PHILANTHROPY

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PHILANTHROPY NON-PROFIT ORGANIZATIONS

• Introduction
• January 8, 2008
• Janice Y. Lederman

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DEFINITIONAL ISSUES

• What are we talking about?
• voluntary sector, non-profit sector, charitable
  sector, third sector, civil society sector,
  community-based organizations
• in Canada, viewed broadly
• includes service-providing organizations that
  supplement or complement public services (health,
  education, welfare, sport, culture), and

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DEFINITIONAL ISSUES

• organizations that offer mechanisms through which
  individuals can join together to address
  community needs, participate in political life
  and pursue group interests
• A number of defining elements
• organization (structure regulatory, whether or
  not formal
• private (as opposed to government or public)

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DEFINITIONAL ISSUES

• not profit-distributing (whether or not
  charitable, reinvest profits in their activities
• Self-governing
• Voluntary
• includes formal and informal organizations,
  religious and secular, paid staff and volunteers

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WHY THE THIRD SECTOR?

• public (government)
• private (for-profit includes public companies)
• non-profit voluntary sector, or the third sector,
  or the civil society sector

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WHAT IS CIVIL SOCIETY?

• identified with everything from multi-party
  systems and the rights of citizenship to
  individual voluntarism and the spirit of
  community (Yeung paper)
• the space of un-coerced human association and
  also the set of national networks that fill this
  shape (Yeung paper)
• the social network

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ALTRUISM, PHILANTHROPY ENLIGHTENED SELF-INTEREST

• Altruism (Elements)
• actions
• goal oriented
• goals concerns the welfare of another
• intentions more important than consequences
• action has possibility of decrease in the
  actions own welfare
• no anticipation of reward

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ALTRUISM, PHILANTHROPY ENLIGHTENED SELF-INTEREST

• Philanthropy
• the act of donating money, goods, time or effort
  towards a charitable cause
• evolution towards social investments
• giving circles / SRI /SIOs

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ALTRUISM, PHILANTHROPY ENLIGHTENED
SELF-INTEREST

• Enlightened self-interest
• doing well by doing good
• win-win

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CORPORATE SOCIAL RESPONSIBILITY (CSR)

• a balance of economic, environmental and
  stakeholder expectations, against shareholder
  interests
• Reflected in corporate policies, such as
• environmental practices
• diversity in hiring
• local procurement

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NGOs, ENGOs

• Environmental movement has been a driver of civil
  society organizations

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SIZE AND SCOPE OF THE SECTOR

• A major contributor to economic activity
• 6.8 of GDP (61.8 B, 1999)
• volunteer effort 1.4 of GDP (14 B)
• 2 million FTEs or 12 of Canadas economically
  active population
• 2/3 paid
• employment equal to Canadas manufacturing
  sector 1/3 more than transportation

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SIZE AND SCOPE OF THE SECTOR

• larger (proportionately) than U.S. sector
• volunteer share of work force lower in Canada
  only 25 volunteer

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HISTORICAL ROOTS

• rooted in Aboriginal traditions
• Aboriginal people lived in collective and
  interdependent societies
• formalized by French and English settlers
• Canadas tradition of state support for health,
  education and social services facilitated growth

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HISTORICAL ROOTS

• in New France education, health care and
  assistance to the poor fell to the Church
• Church received support from state and donors a
  model for development of non-profit social sector
• 18th and 19th century immigrants, largely British
  
• by 19th century every Church and ethnic group had
  own charitable society

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HISTORICAL ROOTS

• BNA Act 1867 provinces responsible for
  charities
• Canada more willing to adopt collective goals
  than, for example, U.S.
• Many possible reasons, including multicultural
  mix, need for independence from southern
  neighbour and small population in large land mass
• 1930s depression CCF in Canada

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HISTORICAL ROOTS

• unemployment assistance (1940), family allowance
  (1944), old age security (1952) and public health
  care (1966)
• 1960s and 1970s public funding to arts and
  identity groups
• 1960s-1980s growth in social services spending
  - the social safety net / the social contract
• relationship between state and non-profit sector
  significant and complex

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HISTORICAL ROOTS

• 1990s change in the social contract
• devolution of services down to next level of
  government retrenchment of the welfare state
• funding to NPOs changed cut
• demands on NPOs to deliver service increased

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ISSUES FACING THE SECTOR