10 GREAT MYTHS OF GLOBAL CIVIL
SOCIETY
Lester M. Salamon
Johns Hopkins University and
Russia’s Higher School of Economics
University of Strathclyde, Glasgow
October 13, 2014
© Lester M. Salmon, 2014
10 GREAT MYTHS OF GLOBAL CIVIL SOCIETY
1. There is no such thing as a civil society or nonprofit “sector.”
THE GLOBAL ASSOCIATIONAL REVOLUTION
FOR-PROFIT
SECTOR
CIVIL
SOCIETY
SECTOR
GOVERNMENT
SECTOR
TOPIC
II:SUCH
WHAT
THEAS
NONPROFIT
SECTOR
AND
IS
THERE
A IS
THING
THE NONPROFIT
SECTOR
WHY DO WE HAVE IT?
A. IS THERE SUCH A THING AS A
NONPROFIT SECTOR?
1) Terminological Confusion
Johns Hopkins Center for Civil Society Studies
TOPIC
II: SUCH
WHATAIS
THE AS
NONPROFIT
SECTOR
AND
IS THERE
THING
A “NONPROFIT
SECTOR”
WHY 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
Johns Hopkins Center for Civil Society Studies
TREATMENT OF NONPROFIT INSTITUTIONS IN THE SNA
SECTORS OF THE SNA SYSTEM
TYPE OF
INSTITUTIONAL
UNIT
Corporations
Nonfinancial
corporations
sector
S.11
Financial
corporations
sector
S.12
C1
C2
Government units
General
government
sector
S.13
NPISH
sector
S.14
S.15
G
Households
Nonprofit
institutions (NPI)
Households
sector
H
N1
N2
N3
N4
N5
OUR
METAPHOR
WHO
WE ARE
CNP PROJECT COUNTRIES
Denmark
Belgium
United Kingdom
Germany
Canada
The Netherlands
Sweden
Switzerland
Finland
Norway
France
Czech Republic
Poland
Austria
Italy
Romania
Slovakia
Russia
Hungary
Ireland
Spain
Portugal
United States
Mexico
Japan
Morocco
Turkey
Israel
Colombia
Ghana
Egypt
Brazil
South Africa
Chile
Argentina
Peru
Lebanon
Korea
The Philippines
India
Thailand
Kenya
Pakistan
Tanzania
Uganda
Australia
New Zealand
COMMON FEATURES OF NONPROFITS
Organizations
Private—institutionally separate
from government
Non-profit-distributing
Self-governing
Noncompulsory
Trade
associations
Personal social
services
Hospitals
Museums
Foundations
Universities
Environmental
groups
Human rights
organizations
Professional
organizations
Clinics
Day care
centers
Sports clubs
10 GREAT MYTHS OF GLOBAL CIVIL SOCIETY
1. There is no such thing as a civil society or nonprofit “sector.”
2. The civil society sector is mostly engaged in provision of
services.
WHY DO WE HAVE A NONPROFIT SECTOR?
IS A NONPROFIT SECTOR NEEDED?
WHY?
1. Market Failure/Government Failure
2. Contract Failure: The Trust Theory
3. Supply-side theories
Johns Hopkins Center for Civil Society Studies
WHY DO WE HAVE A NONPROFIT SECTOR
Service provision
Advocacy
Expression
Community-building / social capital
Value guardian / mobilization
Source: Lester M. Salamon, The State of Nonprofit America (Washington, D.C.: The Brookings Institution Press, 2002)
10 GREAT MYTHS OF GLOBAL CIVIL SOCIETY
1. There is no such thing as a civil society or nonprofit “sector.”
2. The civil society sector is mostly engaged in provision of
services.
