10 GREAT MYTHS OF GLOBAL CIVIL SOCIETY Lester M. Salamon Johns Hopkins University and Russia’s...

10 GREAT MYTHS OF GLOBAL CIVIL SOCIETY

Lester M. SalamonJohns Hopkins University and

Russia’s Higher School of Economics

University of Strathclyde, GlasgowOctober 13, 2014

© Lester M. Salmon, 2014


1. There is no such thing as a civil society or nonprofit “sector.”

GOVERNMENTSECTOR

FOR-PROFITSECTOR

CIVIL SOCIETY SECTOR

THE GLOBAL ASSOCIATIONAL REVOLUTION

TOPIC II: WHAT IS THE NONPROFIT SECTOR ANDWHY DO WE HAVE IT?

Voluntary sector

Civil society sector Independent sector

Noncommercial sector

Charitable sector

Nongovernmental sector

Public-benefit sectorSocial economy sector

A. IS THERE SUCH A THING AS A NONPROFIT SECTOR?

1) Terminological Confusion

Johns Hopkins Center for Civil Society Studies

IS THERE SUCH A THING AS THE NONPROFIT SECTOR

TOPIC II: WHAT IS THE NONPROFIT SECTOR ANDWHY DO WE HAVE IT?

1)Terminological Confusion

2) Organizational Diversity

Political parties

Trade unions

Foundations

Religious congregations

Cooperatives

Hospitals

Schools

Universities

Homeowner organizations

Environmental

groups

Social srvc orgs

Museums

Nursing homes

NGOs

Professional associations

Business associations


IS THERE SUCH A THING AS A “NONPROFIT SECTOR”

SECTORS OF THE SNA SYSTEMNPISHsector

S.15

Householdssector

S.14

General government

sectorS.13

Nonfinancial corporations

sectorS.11

TYPE OF INSTITUTIONAL

UNIT

Financial corporations

sectorS.12

HHouseholds

GGovernment units

C1Corporations C2

N4N3N2N1

Nonprofit institutions (NPI) N5

TREATMENT OF NONPROFIT INSTITUTIONS IN THE SNA

WHO WE AREOUR METAPHOR

Kenya

Israel

Pakistan

Australia

Belgium

ItalySlovakia

Germany

United Kingdom

Denmark

France

Sweden

Norway

The Netherlands

Finland

Austria

Switzerland Czech Republic

Poland

Romania

Russia

HungaryUnited States

Mexico

Colombia

Brazil

Chile

Canada

UgandaArgentina

South Africa

Peru

Tanzania

Ghana Lebanon India

Thailand

New Zealand

Morocco

PortugalSpain

Ireland

Egypt

Japan

Korea

The Philippines

Turkey

CNP PROJECT COUNTRIES

Organizations

Private—institutionally separate from government

Non-profit-distributing

Self-governing

Noncompulsory

COMMON FEATURES OF NONPROFITS

Museums

Hospitals

Tradeassociations

Universities

Environmentalgroups Clinics

Human rights organizations

Professionalorganizations Sports clubs

Day carecenters

Foundations

Personal social services



2. The civil society sector is mostly engaged in provision of services.

IS A NONPROFIT SECTOR NEEDED? WHY?

1. Market Failure/Government Failure

2. Contract Failure: The Trust Theory

3. Supply-side theories


WHY DO WE HAVE A NONPROFIT SECTOR?

WHY DO WE HAVE A NONPROFIT SECTOR

Service provisionAdvocacyExpressionCommunity-building / social capitalValue guardian / mobilization

Source: Lester M. Salamon, The State of Nonprofit America (Washington, D.C.: The Brookings Institution Press, 2002)




