Michael Hall David Lasby October 24, 2007 Using a Social Economy Framework for Understanding the Economic Impact of Community Organizations.

Michael HallDavid Lasby

October 24, 2007

Using a Social Economy Framework for Understanding the Economic Impact of

Community Organizations

Measuring Community

• Nonprofit framework typically excludes co-operatives and the inclusion of hospitals and universities is a “grey area”

• Social Economy: broad definitions include all nonprofits and cooperatives; narrower definitions may focus on those nonprofits that engage in market activity (e.g., PRI 2005 excludes foundations, religious organizations and business associations)

• How do measures of size and scope vary according to the framework that is employed?

Information Sources

• 2003 National Survey of Nonprofits and Voluntary Organizations (Ontario data) -

– Financial data adjusted for inflation

• 2007 survey of Ontario co-operatives conducted by On Co-op

Community Nonprofit Organizations in Canada: A Significant Economic Force

• Core nonprofit sector (excluding hospitals, universities and colleges) accounts for 2.6% of GDP or $29.1 billion

• Volunteering contributes additional 1.7% to GDP (1997 estimates)

• 1.5 million full-time equivalent workers (paid and volunteers)

– 9.2% of economically active population

• Broader nonprofit sector including hospitals, colleges and universities adds $80.3 billion

Gross Domestic Product: Nonprofit Sector and Selected Industries, 2003

The Contributions of Cooperatives to the Social Economy in Ontario

• Relatively small in number– Approximately 1,300 co-operatives in Ontario vs. 45,000

nonprofits or about 3% of total number of organizations

• Significant contribution to revenues– $6 billion vs. $51.8 for nonprofits or about 10% of total revenues

for social economy

• Relatively small paid staff contribution– 18,000 vs. 959,000 for nonprofits or about 2% of social economy

employment

• Relatively small volunteer contribution– Volunteer complement of 49,000 vs. 7.8 million for nonprofits

Relative Contributions to Social Economy

55.2%61.1%

96.4%34.3%

37.0%

3.0%

4.7%

5.7%

96.3%

0.9%

0.6%0.9%2.3%0.0%1.0%0.5%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Number Revenues Paid Staff Volunteers

Financial CoopsNon-Financial CoopsHUC'sCore NP Sector

Distribution by Organization Type: Nonprofits

1%1%

2%2%

3%5%5%

8%9%

11%12%

16%23%

2%

0% 5% 10% 15% 20% 25%

OtherInternational

Hospitals, Universities & CollegesEnvironment

Law, Advocacy & PoliticsHealth

Business / Professional Assoc. & UnionsEducation & Research

Arts & CultureDevelopment & Housing

Social ServicesGrantmaking, Fundraising & Volunteerism

Sports & RecreationReligion

% Nonprofit Organizations

Distribution by Organization Type: Co-operatives

1%1%1%1%

2%2%2%

6%17%17%

45%

5%

0% 10% 20% 30% 40% 50%

Other

Food

Communications

Transportation

Federation or Association

Energy

Retail

Community Development

Agriculture

Child care

Financial

Housing

% Co-operatives

Distribution by Organization Type: Nonprofits and Co-operatives

2%2%2%

5%5%

7%9%

11%12%

16%22%

1%1%

2% 0.5%

0.5%1.8%

0% 5% 10% 15% 20% 25%

OtherInternational

Hospitals, Universities & CollegesEnvironment

Law, Advocacy & PoliticsHealth

Business / Professional Assoc. & UnionsEducation & Research

Arts & CultureDevelopment & Housing

Social ServicesGrantmaking, Fundraising &

Sports & RecreationReligion

Nonprofits Co-operatives

Distribution by Annual Revenues

21%

16%

10%8% 9%

2%

10%

19%

6%

13%

27%

21%

34%

4%

0%

10%

20%

30%

40%

<$30.0K $30K -$99.9K

$100K -$249.9K

$250K -$499.9K

$500K -$999.9K

$1M -$9.9M

>=$10M

Nonprofits Co-ops

Distribution by Paid Staff Size

27%

7% 6%4% 3%

22%

55%

9%6% 6%

2%

53%

0%

15%

30%

45%

60%

No paid staff 1 to 4 5 to 9 10 to 24 25 to 99 100+

Nonprofits Co-operatives

Conclusions

• Choice of conceptual framework can substantially affect estimates of size and scope of community organizations in Ontario

• Inclusion of “core nonprofits” will dramatically increase estimates of revenues, paid staff and volunteers

• Inclusion of HUC’s substantially increase estimates of revenues and paid staff

• Inclusion of co-operatives moderately increase estimates of revenues and some estimates of area of activity

• There are appear to be differences in the resources that cooperatives and nonprofits rely upon for their operations

Thank You.

]For more information about Imagine Canada visit:

www.imaginecanada.ca

To obtain copies of research publications visit:

www.nonprofitscan.ca