Title: PHILANTHROPY AND THE NONPROFIT SECTOR
1PHILANTHROPY AND THE NONPROFIT SECTOR
- James M. Ferris
- March 10, 2004
2- Definitions, Boundaries, and Scope
- The Philanthropic Dimension of the Nonprofit
Sector - Trends in Philanthropy
3- Definitions, Boundaries, Scope
4What Is the Nonprofit Sector?
- Formal organizations that are neither public or
for-profit. - Private, self-governing, voluntary,
non-profit distributing. - Exempt from corporate income taxes.
- Diverse, heterogeneous group.
5Terminological Thicket
- Nonprofit
- Not-for-profit
- Voluntary
- Independent
- Charitable
- Nongovernmental
- Philanthropic
- Third Sector
- Civil Society
- Social Benefit
6The Nonprofit Sector in Context
- Relative Size in terms of
- Organizations
- National Income
- Employees
- Earnings
7Distribution of Organizations by Major Sector,
1998
Total number of organizations 27.7 million
Source The New Nonprofit Almanac Desk
Reference, Independent Sector, Urban Institute,
2002.
8Distribution of National Income by Major Sector,
1998
Total national income 6.9 trillion
Total national income 7.1 trillion
Source The New Nonprofit Almanac Desk
Reference, Independent Sector, Urban Institute,
2002.
9Distribution of Employees by Major Sector, 1998
Total national employees 144 million
Total national employees 154 million
Source The New Nonprofit Almanac Desk
Reference, Independent Sector, Urban Institute,
2002.
10Distribution of Paid Earnings by Major Sector,
1998
Total earnings 4.8 trillion
Total earnings 5.0 trillion
Source The New Nonprofit Almanac Desk
Reference, Independent Sector, Urban Institute,
2002.
11The Public Benefit Nonprofit Sector
- The nonprofit sector is comprised of 27 types of
organizations in the Internal Revenue Code. - Of particular interest are the public benefit
organizations - 501(c)(3) Religious, charitable, educational,
etc. - 501(c)(4) Social Welfare.
- Comprise the great majority of the sector
- Common perception of the sector
12Distribution of National Income in Nonprofit
Sector, 1998
Total nonprofit national income 325 billion
Total nonprofit national income 477 billion
Source The New Nonprofit Almanac Desk
Reference, Independent Sector, Urban Institute,
2002.
13Philanthropy the Nonprofit Sector
- The task of comprehending the nonprofit
sector is further complicated by a widespread
failure to recognize the important distinction
between philanthropy, on the one hand, and the
private nonprofit sector, on the other. In many
accounts these two terms are treated
interchangeably when in fact one is really just
part of the other. - Lester Salamon, Americas Nonprofit Sector
14Philanthropy the Nonprofit Sector
- The nonprofit sector is the set of organizations
that are private but serve public purposes
advancement of health, education, scientific
progress, social welfare or the free expression
of ideas. - Philanthropy is the giving of time or money for
public purposes. It is an important resource for
nonprofit organizations. - Venture capital for social change.
15Sources of Nonprofit Revenue, 1997
Total Revenue 665 billion
Source The New Nonprofit Almanac Desk
Reference, Independent Sector, Urban Institute,
2002.
16Sources of Nonprofit Revenue, 1997(excluding
health services)
Total Revenue 339 billion
Source The New Nonprofit Almanac Desk
Reference, Independent Sector, Urban Institute,
2002.
17Changing Patterns
Source The New Nonprofit Almanac Desk
Reference, Independent Sector, Urban Institute,
2002.
18Changing Patterns(excluding health services)
Source The New Nonprofit Almanac Desk
Reference, Independent Sector, Urban Institute,
2002.
19Changing Patterns Health Services
Source The New Nonprofit Almanac Desk
Reference, Independent Sector, Urban Institute,
2002.
20Changing PatternsArts and Culture
Source The New Nonprofit Almanac Desk
Reference, Independent Sector, Urban Institute,
2002.