3. The civil society sector is a marginal actor economically.

Kenya

Israel

Pakistan

Australia

Belgium

ItalySlovakia

Germany

United Kingdom

Denmark

France

Sweden

Norway

The Netherlands

Finland

Austria

Switzerland Czech Republic

Poland

Romania

Russia

HungaryUnited States

Mexico

Colombia

Brazil

Chile

Canada

UgandaArgentina

South Africa

Peru

Tanzania

Ghana Lebanon India

Thailand

New Zealand

Morocco

PortugalSpain

Ireland

Egypt

Japan

Korea

The Philippines

Turkey

CNP PROJECT COUNTRIES

GLOBAL CIVIL SOCIETY, VOLUME 2

48.4 million full time equivalent jobs

4.6% of economically active population

THE SCALE OF NONPROFIT ACTIVITY, 40 COUNTRIES

*EstimatedData sources: GDP - World Bank; Nonprofit revenue - JHU/CCSS

NON-PROFIT SECTOR REVENUE (41 COUNTRIES) VS. 12 LARGEST ECONOMIES, 2012

Korea, Republic of

Italy

Mexico

United Kingdom

Brazil

France

Germany

Russia

Nonprofit sector (41 countries)*

Japan

India

China

United States

1,540

2,017

2,022

2,333

2,366

2,372

3,349

3,373

4,109

4,487

4,793

12,471

15,685

B I L L I O N S O F D O L L A R S ( P P P b a s i s )

* Including volunteers and religious worship organization workforce, where available.

CIVIL SOCIETY ORGANIZATIONS*

48 MILLION

LARGEST PRIVATE COMPANIES

4 MILLION

EMPLOYMENT IN NPIs vs. LARGEST FIRMS, 37 COUNTRIES




3. The civil society sector is a marginal actor economically.

4. Civil society organizations are chiefly an American phenomenon and are far less in evidence in other countries.

5. There is no civil society sector for all intents and purposes in the Scandinavian countries, where the welfare state is most fully developed.

Source: Johns Hopkins Nonprofit Employment Data Project, 2003

UTILITIES

AGRICULTURE

TRANSPORTATION & WAREHOUSING

FINANCE & INSURANCE

CONSTRUCTION

MANUFACTURING

RETAIL TRADE

NONPROFIT SECTOR

0.5

1.2

4.2

6.0

7.6

14.1

15.4

18.013.5 4.5

VolunteersSeries3

MILLIONS OF FULL-TIME-EQUIVALENT WORKERS

U.S. NONPROFITS: A MAJOR ECONOMIC FORCE

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

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

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%

Volunteers

Series3

NONPROFIT WORKFORCE AS A SHARE OF ECONOMICALLY ACTIVE POPULATION, BY COUNTRY

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

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

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%

0.8%

0.8%

1.2%

1.4%

0.8%

0.8%

1.5%

1.4%

1.7%

1.3%

1.7%

2.2%

1.4%

1.7%

1.3%

1.3%

1.7%

1.0%

3.1%

2.7%

1.7%

3.0%

2.5%

3.3%

Volunteers

Series3

NONPROFIT WORKFORCE AS A SHARE OF ECONOMICALLY ACTIVE POPULATION, BY COUNTRY

UN HANDBOOK ON NONPROFIT INSTITUTIONS

GLOBAL CIVIL SOCIETY & VOLUNTEERING:LATEST UN NONPROFIT HANDBOOK FINDINGS ON 16 COUNTRIES

EMPLOYMENT IN NPIs vs. LARGEST FIRMS, 37 COUNTRIESWHO WE ARENPI CONTRIBUTION to GDP, INCLUDING VOLUNTEERS, BY COUNTRY, 2003

Source: The State of Global Civil Society and Volunteering: Latest findings from the implementation of the UN Nonprofit Handbook. (Johns Hopkins Center for Civil Society Studies, 2013).

