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.     

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

Both the pre-war tradition and the real socialist system have influenced the form of the non-profit sector emerging in Poland. In as much as the pre-war traditions are continued by the church charities, lay institutions are established on the basis of state structures in the form of specific non-profit organisations subsidised to a large extent by the state (the so-called non-profit social institutions). Perhaps in this way partnership relations will develop between the government and nonprofit organisations which will continue to expand. The stage through which Poland is currently passing means that a coherent system of non-profit organisations has not yet developed and, what is more, it is seldom called a voluntary or third sector. The only formalised institutions are foundations and associations. It is evidently necessary to fill the gap in social service provision caused by government and market failures, and we may cherish a hope that such a system of non-profit organisations providing services to those in most need will soon be created in Poland.     

In search of the non-profit sector. I: The question of definitions

In this paper we argue that the lack of attention to the third sector historically is primarily a result of the weakness and limitations of the concepts that are used to define and describe it. The purpose of this article is to remedy this situation by developing a general definition of the sector that can be used in comparative research. To do so, the article first identifies four alternative types of definitions that are potentially available and evaluates each in terms of three basic criteria. On this basis it concludes that the most useful definition is the structural/operational one, which includes in the non-profit sector organisations that share five basic characteristics. These are: formal, private, non-profit-distributing, self-governing and voluntary. The basic definition is then tested against the realities of three disparate countries and found to perform quite well. On this basis we recommend the structural/operational definition, particularly for comparative, crossnational research.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.     

Inequality and welfare evaluation of heterogeneous income distributions

This paper establishes the principles that should govern the welfare and inequality analysis of heterogeneous income distributions. Two basic criteria – the equity preference condition and the compensation principle – are shown to be fundamentally incompatible. The paper favours the latter, thereby vindicating the traditional method of dealing with heterogeneous samples. However, inequality and welfare comparisons will usually be well defined only if equivalent incomes are obtained using constant scale factors; and researchers will need to distinguish clearly between inequality of nominal incomes and inequality of living standards. Furthermore, household observations must always be weighted according to family size.     

Non-profit,for-profit and government organisations in social service provision: comparison of behavioural patterns for Austria

This paper investigates behavioural differences between non-profit organisations (NPOs), government organisations (GOs), and private market organisations (PMOs) as suppliers of nursery schools and retirement homes. On the basis of Weisbrod's undersupply model, the differentiated demand approach, and the public finance argument on the redistributive role of government, three hypotheses are theoretically specified and empirically tested: client differentiation; product differentiation; and price differentiation. NPOs and PMOs are shown to provide qualitatively better services and charge significantly higher prices than GOs. A clustering of clients with similar socio-economic backgrounds can be observed: GOs provide services for clients with lower economic and social status than private suppliers. GOs, holding more than two-thirds of the respective markets, are responsible for a basic provision of services; they pursue distributional goals by producing services themselves; only rarely a contracting out to private suppliers can be noted.Christoph Badelt and Peter Weiss are both in the Department of Economics, Vienna University of Economics and Business Administration, Vienna, Austria.Financial support from the Research Foundation of the Austrian National Bank (Jubiläumsfondsprojekt no. 2814) is gratefully acknowledged. The authors wish to thank Helmut Anheier, Henry Hansmann and Burton Weisbrod for valuable comments on an earlier draft, which was presented to the International Conference on Voluntarism, Non-government Organisations and Public Policy, Jerusalem, May 1989. The usual caveat applies.     

The NTEE classification system: tests of reliability/validity in the field of higher education

An analysis of the field of higher education reveals a surprisingly large number of classification errors within the (US) National Taxonomy of Exempt Entities database. Of the nearly 4,000 non-profit entities coded within the universe of institutions of higher education, we estimate that approximately 60 per cent were incorrectly included (Type II errors). Institutions incorrectly excluded from the higher education universe (Type I errors) represent roughly 10 per cent of the institutions coded correctly. These errors result primarily from assigning codes on the basis of the names of organisations (for example, College Park Towers is classified as a college, when it is in fact a housing complex for senior citizens) and from trying too hard to assign codes in ambiguous situations. The consequences can be significant for the users of these data, and we recommend raising bright warning flags while simultaneously enlisting the help of the entire non-profit sector in improving the classification coding process.The authors are with The Andrew W. Mellon Foundation. In addition to our colleagues on the staff of the Foundation, we wish to thank Helmut Anheier, Ted Bozovich, Harvey Dale, Virginia Hodgkinson, Stephen Noga and Christopher Toppe for helpful suggestions.     

Brief Communications: Treating Problem Gamblers: A Residential Therapy Approach

The Gordon House Association (GHA) is the UK's only specialist and dedicated residential facility for problem gamblers. This paper describes the GHA therapeutic programme which is centred round a nine-month period of residency. Progression through the programme is described by overviewing each of the phases. These are initial assessment and five distinct phases comprising coping with today (Phase One), coping with yesterday (Phase Two), coping with change (Phase Three), coping with tomorrow (Phase Four), and coping on my own (Phase Five). These phases are themselves underpinned within the GHA core therapeutic approach which is also described.     

