? The present Hungarian situation is ambiguous; we can find arguments for and against both. It is also argued that a mixed solution, some cooperation between the public and private sectors, is needed. The Western European, American and Hungarian experiences indicate that only a strong for-profit sector and a developed, harmonious government/non-profit partnership can ensure healthy social and economic development. The present Hungarian situation is far too complex and difficult to promise a fast and conflict-free establishment of this partnership. But both public institutions and government are acting in a way that may result in the development of a government-supported non-profit sector. There may be an opportunity for developing a ‘Hungarian welfare state model’.     

Non-governmental organisations and philanthropy in Latin America: An overview

This article provides an overview of the emerging non-profit or voluntary sector in Latin America. Specifically, the article addresses the differences and communalities these non-profit organisations have across the region. It concludes by emphasising the huge variety of roles and functions performed by non-profit organisations within and across countries, and their often ambigious position between the private and public realms.     

Agriculture as an upholder of cultural heritage? Conceptualizations and value judgements—A Norwegian perspective in international context

The multifunctional role of agriculture as a producer of collective goods in addition to food and fibre, has been stressed within the context of negotiations on the liberalization of the world market for food (WTO) and in general in discussions concerning restructuring of the agricultural sector. One of these collective goods, cultural heritage, is connected to agricultural practice and covers objects, sites and areas influenced by agricultural activity, as well as experience based knowledge of work, resource utilization and management. Agriculture is seen both as a threat to and a caretaker of cultural heritage. This double role is recognized in Norway, although the responsibility of the agricultural sector as a caretaker of cultural heritage is stressed. This article investigates the connection between agriculture and cultural heritage as expressed by public and private actors who define the policy agenda, namely the cultural heritage or environmental, the agricultural and tourism sectors. This is done by analysing explicit and implicit value judgements in central concepts like “cultural heritage”, “active agriculture” and “added value”. The Norwegian case is compared to the international context. The analysis shows that within a Nordic context active farming and cultural heritage is positively linked and the farmer is seen as a major caretaker, while in documents from dominant international actors cultural heritage is seen as something on the side of active farming. Although differences reflect some actual variation in the consequences of agricultural practices, it is clear that concepts serve as ‘legitimizing tools’ placing central actors within a specific political agenda.     

Comment on Stephen M. Wunker, ‘the promise of non-profits in Poland and Hungary: an analysis of third sector renaissance’

The pre-war Hungarian voluntary sector was relatively weak as a service-provider, but played major social and political roles, and was an important vehicle of the self-organisation of society. That is why state socialist governments could develop the nationalised system of social services quite easily, but could not completely destroy citizens' autonomy, solidarity and private initiatives. Both the pre-war traditions and the social and economic forces brought about by state socialism are of crucial importance in shaping the newly emerging Hungarian non-profit sector. The traditional government/non-profit partnership may be the basis for contracting out state-financed public services. At the same time, voluntary organisations are expected to plug the gaps present in the state socialist service system. Large government-funded non-profit organisations may play an important role in the denationalisation process, some of them can be appropriate means of assuring that the grant making procedure remain free from politicisation.     

A profile of the non-profit sector in Romania

With the revolution of December 1989, citizens of Romania gained the right to form non-profit organisations for the first time in 40 years. Since then, Romania has begun to explore the frontiers of private initiative through the introduction of non-profit, non-governmental organisations as well as profit-making businesses. In this article we review the historical development and legal framework of Romania's emerging non-profit sector. We also provide the first empirical snapshot of that sector by applying the International Classification of Nonprofit Organizations (ICNPO) developed by Salamon and Anheier to 499 organisations identified in theSoros Catalogue of Nongovernmental Organizations in Romania: 1991–92. Finally, we speculate on the future development of the Romanian non-profit sector by considering alternative scenarios involving the relationships between indigenous nonprofits, international NGOs and the Romanian government.     

