1. chapter 8
Nonprofit Sector

2. Importance of the Nonprofit Sector to Leisure
In neighborhoods and communities across North America, millions of people are served by and give service to entities that are for public and quasi-public purposes.
Nonprofit organizations affect human lives.
Nonprofit organizations operate outside of government and business apparatuses to improve the quality of life in communities.

3. Nonprofit Sector in the United States and Canada
Variations in structure include registration and operations within cultural, political, civic, and economic contexts.
Variety of descriptions include the following:
Voluntary sector
Charitable sector
Quasi-public sector
Independent sector
Third sector
Civil society sector
Social sector
Nongovernmental sector
Tax-exempt sector
Not-for-profit sector

4. 6 Characteristics of the Nonprofit Sector
1. Organized. Institutional presence and structure; identifiable entity.
2. Private. Institutionally separate from the state; determine their own policies, programs, and services.
3. Not profit distributing. Do not return profits to their managers or to a set of “owners”; consider a range of stakeholders when making decisions and providing services.
4. Self-governing. In control of their own affairs.
5. Voluntary. Membership is not legally required, and they attract some level of voluntary contribution of time and money.
6. Beneficial to the public. Contribute to the public purpose and public good (Salamon,1999; O’Neill, 2002)

5. Impact on Leisure Programs
Nonprofit organizations can include sports clubs, professional associations, and direct service providers.
They have an impact across the life span from “cradle to grave.”
Introduction to nonprofit organizations typically occurs through recreation programs as children and youth become involved in the following:
Scouting programs
YMCAs
Boys and Girls Clubs
Little League
Other recreation-based and nature-based programs

6. Goals and Functions
Two primary goals frame the orientation of most nonprofits (Salamon,1999):
Public benefit. Some nonprofits are organized specifically for social outcomes that appeal across a spectrum of population groups.
Mutual benefit. These nonprofits exist primarily to provide services exclusively to a limited number of members with common interests.

7. Organizing Framework
International Classification of Nonprofit Organizations (ICNPO): 12 major activity groups
Culture and recreation
Education and research
Health
Social services
Environment
Development and housing
Law, advocacy, and politics
(continued)

8. Organizing Framework (continued)
Philanthropic intermediaries and voluntarism
International
Religion
Business and professional associations and unions
Groups not classified elsewhere
(Salamon & Anheier, 1996)

9. Nonprofit Sector in Canada
“Little [is known] about the nonprofit sector and the role it plays in Canada” (Hall & Banting, 1999).
No central registry in Canada; what is known comes from charities. Register with Revenue Canada (the government agency similar to the Internal Revenue Service in the United States).
As of 2000, approximately 200,000 nonprofits were operating in Canada with 80,000 of them registered as official charities (Wagner, Orvananos de Rovzar, & Imdieke, 2003).

10. 4 Categories of Nonprofits in Canada
Social welfare assists disadvantaged groups for the common good and for the general welfare of the community.
Civic improvement is organized to enhance the value or quality of community or civic life.
Pleasure or recreation is organized to provide a state of gratification or a means of refreshment or diversion.
The category, any other purpose except profit, is a generic grouping of associations that are organized for other noncommercial reasons (Revenue Canada, 2004).

11. Nonprofit Sector in the United States
U.S. nonprofits are pervasive and robust.
Approximately 1.6 million exist:
400,000 serve members.
More than 1.2 million serve the public.
The U.S. Internal Revenue Service provides 27 types of tax-exempt organizations under Section 501(c) of the federal tax code.

12. Major Subcategories of U.S. Nonprofits
Charities Provide free services to vulnerable populations in places such as homeless shelters and soup kitchens
Foundations Support causes that benefit society through grants
Social welfare organizations Advocate for specific issues by lobbying legislators to advance social causes and campaigning for political candidates
Professional and trade associations Are a collection of nonprofits that promote business or professional interests

13. Resource Base Membership fees Program fees Private philanthropy
Government grants
Interest income
Earned income
Sales income
Social enterprise

14. Professional Organizations
Association for Volunteer Administration (AVA) provides training and resources to support volunteer managers.
Association of Fundraising Professionals (AFP) provides training, research, and support to those involved in fundraising.

15. Significance of Local Nonprofit Organizations
They play a critical role in the recreational and cultural life of the United States.
Many central recreational institutions of local communities—swimming clubs, tennis clubs, Little Leagues, country clubs—are nonprofit in form.
They form the backbone of the nation’s cultural life, producing most live theater, symphonic music, and opera and providing venues for art and cultural artifacts.

