A puzzlement: health-related organisations in the Nonprofit Almanac

Conclusion Data systems created with one purpose inevitably have shortcomings when used for other purposes, so it is not surprising that a database compiled from informational tax returns has serious flaws when used to compile a statistical picture of the non-profit sector. The two-digit NTEE level of aggregation that is published in theAlmanac conceals many problems that appear when the IRS-based data are broken down to the three-digit level.Identification of the problems in the NTEE and in the use of the IRS data is a necessary step toward their correction. At this point, it is clear that the IRS-based numbers in theAlmanac should be regarded, at best, as rough approximations and as a starting point for additional work. My assessment of theAlmanac suggests that, at least as far as health care is concerned, the NTEE needs revision. Correcting the problems with the IRS data will be much, much more difficult.I am grateful for assistance from Steve Noga, Chris Toppe and Virginia Hodgkinson at Independent Sector.     

A European perspective: The Nonprofit Almanac and the development of European profiles

Conclusion The Independent Sector approach to measuring the US non-profit sector, as summarised inThe Almanac, provides a valuable and instructive model for European and other attempts to describe and measure the sector. The aim of mappers in those other countries should not be to replicateThe Almanac, but to imitate its broad approach, using it to stimulate and encourage statistical efforts elsewhere. Although the time for whole-Europe mappings has not yet come — in fact, it is very many years away — individual European countries could and should make substantial progress. As I have argued, progress will generally be greatest when an imaginative blend of five main approaches is employed. This is exemplified by the Independent Sector's work, and would-be mimics should endeavour to match both this blending and the energy and zest with which the task has been tackled.Professor of the Economics of Social Care and Deputy Director of the Personal Social Services Research Unit, University of Kent at Canterbury and Co-editor,Voluntas.I would like to acknowledge a number of European colleagues whose comments assisted my preparation of this paper, in particular Edith Archambault, Paulo Barbetta, Andrea Bassi, Rudolph Bauer, Andrew Crook, Jim Jackson, Jeremy Kendall, Éva Kuti, Susan Saxon-Harrold, Wolfgang Seibel, Justin Davis Smith and Tymen van den Ploeg. This paper is lodged in the Personal Social Services Research Unit as Discussion Paper 873.     

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.     

Measuring the non-profit sector cross-nationally: a comparative methodology

As a result in part of the way non-profit institutions are defined and treated in the United Nations System of National Accounts (SNA), little is known about the size, scope, financial base and role of this set of institutions at the international level, even though their importance is increasingly being recognised throughout the world. To remedy this significant lack of systematic information on non-profit institutions cross-nationally, the Johns Hopkins Comparative Nonprofit Sector Project has undertaken a major analysis of the economic role of this sector in twelve countries throughout the world, utilising a more meaningful definition of the sector and an approach that is otherwise consistent with the overall thrust of the SNA system. This paper outlines the basis of the more inclusive definition of the non-profit sector embodied in this project, the classification system formulated to structure data-gathering on this more broadly-defined sector and the data assembly strategy developed to build up key estimates of the scale, structure and revenue sources of the non-profit sector in the project countries. The article concludes with a recommendation to incorporate a similar approach to the assembly of data on the non-profit sector into the ongoing SNA system on a regular basis.Professor Lester Salamon is Director of the Institute for Policy Studies and Director of the Comparative Nonprofit Sector Project at the Johns Hopkins University, Baltimore, Maryland, 21218.Helmut Anheier is Research Scientist at the Institute for Policy Studies at the Johns Hopkins University and Assistant Professor of Sociology at Rutgers University, New Brunswick, New Jersey, 08903. He is co-editor ofVoluntas.     

The Third Sector, Human Security, and Anti-Terrorism: The United States and Beyond

This paper, a revised version of the keynote address to the Seventh International Conference of the International Society for Third Sector Research (Bangkok, July 2006), explores the increasing tendency of governments to view the third sector as a source of human insecurity and uncivil society in the wake of terrorist attacks. The paper discusses the means governments use to control third sector activity that they view as potentially linked to terrorism, the need for comparative analysis of these measures, and the role of the third sector and scholars in recognizing the responsibilities of governments to prevent third sector organizations being used in terrorism while preserving the independence and vitality of the third sector.Professor of Law and International Affairs and Faculty Scholar, University of Iowa; Visiting Professor of Law, Harvard Law School (2005–06). This paper is a revised and expanded version of the keynote address to the Seventh International Conference of the International Society for Third Sector Research, Bangkok, Thailand, July 9, 2006.     

