Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems • •Civil Society and Non-Profit Organizations: • •What are the Issues? • • •Helmut K. Anheier, January 2013 •(Hyánek 2019) Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems What‘s behind a Label? The Ford Foundation in New York City Greenpeace in Action… Kindergarten… Voluntary associations, like sport clubs se more https://1url.cz/wM9wt Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems Bird’s eye view of the Getty- Center, founded by G. Paul Getty… A Hospital…? And what about… Organized demonstration outside Hertie School, expert discussion within, both part of the nonprofit sector… Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems 3 Why Worry About Nonprofits? Policy Approaches Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems Four main arguments or policy approaches •New Public Management • •Neo-Tocquevillian ideas • •Social Accountability • •Social Innovation • • 4 Policy Approaches Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems ”The rise of nonprofit organisations as service-providers as part of public-private partnerships and under the rubric of new public management and the rise of markets and quasi-markets in areas that have hitherto been part of the welfare state plus new needs.” (NHS in UK, reframing subsidiarity, US welfare reform, CEE, WB – NGO relations, China) 5 US WR: There are six major U.S. welfare programs. They are Temporary Assistance for Needy Families, Medicaid, Supplemental Nutrition Assistance Programs, Supplemental Security Income, Earned Income Tax Credit, and Housing Assistance. The federal government provides the funding for these programs. The states administer the programs. Some provide additional funds. NGO as direct providers. New Public Management Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems A simple equation (No 1) less government = less ‘bureaucracy’ = more flexibility = greater incentives = greater efficiency (and perhaps greater effectiveness as well). 6 Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems “The (re)discovery of civil society, and the growing awareness among policymakers that the very social fabric of society is changing.” (Call for civic renewal at national level / Active Citizen Unit, UK; civil society commission in Germany; UN/WB/EU stress civil society, civic engagement) 7 Neo-Tocquevillian ideas Active Citizenship https://active-citizens.britishcouncil.org/about … http://infed.org/mobi/association-democracy-and-civil-society/ Democracy in America: https://oll.libertyfund.org/titles/democracy-in-america-english-edition-vol-1 Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems A simple equation (No 2) more engagement = more trust = makes good citizens = makes for better economy and increases social cohesion 8 Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems “The role of nonprofits in governance as part of a wider social accountability perspective that sees them as instruments of greater transparency, heightened accountability and improved governance of public institutions.” (party system, media seen as inadequate; NGOs watchdogs & whistle-blowers; participatory budgeting; WB public budgeting; TI, EITI) 9 Social Accountability NGO WATCHDOGS https://blogs.bath.ac.uk/business-and-society/2017/07/12/ngo-credible-watchdogs/ Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems A simple equation (No 3) citizens demand of accountability = more public accountability and transparency = better public sector performance = good economy, social self-organization 10 Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems 11 “Nonprofits are better at social innovation than governments typically are. A new form of partnership aimed at scaling up nonprofits innovations, provides for a more flexible, less inert public sector“ (Big Society in UK; Social Innovation Fund, US) Social Innovation Big Society: https://en.wikipedia.org/wiki/Big_Society Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems A Simple equation (no 4) Social entrepreneurship= social innovation= more effective, efficient public services, problem solving (what happened to the state as innovator?) 12 Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems Social Investment: since 2005 •Private contributions to public benefit • •implicit distinction that these contributions are investments rather than current expenditures intended for consumptive purposes. • •private actions benefit a wider community, however defined, and of which the investor may or may not be a part • •not only monetary but also contributions in kind count as investments. 13 Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems no financial return below market return market return advancing charitable purposes Grants Recoverable grants Investment plus Mainstream investments Programe-related investment Investment and Return 14 Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems Instruments •Private Equity and Venture Capital that can support start-up organizations, either forprofit or nonprofit) through debt or equity investments; • •Loans to nonprofit organizations, with or without equity participation to privately held for-profit companies, and (typically) microfinance loans to individuals; mezzanine forms of capital combine external capital without voting rights with own assets; • •Loan guarantees that secure loans or bond i ssues and lower the cost of capital to be borrowed by either forprofit or