16. National and Community-Based Nonprofit Recreation Organizations
Voluntary youth serving
Religious and faith based
Social service and relief
Special populations serving
Environmental and conservation
Associations
Membership or service clubs and fraternal organizations

17. Voluntary Youth-Serving Organizations
More than 49 nonprofit youth and human service organizations serve young people across the United States and Canada. These include the following:
Big Brothers Big Sisters
Boy Scouts of America
Scouts Canada
Boys and Girls Clubs
Camp Fire USA
Girl Scouts of the USA
Girls Incorporated
Little League Baseball

18. Religious and Faith-Based (Church and Synagogue) Organizations
Nonsectarian organizations with historical roots in faith-based communities include the following:
YMCA of the USA and YMCA Canada,1851
YWCA of the USA, 1858, and YWCA Canada, 1870
Other nonprofits were created and are administered by faith-based and church communities, including the following:
Catholic Youth Organization (CYO)
Young Men’s Hebrew Association (YMHA)
Young Women’s Hebrew Association (YWHA)

19. Social Service and Relief Organizations
Provide social and relief services. Difficult to categorize; some are nonsectarian and others are a part of faith communities.
Improve the quality of life. Bolster goals of recreation service providers or provide direct recreation services themselves.
Examples include the American Red Cross, founded in 1881, and the Canadian Red Cross, founded in 1909.

20. Special Populations–Serving Organizations
United Service Organization (USO), 1941 Supports the needs of enlisted military personnel through leisure and recreation
The Arc of the United States, Serves children and adults with cognitive, intellectual, and developmental disabilities; 1,000 chapters nationwide
Special Olympics, 1967 Provides year-round sports training and athletic competition in 26 Olympic-type sports

21. Environmental and Conservation Organizations
Sierra Club, 1892 Purpose is to explore, enjoy, and protect wild places of the earth; to practice and promote responsible use of earth’s ecosystem and resources; to educate and enlist humanity to protect and restore quality of natural and human environment; and to use all lawful means to carry out these objectives; Sierra Club of Canada, founded in 1963.
The Trust for Public Land (TPL), Purpose is to conserve land for people to enjoy as parks, gardens, and other natural places, ensuring livable communities for generations to come.

22. Association
American Camp Association is a diverse community dedicated to enriching the lives of children and adults through the camp experience.
For nearly 100 years, utilized camping as lessons in community, character building, and skill development.
Works to preserve, promote, and improve the camp experience.

23. Membership or Services Clubs and Fraternal Organizations
Service clubs and fraternal organizations are part of the recreation and leisure services for two reasons:
Many support parks and recreation programs through donations of time and money.
Provide a personal and professional development networking opportunity for the recreation professional who becomes a member.
Two of the better known service clubs are Kiwanis International and Rotary International.

24. Professional in Nonprofit Organizations
About 6% of all organizational entities in the United States are nonprofits, and 1 in 15 people works for one (Salamon, 1999).
The national organization Action Without Borders ( provides career guidance and posts job openings.
Trade publications such as Nonprofit Times and the Chronicle of Philanthropy are helpful tools in pursing careers in the nonprofit sector.

25. Challenges and Opportunities for the Future
Effect of commercialization
Changing shape of government and nonprofit relations, public trust issues
Changing demographics
Direct implications for nonprofit recreation and leisure service providers:
Trust and accountability
Opportunity for collaboration in response to marketplace challenges
Demographic challenges and opportunities

26. Successful Nonprofit Managers
Those who will be or are skillful across a range of competencies
People with the ability to raise philanthropic resources
People with the ability to work with and through volunteers to achieve organizational goals

27. Discussion: Subject: Trends
Which of the following trends will most affect the future of nonprofits?
Commercialization
The changing shape of government and nonprofit relations
Public trust issues
Changing demographics

28. Individual Assignment: Design Your Own Nonprofit and submit it on-line
A nonprofit organization (NPO) is defined as “an association [that] must be both organized and operated exclusively for social welfare, civic improvement, pleasure or recreation or for any other purpose except profit” (Revenue Canada, 2004).
Create a nonprofit organization using the following questions as guidelines:
What is the vision or mission statement of your organization?
What are your funding sources or resource base?
What are your staffing needs?
What facilities or sites will you need and in what jurisdiction?
What are the demographics (population, cultural ,and sociological) of your catchment’s area?
Which of the four categories of nonprofits does your organization fall under? See chapter 8 in the text for a description of this area.
Reference Material - Descriptions of the four categories of nonprofits:
Social welfare nonprofits assist disadvantaged groups for the common good and for the general welfare of the community.
Civic improvement nonprofits enhance the value or quality of community or civic life.
Pleasure or recreation nonprofits provide a state of gratification or a means of refreshment or diversion.
Any other purpose except profit is a generic grouping of associations that are organized for other noncommercial reasons.