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.     

The emergence of a voluntary sector and philanthropy in Vietnam: Functions, legal regulation and prospects for the future

A significant number and wide range of Vietnamese non-profit and voluntary organisations have developed since Vietnam embarked on a programme of economic reform in late 1986. Philanthropy has begun to grow as well, albeit more slowly. The non-profit and voluntary sector and the state, each face important challenges as development of the sector accelerates. The state has sought both to encourage growth of non-profit, voluntary and philanthropic institutions, but also to control the pace and directions of that growth. Those dual aims are reflected in the state's regulation of the sector since the mid-1980s. This article provides detailed information on the development of the non-profit sector in Vietnam. It examines some common problems many of the new non-profits and voluntary organisations face and discusses the rapidly changing environment for philanthropy in Vietnam. The article also reviews the developing legal environment for non-profits and philanthropy, compares the situation in Vietnam to other countries in transition, and situates the functions of the non-profit sector in Vietnam in the context of the emerging scholarly literature on functions and models of the non-profit sector and government/non-profit relations. formerly Program Officer for Vietnam, The Ford Foundation (1992–1995) The author is grateful to John Ambler, Nguyen Thi Van Anh, Mayusaki Ayuzame, Mary Jane Ballou, Barnett Baron, Christopher Bruton, Emmett Carson, Kathy Charlton, Le Trong Cuc, Ray Eaton, Mary Etherton, Virginia Foote, Peter Geithner, Neil Jamieson, Lisa Jones, Tim Kerr, Minh Kauffman, Viet Huong Kurtz, Borje Ljunggren, Toichi Makita, David Marr, John McAuliff, Noriko Ogawa, James Rockwell, John Rogers, Vo Quy, Tony Salzman, Yasuhiro Tanaka, Nguyen Van Thanh, Ngo Ba Thanh, David Thomas, Phan Toan, Mike Yeldham and Mary Zurbuchen, and representatives of the many Vietnamese groups interviewed for this article. This article represents the author's views and not those of the Ford Foundation nor any other organisation or individual. All translations from the Vietnamese, except as indicated, are by the author.     

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.     

Overall evaluation of economic theories

This article evaluates economic theories of the non-profit sector by their ability to enlighten our understanding of the scope of inquiry, the determinants of the size and scope of the non-profit sector, and the behavioural responses of donors, volunteers, paid staff and non-profit organisations to changes in their external environment. Adherence to a non-distribution constraint has proven to be a useful way of delimiting economic analysis of non-profit organisations, but more attention should be paid to alternatives. Economists have been less successful at developing usable distinctions between voluntary action and exchange. The size and scope of the sector appear to be determined by entrepreneurial supply factors, donations (which in turn are influenced by tax policy, governmental spending, fund-raising, and the quality and mixture of organisational outputs, commercial or charitable), commercial activities, capital supply, the supply of labour (paid and volunteered), the marketability of outputs, and the distribution of consumer characteristics. Variations of James's (1983) model have proven useful to predict the reaction of non-profits to exogenous changes. I thank Symposium participants, especially Mark Schlesinger, Paul DiMaggio, Anne Preston, Avner Ben-Ner and Helmut Anheier for helpful suggestions.     

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.     

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’.     

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.     

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.     

Voluntary organisations and the welfare state: the case of Norway

Taking as the point of departure the political-ideological and fiscal ‘crises of the welfare state’, this article emphasises recent changes in the relationship between voluntary organisations and the public sector in Norway, changes that open up new space for the voluntary sector both ideologically and as a service producer. We question whether voluntary organisations are able to cope with new and extensive welfare problems within the more decentralised welfare state. Do they express the values, and do they possess the resources that both governmental agencies and the organisations themselves take for granted? As part of that discussion, the article questions the dominant view within the literature, namely that Scandinavia has a very weak voluntary sector. We argue that ‘state-friendly’ Norway has a rather strong voluntary sector, that this sector is of a specific type, and that both of these factors have important theoretical implications not only for Scandinavia, but for an overall understanding of the voluntary sector.     

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.     

The role of voluntary social welfare organisations in Norway: a democratic alternative to a bureaucratic welfare state?

