NONPROFIT AMERICA: An Overview Lester M....

NONPROFIT AMERICA:

An Overview

Lester M. Salamon

National Academy of Sciences Workshop on NSF Survey of Nonprofit R and D

Washington, D.C., June 30, 2014

Source: Lester M. Salamon, America’s Nonprofit Sector: A Primer, 3rd Edition, 2012, Foundation Center.

• An elusive sector—many informal organizations

• Flaws in statistical lenses

EOMF: Historically rarely purged

SNA: NPIs buried in corporate sector

BEA: NPIs buried in household sector

BLS/ QCEW: NPIs buried in “private employment”

IRS 990: Only 16 % of registered orgs file

Government support buried in fee income

WHY WE NEED BETTER NONPROFIT STATISTICS

FIXING THE STATISTICAL LENS ON NONPROFITS

ILO MANUAL ON THE MEASUREMENT OF VOLUNTEER WORK

Source: Johns Hopkins Nonprofit Employment Data Project , 2003

13.5 4.5

0.5

1.2

4.2

6.0

7.6

14.1

15.4

18.0

UTILITIES

AGRICULTURE

TRANSPORTATION & WAREHOUSING

FINANCE & INSURANCE

CONSTRUCTION

MANUFACTURING

RETAIL TRADE

NONPROFIT SECTOR

MILLIONS OF FULL-TIME-EQUIVALENT WORKERS

Paid

Volunteers

NONPROFITS: A MAJOR ECONOMIC FORCE

Member-serving organizations

• Labor unions 501(c)(5)

• Business leagues 501(c)(6)

• Social & recreational 501(c)(7) +

• Fraternal societies 501(c)(8) +

• Mutual benefit 501(c)(9) +

Public-serving organizations

•Service & expressive 501(c)(3)

•Social welfare & action 501(c)(4)

•Funding intermediaries 501(c)(3)

•Religious organizations

A DIVERSE SECTOR


• Arts, culture, humanities

• Education

• Environment and animals

• Health

• Human service

• Other – Civil rights and advocacy – Community improvement – Science and technology – Social science – Religion-related


A DIVERSE SECTOR: SERVICE & EXPRESSIVE ORGS

1. Crime & legal related

2. Employment & job related

3. Food, agriculture, & nutrition

4. Housing & shelter

5. Public safety & disaster preparedness

6. Recreation & sports

7. Youth development

8. Children & youth services

9. Family services

10. Residential & custodial care

11. Services promoting independence

12. Other human services

13. International & foreign affairs


A DIVERSE SECTOR: HUMAN SERVICES ORGS

US Nonprofit ORGANIZATIONS (N = 2.0 million)

PUBLIC-SERVING ORGANIZATIONS (N = 1,646,604)—c-3s and c-4s MEMBER-SERVING ORGS (N = 322,554)

Service and Expressive Orgs (N = 991,712)

Social & Recreational

Clubs N = 88,051

Social Services (40%)

Religious Congregations

N = 429,000

Fraternal Societies

N = 78,008

Arts, Culture & Recreation (22%)

Business Leagues

N = 71,681

Health (11%)

Funding Intermediaries

N = 114,354

Social Welfare/

Action Agencies

N = 110,538

Education & Research (18%)

Labor Unions

N = 54,633

Civic Associations, Other (9%)

Mutual Benefit

N = 30,181


U S Nonprofit REVENUE (2007) (~$2 trillion)

PUBLIC SERVING ORGANIZATIONS ($1.74 trillion) MEMBER

ORGS ($225 billion)

Service and Expressive Organizations ($1.32 trillion)

Soc/Rec $1.2 bil

Religious Congregations

N = 429,000 Revenues =

$119.2 billion

Frat Socs $14.8 bil

Business Leagues $38.7 bil

Social Services (14%)

Health (58%) Labor

Unions $22.7 bil

Arts & Recreation (3%)

Funding Intermediaries

N = 114,354 Rev = $211.3

billion

Mutual Benefit

$135.6 bil

Education & Research (21%)

Social Welfare/ Action Agencies

N = 110,538 Rev = $84.6 billion

Civic Associations, Other (4%)


• Private giving / philanthropy – Individuals (including bequests)

– Foundations

– Corporations

– Federated funders

• Government support – Grants

– Reimbursements/vouchers

– Fee-for-service contracts

• Fees and charges – Payments for services

– Membership dues

– Earnings from investments

??

??

??


SERVICE ORGS: REVENUE SOURCES

• Private giving / philanthropy – Individuals (including bequests)

– Foundations

– Corporations

– Federated funders

• Government support – Grants

– Reimbursements/vouchers

– Fee-for-service contracts

• Fees and charges – Payments for services

– Membership dues

– Earnings from investments


SERVICE ORGS: REVENUE SOURCES

10%

38%

52%

Fees

$681 Billion

Government

$504 Billion

$685 Billion Philanthropy

$135 Billion

U.S. SOCIAL FINANCE, 2007

2nd Generation

1st Generation Foundations: $32 Billion

TOTAL OPERATING

REVENUE:

$1.3 TRILLION

NONPROFIT OPERATING REVENUE

$682

$759

$1,815

$2,635

$3,157

$4,950

$6,392

$7,829

$11,192

$17,439

$0 $5,000 $10,000 $15,000 $20,000

PRIVATE FOUNDATIONS

Credit Unions

Savings Institutions

State & Local Government

State & Local Pension Funds

Life Insurance Cos.