3. The civil society sector is a marginal actor economically.
CNP PROJECT COUNTRIES
Denmark
Belgium
United Kingdom
Germany
Canada
The Netherlands
Sweden
Switzerland
Finland
Norway
France
Czech Republic
Poland
Austria
Italy
Romania
Slovakia
Russia
Hungary
Ireland
Spain
Portugal
United States
Mexico
Japan
Morocco
Turkey
Israel
Colombia
Ghana
Egypt
Brazil
South Africa
Chile
Argentina
Peru
Lebanon
Korea
The Philippines
India
Thailand
Kenya
Pakistan
Tanzania
Uganda
Australia
New Zealand
GLOBAL CIVIL SOCIETY, VOLUME 2
THE SCALE OF NONPROFIT ACTIVITY, 40 COUNTRIES
48.4 million full time equivalent jobs
4.6% of economically active population
NON-PROFIT SECTOR REVENUE (41 COUNTRIES)
VS. 12 LARGEST ECONOMIES, 2012
United States
15,685
China
12,471
India
4,793
Japan
4,487
Nonprofit sector (41 countries)*
4,109
Russia
3,373
Germany
3,349
France
2,372
Brazil
2,366
United Kingdom
2,333
Mexico
2,022
Italy
2,017
Korea, Republic of
1,540
*Estimated
Data sources: GDP - World Bank; Nonprofit revenue - JHU/CCSS
BILLIONS OF DOLLARS(PPP basis)
EMPLOYMENT IN NPIs vs. LARGEST FIRMS, 37 COUNTRIES
CIVIL SOCIETY ORGANIZATIONS*
48 MILLION
LARGEST PRIVATE COMPANIES
4 MILLION
* Including volunteers and religious worship organization workforce, where available.
10 GREAT MYTHS OF GLOBAL CIVIL SOCIETY
1. There is no such thing as a civil society or nonprofit “sector.”
2. The civil society sector is mostly engaged in provision of
services.
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.
U.S. NONPROFITS: A MAJOR ECONOMIC FORCE
NONPROFIT SECTOR
RETAIL TRADE
15.4
MANUFACTURING
14.1
CONSTRUCTION
7.6
FINANCE & INSURANCE
6.0
TRANSPORTATION & WAREHOUSING
AGRICULTURE
UTILITIES
18.0
13.5 4.5
4.2
1.2
Paid
Volunteers
0.5
MILLIONS OF FULL-TIME-EQUIVALENT WORKERS
Source: Johns Hopkins Nonprofit Employment Data Project, 2003
NONPROFIT WORKFORCE AS A SHARE OF
ECONOMICALLY ACTIVE POPULATION, BY COUNTRY
43-country average
Netherlands
Belgium
Canada
Israel
United Kingdom
Ireland
New Zealand
Sweden
United States
France
Australia
Denmark
Japan
Austria
Norway
Switzerland
Germany
Argentina
Finland
Chile
Spain
Italy
3.3%
2.2%
5.5%
10.1%
9.7%
9.0%
5.8%
3.4%
2.5%
9.6%
9.6%
3.0%
5.9%
3.1%
5.9%
2.9%
8.8%
8.8%
1.5%
8.0%
7.8%
4.5%
3.7%
7.3%
3.1%
2.6%
2.4%
2.8%
2.6%
6.9%
3.0%
Paid workers
6.8%
2.7%
2.6%
2%
9.0%
5.6%
4.3%
0%
9.2%
3.9%
6.4%
3.2%
11.8%
10.9%
6.4%
4.9%
2.4%
2.3%
7.0%
2.8%
1.5%
11.0%
6.2%
2.2%
12.3%
5.8%
8.6%
3.2%
13.1%
3.2%
10.3%
5.1%
15.9%
5.9%
Volunteers
5.7%
5.0%
1.5%
4.3%
1.8%
4.3%
4%
6%
8%
10%
12%
14%
16%
18%
20%
NONPROFIT WORKFORCE AS A SHARE OF
ECONOMICALLY ACTIVE POPULATION, BY COUNTRY
43-country average
3.3%
Korea, Republic of
2.5%
Portugal
1.7%
3.0%
South Africa
1.7%
Brazil
2.2%
2.7%
Egypt
Colombia
1.4%
2.2%
Kenya
1.3% 0.8% 2.1%
Peru
1.3% 0.8% 2.1%
1.7%
Tanzania
2.0%
1.4%
Philippines
1.9%
1.2%
Czech Republic
1.9%
1.4%
1.7%
India
0.8% 1.5%
Morocco
0.8% 1.5%
Russia
3.2%
2.3%
1.5%
Hungary
3.4%
2.4%
1.7%
Mexico
4.2%
3.3%
3.1%
Uganda 1.0%
4.2%
1.3%
1.7%
5.5%
Paid workers
1.2%
Slovakia
1.0%
Pakistan
1.0%
Poland
0.9%
Romania
Volunteers
0.7%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
UN HANDBOOK ON NONPROFIT INSTITUTIONS
GLOBAL CIVIL SOCIETY & VOLUNTEERING:
LATEST UN NONPROFIT HANDBOOK FINDINGS ON 16 COUNTRIES
NPI CONTRIBUTION
to GDP,
WHO
WE
ARE
EMPLOYMENT IN NPIs vs. LARGEST FIRMS, 37 COUNTRIES
INCLUDING VOLUNTEERS, BY COUNTRY, 2003
16-country average
Canada
Israel
Mozambique
United States
Belgium
New Zealand
Japan
Australia
France
Norway
Brazil
Kyrgyzstan
Mexico
Portugal
Czech Republic
Thailand
3.6%
4.5%
0.9%
7.1%
6.7%
6.6%
5.5%
5.1%
2.8%
3.6%
0.8%
0.8%
PAID WORKERS
4.7%
1.4%
VOLUNTEERS
3.4%
2.2%
2.0%
1.7%
6.6%
2.3%
2.2%
2.0%
4.9%
4.6%
0.6%
6.7%
5.2%
1.1%
1.3%
2.7%
2.8%
7.1%
5.3%
4.2%
1.9%
0.4%
8.1%
5.8%
0.7%
2.5%
3.3%
1.0%
1.0%
2.0%
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).
