On scale and scope and the history of the non-profit sector in the United Kingdom

This article argues that Alfred Chandler's analysis of the British firm cannot be transposed to the very different context of non-profit organisations in Britain. Both in relation to charitable non-profit organisations and mutual benefit organisations, Chandler's theory of the development of firms does not help explain organisational development. The main thrust of the argument is that the explanation for the smaller size of charitable non-profits in Britain than in America is largely institutional and partly socio-cultural; the explanation does not lie in any failure in Britain to adopt new techniques of management and organisation. With mutual benefit non-profits, a rather different account is presented. ‘Mutuals’ which had a strong fraternal element were relatively more successful in Britain than in America, although there is less difference between the two countries with regard to ‘non-fraternal’ mutuals. Once again, it is argued that institutional and socio-cultural factors—rather than the factors identified by Chandler—account for this. I wish to thank Desmond King for his helpful comments on an earlier version of this essay.     

Competition between non-profits and for-profits: entry and growth

The non-profit sector in the United States relies on fee-paying individuals for a high proportion of its revenue. Given this fact, non-profits and forprofits coexist in the same industry when each type of firm can find a stable market niche that rewards its own special strengths: ideological commitment in the non-profit sector; access to capital and the profit motive in the for-profit. Coexistence is also possible when the non-profit form is superior but there is a shortage of non-profit entrepreneurs. The paper next considers the entry of non-profits into sectors dominated by for-profits. Here one must distinguish between purely commercial activities and those designed to further the charity's basic mission. In the former, non-profits should behave no differently than their for-profit competitors unless subsidies designed for mission-related activities are diverted to these activities. In the latter, the non-profits may have an advantage which reflects not unfair competition but a judgment that their activities are worthy of subsidy. In evaluating competition between non-profits and for-profits, one must separate the issue of the appropriateness of an organisation's tax-exempt status from the impact of its actions on for-profit firms.Prepared for the Research Conference on the Commercial Activities of Non-profits, New York University, November, 1988. I wish to thank Anne Buckholtz for helpful research assistance, and Woody Powell and Brad Gray for useful comments.     

The promise of non-profits in Poland and Hungary: an analysis of third sector renaissance

The non-profit sector arising in Poland and Hungary bears little resemblance to its pre-war ancestors. The new non-profits are shaped by social and economic forces brought about by the state socialists. State socialist service policies have left the non-profits with substantial need for their services, but the organisations face several major constraints in meeting that demand. Current government policies towards services and non-profits are discussed. Government and foreign funders can play a significant role in fostering the new non-profits, but a careful prioritisation of objectives is necessary. The present situation shows that many theories about non-profit organisations are not internationally cross-applicable, although several hypotheses have partial relevance.The author recently submitted a longer version of this paper to the Woodrow Wilson School of Public and International Affairs at Princeton University. He is currently studying in the School of International and Public Affairs, Columbia University, New York.     

Revenue diversification among non-profits

Although the non-profit literature has grown substantially, the issue of how revenue diversification affects non-profits has not been fully explored. This paper presents several disciplinary perspectives regarding the financing of non-profits, what determines their ability to diversify, and the consequent effects on their behaviour. It first develops an index for measuring revenue diversification and applies it to a national sample of charitable non-profits. The results indicate that, while the perception that most non-profits rely on a single revenue source is exaggerated, the institutions in our sample have somewhat concentrated revenue. Our findings also suggest that the activity of a non-profit and the proportion of its expenditures that it devotes to fund-raising affect its ability to diversify its revenues concentration. While a number of anomalies exist, the weight of our evidence suggests that diversified revenue sources are more likely to be associated with a strong financial position than are concentrated revenue sources. Researchers interested in studying the life-cycle of non-profits, the factors that give rise to stability and growth, and the constraints on non-profit behaviour would do well to consider the diversification index presented in this paper.     

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.     

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.     

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.     

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.     

Tax policy toward non-profit organisations: an eleven-country survey

The role of private non-profit organisations in modern economic systems is poorly understood. The tax and subsidy treatment of non-profits relative to private firms affects the competitive position of each, and thus their relative strength within any industry; in the United States, for example, non-profit organisations play major competitive roles in such industries as hospitals, nursing homes, day care centres, schools and arts organisations.This paper reports results from a survey of tax policies toward non-profit organisations in eleven countries. The major findings are: (1) the definition and scope of such organisations varies considerably; (2) non-profit organisations are typically regulated by the tax collection agency, but in some countries there is also involvement from the government agency responsible for the particular realm of activity, such as health or education; (3) tax subsidies to non-profits take many forms — not only exemption from corporate profits tax but, depending on the country, for land, buildings, mail and motor vehicles; (4) almost every country limits non-profit organisations' unrelated business activities; and (5) donors are generally permitted to deduct donations of money from taxable income, although there are typically both minimum and maximum limits. These findings point up the larger task of understanding why such differences exist across countries, and what are the effects.Burton Weisbrod is John Evans Professor of Economics and Director of the Center for Urban Affairs and Policy Research, Northwestern University, Evanston, Illinois.Elizabeth Mauser is a PhD candidate in Economics at the University of Wisconsin-Madison.We thank the Ford Foundation for financial support. We also thank those people who responded to the survey questionnaire: Christoph Badelt (Austria), Patrick De Bucquois (Belgium), Miklos Marschall (Hungary), Jimmy Weinblatt (Israel), Disiano Preite (Italy), Mark Robson (United Kingdom), Julia Montserrat (Spain), Ching-chang Yen (Taiwan), Somchai Richupan (Thailand), John Simon (United States) and Wolfgang Seibel (West Germany). In addition, we benefited from reading draft papers by Frits W. Hondius (Council of Europe) and Sheila Avrin McLean (McLean & Co. Ltd), both of whom have done related work on tax treatment of charities in various countries, and from comments by Christoph Franz on an earlier draft of this paper. A version of this paper will appear in a forthcoming volume published by the Center for Social Policy Studies, Jerusalem, Israel. The editors are grateful for the permission of Dr Yaakov Kop, Director of the Center, to publish this paper inVoluntas.     

