1. Presenter(s)’ affiliation(s) WP2: Conceptualizing the Third Sector in Europe Update Brussels | July 20-21,2014 Lester M Salamon Johns Hopkins University SAIS Bologna Centre

2. Measuring impact. Enhancing visibility. WP2 Conceptualizing the Third Sector BACKGROUND

3. Measuring impact. Enhancing visibility. WP2: Conceptualizing the Third Sector OBJECTIVES 1.To clarify the CONCEPT of the third sector in its European manifestations 2.To show how this conceptualization relates to cross-country, cross-regional, cross-cultural, and cross sector variations.

4. Measuring impact. Enhancing visibility. WP2: Conceptualizing the Third Sector THE CHALLENGE Considerable conceptual ambiguity Multiple terms and concepts Diverse legal treatment Varied histories and cultural traditions Different conceptualizations appropriate for different purposes

5. Measuring impact. Enhancing visibility. 4 identifiable “clusters” of potential Third Sector manifestations:  Associations & foundations (“nonprofit institutions,” or NPIs)  Cooperatives, mutuals  Social enterprises or social ventures  Individual activity without pay (“volunteering,” “the public sphere,” or “civil society”) Sectoral blurring—Not all entities in these clusters may be in-scope of the Third Sector WP2: Conceptualizing the Third Sector THE CHALLENGE

6. Measuring impact. Enhancing visibility. family for-profit businesses government social ventures cooperatives & mutuals activity without pay COOPERATIVES & MUTUALS ACTIVITY WITHOUT PAY SOCIAL VENTURES NPIs WP2: Conceptualizing the Third Sector

7. Measuring impact. Enhancing visibility. We do have a specific purpose: ASSESS IMPACT EC Directive: “stock-taking presupposes conceptual clarification” Some common conceptual understandings of TS exist:  Involves individual or collective action outside of businesses, government, and household  That creates value to persons other than solely oneself  That is pursued voluntarily and without compulsion WP2: Conceptualizing the Third Sector NOT FULLY AT SEA

8. Measuring impact. Enhancing visibility. 1.Sufficient BREADTH and SENSITIVITY to encompass diversity. 2.CLARITY, to differentiate Third Sector from government, for-profit businesses, and families or tribes. 3.COMPARABILITY, to highlight similarities and variations. 4.OPERATIONALIZABILITY, to permit meaningful, objective empirical measurement 5.INSTITUTIONALIZABILITY, to facilitate permanent application in official statistics. WP2: Conceptualizing the Third Sector NOT FULLY AT SEA: Agreed Criteria

9. Measuring impact. Enhancing visibility. WP2: Conceptualizing the Third Sector NOT AT SEA: Some Significant Progress

10. Measuring impact. Enhancing visibility. WP2: Conceptualizing the Third Sector NOT AT SEA: Some Significant Progress

11. Measuring impact. Enhancing visibility. WP2: Conceptualizing the Third Sector NOT AT SEA: Some Significant Progress MANUAL FOR DRAWING UP THE SATELLITE ACCOUNTS OF COMPANIES IN THE SOCIAL ECONOMY: CO-OPERATIVES AND MUTUAL SOCIETIES CIRIEC On behalf of the European Commission, Enterprise and Industry Directorate–General, carried out by CIRIEC (Centre Internationale de Recherches et de l´Information sur l´Économie Sociale et Coopérative), December 2006

12. Measuring impact. Enhancing visibility. WP2 Conceptualizing the Third Sector OUR STRATEGY

13. Measuring impact. Enhancing visibility. Establish CRITERIA Focus on defining a “COMMON CORE” Retain COMPONENT IDENTITIES Endorse a MODULAR strategy Enlist partners in a BOTTOM-UP approach WP2: Conceptualizing the Third Sector OUR STRATEGY

14. Measuring impact. Enhancing visibility. WP2: Conceptualizing the Third Sector Bottom-up approach: FIELD GUIDES REGIONRESPONSIBLE PARTNER Nordic regionISF-Norway Northern EuropeWUW-Austria Anglo-SaxonKU—United Kingdom Southern EuropeUV-Spain Central and Eastern EuropeUniwarsaw-Poland INSTITUTIONS/ INDIVIDUAL ACTIVITY RESPONSIBLE PARTNER Nonprofit InstitutionsJHU/SAIS Bologna Mutuals and CooperativesUniversity of Valencia Social Ventures Centre National De La Recherche Scientifique Individual activity without payJHU/SAIS Bologna

