NON-PROFIT INSTITUTIONS SERVING HOUSEHOLDS Part III. Sector Accounts 7 November 2006 NON-PROFIT INSTITUTIONS SERVING HOUSEHOLDS Jan Ramaker Statistics Netherlands, National accounts in Practice

Part III. Sector Accounts 7 November 2006 NPIs (definition) Non-profit institutions are ... legal or social entities engaged in the production of goods and services; and, whose status does not permit them to be a source of income for the units that control them Statistics Netherlands, National accounts in Practice

Part III. Sector Accounts 7 November 2006 Some remarks Diverse motives Most have legal status Members all have similar rights No shareholders Directed by a group of officers NPIs can make a surplus or profit Statistics Netherlands, National accounts in Practice

To which sector does a NPI belong? Two questions need to be answered: Is the NPI a market producer? Is the NPI financed and controlled by the government?

1 - More than 50% of production costs covered by sales Market producers According to SNA Set prices at economically significant level According to ESA 1 - More than 50% of production costs covered by sales 2 - Providing services to businesses Examples: 1 - Hospitals, private schools 2 - Trade associations, employers organisations

Part III. Sector Accounts 7 November 2006 Non market producers Two groups: Controlled and financed by the government sector --> part of government Providing non-market services to households and mainly financed by non- governmental transfers --> separate sector Statistics Netherlands, National accounts in Practice

Overview NPI with sales 50% of production costs (Non market producers) or NPIs serving corporations (Market-producers) ß Controlled and financed by the government sector Mainly financed by non-governmental transfers and providing non-market services to households Part of: Non-financial or Financial corporations Part of: Government Separate sector: NPIs serving households (S15) £ ß ß

NPIs serving households Part III. Sector Accounts 7 November 2006 NPIs serving households Two types: 1. NPIs serving members: provide non-market goods and service for the benefit of the members mostly financed by regular membership subscriptions examples: political parties, sports clubs Statistics Netherlands, National accounts in Practice

NPIs serving households Part III. Sector Accounts 7 November 2006 NPIs serving households 2. Charity NPIs: created for philanthropic purposes do not serve the direct interest of its members income mostly from donations examples: Amnesty International, Greenpeace Statistics Netherlands, National accounts in Practice

Part III. Sector Accounts 7 November 2006 Sub sectors ESA does not mention any sub sectors Statistics Netherlands, National accounts in Practice

Production value of NPIs Part III. Sector Accounts 7 November 2006 Production value of NPIs The calculation of the production value for this sector is based on its costs: + Intermediate consumption P2A + P2B + Consumption of fixed capital K.1 + Compensation of employees D.1 + Net taxes on production D.29 = Production value of NPIs P.1 Statistics Netherlands, National accounts in Practice

Final consumption of NPIs Production value P.1 - Sales P.11A - Own account capital formation P.12A = Final consumption expenditures of NPIs P.3

Available sources NPIs serving members: Three-yearly statistic on (amateur) sports clubs Annual overview of church communities Annual reports from many NPIs (labour unions, etc)

Available sources (continued) Charity NPIs: Annual report on the spending of many fundraising organisations Annual reports compiled by the NPIs themselves Conclusion: There is some information available, but not complete and not very coherent

NON-PROFIT INSTITUTIONS SERVING HOUSEHOLDS Part III. Sector Accounts 7 November 2006 NON-PROFIT INSTITUTIONS SERVING HOUSEHOLDS Statistics Netherlands, National accounts in Practice