nonprofit corporations; they can also increase access to capital markets; and • •Bonds and Deposits, including mortgage-backed securities, community development bond offerings, and (in the US) certificates of deposit at community development financial institutions. • 15 Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems 16 Agendas, Definitions, Facts Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems LEVEL OF ANALYSIS AND FOCUS BASIC QUESTION Organization Field/Industry Economy/Country Why? Organizational Choice Field-specific division of labor Sectoral division of labor How? Organizational efficiency etc; management issues Comparative industry efficiency and related issues Comparative sector roles So What? Distinct characteristics and impact of focal organization Distinct characteristics and impact of focal organization Sector-specific contributions and impacts cross-nationally 17 Basic Nonprofit Sector Research Questions Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems • •Definitions and the terminological tangle • • •Charity • •NGOs • •Économie sociale or social enterprise, public benefit corporation • •nonprofit organizations / sector 18 Terminoloy, History and Contours Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems • •Emphasizes not the purposes of the organizations or their sources of income but their basic structure and operation • • •Organized • •Private • •Non-profit-distributing • •Self-governing • •Voluntary • 19 The structural/operational definition (Salamon & Anheier) Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems • •By "contribution" or "function" we mean the normal tasks or roles that these organization can be expected to perform: • •Service Provider Role • •Vanguard Role • •Value Guardian Role • •Advocacy Role • 20 Functions Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems What is special about nonprofit organizations? Three major aspects: 1. Values à complex characteristics and influences of values (enabling or restraining; protecting or stifling; leading or misleading; invigorating or distracting). 2. Multiple stakeholders àmanaging nonprofits is managing multiple organizational components 3. Multiple revenue à multiple revenue streams under performance uncertainty Organizational Behavior and Impact 21 Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems •Long intellectual history (Kant, Hegel, Fergusson, Tocqueville) •Rediscovery 1989 and aftermath • •“a sphere of ideas, values, institutions, organizations, networks, and individuals located between the family, the state and the market.” è analytic abstraction • •Countervailing force keeping power of markets and the state in check: • •“That set of non-governmental institutions, which is strong enough to counterbalance the state, and, whilst not preventing the state from fulfilling its role of keeper of peace and arbitrator between major interests, can, nevertheless, prevent the state from dominating and atomising the rest of society“ (Gellner 1994: 5). è functional definition 22 Civil Society Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems •“a complex and dynamic ensemble of legally protected non-governmental institutions that tend to be non-violent, self-organizing, self-reflexive, and permanently in tension with each other and with the state institutions that ‘frame’, constrict and enable their activities” (Keane, 1998:6). è mixed definition • •Concept of self-organization 23 Civil Society (cont.) Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems 24 Some Facts Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems •5-7% of total employment in OECD •Significant growth in economic importance of third sector, with 5% growth rates annually in some countries (1990s) •Education, health, social services account for 65-70% of expenditure •Increase in associational density •Increase in number of foundations, assets •Greater policy recognition • 25 Some facts Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems 26 Revenue Structure Country-average Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems 27 Theory Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems •Heterogeneity Theory: Public Goods or Governmental Failure Theory • •Supply Side Theory: Entrepreneurship Theory • •Stakeholder Theory • •Trust Theory: Contract or Market Failure Theory • •Interdependence Theory: Voluntary Failure/3rd Party Gov’t Theory • •Social Origins Theory 28 Major theoretical approaches Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems THEORY SUMMARY KEY TERMS KEY STRENGTH KEY WEAKNESS Hetero-geneity Theory A.k.a: Public Goods or governmental failure theory Unsatisfied demand for public and quasi-public goods in situations of demand heterogeneity leads to emergence of non-profit providers Demand heterogeneity; median voter; government; quasi-public goods Explains part of government-private institutional choice dynamics in liberal democ-racies in the con-text of public fund shortages; why non-profits be-come ‘gap-fillers.’ Assumes inherent conflict between government and private nonprofit provision Supply Side Theory A.k.a: Entrepre-neurship theory Non-profit organi-sations are a re-flection of demand heterogeneity served and created by entrepreneurs seeking to maximise non-monetary returns Social entrepreneur-ship; non-monetary returns; product bundling; demand heterogeneity Explains close link between value base of many non-profits and choice of service field such as health and education (to maximize value impact and formation) Assumes neutral state; equates religious and secular value-based behaviour; what about non-value based nonprofits? Richard Titmus, The Gift Relationship. New York: Vintage, 1971. 