The Social Economy in Bolivia: Indigeneity,Solidarity, and Alternatives to Capitalism

The social economy (SE) is alternatively conceptualized as a third sector (between the private and public sector); or by a typology of the organizations involved (such as cooperatives, non-profit organizations and social enterprises); or by the principles and values driving such activities (such as cooperation, mutual benefit, and democracy). One important consideration is often overlooked, namely that the SE emerges in different forms and with varied emphases depending on location. The SE is ‘place-based’—rooted in specific geographic, historical, cultural, and socioeconomic settings. This article explores the conceptualization of the SE in the Bolivian context from the perspective of government and civil society actors. The research took place after the country recognized the importance of the social, cooperative and community economy in their new constitution and found that the understanding of the SE in Bolivia relates strongly to the country’s indigenous and colonial heritage.     

Bulgaria's non-profit sector: the search for form,purpose, and legitimacy

Bulgaria, like other East European nations since the collapse of communism, has moved rapidly to form private, self-directed non-profit and voluntary organisations. Like those nations too, Bulgaria faces a number of challenges in its pursuit of forming a strong non-profit sector. Chief among those challenges are establishing a sound legal foundation, defining the social purposes and functions of the non-profit sector, and establishing the legitimacy of these organisations in the minds of the Bulgarian people. These three challenges are analysed in the essay, following an overview of the current make-up and characteristics of the emerging non-profit sector.     

Part of the welfare mix: The third sector as an intermediate area

This article presents a conceptional framework which analyses the third sector as a part of a mixed welfare system, otherwise made up of the market, the state and the informal private household spheres. From this perspective, the third sector appears as a dimension of the public space in civil societies: an intermediate area rather than a clear-cut sector. Third sector organisations are understood as polyvalent organisations whose social and political roles can be as important as their economic ones; they are portrayed as hybrids, intermeshing resources and rationales from different sectors. In present policies of ‘welfare pluralism’ the emphasis is consequently more on ‘synergetic’ mixes of resources and rationales than on mere issues of substitution processes between different sectors of provision. The last section discusses the potential distinguishing features of such policies with respect to ‘pluralist’ approaches which try to safeguard the conventional hierarchies in a mixed economy of welfare. This paper draws in part on the author's introduction to Evers and Svetlik (1993).     

Mapping the non-profit sector in the United States: implications for research

The need for a national typology of the US non-profit sector has long been recognised. A typology which could better define and describe the variety and diversity of non-profit organisations by type or major function will serve numerous research and public policy uses. This article describes the essential elements of the National Taxonomy of Exempt Entities (NTEE), developed over almost a decade after extensive consultation with agencies in the non-profit sector and the United States government. The article reports an initial analysis of the classification of nearly one million non-profit organisations in the US, and comparisons are made with earlier estimates inDimensions of the Independent Sector. Based on these findings, changes are proposed to this biennial statistical profile of the US non-profit sector. The importance of developing national typologies of non-profit organisations is discussed as a basis for comparative international research.     

NGOs and philanthropy in Latin America: The Brazilian case

It is only in the last twenty years that there has appeared a field of civil organisations with a significant degree of autonomy from both state and church. But there are trends pointing to changes in the centralising, authoritarian tradition in government policies towards the non-profit sector in Brazil. This is occurring in parallel with the creation of conditions for change in this sector's negative image in public opinion. While, on the one hand, private social welfare organisations currently appear to public opinion in the worst possible light, being seen to be at the centre of the political crisis triggered by revelations of corruption, on the other hand there is a strong climate of moralisation and institutional democratisation which may favour them in the immediate future. More transparent policies for government collaboration and public control in this area appear to be a major outcome of this process. Questions of the democratisation (or deprivatisation) of the state, the need for institutional reform, and the constitution of a public sphere have been raised at the centre of debates around the role of these civil organisations in Brazil, now and for the future. This article was written prior to the inauguration of Fernando Henrique Cardoso's government in 1995. This has engaged in even more dialogue with civil society organisations than the previous government.     