7.1% 1.0% 8.1%Canada

0.8%

1.7%

2.0%

2.0%

2.2%

2.8%

1.9%

3.3%

3.6%

4.2%

2.8%

5.1%

5.5%

6.6%

6.7%

3.6%

0.8%

0.6%

2.7%

1.4%

1.3%

1.1%

2.5%

0.7%

1.0%

0.4%

0.9%

1.6%

1.9%

2.0%

2.2%

2.3%

3.4%

4.6%

4.7%

4.9%

5.2%

5.3%

5.8%

6.6%

6.7%

7.1%

4.5%

ThailandCzech Republic

PortugalMexico

KyrgyzstanBrazil

NorwayFrance

AustraliaJapan

New ZealandBelgium

United StatesMozambique

Israel

16-country average

P E R C E N T O F G D P

PAID WORKERS

VOLUNTEERS

NPI SECTOR8-COUNTRYAVERAGE

5.0%

ELECTRICITY,GAS, &

WATER SUPPLY

CONSTRUCTION FINANCIALINTERMEDIATION

TRANSPORT,STORAGE AND

COMMUNICATION

2.4%

5.1%5.6%

7.0%

CONTRIBUTION TO GDP, NPI vs. OTHER INDUSTRIES, 8-COUNTRY AVERAGE

52.9%

42%

66.2%

HEALTH

SOCIALSERVICES

SPORTS &RECREATION

NPI SHARE OF BELGIAN VALUE ADDED,SELECTED FIELDS, 2001


4. Civil society organizations are chiefly an American phenomenon and are far less in evidence in other countries.

5. There is no civil society sector for all intents and purposes in the Scandinavian countries, where the welfare state is most fully developed.

6. Paid staff drive out volunteers.

PAID WORKERS56%

VOLUNTEERS44%

47.6 million (including religion)

CIVIL SOCIETY ORGANIZATION PAID VS. VOLUNTEER LABOR, 37 COUNTRIES

38%ALL COUNTRIES

24%

30%

31%

32%

37%

55%

64%

ASIAN INDUSTRIALIZED

LATIN AMERICA

WELFARE PARTNERSHIP

CENTRAL EUROPE

ANGLO - SAXON

AFRICA

NORDIC

38%DEVELOPED

38%DEVELOPING

VOLUNTEERS AS % OF NPI WORKFORCE, BY COUNTRY CLUSTER, 37 COUNTRIES

IF VOLUNTEERS WERE A NATION…

971.0 VOLUNTEERLAND

92.8

101.3

109.4

121.6

127.7

162.4

239.7

756.5

1,023.5

Pakistan

Bangladesh

Japan

Russia

Brazil

Indonesia

United States

India

China

IF VOLUNTEERS WERE A NATION…

M I L L I O N S O F P E O P L E 1 5 Y E A R S O R O L D E R

“VOLUNTEERLAND”—THE WORLD’S SECOND MOST POPULOUS NATION

MI

LL

IO

NS

O

F

FT

E

JO

BS

20.8

VOLUNTEERS

5.2

UTILITIES (water, gas, electr.)

34.4

TRANSPORTATION

38.4

CONSTRUCTION

FTE VOLUNTEERS VS. EMPLOYMENT IN SELECTED INDUSTRIES, 37 COUNTRIES

CONTRIBUTION TO GDP, VOLUNTEERS vs. SELECTED INDUSTRIES, CANADAG

DP

CO

NTR

IBU

TIO

N B

ILLI

ON

S O

F C

AN

AD

IAN

$

$14.1 billion

VOLUNTEERS

$12.8 billion

AgricultureMotor vehicle manufacturing

$6.1 billion

WHY MEASURE VOLUNTEERING?

GIVING OF CASH

32%GIVING OF

TIME

68%

Total value of private philanthropy, including religion = $564 bn.