Nonbinary social choice for economic environments

Assume a finite integer l2 and a social choice correspondence mapping each (p, Z) into a nonempty subset (p, Z) of Z, where p is a profile of individual preferences and Z is a set of outcomes of cardinality l or more. Suppose that satisfies Arrow's choice axiom, independence of infeasible alternatives, and the Pareto criterion. If the preference domain is the family of profiles of classical economic preferences over the space of allocations of public goods, then is dictatorial.I am grateful for some especially helpful comments by Jerry Kelly, John Weymark, and two anonymous referees. In fact, they uncovered so many errors that I must revive the traditional disclaimer: All remaining mistakes are my own responsibility. It is a pleasure to acknowledge the financial support of the National Science Foundation, grants no. SES 9007953 and SES 9209039.     

The voluntary sector in ‘the information society’: a study in division and uncertainty

At a time of rapid social, political and economic change in Britain, voluntary and community groups are being encouraged to assume a more prominent role in general welfare provision. Accordingly, their need to know has never been more acute. Yet the information environment of the voluntary sector is also in a state of flux and transition. Profound changes in the institutional world of information provision hold significant implications for the way voluntary and community groups seek and disseminate information. In this paper these structural changes are outlined and the findings presented of an extensive investigation into information needs and usage in the voluntary sector.     

The Practice of Multimodal Approaches, the Challenge of Cross-Cultural Communication, and the Search for Responses

The development of multimodal approachespresents an opportunity for human beings to increasetheir competence in managing complexity, while at thesame time brings a challenge of cross-culturalcommunication. Some claim that two approaches have beenproposed for tackling this challenge: an approach offrameworks and an approach ofdiscourse. Some go further to contenddropping frameworks and taking up discourse. This paper argues that, if it istrue that there exist these two approaches, neither theframeworks nor the discourseapproach alone is sufficient. It is suggested thatresearchers and practitioners may be better equipped byparticipating in discourses with and among frameworks.Employing three metaphors, this paper proposes that, inthe way force-fields andconstellations require and imply each other, both frameworks anddiscourse are necessary for human beings to act as aPeircian fiber-cable in socialproblem-solving.Requests for reprints should be addressed to Zhichang Zhu, Department of Information Systems, Lincoln School of Management, Lincoln LN6 7TS, United Kingdom.     

The Tyranny of the Customer and the Cost of Consumerism: An Analysis Using Systems and Psychoanalytic Approaches to Groups and Society

This paper argues that an organizationaldiscourse on consumerism is replacing a prior discourseof dependency. This discourse encourages, and isencouraged by, economic rationales for behavior and ismarked by the collapse of many complex societal rolesinto the simpler category of customer.Moreover, practices emergent from consumerism andeconomic rationalism often act as organizational andsocial defences against anxieties about theuncertainties and changes occurring in a worldincreasingly dominated by global markets where thecustomer is sovereign. Six workinghypotheses are proposed to explain the operation of these new socialdefences. Evidence in support of these hypotheses comesfrom collaborative action research projects in which theauthor is involved. The argument moves toward a consideration of the new consumerprovider pair which, it is proposed, has becomea major signifier within the consumer discourse andwhich might be considered as a transitional pair indealing with widespread organizationalchange.     

Addiction to fruit machines: A preliminary study among young males

Although most sources treat gambling as an adult phenomenon, adolescent gambling is more widespread than is generally recognized, and in some cases may even be pathological. This paper outlines a preliminary study of eight adolescents addicted to playing and gambling on coin-in-the-slot machines (more commonly known as fruit machines). Factors involved in the onset of fruit machine playing are examined along with their alternative gambling activities and associated problems. The role of skill and excitement components in persistent playing are also discussed.The author would like to thank the United Kingdom Economic and Social Research Council for funding this work through a research studentship.     

Decision-making processes in community transport organisations: a comparative case study of service providers

Transport services provided by voluntary organisations have grown dramatically in recent years. However, little systematic research has been undertaken on the functioning of these organisations. The aim of the research on which this paper is based was to rectify the lack of information on how decisions relating to service provision are made by such organisations — often called community transport (CT) operators. Three organisations were selected for a comparative case study approach. The results show that the leadership approach of their key staff was of particular significance. Each organisation is moving in the direction of greater professionalism and away from its community roots. This cultural change can be attributed to responses to external forces, especially those affecting resources. Evidence suggests they are being forced towards adopting practices of the private sector, but that this need not be the case. Community transport provision is in a period of transition, the outcome of which may radically alter both its structure and its survival capacities.The research on which this paper is based was funded by the Economic and Social Research Council. The authors would also like to place on record their thanks to the three organisations who participated in this study.     

