What is the Not-for-Profit Sector?
Who or what is the not-for-profit (non-profit) sector?
The non-profit sector is diverse and operates in a wide range of
fields. There is no single agreed term that fully describes the
non-profit sector. Rather, a number of terms are commonly used that
refer to all or part of it.
Structural-operational definition
A structural-operational definition of the non-profit sector is one used
by the United Nations Handbook on Non-profit Institutions. This was
developed by the Johns Hopkins Centre for Civil Society
Studies and is used in numerous countries around the world,
including New Zealand.
Using the structural-operational definition the non-profit sector is
defined as the set of entities that are:
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organised - have some degree of internal organisational structure,
meaningful boundaries, or legal charter of information
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non-profit - do not return profits to their owners or directors and
are not primarily guided by commercial goals
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institutionally separate from government - while government funds
may be received, the organisation does not exercise governmental
authority
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self-governing - the organisations control their management and
operations to a major extent
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not compulsory - membership and contributions of time and money are
not required by law or otherwise made a condition of citizenship.
Non-profits classified by type
Once an organisation has been determined as non-profit using the
structural-operation definition, it can be categorized using the United
Nations International Classification of Non-profit Organisations
(ICNPO).
Non-profit organisations involved in similar activities or serving a
similar purpose are grouped together by the ICNPO into 12 major groups
and 29 subgroups.
Defining the scope of the not-for-profit sector in New Zealand
International Comparative Study of the Non-profit Sector
New Zealand has joined the International Comparative Study of the
Non-profit Sector which is sponsored by the Johns Hopkins University
Center for Civil Society Studies, Baltimore, USA.
Study of the NZ non-profit sector
A Committee for the Study of the NZ non-profit Sector was established
in 2004.
The Office for the Community and Voluntary Sector (OCVS) of the
Ministry of Social Development is sponsoring the project. The Committee is guided by terms of
reference that outlines the roles of the Office for the Community and
Voluntary Sector (OCVS), Statistics New Zealand and the Committee which
is made up of academics, representatives from government, and the
non-profit sector.
The Study of the NZ Non-Profit Sector aims to measure and describe the
role that non-profit organisations play in society. New Zealand will
improve the visibility of its non-profit sector by demonstrating the
value of these organisations and the value of volunteering to the
economy.
The study will collect data on the non-profit sector by:
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describing the size, scope, internal structure, finances and role
of the sector
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identifying legal, cultural, historical, social and policy factors
that encourage or retard the development of non-profit
organisations
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evaluating the contribution of non-profit organisations and
building understanding of the role and qualities of the sector
internationally
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creating an ongoing local capacity to gather data which is
meaningful in the local context and can be adapted for use in
international comparative settings
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improving public awareness of the sector
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providing a reliable base for policy decisions affecting the
sector.
The Study of the NZ Non-Profit Sector project released in September
2006 a paper “Defining the Non-Profit Sector: New
Zealand” The paper has four main sections: historical
background, legal treatment, major types of non-profits and the
structural-operational definition. (available from Institute's
Library - ID: 29654)
The dimensions of the community and voluntary sector in
NZ (.jpg)
For more information on the 12 major types go to Part III. Major
Types of Nonprofit Organisations in New Zealand.
For more information on the structural-operational definition go to
Part IV. The Structural-Operational Definition.
Statistics NZ non-profit satellite account
In April 2007 Statistics NZ released its report “Counting Non-profit Institutions in New Zealand:
2005”.
Statistics NZ released the initial Satellite Account of Non-profit Institutions in New
Zealand in August 2007.
Other work to be undertaken by the Committee for the Study of the NZ
Non-profit Sector includes:
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historical background paper to be released in February 2008
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New Zealand National Report to be published in June 2008
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annotated bibliography of key non-profit sector literature to be
published in June 2008
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policy environment paper to be released in December 2008
Defining the not-for-profit sector in other countries
Johns Hopkins Comparative Nonprofit Sector Project
The Johns
Hopkins Comparative Nonprofit Sector Project is a systematic
effort to analyze the scope, structure, financing, and role of the
private nonprofit sector in a cross-section of countries around the
world in order to improve our knowledge and enrich our theoretical
understanding of this sector, and to provide a sounder basis for both
public and private action towards it.
The United Nations International Classification of
Non-Profit Organisations (PDF: 875 KB) (ICNPO) allows organisations
involved in similar economic activities to be grouped together, thereby
providing a basis for more meaningful international comparative
analysis. It comprises twelve major groups and these groups are
further divided into twenty-nine subgroups.
Link to Grant Thornton bi-annual research
The Grant Thornton Not for Profit Survey
Report 2007-8 (PDF: 510 KB)
Links to umbrella groups
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ANGOA (Association of Non-governmental
organisations of Aotearoa)
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Links to researchers (for feedback please email notforprofit@nzica.com)
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