1. 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

2. 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

3. 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

4. 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?

5. Market producers According to ESA Examples:
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

6. 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

7. 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

8. 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

9. 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

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

11. 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
+ Consumption of fixed capital
+ Compensation of employees
+ Net taxes on production
= Production value of NPIs
Statistics Netherlands, National accounts in Practice

12. Final consumption of NPIs
Production value:
- Sales
- Own account capital formation
= Final consumption expenditures of NPIs

13. 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)

14. 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

15. Non-Profit Institutions Serving Households
Part III. Sector Accounts
7 November 2006
Non-Profit Institutions Serving Households
Statistics Netherlands, National accounts in Practice