1 / 44

THE STATE OF NONPROFIT AMERICA Lester M. Salamon, editor An Aspen Institute Project Published by the Brookings Institut

THE STATE OF NONPROFIT AMERICA Lester M. Salamon, editor An Aspen Institute Project Published by the Brookings Institution Press, 2002. CHALLENGES. The State of Nonprofit America. The fiscal challenge. Source: Lester M. Salamon, ed., The State of Nonprofit America

zebulon
Download Presentation

THE STATE OF NONPROFIT AMERICA Lester M. Salamon, editor An Aspen Institute Project Published by the Brookings Institut

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. THE STATE OF NONPROFIT AMERICA Lester M. Salamon, editor An Aspen Institute Project Published by the Brookings Institution Press, 2002

  2. CHALLENGES The State of Nonprofit America • The fiscal challenge Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  3. CHALLENGES I:THE FISCAL CHALLENGE The State of Nonprofit America • Federal retrenchment Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  4. GOVERNMENT SOCIAL WELFARE SPENDING 160% 140% 120% 100% 80% 60% 40% 20% 0% 1950 1955 1960 1965 1970 1975 1977 1980 1985 1989 1994 The State of Nonprofit America Total Pensions Education 1950 – 1994 1980 = 100 Health Welfare Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  5. CHALLENGES I:THE FISCAL CHALLENGE The State of Nonprofit America • Federal retrenchment • Changing forms of government support • Tepid giving growth Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  6. FIELD % Change, 1977-97 Share of Rev. Growth, 1977-97 Health 3 0 Education 91 17 Social Services 91 14 Civic 106 42 Arts & Culture 307 45 Religion 131 83 16 TOTAL 90 8 TOTAL, W/O RELIG GROWTH IN NONPROFIT REVENUE FROM PHILANTHROPY, BY SUBSECTOR, 1977-97 The State of Nonprofit America Share of Total Revenue 1977 1997 14 6 15 16 33 20 31 36 41 44 86 84 27 20 62 12 18 Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  7. CHALLENGES The State of Nonprofit America • The fiscal challenge • The competition challenge Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  8. The State of Nonprofit America NONPROFIT and FOR-PROFIT ROLES IN SELECTED FIELDS, 1982-1997 % Nonprofit % Change in 1982a 1997b Relative N/P Share Employment Child day care 52 38 -27% Job training 93 89 -4% Individual and Family services 94 91 -3% Home health 60 28 -53% Kidney dialysis centers 22 15 -32% Facilities/Enrollment Dialysis centers 58a 32 -45% Rehabilitation hospitals 70a 36 -50% Home health agencies 64a 33 -48% Health Maintenance orgs. 65a 26 -60% Psychiatric Hospitals 19a 16 -16% Hospices 89c 76 -15% Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  9. Expenditures* 80% 70% Beds 67% 57% 60% Hospitals 48% 40% 40% 20% 4% 0% -9% -10% Total -20% -15% Nonprofit -22% -24% Government -40% For-Profit -44% -60% * Constant 1996 dollars The State of Nonprofit America HOSPITAL TRENDS, BY OWNERSHIP, 1980-1996 Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  10. TRENDS IN CLINIC AND HOME HEALTH CARE, PRIVATE INSTITUTIONS, 1977-1992 900% Nonprofit For-profit 800% 800% 720% 700% 600% 500% 377% 365% 400% 281% 300% 200% 89% 100% 0% Establishments Employees Revenues The State of Nonprofit America Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  11. Revenue Revenues Growth 1977 1977-96 Ratio A B B/A 48% 74% 156% 8 22 267 15 36 233 26 35 130 23% 39% 168% The State of Nonprofit America FOR-PROFIT SHARE OF SOCIAL SERVICE AGENCY GROWTH, 1977-1996 For Profit Share of: Day Care Individual & Familiy Svcs Job Training Residential Care Total Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  12. CHALLENGES The State of Nonprofit America • The fiscal challenge • The competition challenge • The effectiveness challenge • The technology challenge • The legitimacy challenge • The human resource challenge Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  13. OPPORTUNITIES The State of Nonprofit America • Favorable social and demographic shifts Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  14. OPPORTUNITIES: SOCIAL AND DEMOGRAPHIC SHIFTS The State of Nonprofit America • Aging of the Population • Changing Role of Women • Shifts in Family Structure • Expanded Immigration • Outsourcing of Family Functions • Rise of the “Cultural Creatives” Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  15. OPPORTUNITIES The State of Nonprofit America • Favorable social and demographic shifts • New Philanthropy Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  16. OPPORTUNITIES:THE NEW PHILANTHROPY The State of Nonprofit America • Intergenerational transfer of wealth • The “New Wealth” • New Corporate interest Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  17. OPPORTUNITIES The State of Nonprofit America • Favorable social and demographic shifts • New Philanthropy • Visibility and policy salience Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  18. OPPORTUNITIES:VISIBILITY The State of Nonprofit America • Reagan rhetoric • Civil Society/Central Europe • “Global associational revolution” • “Social capital” • September 11, 2001 Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  19. OPPORTUNITIES The State of Nonprofit America • Favorable social and demographic shifts • New Philanthropy • Visibility and policy salience • Resumption of government spending growth Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  20. +69% 70% 60% +54% 50% +40% 40% +36% +36% +26% 30% +27% +18% 20% 10% 0% Health Housing Educ. Social Income Pensions Total Social Welfare U.S. GDP Research Services Assistance The State of Nonprofit America OPPORTUNITIES: GROWTH IN REAL GOVERNMENT SOCIAL WELFARE SPENDING, 1985-1995 Source: Social Security Bulletin; Economic Report of the President, (February 1998).