Public good theories of the non-profit sector: Weisbrod revisited

Burton Weisbrod's 1975 article, Toward a theory of the voluntary non-profit sector in a three-sector economy, models non-profit organisations as suppliers of public goods which are undersupplied by government to heterogeneous populations. This article examines the implications, extensions and empirical tests of the Weisbrod theory. It also examines the theories of pure and impure altruism, the heterogeneity hypothesis, and the various ‘publicness’ indexes of non-profit output. The commonalities between the public good model and the trustworthiness model of non-profit organisations are also explored. He is also a Research Associate of the Mandel Center for Nonprofit Organizations at Case Western Reserve University.     

Funding and Financial Regulation for Third Sector Broadcasters: What Can Be Learned From the Australian and Canadian Experiences?

The article takes an in-depth look at the experiences Australia and Canada have had dealing with issues related to the funding and financial regulation of the third or ‘private, non-profit’ sector of broadcasting. Through the analysis of these experiences, recommendations are extracted aimed at providing policy makers and stakeholders from other jurisdictions guidance regarding how to deal with these issues.     

People as partners: Facilitating people's participation in public–private partnerships for solid waste management

Cities in developing countries are facing a double dilemma. On one hand, the urban population is growing rapidly, causing a huge increase in demand for waste management services. On the other hand, the traditional public sector is failing to respond to the increased demand for service. The public sector is constrained by resource and institutional limitations. It is often proposed that the solution lies in private sector participation. It is expected that the private sector, with its dynamism and flexibility, may fill in the service delivery gaps by forming partnership with the public sector. However, a third tier—the people—is often overlooked in the service delivery framework. Citizens can contribute significantly to service delivery. They can support the private sector with payment of service charges. But more importantly, they can play an active role in improving accountability and service quality of both public and private sector. This radical shift in people's role, from passive service receivers to active service partners, however, may not occur endogenously. External help from facilitating agencies may enable the public and private sector to form partnership with people for better service delivery. This article examines the role of facilitating agencies in developing tripartite partnership for solid waste management service in Bangladesh. The key lessons learned are: a number of obstacles prevented spontaneous partnership among the public sector, private sector and people; facilitating agencies were able to overcome the obstacles to form partnership of the three; and, the tripartite arrangement resulted in higher accountability and better service delivery.     

Public sector delivery of waste management services: cases from the Indian Sub-Continent

This paper discusses the role of public sector institutions in the delivery of urban services, with a particular focus on waste management in the Indian Sub-Continent. Public sector institutions are the major stakeholders in the delivery of urban sevices. They hold the major responsibilities, funds and employ a large number of staff. The public sector institutions are also exposed to political influence and the institutional changes are often politically or donors driven. However, since new institutions such as non-government organisations and private sector are taking important roles in the actual delivery of services, there is a greater need to understand the existing linkages to promote integration. The informal sector also provides services to a large number of population. In order to promote efficient and effective delivery of urban services, it is important to work on the integrated approaches involving key stakeholders.     

Innenansichten eines Wohlfahrtsmarkts

The 2001 pension reform act (“Riester reform”) has recast old-age security in Germany by placing more emphasis on private provisions. The new policy draws on markets and competitive structures in social welfare, as done earlier in long-term care and in public utilities. In the social welfare sector in Germany, such privatisation mostly goes hand in hand with a far-reaching “social” regulation of markets. Old-age pensions are the most recent case in point. For the first time, financial markets figure as welfare markets. This is done in the politically most sensitive sector of the German welfare state, old-age security. In theoretical terms, we interpret the change as a structural transformation of German “social capitalism”. Empirically, we investigate the structure of the new welfare market and the attitudes of the providers, based on a survey of all providers of private pensions in Germany. The findings include: (1) Markets can produce the welfare good “income security in old-age” only by way of a complex arrangement of three markets – financial markets, pension markets and markets for financial consultancy services. (2) The pension reform of 2001 has given rise to a new welfare market: an old-age pension market as a distinct sub sector of the wider market for financial investment and saving. The pension market constitutes a new field of business, with new actors, new products and new arenas of competition. The new market is created and shaped by politics. (3) The new private pension market combines market principles with welfare state principles. The providers conceive of their business as contributing to social security, and they recognise that the state sustains and structures the market.     

