The Complex World of Not-For-Profits (NFPs)

    Each time a man stands up for an ideal, or acts to improve the lot of others, or strikes out against injustice, he sends forth a tiny ripple of hope, and crossing each other from a million different centres of energy and daring, those ripples build a current that can sweep down the mightiest walls of oppression and resistance.
— Robert F. Kennedy

Today’s NFP sector is both vast and multi-faceted.  The charitable sector has been around for over 900 years (St. John Ambulance can trace its roots back this far), but today there is a wide variance of what constitutes a NFP, ranging from large universities and hospitals to small grassroots organizations as well as membership-based organizations.  The sector has become an effective, efficient and reactive ‘business’ with highly-skilled staff, volunteers and boards, supplying an enormous range of services to our communities which not only colour our lifestyle and perceptions but are an extremely significant portion of Canada’s makeup, both socially and economically.

For example, currently, there are 161,000 not for profits in Canada (half are registered Charities), 45,6000 of which are in Ontario.  Many others go untracked by CRA as they are solely volunteer-driven. In fact, Canada is 2nd in the world in the social support per capita aspect of NFPs, following only the Netherlands, while the USA lags behind in 5thplace.

The NFP sector is, according to Stats Canada Data:

• o 11x larger than the motor vehicle manufacturing industry

• o 4x larger than the agriculture sector

• o Over 2x the value of the mining, oil and gas extraction industry

• o More than 50% larger than the entire retail trade industry.

• o And has a Gross National Product (GNP) of 7% ($112 billion) of Canada’s total economy which is the equivalent of British Columbia’s Gross Domestic Product (GDP).

• o And employs 2 Million or 12% of the workforce which is equal to the workforce of Manitoba. One-third of all these employees are professionals which is higher than the for profit sector, according to the HR Council for the Voluntary/Non-Profit Sector.

The National Survey of Giving, Volunteering and Participating determined that in 2007:

• Canadians volunteered for approximately 2 billion hours.

• These hours translate into the equivalent of 1,000,000 full-time year-round jobs.

• Almost 13 million people volunteered which is close to half the population of Canada over the age of 15 years.

  • o In fact, it is estimated that everyone is Canada is involved on average in 4 NFP agencies.

The NFP sector is, however, 33% more difficult to run and manage than for profit— according to ’the father of Business Management’ Peter F. Drucker.  Unlike for profit, NFP exists in a world of multiple stakeholders (Board members, donors, clients, staff and volunteers) and sometimes have difficulty fulfilling all expectations of each group.  Who really ensures the mission of NFPs is fulfilled?

• o The Board Director who governs with vision?

• o The Corporate Sponsor who invests financially?

• o The Planned Giving Donor who may select NFPs with aligned missions?

• o The Foundation who may require program creation and/or development?

• o The event participant who supports funding efforts?

Or is it……

• o The very giving programming and operational volunteers?

• o The often very dedicated and passionate staff?

• o Or the service users themselves for whom NFPs exists?

The answer is all of the above are driving forces, motivating and supporting NFPs.  However, regardless of who orchestrates what and when, improving society by society means vested interest and tacit ownership by all of us!  And so we are all in one capacity or another responsible for ensuring that, amongst other community enhancement endeavours:

• o People are fed, housed, counselled, mentored, educated and receive a high standard of health care.

  • o Cultural activities are available for all to enjoy

  • o Sports and places to play them are accessible for communities

  • o A healthier environment exists for all both now and in the future

  • o People are engaged in like-minded associations

Based on this very significant footprint, perhaps it is time to devise a unique name for the sector that depicts not what it isn’t but what truly reflects it’s impact!  Some that have been suggested include Public Benefit, Public Support, Independent or Third Sector.

In the meantime, kudos to everyone who works supports and/or especially volunteers within this sector.   Those who care for and about our society are choosing to live to give, uplifting and enhancing our neighbourhoods and Canada as a whole!

“The act of philanthropy is a spiritual act, an expression of caring for one’s fellow human beings. It is a belief in the future and that the future can be good. It is investing in that future. It is helping to make the dream come true.”
— Arthur Frantzreb 

Susan Laycock, cfre, cae