  21. CAUSES OF RECENT SOCIAL WELFARE SPENDING GROWTH The State of Nonprofit America • Expansion of entitlement programs • SSI • Medicaid • Medicare Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  22. Constant 1999 $ (billion) Amount % change 1980 1999 1980-99 +165% Medicare $212.0 $79.9 +222% 189.5 56.8 Medicaid 30.9 +225% 9.5 SSI +196% $146.2 $432.4 Total +81% U.S. GDP $8,856.5 $4,900.9 The State of Nonprofit America FEDERAL ENTITLEMENT PROGRAM GROWTH 1980-1999 Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  23. CAUSES OF RECENT SOCIAL WELFARE SPENDING GROWTH The State of Nonprofit America • Expansion of entitlement programs • SSI • Medicaid • Medicare • New Initiatives • State Activism • The Welfare Reform Windfall • New Tools Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  24. The State of Nonprofit America “Profit-making organizations are more flexible with respect to the deployment and redeployment of resources…But the centrality of mission for nonprofit organizations places limitations on their flexibility of action.” Rosabeth Moss Kanter and David V. Summers, 1987 Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  25. NONPROFIT RESPONSE The State of Nonprofit America • Overall growth Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  26. 280% 300% 250% 213% 200% 167% 144% 150% 82% 81% 100% 79% 50% 0% Gross Total N/P Arts Social Health Education Civic, Domestic Services Social Product The State of Nonprofit America CHANGES IN NONPROFIT REVENUES, BY SUBSECTOR, 1977-1997, IN CONSTANT DOLLARS Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  27. 1977-97 +115% +23,000/yr. 800 700 1987-97 +27,000/yr. 600 500 1977-87 +15,000/yr. 400 1997 1977 1982 1987 1992 The State of Nonprofit America GROWTH IN NUMBER OF REGISTERED CHARITABLE ORGS IN THE U.S., 1977-97 Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  28. NONPROFIT RESPONSE The State of Nonprofit America • Overall growth Successful marketing to paying customers Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  29. The State of Nonprofit America SOURCES OF NONPROFIT REVENUE GROWTH, 1977-1997* * Excluding Religion GOVERNMENT 42% PHILANTHROPY 7% FEES, COMMERCIAL 51% Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  30. FIELD % Change, 1977-97 Share of Total Revenue Share of Rev. Growth, 1977-97 1977 1997 Health 162 53 52 52 Education 77 67 65 63 Social Services 587 13 28 35 Civic 220 19 53 34 Arts & Culture 272 47 46 46 Religion 163 14 17 16 47 47 TOTAL 145 46 51 51 TOTAL, W/O RELIG 144 51 GROWTH OF NONPROFIT FEEINCOME, BY SUBSECTOR, 1977-97 The State of Nonprofit America Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  31. NONPROFIT RESPONSE The State of Nonprofit America • Overall growth • Successful marketing to paying customers Successful pursuit of public funds Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  32. FIELD % Change, 1977-97 Share of Total Revenue Share of Rev. Growth, 1977-97 1977 1997 Health 248 32 42 48 Education 94 18 19 21 51 52 Social Services 200 54 Civic 8 50 5 30 Arts, culture 214 12 10 9 Religion 0 0 0 0 37 33 TOTAL 195 27 37 42 TOTAL, W/O RELIG 195 31 GROWTH OF NONPROFIT REVENUE FROM GOVERNMENT, BY SUBSECTOR, 1977-97 The State of Nonprofit America Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  33. NONPROFIT RESPONSE The State of Nonprofit America • Overall growth • Successful marketing to paying customers • Successful pursuit of public funds Revolution in charitable fundraising Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  34. THE REVOLUTION INCHARITABLE FUNDRAISING The