The Importance of Governance Levels in Alternative Food Networks: The Case of Red Meat Inspection Rules

Focusing on U.S. red meat inspection regulations, in the context of alternative food networks (AFNs), we explore the implications of different levels of governmental governance for the number of red meat slaughter establishments in the United States. We argue that disaggregating “the state” makes possible a more nuanced consideration of the effects of different tiers of governance. We use regression analysis with data for 40 U.S. states over 40 years to examine the effects of state (subnational) inspection programs and implementation of the federal Hazard Analysis and Critical Control Point (HACCP) regulations on the number of slaughter establishments by type. In this analysis we test two common beliefs among AFN actors: that state inspection helps, and HACCP hurts, small slaughter establishments. It also allows us to make a case for disaggregating governance tiers as we find that state inspection programs and HACCP have significant and opposite effects on the number of federally and non–federally inspected slaughter establishments. Our analysis supports the belief that state inspection is important to small slaughter establishments, but does not support the belief that HACCP has had a negative effect on them. Our conclusion is that agrifood scholars need to pay attention to different forms of governmental governance even with the increased focus on private and third‐party certifications.     

The operations and effectiveness of public and private provision of solid waste collection services in Kampala

This paper compares the operations and discusses the effectiveness of public and private sector provision of solid waste collection in Kampala, Uganda. Household data suggest that the private sector is more effective than the public sector. Private sector companies provide services like container provision and providing timely and fixed collection time tables. Contrary to popular perception, fees charged by private companies are moderate. Public sector clients are charged fees even when the service is supposed to be free. Clients of private sector providers are more satisfied than those of public sector providers. It is however, revealed that while public sector serve mainly the low incomes, the private sector serves mainly the rich. In spite of these notable differences, clients of both public and private sector perceive the problem of solid waste management (SWM) in Kampala to be very serious. The effectiveness of public and private sector operations in solid waste collection in Kampala is hampered by corruption and lack of transparency. Given the situation of open competition for clients involving both public and private sector in Kampala, it is possible the public sector can operate effectively if they start commercial services officially like their private sector counterparts. This calls for a formal public-private partnership where the public and private sector can work together with the public sector dominating poor and marginalized areas while the private sector concentrates on rich neighborhoods.     

The contribution of non-profit organisations to the management of HIV/AIDS: A comparative study

This article elaborates a typology of organisational responses during the first decade of AIDS/HIV in a dozen Western European countries.Welfare mixes: that is, the division of task between all producers of welfare (both private and public), and the processes at work in these policies, are analysed. Three types are identified, presenting unexpected variants in respect to general typologies of Western welfare states. They underline the importance of non-profit actors and also argue that new forms of co-operation between those actors and public ones can lead to renewed management of the main social issues currently facing Western welfare states.     

Italian Social Enterprises at the Crossroads: Their Role in the Evolution of the Welfare State

This paper investigates the relationship between the emergence of social enterprises (SEs) and the historical development of the Italian welfare state. Our research offers a comprehensive overview of the internal and external influences that shaped the constitutive relations between the welfare state and SEs. A qualitative methodology based on semi-structured interviews and focus groups has been adopted. This study suggests that two interconnected dynamics—the emergence of new social needs being answered by private organisations and the increased prominence of third sector actors during the privatisation of the welfare state—shaped the co-evolution of the welfare state and SEs in Italy. The study also suggests that the emergence and evolution of Social Enterprises in the years leading up to 2001 was mainly a bottom-up phenomena stemming from the actions of citizens setting up private organisations (often cooperatives) to answer to social problems created by new social needs and the structural reform of the welfare state. After 2001 especially with the new law on SEs in 2016, the evolution of SEs seems to have been increasingly influenced by the surrounding ecosystem of actors and supranational policy discourses rather than SEs themselves.