The non-profit sector in a national accounts framework

This paper first reviews the measurement and presentation of non-profit institutions in the US national income and product accounts. For the most part in these accounts, transactions of non-profit institutions serving individuals are consolidated with those of the individuals served and recorded in the personal income and outlay account, a treatment that a majority of users have never found satisfactory. The paper next details the recommendations for these institutions proposed for the 1993 System of National Accounts (SNA). The paper then offers some suggestions on how the treatment of non-profit institutions in the US national income and product accounts might be modified in the light of the 1993 SNA recommendations.This paper was originally prepared forImproving Economic Statistics: Measurement of the Nonprofit Sector and Its Presentation in Federal Statistics, a workshop sponsored by The Committee on National Statistics, National Research Council, May 21–22, 1992, at the National Academy of Sciences, Washington, DC.The author wishes to acknowledge the helpful comments of colleagues at the Bureau of Economic Analysis and other participants in the Workshop, as well as those of two anonymous reviewers. The views expressed are those of the author and do not necessarily reflect the views of the Bureau of Economic Analysis or the Department of Commerce.     

Using NTEE to classify non-profit organisations: an assessment of human service and regional applications

The National Taxonomy of Exempt Entities (NTEE) constitutes a major contribution to the field of non-profit research, but is beset by conceptual and practical problems. The application of the taxonomy to the list of charitable organisations recognised by the US Internal Revenue Service (IRS) is also an important resource for research, although it has limitations as well, especially for industry-specific and regional analyses. Using survey data from the Chicago metropolitan region, I show that regional estimates for human services based on only those charitable organisations which are required to file tax returns may miss over 40 per cent of the total number of organisations and under-estimate total revenues by almost half. Finally, I point to conceptual, technical and institutional challenges that must be addressed if the NTEE is to gain maximum utility.     

Voluntas Symposium: Comments on Salamon and Sokolowski’s Re-conceptualization of the Third Sector

With their “Beyond Nonprofits: Re-conceptualizing the Third Sector”, Salamon and Sokolowski have made an important contribution to the ongoing debate on how to define the third sector. This Voluntas symposium brings together the comments of five leading scholars both supportive and critical of the new definition. The comments are based on a debate held at the conference of the International Society for Third Sector Research, in Stockholm in 2016.     

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.     

Politics and the development of the Hungarian non-profit sector

One of the important developments in post-Communist Hungary has been the growth of the voluntary or non-profit sector. Under the Communist regime, voluntary associations were controlled and independent organisations were largely suppressed. During the 1980s, advocacy groups and independent associations emerged to challenge the Communist monopoly on organisation. These challenges were instrumental in laying the foundation for the post-Communist non-profit sector, providing models of organisation and experienced activists. After the creation of a new legal framework in 1989 and 1990, the growth of the non-profit sector was dramatic. Two types of non-profit organisations have developed in democratic Hungary: associations predominate in membership activities, while foundations are active in fields requiring fund-raising. Attempts by the Hungarian Democratic Forum-led government to shape the non-profit sector to meet its goals were met with political pressure from professionals in the non-profit sector. The result was the beginnings of a contract-for-service regime and increased organisation of a contract-for-service regime and increased organisation of interests within the non-profit sector itself. This is a revised version of a paper presented at the 1994 Annual Conference of the Association for Research on Nonprofit Organizations and Voluntary Action (ARNOVA), Berkeley, California, October 1994. The author gratefully acknowledges support from the Program on Nonprofit Organizations (PONPO), Yale University. Helpful comments were provided by David Bronkema, éva Kuti, Debra Minkoff, Suzanne Morrah and members of the PONPO Colloquium.     