State of Nonprofit America • Emergence of the fundraising profession • AFP: 20,000 members • New technologies • Telephone solicitation, e-philan. • Donor-advised funds • New actors Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  35. NONPROFIT RESPONSE The State of Nonprofit America • Overall growth • Successful marketing to paying customers • Successful pursuit of public funds • Revolution in charitable fundraising Venture activity Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  36. VENTURE ACTIVITY The State of Nonprofit America • Museum stores • Traveling exhibitions • University licensing arrangements • Hospital purchasing consortia • “Social ventures” Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  37. NONPROFIT RESPONSE The State of Nonprofit America • Overall growth • Successful marketing to paying customers • Successful pursuit of public funds • Revolution in charitable fundraising • Venture activity Adoption of market culture New business partnerships Sector infrastructure Surviving competition Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  38. The State of Nonprofit America NONPROFIT and FOR-PROFIT ROLES IN SELECTED FIELDS, 1982-1997 % Nonprofit % Change in 1982 a 1997 b Relative N/P Share Employment Child day care 52 38 -27% Job training 93 89 -4% Individual and Family services 94 91 -3% Home health 60 28 -53% Kidney dialysis centers 22 15 -32% Facilities/Enrollment Dialysis centers 58a 32 -45% Rehabilitation hospitals 70a 36 -50% Home health agencies 64a 33 -48% Health Maintenance orgs. 65a 26 -60% Psychiatric Hospitals 19a 16 -16% Hospices 89c 76 -15% Mental Health Clinics 64b 57 -11% Higher Education Enrollments 96d 89 -7% Nursing Homes 20b 28 +40% Res. Treatment facilities for children 89b 68 +22% Acute Care hospitals 58a 59 +2% Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  39. NONPROFIT RESPONSE The State of Nonprofit America • Overall growth • Successful marketing to paying customers • Successful pursuit of public funds • Revolution in charitable fundraising • Venture activity • Adoption of market culture • New business partnerships • Sector infrastructure • Surviving competition Growing political effectiveness Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  40. THE RISKS The State of Nonprofit America • Growing Identity Crisis • Increased Demands on Nonprofit Managers • Threat to Nonprofit Missions • Disadvantaging Small Agencies • Potential Loss of Public Trust Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  41. RESETTING THE BALANCE The State of Nonprofit America • The Distinctiveness Imperative • The Survival Imperative Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  42. THE DISTINCTIVENESS IMPERATIVE The State of Nonprofit America • Rethinking community benefit • Improving public understanding • From organizational to activity exemptions Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  43. THE SURVIVAL IMPERATIVE The State of Nonprofit America • Capitalizing the sector • Buy-in by third-party payers • Shift to a “tax credit” system Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

  44. CONCLUSION The State of Nonprofit America “It has been said that the quality of a nation can be seen in the way it treats its least advantaged citizens. But it can also be seen in the way it treats its most valued institutions.” Lester M. Salamon State of Nonprofit America, 2002 Source: Lester M. Salamon, ed., The State of Nonprofit America (Published by the Brookings Institution Press in collaboration with Aspen Institute, Washington, DC, 2002)

More Related