The Non-profit Sector in a Changing Economy

Publication by the Organization for Economic Co-operation and Development
2003

Synthesis

NP sector -
39.5 million people in full time employment in NP sector (excluding traditional coops) in 35 countries accrding to Johns Hopkins Comparative Non-profit Sector Project,
it employs 3.6% of working age population, representing 7.3% of non-agricultural employment and 46% of public sector employment.
As a separate economy, it would be the 6th largest economy in the world after US, Japan, china, Germany and France (Salamon,2002).


Since sustainability is dependent on funding, many NPs have become more entrepreneurial, less dependent on public funding and experimenting in innovative ways to raise funds.

Most NPs operate at local level.  They contribute to local development by-
-defining new goods and services related to the specific needs of the local territory
-generating integration and creating jobs
-improving the atmospher and the attractiveness of the territory
-consolidating partnership and empowering local actors
-emphasising "the long run" and therefore consolidating sustainable projects (ECOTEC,2001)

There has been "competition" between NPs and the for profits.

"All the chapters in this book contend that the non-profit sector is now a recognised and legitimised component of the advanced economies of the OECD." (p14)

Part 1 of the book - key trends, and also mix of revenues have changed over the years (primarily gifts & grants, governmental funding and earned income) the latter has become chief source of NP revenue overall

Part 2 -  - how to finance the NP sector-

philanthropic investors - trust, risk and uncertainty - the idea that lies behind venture philanthropy is that enlightened investors will accept a lower financial return if the receiving organisation demonstrates that it can generate important social benefits.

Barriers to access to finance - provision of financial instruments to individuals who normally would not qualify - thru microcredit, comunity based financial institutions such as credit unions, cooperative banks

Part 3 - evaluation of the NP sector