chapter
8
Nonprofit Sector
Importance of the Nonprofit Sector
to Leisure
• In neighborhoods and communities across
North America, millions of people are
served by and give service to entities that
are for public and quasi-public purposes.
• Nonprofit organizations affect human lives.
• Nonprofit organizations operate outside of
government and business apparatuses to
improve the quality of life in communities.
Nonprofit Sector
in the United States and Canada
• Variations in structure include registration and operations
within cultural, political, civic, and economic contexts.
• Variety of descriptions include the following:
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Voluntary sector
Charitable sector
Quasi-public sector
Independent sector
Third sector
Civil society sector
Social sector
Nongovernmental sector
Tax-exempt sector
Not-for-profit sector
6 Characteristics
of the Nonprofit Sector
1. Organized. Institutional presence and structure; identifiable
entity.
2. Private. Institutionally separate from the state; determine
their own policies, programs, and services.
3. Not profit distributing. Do not return profits to their
managers or to a set of “owners”; consider a range of
stakeholders when making decisions and providing services.
4. Self-governing. In control of their own affairs.
5. Voluntary. Membership is not legally required, and they
attract some level of voluntary contribution of time and
money.
6. Beneficial to the public. Contribute to the public purpose
and public good.
(Salamon,1999; O’Neill, 2002)
Impact on Leisure Programs
• Nonprofit organizations can include sports clubs,
professional associations, and direct service
providers.
• They have an impact across the life span from
“cradle to grave.”
• Introduction to nonprofit organizations typically
occurs through recreation programs as children
and youth become involved in the following:
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Scouting programs
YMCAs
Boys and Girls Clubs
Little League
Other recreation-based and nature-based programs
Goals and Functions
Two primary goals frame the orientation of
most nonprofits (Salamon,1999):
1. Public benefit. Some nonprofits are organized
specifically for social outcomes that appeal across
a spectrum of population groups.
2. Mutual benefit. These nonprofits exist primarily to
provide services exclusively to a limited number of
members with common interests.
Organizing Framework
International Classification of Nonprofit
Organizations (ICNPO): 12 major activity
groups
1.
2.
3.
4.
5.
6.
7.
Culture and recreation
Education and research
Health
Social services
Environment
Development and housing
Law, advocacy, and politics
(continued)
Organizing Framework (continued)
8.
9.
10.
11.
Philanthropic intermediaries and voluntarism
International
Religion
Business and professional associations and
unions
12. Groups not classified elsewhere
(Salamon & Anheier, 1996)
Nonprofit Sector in Canada
• “Little [is known] about the nonprofit sector and the
role it plays in Canada” (Hall & Banting, 1999).
• No central registry in Canada; what is known
comes from charities. Register with Revenue
Canada (the government agency similar to the
Internal Revenue Service in the United States).
• As of 2000, approximately 200,000 nonprofits were
operating in Canada with 80,000 of them registered
as official charities (Wagner, Orvananos de Rovzar,
& Imdieke, 2003).
4 Categories
of Nonprofits in Canada
1. Social welfare assists disadvantaged groups for the
common good and for the general welfare of the
community.
2. Civic improvement is organized to enhance the value
or quality of community or civic life.
3. Pleasure or recreation is organized to provide a state
of gratification or a means of refreshment or diversion.
4. The category, any other purpose except profit, is a
generic grouping of associations that are organized for
other noncommercial reasons (Revenue Canada,
2004).
Nonprofit Sector in the United States
• U.S. nonprofits are pervasive and robust.
• Approximately 1.6 million exist:
– 400,000 serve members.
– More than 1.2 million serve the public.
– The U.S. Internal Revenue Service provides 27
types of tax-exempt organizations under Section
501(c) of the federal tax code.
Major Subcategories
of U.S. Nonprofits
• Charities
Provide free services to vulnerable populations in
places such as homeless shelters and soup kitchens
• Foundations
Support causes that benefit society through grants
• Social welfare organizations
Advocate for specific issues by lobbying legislators to
advance social causes and campaigning for political
candidates
• Professional and trade associations
Are a collection of nonprofits that promote business or
professional interests
Resource Base
1.
2.
3.
4.
5.
6.
7.
8.
Membership fees
Program fees
Private philanthropy
Government grants
Interest income
Earned income
Sales income
Social enterprise
Professional Organizations
• Association for Volunteer Administration
(AVA) provides training and resources to
support volunteer managers.
• Association of Fundraising Professionals
(AFP) provides training, research, and
support to those involved in fundraising.
Significance
of Local Nonprofit Organizations
• They play a critical role in the recreational
and cultural life of the United States.
• Many central recreational institutions of
local communities—swimming clubs, tennis
clubs, Little Leagues, country clubs—are
nonprofit in form.
• They form the backbone of the nation’s
cultural life, producing most live theater,
symphonic music, and opera and providing
venues for art and cultural artifacts.
National and Community-Based
Nonprofit Recreation Organizations
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6.
7.