A quantitative theory of preferences: Some results on transition functions

We investigate a general theory of combining individual preferences into collective choice. The preferences are treated quantitatively, by means of preference functions (a,b), where 0(a,b) expresses the degree of preference of a to b. A transition function is a function (x,y) which computes (a,c) from (a,b) and (b,c), namely (a,c)=((a,b),(b,c)). We prove that given certain (reasonable) conditions on how individual preferences are aggregated, there is only one transition function that satisfies these conditions, namely the function (x,y)=x·y (multiplication of odds). We also formulate a property of transition functions called invariance, and prove that there is no invariant transition function; this impossibility theorem shows limitations of the quantitative method.Research supported in part by the National Science Foundation.     

Lying about running: The functions of talk in a scene

The running scene rests upon a system of beliefs (a code) about the qualities of running performances. Membership in the scene entails the interrelated use of conversational forms and the presentation of a team identity. The forms consist of nomic talk, ritualized lying and code truth telling. Within each form, the runner may lie about or manage information regarding running performances in order to construct, maintain or attack the system of beliefs. The lie, then, plays a major role in the scene as a device of social interaction.     

First Contact: Queer Theory, Sexual Identity, and “Mainstream” Film

This paper begins by raising questions about the role of queer theory in media critique, centering on a discussion of four recent mainstream mass-circulation films with significant lesbian and/or gay content. It is asserted that these films operate within accepted discourses on sexuality that require both the notions of public self-disclosure and of the truth of the hetero/homo binary. The methods used by media productions to disseminate that discourse from a lesbian/gay point of view are discussed in terms of the implications of such mass-circulation films being for many persons a first contact point with that discourse.     

Voluntary organisations and the social state in the European Community

Accurate comparison of the social welfare systems operating in the twelve countries of the European Community is inhibited by lack of information about the voluntary or non-governmental organisations which form an important element in those systems. This paper summarises available information about the scale and scope of voluntary organisations, and attempts to set them in the context of current policy debates. The changing nature of the family in Europe, the development of mixed economies in the provision of welfare, the functions of NGOs as employers and organisers of volunteering, the future of NGOs after 1992, and in the context of a steadily more open Europe are some of the themes which are preoccupying voluntary organisations in most countries of the Community. The paper refers to the inadequacy of most data on NGOs atnational level and to the consequent impossibility of constructing valid cross-national comparisons.I am grateful to the Department of Social Welfare in Dublin for sponsoring the work on which this paper is based. An earlier version was presented as a background paper at the European ConferencePartners in Progress, jointly organised by the Minister of Social Welfare and the EC Commission in Galway, Ireland, June 1990.     

The Dodgson ranking and its relation to Kemeny’s method and Slater’s rule

In this paper we provide a binary extension of Dodgsons non-binary preference aggregation rule. This new aggregation rule is then compared to two other rules which, as Dodgsons rule, are also explicitly based on distance functions, namely Kemenys and Slaters rule. It is shown that the alternative which is top ranked by any of those rules can occur at any position in the Dodgson ranking.I am very grateful to Nick Baigent, Daniel Eckert and the participants of the CEPET 2002 Workshop in Udine and the Graz University Research Seminar for their comments on earlier drafts of this paper. It goes without saying that any remaining errors are exclusively the authors responsibility.     

Why China failed to create an endogenous industrial capitalism

Conclusion Weber almost anticipated the idea of the high-level equilibrium trap. Speaking about bureaucracy, he observed that as always in the area of'techniques' ... advance proceeded most slowly wherever older structural forms were in their own way technically highly developed and functionally particularly well-developed to the requirements at hand. It is a pity that he did not utilize this insight to analyze what he called the increasing stability of the economic situation under conditions of the economically self-sufficient and socially homogenously composed world-empire of China. Instead he pursued the idea that the absence of self-generated capitalism in China was due basically to the lack of a particular mentality. This inappropriate mentality had several aspects. One was the personalist principle. Others are listed in a catalog of alleged traits of personality taken largely from Arthur Smith's Chinese Characteristics. They include stolidity, patience, dislike of novelty, absence of curiosity, credulity, and a general distrust of and dishonesty towards all. Having acknowledged China's considerable technical endowments and inventions (Weber's own quotation marks), he argued that the magic stereotyping of technology and economics... completely precluded the advent of indigenous modern enterprises in communication and industry. The Chinese world, in a famous phrase, was a magic garden in which the ethical rationality of the miracle [was] out of the question. Certain points of detail may be disputed. Thus the miracles attributed to the piety of sons and the fidelity of widows were entirely ethically rational. But the crucial fact is that this conception of the problem led Weber in practice to place an excessive faith in the explanatory power of an analysis of ideas considered in relative isolation from their socioeconomic context. It probably also weakened his sense of the need to sort out more systematically the somewhat internally contradictory opinions that he held on the more specifically economic aspects of Chinese society.

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Diagnosis and treatment of borderline personality organization

This paper describes the diagnostic and therapeutic approach to borderline personality organization proposed by Otto Kernberg. Diagnosis is based primarily on the characteristic ego pathology which includes the mechanism of splitting, defined as the defensive separation of good and bad self and object representations. The therapeutic strategy emphasizes systematic exploration of the negative transference and the pathological defenses. A case is presented to illustrate the applicability of Kernberg's concepts to the therapy of a borderline client treated by a clinical social worker on a once-a-week outpatient basis.