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.     

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.     

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.     

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.     

Public accountability in non-profit industrial development organisations

Non-profit industrial development organisations (NIDOs) represent a common but little studied community response to widespread deindustrialisation in the United States. These non-profits are organised as chartered not-for-profit corporations, public authorities or agencies of local government. Most receive at least some public funding to promote local industrial development. Thus, a key issue is how accountable NIDOs are to the public they have been created to serve. Data from national surveys of NIDO executive directors in 1984 and 1994, as well as a survey of six case study boards of directors, suggest that public accountability is an increasingly important concern among NIDOs. Public hearings, efforts to diversify the boards in terms of gender and race, and connections to community development corporations and other local organisations are among the ways NIDOs attempt to be accountable to the general public. Although few women or racial minorities serve on NIDO boards, those boards with representation of these groups tend to be more concerned with public accountability. Boards containing public officials tend to be less concerned, presumably because their presence makes the NIDOs more directly accountable as a result of the participation of elected public representatives.     

The legal framework and taxation of Scandinavian non-profit organisations

The Scandinavian countries are part of the same legal tradition. No Scandinavian country has any written statute on non-profit associations. Their association law is flexible, common-sensical and easy to comply with. To obtain subsidies, the associations may have to submit to regulations regarding organisational structures (open membership and one person, one vote). The law on foundations is more formalised, and the foundations are subject to considerably more control and scrutiny. Scandinavian NPOs are usually exempt from income tax, but do not to any great extent benefit from deductibility for donations. They are subject to payroll tax, and usually to value added tax. The Scandinavian taxation policies may make the NPOs economically dependent upon the government, and subject to regulation through ‘subsidy law’.     

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.     

Facebook: A new communication strategy for non-profit organisations In Colombia

This study examines the use of Facebook by Colombian NPOs as a communication strategy. In turn, it also analyses the factors that influence the Facebook content published by such entities. Findings indicate that the use of social media is scarce, particularly pertaining to content related to fostering stakeholder involvement. Moreover, the factors “network activity”, “internationalisation” and “experience in social media” are significant predictors of the use of this tool as a channel for communication and dialogue.     

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 role of non-profit organisations in migration policies: Spain and Italy compared

The aim of the paper is to investigate the relation between Non-Profit Organizations (NP) and immigration. In particular, we examine the services offered to immigrants in Italy and Spain, both noted for their similar patterns of migration. In these countries immigration is characterised by a lack of the so-called “real” (not just legislative) measures that take the needs of immigrants into consideration. Even though emergency policies exist to meet various contingencies, lack of awareness of population movements is probably behind the “absence” of the state.The hypothetic and causal connection between the NP sector and immigration will be studied using selected data. The positive results of the analysis are the first stage in considering the possible substitution of state institutions by the NP sector, with regard to immigrants.     

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: an editorial statement

Helmut Anheier is Assistant Professor of Sociology at Rutgers University, New Brunswick, New Jersey, USA     

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

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

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.     

Rethinking organisations: a feminist perspective

Organizational transformation was the theme of a 1996 meeting in Canada of men and women from Asia, Africa, Latin America, North America, and Europe concerned with more equitable power relations between men and women. Gender parity policies and initiatives are necessary but not sufficient as long as the organizational culture remains antithetical to gender equality and adequate resources are withheld. Three salient structural aspects of organizations were identified by participants: the expectation that staff should place their employment rather than family at the center of their lives, a view of power as a finite resource linked with control and hierarchy, and a tendency to focus narrowly on a single purpose and course of action. Recommended, to change these factors, were linkage of the feminist goal of social transformation to the espoused values of the organization, clarification of the multiple meanings attached to the concept of gender and their implications for different organizational contexts, identification of instances of dissonance between an organization's stated values and its actual culture (e.g., pressure on employees to work long hours, to the detriment of family), and an emphasis on process as well as outcome.     

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.     

Measuring the US non-profit sector: a progress report

The input-output model currently used for estimating the size, scope and dimensions of the non-profit sector in the US economy is based on the SIC system. Unfortunately, this system is inadequate to provide detailed information on the non-profit sector. In response, we developed a classification system — the National Taxonomy of Exempt Entities (NTEE) — to define and measure the sector more accurately. This article describes the relationship between the SIC-based measures and the NTEE based measures, and reports on current efforts to link the NTEE system with tax data bases maintained at the Internal Revenue Service.Virginia Hodgkinson is Vice President for Research at Independent Sector, Washington, DC, 20036.Murray Weitzman is a Senior Research Consultant at Independent Sector.     

Playful organisations: Undecidability as a scarce resource

This article explores how organisational play becomes a managerial tool to increase and benefit from undecidability. The article draws on Niklas Luhmann's concept of decision and on Gregory Bateson's theory of play to create a conceptual framework for analysing the relation between decision and undecidability. With an empirical point of departure in Danish public school policy and two concrete examples of games utilised in school development, the article analyses how play is a way for organisations to simultaneously decide and also avoid making a decision, thus keeping flexibility and possibilities intact. In its final sections, the article discusses what happens to conditions of decision-making when organisations do not just see undecidability as a given condition, but as a limited resource indispensable for change and renewal. The article advances discussions of organisational play by exploring the consequences play has for the very conditions of organising and for key concepts in organisation theory.     

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.