Taking as a point of departure the postulated political-ideological and fiscal ‘crisis of the welfare state’, this article emphasises recent changes in the relationship between the four sectors of welfare providers: the informal sector of the family or community; the for-profit sector — where social goods are offered by profit-seeking institutions; the formalised sector of voluntary organisations; and the public sector of statutory bodies. Discussion is concentrated on the changing relationship between the voluntary and public sectors. Are voluntary organisations able to cope with new and extensive welfare problems within a more decentralised welfare state? Do they express the values, and do they possess the resources that both governmental agencies and the organisations themselves take for granted?     

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.     

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.     

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.     

Altruism, ideological entrepreneurs and the non-profit firm

Ideology and altruism are central to understanding the non-profit charitable sector. This paper addresses three questions. Why do people make charitable gifts? Why do they usually give to non-profit organisations? When can non-profits run by committed ideologues compete with profit-oriented entrepreneurs in the provision of services? the altruistic motives of individuals and the ideological commitments of entrepreneurs come together to support charitable organisations. The non-profit form provides a weak guarantee that gifts are not being syphoned off as profits. Furthermore, independent non-profits can often better reflect donors' desires than public agencies constrained by majoritarian claims, and ideological entrepreneurs can use the non-profit form to reify their beliefs without being accountable to profit-seeking investors. A non-profit organisation can only survive, however, if it can attract money and customers. Sometimes its ideological character will facilitate both tasks. Non-ideological customers may, nevertheless, patronise an ideological non-profit if the entrepreneur's commitment helps to guarantee high quality.     

Non-governmental organisations and philanthropy: The case of Argentina

The social, cultural and political activities of non-profit organisations in Argentina have a long history. They existed prior to the creation of the nation state. With a very strong religious influence, they expanded throughout the nineteenth century. National state provision of collective goods only started to develop at the end of the nineteenth century as a result of what Salamon (1987) has referred to as ‘voluntary failure’. The social, political and economic changes that have taken place in Argentina during the last decade had not only had an impact on non-profit organisations, but also on the traditional roles and responsibilities in the development of the state, the market and civil society. The political democratisation which started in 1983, along with the economic stability of the 1990s, were the two most relevant factors to affect non-profit organisations. The new social movements which had emerged during the previous decade (1976–1983) tended to disappear, leaving behind a wide array of organisations concerned with youth, women, human rights and neighbourhoods. With a focus on poverty issues, several state agencies now prioritise new strategies and mechanisms which involve the participation of civil society in social policies. The extent to which these will develop, how large the resources devoted to these programmes will be, and what kinds of controls over NGOs the state will implement are some of the main topics which will demand close attention.     

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.     

Negotiating Interactions in State�CVoluntary Sector Relationships: Competitive and Collaborative Agency in an Experiential Workshop

This article examines an experiential student workshop focused on state?Cvoluntary sector relationships in the UK, which formed part of a postgraduate voluntary sector studies programme. The different group behaviours observed were instructive in illustrating how students, all working in third sector or related public agencies, perceive and have assimilated demands and practices of the external environment. These insights also highlight the value of experiential learning in higher education both for student reflection and research. The article adopts an interdisciplinary approach to examine some consequences of ideologies and behaviours associated with managerial culture permeating actions in this interactive setting. It combines critical discussion of non-profit organizations with group relations and learning theories, offering a different perspective through which to explore patterns embedded in inter-agency relationships. Consideration of ways that these patterns might be changed to improve the service environment in the voluntary sector has wider implications for research in this field.     

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.     

Co-producing Across Organisational Boundaries: Promoting Asylum Seeker Integration in Scotland

This paper questions whether asylum seeker integration is promoted through inter-organisational relationships between non-profit and voluntary organisations (NPVOs) and government agencies. It focuses particularly on the role of NPVOs in service delivery (co-management) and in the delivery and planning of public services (co-governance). It presents a research study on the public services provided to asylum seekers in Glasgow and asks the following questions: What role do NPVOs play in the planning and delivery of public services? When planning and delivering public services, to what extent do NPVOs work across organisational boundaries and what kind of relationships exist? And in practice, what makes inter-organisational relationships work? This paper offers new empirical evidence and also contributes to the theoretical debate around the integration of asylum seekers.