Non-profit-funding environment relations: theory and application

The relationships between funding heterogeneity and organisational structure and functioning were examined for a panel of non-profit organisations. Resource dependence and institutional theory were used to derive hypotheses predicting positive associations between funding heterogeneity and non-profit boundary spanning, modelling and participation in collective efforts. For non-profits which were less vulnerable to institutional aspects of their environments, funding heterogeneity was found to have a positive effect on boundary spanning, consistent with resource dependence theory. For non-profits which were more vulnerable to institutional factors, on the other hand, funding heterogeneity was found to have positive effects on modelling and participation in collective efforts; consistent with institutional theory. These results argue that resource dependence and institutional theory need to be combined for the analysis of organisation-environment relations and suggest how this could be accomplished.The research described in this article was sponsored by grants from the National Science Foundation, the Program on Nonprofit Organizations at Yale University, and the University of Minnesota. An earlier version of this paper was presented at the 1990 Meetings of the American Sociological Association, August 11–15, Washington, D.C.     

Testing the Effectiveness of Fundraiser Job Titles in Charitable Bequest and Complex Gift Planning

Traditional fundraiser job titles are often institution centered, focusing on the benefits of fundraising as “institutional advancement” or “institutional development.” Such institution‐centered job titles may not be as effective with donors given the modern shift toward donor‐centered philanthropy. Alternative job titles can be gift centered (for example, “major gifts”) or donor centered (for example, “donor advising”). A survey of 3,188 respondents tested sixty‐three job titles in four charitable scenarios: a charitable bequest gift, a gift of stock, a gift of real estate, and a charitable gift annuity. Measured by which person donors would be more likely to contact to discuss each donation, the worst‐performing titles were the traditional institution‐focused fundraiser job titles, in particular those using “advancement,” “institutional advancement,” or “development.” This was also true when examining only respondents who had made large gifts ($500+) to a charity. Traditional institution‐focused job titles are both the most commonly used and the worst performing. Nonprofit managers may do well to consider the donor's perspective when selecting job titles for fundraisers rather than following traditional industry practices.     

The voluntary sector and corporate citizenship in the United States and Japan

This paper explores the differing approaches and objectives of Japanese and American philanthropy, as well as aspects of corporate giving and corporate citizenship. The historic roles of philanthropy, and the scope and purposes of the non-profit sector in both countries are examined, as is the concept of corporate good citizenship and the tendency towards giving by individuals and corporations. In addition, the paper examines the differing tax treatments, such as deductibility of charitable gifts, tax exemption of organisations, and relation of exempt entities to government, that logically follow from the two approaches, including changes in law and regulation through to the end of 1990. Although written by an American, this paper is not intended to present American-style philanthropy as a model for any others. Rather, it is intended to provide useful information for comparative study and to express the hope that Japan will bring a fresh approach to philanthropy around the world that goes beyond giving to traditional American causes and purposes and beyond giving solely as an export product used as a means of easing trade and investment friction.Susan Flaherty is a partner in the law firm of Roha & Flaherty in Washington,     

The history of non-profit organisations in Australia as a test of some recent non-profit theory

Over the past two decades, a number of important theories of non-profit activity have been developed, mainly by economists. In part, these theories attempt to explain why non-profit organisations are formed and flourish in some fields of activity and not in others. This paper seeks to test the adequacy of these explanations by seeing if they can explain seven cases of the formation of important sets of non-profit organisations in Australia. To this end, it sketches a history of non-profit organisations in Australia over the past 200 years and explores in more detail seven important cases of non-profit formation and development. It finds that, while in most cases the economic theories provide part of an explanation, there is a good deal which they cannot explain. Adequate explanations of non-profit formation will need to draw on social as well as economic theory.     

With the Best of Intentions

Abstract

Charities and humanitarian organisations in Singapore that were involved in post-Tsunami relief and reconstruction work are repeatedly queried by volunteers, donors, and journalists. The world has pledged and donated billions to Tsunami relief and reconstruction, and I have personally given money to Singapore charities. Why do I still read about needy people in temporary shelters? Where has the money gone? Another question reflects similar sentiments of puzzlement, even frustration: I am moved by the devastation and would like to help by volunteering my time and expertise. I have signed up to volunteer with several humanitarian organisations. I am highly qualified and could help people. Why am I still not sent overseas?