In search of the non-profit sector II: The problem of classification

Building on a previousVoluntas article (Salamon and Anheier, 1992b), which formulated a systematic approach to defining the non-profit sector for purposes of comparative research, this article takes on the complementary task of formulating a classification system that can be used to differentiate systematically the types of non-profit organisations that exist at the global level. To do so, the article first assesses a number of existing classification systems, such as the International Standard Industrial Classification and the National Taxonomy of Exempt Entities. Finding these systems inadequate, the article then introduces an alternative system, which we term the International Classification of Nonprofit Organizations (ICNPO). The ICNPO classifies non-profit establishments into 12 major groups based on their primary economic activity, and then further sub-divides these into 24 sub-groups. The result is a system that scores high in terms of five key evaluation criteria: economy, significance, rigour, organising power, and richness. What is more, initial tests of the ICNPO in a set of countries show that it performs well in coming to terms with the diverse types of non-profit institutions that exist around the world.Lester Salamon is Professor at the Johns Hopkins University, Baltimore, Maryland 21218 and Director of the Institute for Policy Studies there.Helmut Anheier is Research Scientist at the Institute for Policy Studies at the Johns Hopkins University and Assistant Professor of Sociology at Rutgers University, New Brunswick, New Jersey, 08903. He is co-editor ofVoluntas.The authors are grateful to Kusuma Cunningham for her assistance in developing the ICNPO and for compiling Appendix C of this paper.     

Theory and reality in the vision of Adriano Olivetti

This article describes and analyses the ideas and activities of the Italian industrialist, Adriano Olivetti (1901–1960). Although by most interpretations of the term philanthropy, Olivetti would be considered a philanthropist, Italians have not viewed him in that way, and outside of Italy his philanthropic work has not received the attention it deserves. In this article the theory and praxis of Adriano Olivetti are analysed in order to shed light on two significant issues in the study of philanthropy generally: first, the basic problem of the applicability of the concept in different cultural contexts; and second, a related question about the borderlines between philanthropic, third sector activities and political activities, and how these borders may shift or even disappear under certain conditions of time and place.An earlier version of this paper was presented at the Third International Conference of Research on Voluntary and Nonprofit Organizations cosponsored by Independent Sector and the Indiana University Center on Philanthropy, Indianapolis, March, 1992. The author wishes to express appreciation for the support provided for this research by the Indiana University Center on Philanthropy and the Research Council of Rutgers University.     

Non-profit institutions in a flow of funds framework

The benefits of providing a separate accounting for non-profit organisations in the financial accounts of the United States are discussed. At present, national economic accounts in the US include non-profit organisations with individuals in the household sector; separate information on the financial activity of non-profit institutions until now has not been available. In this paper, aggregate statistics from federal government tax-exempt filings for non-profit institutions are put into a US flow-of-funds framework. The data for the 1982–1988 period indicate that non-profit institutions accounted for a significant and growing proportion of assets of the household sector in the United States. Their liabilities were also a surprisingly large share of the household sector total. Moreover, funds supplied by the non-profit sector for investment were in some years comparable to funds made available by several important groups of non-depository financial intermediaries. Separate accounting for non-profit organisations within national economic accounts would be likely to reveal an important channel for investment financing in the United States and would significantly improve our ability to measure and analyse the financial activity of individuals by allowing for a purer household sector.The analysis and conclusions set forth are those of the authors and do not necessarily indicate concurrence by Salomon Brothers, the Board of Governors, Federal Reserve Banks or other members of their staffs.     

Cooperatives as the “enfants terribles” of economics: Some implications for the social economy

The cooperatives are too economically oriented to be included in the non-profit sector and too socially oriented to be considered as an economic for-profit organization. These “enfants terribles” are wholly depersonalized. They represent a broader phenomenon, going beyond the dominant global economy. As such, cooperatives are seen as a model based on dual components, an economic and a social. Here lies the source of the incompatibility between the hegemonic economic paradigm and an organizational rationale claiming to be based on the co-existence of two features, the social and the economic.Therefore, this article supports the idea of non-profit economy, the cornerstone of the social economy but facing outward offering competing goods and services which can facilitate the market economy and mitigate the tendency towards oligopoly.     