21Changing PatternsEducation and Research
Source The New Nonprofit Almanac Desk
Reference, Independent Sector, Urban Institute,
2002.
22Industry Allocation of Revenues, 1997
Total Revenue 665 billion
Source The New Nonprofit Almanac Desk
Reference, Independent Sector, Urban Institute,
2002.
23Industry Allocation of Revenues, 1977
Total Revenue 111 billion
Source The New Nonprofit Almanac Desk
Reference, Independent Sector, Urban Institute,
2002.
24Industry Allocation of Revenues, 1977 and 1997
Source The New Nonprofit Almanac Desk
Reference, Independent Sector, Urban Institute,
2002.
25Roles of the Nonprofit Sector
- Service Delivery
- Advocacy
- Community Building
- Value Guardian
26The Philanthropic Dimension of the Nonprofit
Sector
27Private Giving, 2002
Total Giving 241 billion
Source Giving USA, AARFC Trust for Philanthropy,
2003.
28Changing Sources of Private Giving
Source The New Nonprofit Almanac Desk
Reference, Independent Sector, Urban Institute,
2002 Giving USA, AARFC Trust for Philanthropy,
2003.
29Changing Sources of Private Giving
Total giving 21 billion
Total giving 48.6 billion
Source The New Nonprofit Almanac Desk
Reference, Independent Sector, Urban Institute,
2002 Giving USA, AARFC Trust for Philanthropy,
2003.
30Changing Sources of Private Giving
Total giving 98.8 billion
Total giving 203.4 billion
Source The New Nonprofit Almanac Desk
Reference, Independent Sector, Urban Institute,
2002 Giving USA, AARFC Trust for Philanthropy,
2003.
31Giving By Recipient Type, 2002
Total Giving 241 billion
Source Giving USA, AARFC Trust for Philanthropy,
2003.
32Private Giving as of Income
Source Giving USA, AARFC Trust for Philanthropy,
2003.
33PHILANTHROPIC INSTITUTIONS
- Foundations
- Federated Fundraising Appeals
- Donor Advised Funds
- Public Grantmaking Charities
34FOUNDATIONS
- Philanthropic foundations are an important
element of the American nonprofit landscape. - Mechanism through which philanthropic dollars
flow to nonprofit organizations, typically from
endowments. - They are of particular interest given their link
to concentrated wealth and the impact of their
grantmaking.
35Foundations, 2001
- 61,180 grantmaking foundations, with 477 billion
in assets, and 30.5 billion in giving. - A nearly three-fold increase in assets and over a
three-fold increase in giving since 1991.
36Foundation Growth, 1991-2001
Number Assets (b) Giving (b)
1991 33,356 162.907 9.211
1995 40,140 226.736 12.261
1999 50,201 448.610 23.321
2001 61,180 476.789 30.502
37Size Concentration 2001
- The largest 43 foundations 1 B or more in
assets, hold 34.8 of assets and 23.8 of giving. - The largest 214 foundations 250 million or
more in assets, hold assets 51.4 of assets and
47.4 of giving. - Foundations with under 10 million in assets
(56K) hold 13.8 of assets and 25.2 of giving.
38Regional Concentration 2001
State of Giving of Assets
New York 18.8 17.2
California 11.7 13.9
Pennsylvania 5.3 5.2
Washington 5.1 8.3
Texas 4.9 5.1
39Foundation Types
- Private Independent Foundations
- Family Foundations
- Corporate Foundations
- Operating Foundations
- Community Foundations
40Industry Structure 2001
Foundation Type Number Assets Giving
Independent 89.2 84.6 77.7
Corporate 3.5 3.3 10.6
Community 1 6.4 7.9
Operating 6.3 5.7 3.6
41Funding Priorities, 2001(percent of total)
- Education 26.8
- Health 20.5
- Human Services 13.8
- Arts and Culture 12.2
- Public/Social 10.9
- Environment 6.2
- International 2.4
- Science/Tech 2.9
- Social Science 2.1
- Religion 2.1
- Other .1