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How to Speak and Think Nonprofit

How to Speak and Think Nonprofit. James A. Smith. Naming the sector. Nonprofit sector and Not-for-Profit Sector. 2. NGOs, QUANGOs, INGOs. 3. Charitable sector / Eleemosynary Institutions. 4. Benevolent Institutions. 5. Philanthropic sector. 6. Voluntary sector, PVOs. 7. Third sector.

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How to Speak and Think Nonprofit

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  1. How to Speak and Think Nonprofit James A. Smith

  2. Naming the sector • Nonprofit sector and Not-for-Profit Sector 2. NGOs, QUANGOs, INGOs 3. Charitable sector / Eleemosynary Institutions 4. Benevolent Institutions 5. Philanthropic sector 6. Voluntary sector, PVOs 7. Third sector 8. Independent sector 9. 501(c)3 organizations 10. Tax-exempt entities 11. Civil society, CSOs 12. Social sector, Social Economy

  3. 1. Nonprofit sector, Not-for-Profit Sector • A legal term • Non-distribution of profits • A term of intent • No profit-seeking • An economic construct • U.S. System of National Accounts

  4. 2. NGOs, QUANGOs, INGOs • Nongovernmental occasionally used in Britain in 19th Century • Wider international usage with creation of League of Nations and UN • Suggests autonomy in determining mission and strategy • But NGOs often rely on government funds First meeting of the League of Nations Assembly, 1920

  5. 3. Charitable Sector / Eleemosynary • Caritas • Eleemosynary suggesting traditions of almsgiving Sandro Boticelli, Three Graces

  6. 4. Philanthropic Sector • Greek word origin, meaning love of humankind • Seneca, Cicero and other Stoics wrote about gift relationships • Entered English usage in 17th Century • In late 19th Century American usage suggested efforts to be more scientific in giving, seeking root causes of social ills Branches of Knowledge, woodcut, 1535

  7. 5. Voluntary Sector, PVOs • Evokes oldest traditions of self-help, volunteer activity, and Tocquevillian habits of free association • About freely chosen membership, thus distinct historically from family and clan • Include fraternal associations, ethnic self-help groups

  8. 6. Third Sector • Gained prominence with 1973-74 Commission on Private Philanthropy and Public Needs (Filer Commission) • Term originally coined by Amitai Etizioni • Suggests interaction within a mixed society, business or market (the first sector) and government (second sector)

  9. 7. Independent Sector Independent Sector founded in 1980 merging the National Council on Philanthropy and the Coalition of National Voluntary Organizations Suggests that sector is privately organized (true) and autonomous (mostly false)

  10. 8. 501(c) Organizations • U.S. tax code defines 501 (c) 3’s in terms of both the exemption from taxes and the deductibility of donations • A general assumption that these organizations provide public benefits that government does not, cannot or will not

  11. 9. Tax Exempt Entities • 501(c)(1) : Corporations organized under an act of Congress • 501(c)(2) : Title-holding companies • 501(c)(3) : Religious, charitable and similar organizations • 501(c)(4) : Social welfare organizations • 501(c)(5) : Labor and agricultural organizations • 501(c)(6) : Business leagues • 501(c)(7) : Social and recreational clubs • 501(c)(8) : Fraternal beneficiary societies • 501(c)(9) : Voluntary employees’ beneficiary societies • 501(c)(10) : Domestic fraternal beneficiary societies • 501(c)(11) : Teachers’ retirement fund • 501(c)(12) : Benevolent life insurance associations • 501(c)(13) : Cemetery companies 14. 501(c)(14) : Credit Unions 15. 501(c)(15) : Mutual insurance companies

  12. 9. Tax Exempt Entities 16. 501(c)(16) : Corporations to finance crop operation 17. 501(c)(17) : Supplemental unemployment benefit trusts 18. 501(c)(18) : Employee-funded pension trusts 19. 501(c)(19) : War veterans’ organizations 20. 501(c)(20) : Legal services organizations 21. 501(c)(21) : Black lung trusts • 501(c)(23) : Veterans’ associations founded prior to 1880 • 501(c)(24) : Trusts described In section 4049 of ERISA (c) • 501(c)(25) : Holding companies for pensions and so on • 501(d) : Religious and apostolic organizations • 501(e) : Cooperative hospital service organizations • 501(f) : Operating educational organizations • 521 : Farmers’ cooperatives

  13. 10. Civil Society Scottish Enlightenment heritage, Adam Ferguson’s 1767 volume An Essay on the History of Civil Society Adopted by those trying to build democratic institutions in Eastern Europe and Latin America in 1960s and 70s As civil society has grown globally, term has become more common in US Sector concerned with social capital

  14. A Working Definition • Private Organizations– structurally and institutionally separate from government • Self-governing– clearly established internal governance procedures • Voluntary Organizations– membership and participation is noncompulsory • Nonprofit distributingto owners, members, trustees or directors • Pursuing apublic purpose

  15. Philanthropic Founding Fathers and Mothers Margaret Olivia Sage Andrew Carnegie John D. Rockefeller Frederick Goff Prototypical Community Foundation: Cleveland Foundation (1916) Prototypical Large Grant-Making Foundation: Carnegie Corporation of New York (1911) Rockefeller Foundation (1913) Prototypical Operating Foundation: Russell Sage Foundation (1907)

  16. Post-Civil War Innovations • Addressing problems of industrialization, immigration and the underdeveloped South Charity Organization Movement Scientific Philanthropy Reconstruction school Trustees of the General Education Board

  17. Early 19th Century Legal Innovations Painting by Robert Clayton Burns depicting Daniel Webster and the Dartmouth College Case

  18. Colonial Self-help

  19. Tocqueville’s Journey

  20. English and European Legal Contributions The Statute of Charitable Uses Act (1601) An Acte to redresse the Misemployment of Landes Goodes and Stockes of Money heretofore given to Charitable Uses Whereas Landes Tenementes Rentes Annuities Profittes Hereditamentes, Goodes, Chattels Money and Stockes of Money, have bene heretofore given limitted appointed and assigned, as well by the Queenes most excellent Majestie and her moste noble Progenitors, as by sondrie other well disposed persons, some for Releife of aged impotent and poore people, some for Maintenance of sicke and maymed Souldiers and Marriners, Schooles of Learninge, Free Schooles and Schollers in Universities, some for Repaire of Bridges Portes Havens CauswaiesChurches Seabankes and Highwaies, some for Educacion and prefermente of Orphans, some for or towardes Reliefe Stocke or Maintenance of Howses of Correccion, some for Mariages of poore Maides, some for Supportacion Ayde and Helpe of younge tradesmen Handicraftesmen and persons decayed, and others for reliefe or redemption of Prisoners or Captives, and for aide or ease of any poore Inhabitantes concerninge paymente of Fifteenes, setting out of Souldiers and other Taxes…

  21. Medieval Origins Medieval Origins of the Charitable Sector Leper hospital in Chichester, founded 1118

  22. Medieval Origins Medieval Origins of the Charitable Sector Representative of the interior of a medieval hospital

  23. Medieval Origins of the Charitable Sector The Hospices de Beaune

  24. Three Graces and the Classical World Byzantine mosaic

  25. The Potlatch

  26. Primate Social Relationships

  27. Animal Instincts

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