29 Synoptic Presentation: Major 3rd Sector Theories Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems 30 THEORY SUMMARY KEY TERMS KEY STRENGTH KEY WEAKNESS Stakehol-der Theory Given information asymmetries between provider and consumer, stakeholders decide to exercise control over delivery of service Nonrival goods; information asymmetry; trust; Principal-agent problems Introduces tripartite relation as basic theoretical problem and goes beyond simple principal-agent issues: Stakeholder – provider -- recipient Scope of theory limited to experience of informational problems faced by deeply concerned stakeholders—what about more conventional nonprofits Trust Theory a.k.a.: Contract or market failure theory Non-distribution constraint makes non-profits more trustworthy under conditions of information asymmetry which makes monitoring expensive and profiteering likely Non-distribution constraint; Trustworthi-ness; information asymmetry Explains part of nonprofit – for-profit institutional choice from supply-side perspective, with focus on inherent problems in ‘nature’ of good or service Other institutional responses possible (government regulation); nonprofit constraint weakly enforced; indirect profit distribution possible (for profits in disguise) Synoptic Presentation: Major 3rd Sector Theories Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems 31 THEORY SUMMARY KEY TERMS KEY STRENGTH KEY WEAKNESS Interdep-endence Theory a.k.a: voluntary failure theory or third party govern-ment theory Because of (initially) lower transaction costs, non-profit organisations precede government in providing public benefit goods, but due to “voluntary failures” develop synergistic relations with the public sector over time Philanthropic insufficiency, particularism, paternalism, and amateurism; third party government Moves away from zero-sum, competitive relation between voluntary sector and government; explains frequent pattern of public-private partnerships Assumes neutral, yet well-meaning state; equates value-based and non value-based behaviour; when will synergies develop and when not – conditions unclear Social Origins The size and structure of the non-profit sector are a reflection of its ‘embeddedness’ in a complex set of relationships, classes, and regime type Comparative-historical approach; path-dependency; state-society relations Move away from emphasis on micro-economic models and puts interdependence theory in context Difficulty in testing counter-factual as nonprofit form varies significantly over time and across countries/cultures Synoptic Presentation: Major 3rd Sector Theories Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems •Developed in response to limitations of economic approaches on the one hand, and conventional welfare state literature on the other. •Institutional theory emphasising different ‘moorings’ of nonprofit sector •Comparative historical in approach, macro-level theory Government social spending Economic Non-profit Sector Size Low High Low Statist (Japan, most developing countries) Liberal (US, UK) High Social democratic (Sweden, Norway, Denmark, Finland) Corporatist (France, Germany, Italy?) 32 Social Origins Theory Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems NONPROFIT SECTOR TYPE SIZE OF PAID LABOUR VOLUNTEER INPUT Liberal High high Corporatist High low Social Democratic Low high Statist Low low IMPORTANCE OF SERVICE-PROVISION IMPORTANCE OF CIVIL SOCIETY COMPONENT Lower Higher Lower Statist Social-Democratic Higher Corporatist Liberal Third Sector Models and Emphasis Additional literature: See debate / contributions in Voluntas 9 (3) about social origins theory by Steinberg & Young, Ragin, and response by Salamon and Anheier. 33 Nonprofit Sector Scale and Volunteering Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems Initial Agenda (-1990s) •Organizational focus •Service delivery •Several major theories introduced •Value base, multiple stakeholders, multiple revenue sources •Product bundling •Complex impact record • Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems Key insight •There are good reasons why nonmarket firms exist in market economies. •They require an adequate legal and policy framework to bring their advantages to the forefront (direct contributions, positive externalities), and avoid shortcomings and failures Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems 1995-2005 Agenda •Privatization and PPP: efficiency, devolution • •Social Capital, Civil Society: cohesion, self-organization • •Social Accountability: watchdogs • Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems Key insight •Nonprofits are useful tools of government reform (privatization) •Nonprofits can be used for market reform as well (quasimarkets) •They are also good partners in PPP Subtitle or Unit of measure, when both Unit of measure goes into 2nd line 1 Fußnote Quelle: Quelle Titel Unit of measure Legend1 Legend2 Legend3 Legend4 Legend1 Legend2 Legend3 Legend1 Legend2 Legend3 Legend4 Legend5 STICKER Adobe Systems Conclusion: 2010 onwards •How do societies invest in their own future when government are no longer able or willing to take both leading or primary roles? • •Calls into focus all sectors • •New division of labor? Expect many hybrids