15. Measuring impact. Enhancing visibility. 1.Identify COMMON TERMINOLOGY for TS-type entities or activity. 2.Identify the TYPES OF ENTITIES OR ACTIVITIES each term embraces. 3.Formulate a tentative set of DEFINING FEATURES OF THE THIRD SECTOR. 4.Assess tentative set of DEFINING FEATURES OF THE THIRD SECTOR in light of identified realities. WP2: Conceptualizing the Third Sector KEY FIELD GUIDE TASKS

16. Measuring impact. Enhancing visibility. 1.For ORGANIZATIONAL components of TS 2.For INFORMAL AND INDIVIDUAL components of TS WP2: Conceptualizing the Third Sector TWO SETS OF TENTATIVE DEFINING FEATURES

17. Measuring impact. Enhancing visibility. ORGANIZATIONAL COMPONENTS 1)Organizations, formal or informal 2)Private, i.e., institutionally separate from government 3)Self-governing, capable of acting on own authority 4)Voluntary, without compulsion 5)Totally or significantly limited from distributing profit WP2: Conceptualizing the Third Sector TENTATIVE DEFINING FEATURES I

18. Measuring impact. Enhancing visibility. 1)Full prohibition on distribution of profit, or 2)If distribution of profit permitted, must be:  Legally binding social mission +  50% limit on share of profit to distribute +  Legally binding “capital lock,” + either: -At least 30 percent of workers or beneficiaries with “special needs,” OR -No distribution of profits in proportion to capital invested or fees paid WP2: Conceptualizing the Third Sector LIMITED PROFIT DISTRIBUTION MEANS

19. Measuring impact. Enhancing visibility. INDIVIDUAL ACTIVITY 1)Activity primarily for benefit of others, not self 2)Carried on for a meaningful period of time 3)Not-for-Pay (reimbursement of expenses OK) 4)Only for persons outside one’s household 5)Noncompulsory WP2: Conceptualizing the Third Sector TENTATIVE DEFINING FEATURES II

20. Measuring impact. Enhancing visibility. WP3 Advancing the Measurement of the Third Sector

21. Measuring impact. Enhancing visibility. WP3: Advancing Measurement of the Third Sector GOALS Work with statistical agencies and third sector stakeholders to implement new statistical procedures Create additional statistical machinery for other TS components Generate reliable data on Third Sector size, scope, financing

22. Measuring impact. Enhancing visibility. WP2: Conceptualizing the Third Sector CONSIDERATIONS Not just number of entities but scale of human resources engaged (paid staff and volunteers) Not only aggregates but also cross-national and sub-regional variations Differentiation of various components in terms of activity fields and institutional type Use of standard international activity classifications to facilitate comparison/integration

23. Measuring impact. Enhancing visibility. WP2: Conceptualizing the Third Sector INVOLVED PARTNERS  NORWAY: Institutt for Samfunnsforskning  AUSTRIA: Wirstschaftsuniversitat Wien  UK: University of Kent + TSRC  FRANCE: Centre National De La Recherche Scientifique  SPAIN: Universitat De Valencia  CROATIA: Pravni Facultet Sveučilišta Zagreb  POLAND: Uniwersytet Warszawski  NETHERLANDS: Radboud University

24. Measuring impact. Enhancing visibility. 1.Initiate contact with civil society leaders 2.Finalize data availability field guides 3.Contact statistical officials 4.Complete FG guide responses (Partners) 5.Initial working paper on Data Availability 6.Formulate country strategies for data collection WP2: Conceptualizing the Third Sector REMAINING TASKS: Year 1

25. Measuring impact. Enhancing visibility. 8.Develop new official measurement guidelines for other in- scope institutional units/activities* 9.Work with statistical agencies in 5-8 countries to generate data 10.Integrate acquired data into comparative database — Produce and disseminate Size and Scope Section of Final European Third Sector Impact Report* — November 2016 WP2: Conceptualizing the Third Sector TASKS: Year 2 & beyond

26. www.thirdsectorimpact.euwww.thirdsectorimpact.eu · participate@thirdsectorimpact.euparticipate@thirdsectorimpact.eu Thank you for your attention. THANKS!!!