Stakeholder theories of the non-profit sector: One cut at the economic literature

This article examines and organises the economic literature dealing with non-profit institutions using the concept of ‘stakeholders’. In general, the literature identifies conflicts between various groups of stakeholders and then proceeds in two very different directions. The first is supportive of the non-profit sector, suggesting that non-profit organisations resolve those conflicts more effectively than other types of institutions. This provides a positive theory of the non-profit sector, explaining that non-profit institutions evolve when they are more effective in providing a particular good or service than other possible institutional arrangements. The second direction is more critical of the non-profit sector, suggesting that those conflicts will persist in non-profit institutions and will require some kind of resolution, including perhaps government intervention. Of course, a stakeholder approach to non-profit theory focuses on conflict and ignores some other views of the sector.     

Evaluating economic theories of NPOs: A survey, a case study and some new directions for socio-economics

The contribution economists have made to the multidisciplinary field of non-profit studies is remarkable when one considers that non-profit organizations (NPOs) have traditionally been regarded as “non-economic” institutions that lie outside the scope of economic analysis. However, despite its achievements there has been concern about the emergence of “theoretical inertia” in the economics of NPOs. This paper suggests some ways in which the revisionist approach reflected in economic theories of the supply-side of the voluntary sector could be augmented. In particular it focuses on the emotional basis for stakeholder commitments and the consequent dependence NPOs have on their organizational leadership to foster the development of shared hopes that can sustain these commitments in the face of disappointments. These ideas are discussed in relation to the provision by NPOs of supported employment services to the disabled.     

Entrepreneurship theories of the non-profit sector

This article summarises the main results of entrepreneurship theories of the non-profit sector and discusses the impact they may have on theory development and on the real world non-profit sector. It is pointed out that the entrepreneurship approach advances our knowledge of the non-profit sector, especially by stressing the supply-side aspect and by focusing on the preferences individuals must have in order to engage in non-profit activities. There is empirical evidence consistent with entrepreneurship theories. Yet most observations do not exclusively support entrepreneurship theories but also provide evidence consistent with other economic theories of the non-profit sector. This illustrates that the various economic theories of the non-profit sector are more complements than substitutes. Furthermore, entrepreneurship theories indirectly help to improve the image non-profit organisations have in the real world; therefore they play a prominent role in teaching programmes which have been established to train non-profit managers. The author gratefully acknowledges the comments of the participants of theVoluntas Symposium at Yale University, especially the comments made by Estelle James, James Ferris and Dennis Young.     

Census data on non-profit organisations

This paper describes how the Bureau of the Census collects and publishes data on non-profit organisations in its economic censuses programme. The paper provides a brief history of the economic censuses and describes in more detail the census of service industries component. The progressive expansion of the industry coverage of the census is explained and related to the non-profit sector. The paper further describes concepts and methodologies that are used in collecting and publishing data for non-profit organisations. Definitions, methods of enumeration, and basic data measures are explained and contrasted to concepts used in covering the for-profit sector. Finally, the paper describes how census data can be used to better understand the non-profit sector and identifies some possibilities for improving information from the economic censuses and other statistical programmes which cover non-profit organisations.     

Organizational Structure and Innovation in U.K. Voluntary Social Welfare Organizations: Applying the Aston Measures

This paper discusses the methodological issues involved in assessing the impact of organizational structure upon the innovative capacity of voluntary organizations. It reports the use of a specific methodological tool—the Aston measures—as an approach to these issues. In addition to the empirical findings reported, this paper argues for these measures as a useful addition to the methodological tool kit of voluntary sector researchers.     

Surplus Food Recovery and Food Aid: The Pivotal Role of Non-profit Organisations. Insights From Italy and Germany

Food security and food waste are unanimously recognised as relevant issues affecting the whole society and should be therefore acknowledged as a priority on the public agenda. Nonetheless, in many countries the third sector stands in for public actors and operates to tackle both these issues. This paper explores the role of public and third sector in tackling food poverty and food waste, particularly analysing the role of the non-profit organisations involved in the food recovery and redistribution processes in two European regions: Lombardy (Italy) and Baden-Württemberg (Germany). By comparing the two different policy framework and the organisations’ actions, the study recognises the ability of the non-profit sector to create new relationships among different actors (private for-profit, private non-profit as well as public actors) while answering various unmet needs. The paper draws on a mix of secondary and primary data including observations and interviews in the two regions carried out in 2014 and focuses on two relevant case studies (the “Associazione Banco Alimentare” and the “Tafel”).