VOLUNTEERING INPUT AS A SHARE OF TOTAL PRIVATE PHILANTHROPY, 36 COUNTRIES

27%

57%

8%

8%

35%

65%

65% 35% 100%

PAID STAFF

VOLUNTEERS

Above average

Below average

Total

TotalBelow

averageAbove

average

CIVIL SOCIETY PAID vs. VOLUNTEER STAFF AS % OF TOTAL WORKFORCE, 37 COUNTRIES

ILO MANUAL ON THE MEASUREMENT OF VOLUNTEER WORK


6. Paid staff drive out reliance on volunteers.

7. Philanthropy is the chief source of civil society organization revenue.

FEES53%

GOVERNMENT35%

PHILANTHROPY12%

SOURCES OF CIVIL SOCIETY REVENUE, 34-COUNTRY AVERAGE


7. Philanthropy is the chief source of civil society organization revenue.

8. Philanthropy is at least the chief source of civil society revenue in the United States.

14%

19%

13%

43%

3%

20%

18%

38%

23%

13%

6%

7%

15%

3%

9%

6%

12%

15%

4%

7%

11%

14%

6%

3%

39%

32%

36%

6%

45%

27%

27%

7%

22%

31%

36%

35%

24%

37%

29%

31%

18%

15%

24%

19%

15%

5%

9%

5%

47%

49%

51%

51%

52%

53%

55%

55%

55%

57%

58%

58%

60%

61%

62%

63%

70%

70%

71%

73%

74%

81%

85%

92%

FEE DOMINANTFEES, CHARGES PHILANTHROPYGOVERNMENT

ALL COUNTRIES 53 % 35 % 12%

% may not add to 100 due to rounding

Czech RepublicSpainIndia

PakistanJapan

TanzaniaHungaryUganda

SlovakiaUnited States

FinlandNorwayPoland

ItalySweden

AustraliaPeru

ColombiaSouth Korea

ArgentinaBrazil

KenyaMexico

Philippines

SOURCES OF CIVIL SOCIETY REVENUE, BY COUNTRY

24%

26%

9%

9%

6%

8%

2%

10%

3%

5%

7%

32%

29%

45%

39%

43%

35%

39%

26%

32%

19%

16%

44%

45%

47%

51%

50%

58%

59%

64%

64%

77%

77%

ALL COUNTRIES 53 %

GOVERNMENT DOMINANTFEES, CHARGES PHILANTHROPYGOVERNMENT

35 % 12%

South Africa

Romania

United Kingdom

Canada

Austria

France

Netherlands

Israel

Germany

Belgium

Ireland

SOURCES OF CIVIL SOCIETY REVENUE, BY COUNTRY

% may not add to 100 due to rounding

1. Market Failure/Government Failure2. Contract Failure: The Trust Theory 3. Supply-side theories4. Voluntary Failure


WHY DO WE HAVE A NONPROFIT SECTOR?


9. The nonprofit sector is labor intensive rather than capital intensive.

NONPROFIT FISCAL GAP

® Operating revenue

® Investment capital

• Hard • Soft

91%

80%

77%

67%

53%

52%

37%

25%

39%

26%

31%

42%

Orgs. needing capital

Orgs. securing needed capital

Technology

Program development

Buildings/ land

Staff development

Strategicplanning

Vehicles/ equipment

PERCENT OF ORGANIZATIONS

NONPROFIT CAPITAL NEEDS VS. SUCCESS SECURING CAPITAL, BY PURPOSE

PHILANTHROPY’S BIG BANG

SOURCE: Lester M Salamon, Ed., The New Frontiers of Philanthropy, (New York: Oxford University Press, 2014).

Secondary Markets

Securitization

TYPES OF ACTORS

Capital Aggregators

Enterprise Brokers

Quasi-Public Investment

Funds

Social Stock Exchanges

Foundations as Philanthropic

Banks

Capacity Builders

Conversion Foundations

Online Portals

Funding Collaboratives

Corp-Originated Charitable

Funds

Loans / Credit Enhancements

EquityInvestments

Social Impact Bonds Insurance

Bonds

Social Investing & Purchasing

Prizes,Crowd-sourcing

TYPES OF TOOLS

NEW FRONTIERS OF PHILANTHROPY: ACTORS/TOOLS

SOURCE: Lester M Salamon, Ed., The New Frontiers of Philanthropy, (New York: Oxford University Press, forthcoming, 2014).

IS YOUR ORGANIZTION READY FOR THE NEW FRONTIERS OF PHILANTHROPY?

Now available at:

amazon.com oup.com


9. The nonprofit sector is labor intensive rather than capital intensive.

10.The civil society sector is growing at a slower rate than the private business sector.

5-COUNTRYAVERAGE

CZECHREPUBLIC2002-2005

BELGIUM 2000-2004

CANADA1997-2003

UNITED STATES

1997-2006

JAPAN 2000-2004

Does not include volunteer labor

TOTAL ECONOMY

NPI SECTOR

8.1%

16.6%

7.0%6.4% 6.2%

4.4%4.1%

6.7%

3.6%

5.4% 5.3%

-0.3%

AVERAGE ANNUAL GROWTH OF NPIS vs. TOTAL ECONOMY, 5 COUNTRIES

LESTER M. SALAMON [email protected]

Website: ccss.jhu.eduTwitter: @JHUCCSS

FOR MORE INFORMATION

FEES51%

PHILANTHROPY33%

GOVERNMENT15%

SOURCES OF CIVIL SOCIETY REVENUE, RUSSIA

10 GREAT MYTHS OF GLOBAL CIVIL SOCIETY Lester M. Salamon Johns Hopkins University and Russia’s...

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