Private Pension Funds

Mutual Funds

Commercial Banks

Nonfinancial Businesses

Assets (in billions of dollars)


FOUNDATION ASSETS IN CONTEXT, 2007

Source: Susan Raymond, Changing Our World, Inc.

PHILANTHROPIC SUPPORT TO R AND D

30

45

47

53

72

16

38

50

10

15

54

17

3

37

14

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Civic & Other

Social Services

Health Care

Arts & Recreation

Education

Fees Government Philanthropy


REVENUE PATTERNS VARY BY FIELD

Source: Lester M. Salamon, The State of Nonprofit America, Second Edition, (Washington, D.C.: The Brookings Institution Press, 2012).

3.0% 3.0%

3.6%

4.0%

1977-1996 1997-2007

PE

RC

EN

T G

RO

WT

H

GDP

Nonprofit revenue

A DYNAMIC SECTOR

AVERAGE ANNUAL GROWTH, N/P REVENUE VS. U.S. GDP

Source: Lester M. Salamon, S. Wojciech Sokolowski, and Stephanie L. Geller, Holding the Fort: Nonprofit Employment during a Decade of Economic Turmoil, Johns Hopkins University, 2012.

3.3%

2.8%

1.6%

1.8%

1.9%

2.2%

2.5%

2.6%

1.2%

0.8%

-1.0

%

-1.9

%

-0.6

%

1.3%

2.0%

1.9%

1.0%

-1.1

%

-6.2

%

-0.9

%

PE

RC

EN

T

CH

AN

GE

Nonprofit

For-profit

2000-

2001

2005-

2006

2004-

2005

2003-

2004

2002-

2003

2001-

2002

2009-

2010

2008-

2009

2007-

2008

2006-

2007

ANNUAL CHANGES IN EMPLOYMENT

NONPROFIT vs. FOR-PROFIT, 2000-2010

41.0%

50.0%

51.0%

53.0%

111.0%

75.0%

53.0%

CULTURE, RECREATION

EDUCATION, RESEARCH

SOCIAL SERVICES

HEALTH

OTHER

ENVIRONMENT

TOTAL

32.0% U.S. GDP

P E R C E N T G R O W T H

NONPROFITS


CHANGES IN NONPRIOFIT REVENUES, by field, 1997-2007

WHO WE ARE SOURCES OF NONPROFIT GROWTH, 1997-2007

FEES,

58%

GOVERNMENT,

30%

PHILANTHROPY,

12%

TOTAL GROWTH

= $457 BILLION



18%

40%

45%

64%

67%

58%

17%

41%

11%

34%

20%

30%

66%

20%

44%

2%

14%

12%

ENVIRONMENT

SOCIAL SERVICES

CULTURE, RECREATION

HEALTH

EDUCATION, RESEARCH

TOTAL

FEES GOVERNMENT PHILANTHROPY

SOURCES OF NONPROFIT REVENUE GROWTH, by field, 1997-2007

2.4%

2.8%

2.6%

2.6%

3.2%

3.7%

4.3%

2.8%

2.2%

6.4%

4.9%

5.9%

5.9%

6.2%

2.5%

3.2%

8.6%

5.1%

10.3%

9.0%

9.7%

10.1%

3.3%

1.8%

1.5%

2.4%

3.1%

2.7%

3.0%

2.6%

4.5%

5.6%

1.5%

3.9%

2.9%

3.1%

3.0%

7.0%

6.4%

2.3%

5.8%

1.5%

3.2%

3.4%

5.8%

2.2%

4.3%

4.3%

5.0%

5.7%

5.9%

6.8%

6.9%

7.3%

7.8%

8.0%

8.8%

8.8%

9.0%

9.2%

9.6%

9.6%

10.9%

11.0%

11.8%

12.3%

13.1%

15.9%

5.5%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

Italy

Spain

Chile

Finland

Argentina

Germany

Switzerland

Norway

Austria

Japan

Denmark

Australia

France

United States

Sweden

New Zealand

Ireland

United Kingdom

Israel

Canada

Belgium

Netherlands

43-country average

Paid workers

Volunteers

NOT AN EXCLUSIVELY U.S. PHENOMENON NONPROFIT WORKFORCE AS % OF EAP, by country

1.4%

1.7%

1.3%

1.3%

1.7%

1.0%

3.1%

2.7%

1.7%

3.0%

2.5%

3.3%

0.8%

0.8%

1.2%

1.4%

0.8%

0.8%

1.5%

1.4%

1.7%

1.3%

1.7%

2.2%

0.7%

0.9%

1.0%

1.0%

1.2%

1.5%

1.5%

1.7%

1.9%

1.9%

2.0%

2.1%

2.1%

2.2%

2.3%

2.4%

3.2%

3.3%

3.4%

4.2%

4.2%

5.5%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

Romania

Poland

Pakistan

Slovakia

Russia

Morocco

India

Czech Republic

Philippines

Tanzania

Hungary

Peru

Kenya

Mexico

Colombia

Uganda

Egypt

Brazil

South Africa

Portugal

Korea, Republic of

43-country average

Paid workers

Volunteers

NOT AN EXCLUSIVELY U.S. PHENOMENON NONPROFIT WORKFORCE AS % OF EAP, by country

WHO WE ARE FURTHER INFORMATION

LESTER M. SALAMON

[email protected]

Website: ccss.jhu.edu

Twitter: @JHUCCSS

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NONPROFIT AMERICA: An Overview Lester M....

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