Voluntary youth serving
Religious and faith based
Social service and relief
Special populations serving
Environmental and conservation
Associations
Membership or service clubs and fraternal
organizations
Voluntary
Youth-Serving Organizations
More than 49 nonprofit youth and human
service organizations serve young people
across the United States and Canada. These
include the following:
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Big Brothers Big Sisters
Boy Scouts of America
Scouts Canada
Boys and Girls Clubs
Camp Fire USA
Girl Scouts of the USA
Girls Incorporated
Little League Baseball
Religious and Faith-Based
(Church and Synagogue)
Organizations
• Nonsectarian organizations with historical
roots in faith-based communities include
the following:
– YMCA of the USA and YMCA Canada,1851
– YWCA of the USA, 1858, and YWCA Canada, 1870
• Other nonprofits were created and are
administered by faith-based and church
communities, including the following:
– Catholic Youth Organization (CYO)
– Young Men’s Hebrew Association (YMHA)
– Young Women’s Hebrew Association (YWHA)
Social Service
and Relief Organizations
• Provide social and relief services. Difficult
to categorize; some are nonsectarian and
others are a part of faith communities.
• Improve the quality of life. Bolster goals of
recreation service providers or provide
direct recreation services themselves.
• Examples include the American Red Cross,
founded in 1881, and the Canadian Red
Cross, founded in 1909.
Special Populations–Serving
Organizations
• United Service Organization (USO), 1941
Supports the needs of enlisted military
personnel through leisure and recreation
• The Arc of the United States, 1959
Serves children and adults with cognitive,
intellectual, and developmental disabilities;
1,000 chapters nationwide
• Special Olympics, 1967
Provides year-round sports training and athletic
competition in 26 Olympic-type sports
Environmental
and Conservation Organizations
• Sierra Club, 1892
Purpose is to explore, enjoy, and protect wild places of
the earth; to practice and promote responsible use of
earth’s ecosystem and resources; to educate and enlist
humanity to protect and restore quality of natural and
human environment; and to use all lawful means to
carry out these objectives; Sierra Club of Canada,
founded in 1963.
• The Trust for Public Land (TPL), 1972
Purpose is to conserve land for people to enjoy as
parks, gardens, and other natural places, ensuring
livable communities for generations to come.
Association
American Camp Association is a diverse
community dedicated to enriching the lives
of children and adults through the camp
experience.
• For nearly 100 years, utilized camping as lessons in
community, character building, and skill
development.
• Works to preserve, promote, and improve the camp
experience.
Membership or Services Clubs
and Fraternal Organizations
• Service clubs and fraternal organizations
are part of the recreation and leisure
services for two reasons:
– Many support parks and recreation programs
through donations of time and money.
– Provide a personal and professional development
networking opportunity for the recreation
professional who becomes a member.
• Two of the better known service clubs are
Kiwanis International and Rotary
International.
Professional
in Nonprofit Organizations
• About 6% of all organizational entities in the
United States are nonprofits, and 1 in 15
people works for one (Salamon, 1999).
• The national organization Action Without
Borders (www.idealist.org) provides career
guidance and posts job openings.
• Trade publications such as Nonprofit Times
and the Chronicle of Philanthropy are
helpful tools in pursing careers in the
nonprofit sector.
Challenges and Opportunities
for the Future
• Challenges and opportunities:
– Effect of commercialization
– Changing shape of government and nonprofit relations, public
trust issues
– Changing demographics
• Direct implications for nonprofit recreation and
leisure service providers:
– Trust and accountability
– Opportunity for collaboration in response to marketplace
challenges
– Demographic challenges and opportunities
Successful Nonprofit Managers
• Those who will be or are skillful
across a range of competencies
• People with the ability to raise
philanthropic resources
• People with the ability to work with
and through volunteers to achieve
organizational goals
Discussion:
Subject: Trends
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Which of the following trends will most
affect the future of nonprofits?
– Commercialization
– The changing shape of government and nonprofit
relations
– Public trust issues
– Changing demographics
Individual Assignment: Design Your
Own Nonprofit and submit it on-line
A nonprofit organization (NPO) is defined as “an association [that] must be both organized
and operated exclusively for social welfare, civic improvement, pleasure or recreation or
for any other purpose except profit” (Revenue Canada, 2004).
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Create a nonprofit organization using the following questions as guidelines:
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What is the vision or mission statement of your organization?
What are your funding sources or resource base?
What are your staffing needs?
What facilities or sites will you need and in what jurisdiction?
What are the demographics (population, cultural ,and sociological) of your catchment’s area?
Which of the four categories of nonprofits does your organization fall under? See chapter 8 in the text for
a description of this area.
Reference Material - Descriptions of the four categories of nonprofits:
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Social welfare nonprofits assist disadvantaged groups for the common good and for the general welfare of
the community.
Civic improvement nonprofits enhance the value or quality of community or civic life.
Pleasure or recreation nonprofits provide a state of gratification or a means of refreshment or diversion.
Any other purpose except profit is a generic grouping of associations that are organized for other
noncommercial reasons.