Measuring Research and Development Expenditures in the U.S. Nonprofit Sector Conceptual and Design Issues: Summary of a Workshop (2015) / Chapter Skim
Currently Skimming:
2 A Profile of the Nonprofit Sector in the United States
2 A Profile of the Nonprofit Sector in the United States
Pages 9-26
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 9... ...
of any sector in the country; • has a smaller workforce, as a percentage of total workforce, than the nonprofit sector in many other countries; • consists of a diverse range of public-serving and member-serving organizations; • has experienced dynamic growth in revenue and employment over an extended period; • brings in $1.3 trillion in revenue from government sources, fees and charges, and private giving; and • receives most revenue from fees and government sources but is working with philanthropic donors who are engaging with the sector in new ways.
|
From page 10... ...
CHALLENGES WITH EXISTING DATA SOURCES According to Salamon, existing statistical lenses through which we view the nonprofit sector obscure or hide key facets of its size and shape, and produce a distorted view of its nature. For example, the Exempt Organization Business Master File (EO BMF)
|
From page 11... ...
, until very recently failed to differentiate between for-profit and nonprofit places of employment, he said, and, therefore obscured the extent to which the nonprofit sector is contributing to the growth of employment. Finally, the IRS Form 990, which provides virtually all of the available financial data about nonprofits, provides a distorted view of the source of nonprofit revenues.
|
From page 12... ...
The figure shows that even when ignoring volunteer workers, the nonprofit sector is still the third largest employer in the nation. According to Salamon, the nonprofit sector "is a major actor.
|
From page 13... ...
The two types of nonprofit organizations and their subcategories are shown in Box 2-1. Salamon indicated that most research within the nonprofit sector focuses primarily within the public-serving 501(c)
|
From page 14... ...
(9) + SOURCE: Adapted from America's Nonprofit Sector: A Primer, Third Edition, published by Foundation Center.
|
From page 15... ...
Larry McGill, Foundation Center, who adapted it from data in America's Nonprofit Sector: A Primer, Third Edition, published by Foundation Center. Copyright © 2012 Lester M
|
From page 16... ...
Further, nonprofit revenue grew 20 percent faster than overall U.S. GDP during the 1977 to 1996 period and 33 percent faster during the 1997 to 2007 period.
|
From page 17... ...
Salamon indicated that many European countries do not have a "welfare state" but rather have a "welfare partnership." He stated that these nonprofit sectors are quite strong and are also a source of pride. For example, Salamon stated individuals associated with nonprofits in the Netherlands take exception with being characterized as simply "an arm" of the government, which provides 60–70 percent of their funding, and instead hold up their long history and tradition as "private initiative organizations."
|
From page 18... ...
Approximately $500 billion in revenue comes from government sources and $681 billion from fees. Salamon noted that his work involved making adjustments to correct IRS Form 990 reporting, for example, to remove Medicaid and Medicare dollars from the fee category and to put them in the government category.
|
From page 19... ...
He maintained that the nonprofit sector is a huge generator of human service R&D and deserves to be identified as such. UNDERSTANDING THE ROLE OF PHILANTHROPIC GIVING IN R&D PERFORMED IN THE NONPROFIT SECTOR Many believe that private giving, particularly from foundations, constitutes a larger proportion of the revenue in the nonprofit sector than is actually the case, observed Salamon.
|
From page 20... ...
The largest portion of increase in the proportion of foundation dollars in recent years is likely a result of the entrance of the Bill & Melinda Gates Foundation and the foundations of several other ultra-high net worth individuals. Overall, Raymond argued, these data show that it is important to understand how and why individuals give, and to learn more about their interest in science or research.
|
From page 21... ...
The 100 largest foundations have an average grant amount that ranges anywhere from $400,000 to $600,000. This number far exceeds the average grant size of the remaining 1,022 foundations in the Foundation Center sample, which together have average grant sizes ranging between $95,000 and $159,000.
|
From page 22... ...
A recent survey conducted by Changing Our World indicated five themes that characterize the expectations of very high net worth individuals who give, as follows: 1. A majority of high net worth individuals tend to view giving as investing in a long-term gain, rather than as a charitable gift.
|
From page 23... ...
Traditional institutions, such as large- and small-staffed foundations and corporate giving, continue to exist but so do entities with an expanded philanthropic focus. They include corporate marketing, high net worth individuals, donor-advised funds, and foundations of associations.
|
From page 24... ...
IMPLICATIONS FOR THE NSF NONPROFIT R&D SURVEY: DISCUSSION AND SUMMARY Following the presentation of the profile of the size and complexity of the nonprofit sector and its funding sources, workshop participants engaged in discussion regarding the potential implications for the NSF Nonprofit R&D Survey. One discussion topic addressed whether and how NSF plans to focus on particular segments of the nonprofit sector (rather than the entire sector)
|
From page 25... ...
These entities can seem to be nonprofit at the outset and then later in their life cycles no longer meet those criteria as they earn profits. Wojciech Sokolowski, Center for Civil Society Studies at Johns Hopkins University, suggested the definition of nonprofit institutions in national accounts, both in the SNA and National Income and Product Accounts structures, is determined by whether the organization is legally prohibited from distributing its profits to stakeholders rather than by its income structure.
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.