These are good questions that deserve solid answers. This article discusses the latest thinking in relief circles as to which volunteers are best sent overseas and how donations can most responsibly be used for effective and sustainable reconstruction. The authors draw on Singapore's experience with providing relief in the aftermath of the Tsunami along with Dr. Tay Keong Tan's observations of relief and rehabilitation efforts in the Tsunami-affected areas of Sri Lanka and Indonesia. The article finds that volunteering requires much more than just a giving heart. Also, donations may be used most effectively by thinking long-term rather than just short-term. Further, donations are best administered in a way coordinated with local relief plans and in consultation with local people. The article closes by considering lessons for volunteers, donors, and humanitarian relief agencies from the Tsunami's aftermath.     

Non-profit organisations in India: historical development and common patterns

The article documents the history of the Indian voluntary or non-profit sector involved in socio-economic development of the country. Specifically, three questions are addressed. What type of voluntary organisations existed at what periods of history, and what were their primary activities? Who were the founders, and what were their motives? Can we detect common themes or underlying patterns in the way in which the Indian voluntary sector has developed? Or in other words: what is the institutional genesis of the non-profit or voluntary sector in India? The findings are based on multiple sources — literature review, interviews and observation, and information requested through the mail. The article differs from most historical studies on Indian non-profit organisations because it takes an analytical approach by drawing from contemporary literature on such organisations.     

Resource Constraints or Cultural Conformity? Nonprofit Relationships with Businesses

Nonprofit interactions with businesses have become increasingly diverse, but which nonprofits establish relationships, and to what extent do relationships depend on the form or type of tie? Focusing on nonprofit collaboration with businesses and donations from businesses, we test arguments based on sociological institutionalism and resource dependence theory. We find that nonprofits relying on earned income, nonprofits led by individuals with management degrees, and rationalized nonprofits all are more likely to report collaborations with businesses, aligning with expectations from institutional theory. For donative ties between businesses and nonprofits, we find that rationalized nonprofits are more likely to have charitable gifts from businesses. However, nonprofits with earned income are less likely to have business donations, and funding diversity has a salient positive effect. These results reveal important but paradoxical institutional and resource dependence effects. We conclude with a discussion of our divergent findings and set an agenda for additional research on the topic.     

Non-profit institutions in an input-output framework

This paper discusses the conceptual treatment of non-profit institutions in the US input-output (I-O) accounts prepared by the Bureau of Economic Analysis, describes the sources and methods used to identify and measure the output of non-profits by I-O industry, and analyses the published benchmark I-O data for 1982 identifying output attributable to non-profits. In the context of the I-O framework, which is detailed and comprehensive, some conceptual and statistical questions associated with the treatment of non-profits are identified and discussed. These issues of definition, scope and measurement are particularly pertinent in light of the recommendations in the 1993 international System of National Accounts on sectoring and on presentation of flows.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 in this paper are those of the author's own. They do not necessarily represent the views of the Bureau of Economic Analysis and the US Department of Commerce.     

Project Time in Silicon Valley

This article explores the pace of work for highly skilled workers who are employed in the high-tech industry of Silicon Valley. I link the temporal experiences of these workers to systems of domination at work, and to the particular characteristics of flexible specialization in the region. I ask four questions: How can the temporal rhythms of work be described? What factors shape these rhythms? Why do workers comply? How does this pace of work impact on other aspects of individuals' lives? I focus on the organization of work through project cycles, the de-linking of workers and organizations, and the ideology of individualism that constructs workers as entrepreneurs of their own careers as key factors that shape the erratic and quickened pace of work in Silicon Valley. I also show how this pace of work negatively affects other temporal spheres that individuals negotiate, most notably “bodily time” and the “interaction time” of social relationships.

     

Are they ideological renegades? Fathers' experiences on taking parental leave and gender dynamics in Korea: A qualitative study

Despite their fear of repercussions on career advancement and gender identity, Korean fathers taking parental leave have continually increased. Why do Korean fathers take parental leave in spite of the risk of being stigmatized as less masculine and less ideal workers? Are they willing to be ‘ideological renegades' to be new involved fathers? In‐depth interviews with fathers who took parental leave provide interesting answers. Overall, taking parental leave does not make fathers become ideological renegades since it is mainly utilized in a manner that accommodates the work devotion schema, deviating from the formal policy objectives. This deviant utilization is encouraged and even valued by organizations. This may be part of a psychological contract between organizations and employees, ensuring that employees are dedicated to their career even during parental leave. Furthermore, beyond the legal eligibility of uptake, informal but powerful ‘organizational eligibility' such as high performance or their contribution to the organization, makes not only the likelihood but also the aftermath of taking up different across fathers. As a result, a hierarchy among fathers with class connotations emerges. This hierarchy among fathers, combined with the traditional gender hierarchy, may reinforce the masculine fabric of ideal workers as the norm.     

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.