1.9%
1.6%
P E R C E N T
O F
G D P
CONTRIBUTION TO GDP, NPI vs. OTHER INDUSTRIES,
8-COUNTRY AVERAGE
7.0%
5.1%
5.0%
5.6%
2.4%
NPI SECTOR
8-COUNTRY
AVERAGE
ELECTRICITY,
GAS, &
WATER SUPPLY
CONSTRUCTION
FINANCIAL
INTERMEDIATION
TRANSPORT,
STORAGE AND
COMMUNICATION
NPI SHARE OF BELGIAN VALUE ADDED,
SELECTED FIELDS, 2001
SOCIAL
SERVICES
66.2%
SPORTS &
RECREATION
HEALTH
52.9%
42%
10 GREAT MYTHS OF GLOBAL CIVIL SOCIETY
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.
CIVIL SOCIETY ORGANIZATION
PAID VS. VOLUNTEER LABOR, 37 COUNTRIES
VOLUNTEERS
44%
47.6 million
(including religion)
PAID WORKERS
56%
VOLUNTEERS AS % OF NPI WORKFORCE, BY COUNTRY
CLUSTER, 37 COUNTRIES
ALL COUNTRIES
38%
DEVELOPING
38%
DEVELOPED
38%
NORDIC
64%
55%
AFRICA
ANGLO - SAXON
37%
CENTRAL EUROPE
32%
WELFARE PARTNERSHIP
31%
LATIN AMERICA
ASIAN INDUSTRIALIZED
30%
24%
IF VOLUNTEERS WERE A NATION…
IF VOLUNTEERS WERE A NATION…
“VOLUNTEERLAND”—THE WORLD’S SECOND MOST POPULOUS NATION
China
1,023.5
971.0
VOLUNTEERLAND
India
756.5
United States
Indonesia
239.7
162.4
Brazil
127.7
Russia
121.6
Japan
109.4
Bangladesh
101.3
Pakistan
92.8
MILLIONS OF PEOPLE 15 YEARS OR OLDER
FTE VOLUNTEERS VS. EMPLOYMENT IN
SELECTED INDUSTRIES, 37 COUNTRIES
MILLIONS OF FTE JOBS
38.4
34.4
20.8
5.2
VOLUNTEERS
UTILITIES
(water, gas, electr.)
TRANSPORTATION
CONSTRUCTION
WHY MEASURE VOLUNTEERING?
CONTRIBUTION TO GDP, VOLUNTEERS vs. SELECTED INDUSTRIES, CANADA
$14.1 billion
$12.8 billion
$6.1 billion
VOLUNTEERS
Motor vehicle
manufacturing
Agriculture
VOLUNTEERING INPUT AS A SHARE OF TOTAL
PRIVATE PHILANTHROPY, 36 COUNTRIES
GIVING OF
CASH
GIVING OF
TIME
68%
Total value of private
philanthropy, including
religion = $564 bn.
32%
CIVIL SOCIETY PAID vs. VOLUNTEER STAFF AS % OF
TOTAL WORKFORCE, 37 COUNTRIES
VOLUNTEERS
PAID STAFF
Below
average
Above
average
Total
Above average
8%
27%
35%
Below average
57%
8%
65%
Total
65%
35%
100%
ILO MANUAL ON THE MEASUREMENT OF VOLUNTEER WORK
10 GREAT MYTHS OF GLOBAL CIVIL SOCIETY
6. Paid staff drive out reliance on volunteers.
7. Philanthropy is the chief source of civil society organization
revenue.
SOURCES OF CIVIL SOCIETY REVENUE,
34-COUNTRY AVERAGE
PHILANTHROPY
12%
GOVERNMENT
35%
FEES
53%
10 GREAT MYTHS OF GLOBAL CIVIL SOCIETY
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.
SOURCES OF CIVIL SOCIETY REVENUE, BY COUNTRY
FEE DOMINANT
FEES, CHARGES
GOVERNMENT
ALL COUNTRIES
Philippines
Mexico
Kenya
Brazil
Argentina
South Korea
Colombia
Peru
Australia
Sweden
Italy
Poland
Norway
Finland
United States
Slovakia
Uganda
Hungary
Tanzania
Japan
Pakistan
India
Spain
Czech Republic
53 %
35 %
92%
85%
81%
5%
3%
9%
6%
5%
74%
14%
15%
73%
11%
19%
71%
7%
24%
70%
4%
15%
70%
15%
18%
12%
63%
31%
62%
6%
29%
61%
9%
37%
60%
24%
15%
35%
7%
58%
36%
6%
57%
31%
55%
13%
22%
23%
7%
55%
38%
27%
53%
18%
27%
20%
52%
51%
51%
49%
3%
58%
55%
47%
PHILANTHROPY
12%
45%
3%
6%
43%
36%
32%
13%
19%
39%
14%
% may not add to 100 due to rounding
SOURCES OF CIVIL SOCIETY REVENUE, BY COUNTRY
GOVERNMENT DOMINANT
FEES, CHARGES
ALL COUNTRIES
Ireland
Belgium
Germany
Israel
53 %
12%
19%
77%
32%
64%
26%
7%
5%
3%
64%
39%
59%
35%
58%
43%
Canada
39%
United Kingdom
South Africa
35 %
77%
Austria
Romania
PHILANTHROPY
16%
Netherlands
France
GOVERNMENT
45%
29%
32%
50%
51%
47%
45%
44%
10%
2%
8%
6%
9%
9%
26%
24%
% may not add to 100 due to rounding
WHY DO WE HAVE A NONPROFIT SECTOR?
1. Market Failure/Government Failure
2. Contract Failure: The Trust Theory
3. Supply-side theories
4. Voluntary Failure
Johns Hopkins Center for Civil Society Studies
10 GREAT MYTHS OF GLOBAL CIVIL SOCIETY
9. The nonprofit sector is labor intensive rather than capital
intensive.
NONPROFIT FISCAL GAP
 Operating revenue
 Investment capital
• Hard
• Soft
NONPROFIT CAPITAL NEEDS VS. SUCCESS SECURING
CAPITAL, BY PURPOSE
91%
Technology
Program
development
37%
80%
25%
77%
Buildings/ land
Staff
development
Strategic
planning
Vehicles/
equipment
39%
67%
26%
53%
31%
52%
42%
PERCENT OF ORGANIZATIONS
Orgs. needing
capital
Orgs. securing
needed capital
PHILANTHROPY’S BIG BANG
SOURCE: Lester M Salamon, Ed., The New Frontiers of Philanthropy, (New York: Oxford University Press, 2014).
NEW FRONTIERS OF PHILANTHROPY: ACTORS/TOOLS
TYPES OF ACTORS
Capital
Aggregators
Enterprise
Brokers
Secondary
Markets
Capacity
Builders
Social Stock
Exchanges
Online
Portals
Foundations as
Philanthropic
Banks
Corp-Originated
Charitable
Funds
Quasi-Public
Investment
Funds
Conversion
Foundations
Funding
Collaboratives
TYPES OF TOOLS
Loans / Credit
Enhancements
Bonds
Securitization
Equity
Investments
Social Impact Bonds
Insurance
Social Investing
& Purchasing
Prizes,
Crowd-sourcing
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
10 GREAT MYTHS OF GLOBAL CIVIL SOCIETY
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.
AVERAGE ANNUAL GROWTH OF NPIS
vs. TOTAL ECONOMY, 5 COUNTRIES
16.6%
NPI SECTOR
TOTAL ECONOMY
8.1%
6.7%
7.0%
6.4%
5.4%
4.1%
5-COUNTRY
AVERAGE
Does not include volunteer labor
6.2%
5.3%
3.6%
CZECH
REPUBLIC
2002-2005
BELGIUM
2000-2004
CANADA
1997-2003
UNITED
STATES
1997-2006
4.4%
-0.3%
JAPAN
2000-2004
FOR MORE INFORMATION
LESTER M. SALAMON
lsalamon@jhu.edu
Website: ccss.jhu.edu
Twitter: @JHUCCSS
SOURCES OF CIVIL SOCIETY REVENUE,
RUSSIA
GOVERNMENT
15%
PHILANTHROPY
33%
FEES
51%