Michael H. Morris, Susana C. Santos and Xaver Neumeyer
Michael H. Morris, Susana C. Santos and Xaver Neumeyer
Edited by Maritza I. Espina, Phillip H. Phan and Gideon D. Markman
Maritza I. Espina, Phillip H. Phan and Gideon D. Markman
Neil Bania and Laura Leete
Considerable theoretical and empirical progress has advanced our understanding of the role and value of the volunteer, resulting in improved estimates of volunteer labor valuation. Yet this task still involves conceptual and methodological challenges. Conceptually, costs and benefits accrue to the organization, the volunteer, and to society. Depending on one’s purpose, the focus may be on one or more of these concepts. To date, researchers have pursued three approaches: opportunity cost, replacement cost, and organizational value. Methodological challenges result from a lack of consensus on how to define volunteerism. There is still no comprehensive assessment of methodological differences for counting volunteer hours and researchers have not clearly documented which approaches yield the most accurate estimates. More generally, on-going analysis of volunteer hours in national datasets is largely missing and research that directly measures either the replacement value or the organizational value of volunteers is in its infancy.
Bruce A. Seaman
Coherent pricing strategies are important to for-profit firms, but can also be vital to nonprofit organizations. This is clearly true for the arts, education, and hospital and health-care sectors, but can also extend to nonprofits providing vital social services to low-income and otherwise vulnerable populations. By clarifying both static and dynamic pricing strategies that have been successfully used by for-profits, and examining their current application and potential expansion within the nonprofit sector, the striking similarities as well as ongoing distinctions between the two sectors are clarified. Especially in a political climate threatening to be less generous to nonprofits committed to diverse missions, understanding how to generate more earned revenue via shrewd price discrimination, tying/bundling, and yield management and peak-load pricing strategies is vital. Classic research results are incorporated with current theoretical and empirical developments to provide a comprehensive picture of pricing in the nonprofit sector.
James Alm and Daniel Teles
State and federal tax policy in the United States generally favors nonprofit organizations, and particularly nonprofits classified as 501(c)3 nonprofit charities. This favorable tax treatment comes from two types of tax policies. First, nonprofits are exempt from paying a variety of taxes, including the federal corporate income tax (CIT) and many state and local taxes. Second, individuals are encouraged to donate to nonprofit charities through favorable policies in the federal income tax, state income taxes, and the inheritance tax. In this chapter we present some basic material on the tax treatment of nonprofit organizations and then examine what we know and what we do not know about state and federal tax policy toward nonprofit organizations.
Jack Quarter and Laurie Mook
In this chapter, Jack Quarter and Laurie Mook present a social economy framework for understanding the extraordinary variety of organizations that are guided by social objectives – non-profits, co-operatives, and social enterprises. The framework highlights the similarities and differences of social economy organizations, and how they interact with the other sectors of society. Prioritizing social objectives affects how these organizations function; it places constraints on the disposition of surplus earnings and who can benefit from the assets, which are used to create social wealth, not individual wealth. Social economy organizations also face common issues, including the need to build awareness of their role and impact, and to prepare a workforce to manage multiple bottom lines. In brief, the social economy – social economy businesses, community economic development organizations, public sector non-profits, and civil society organizations –is an integral part of a mixed economy and serves in many ways as its social infrastructure.
Laurie Mook and Femida Handy
One challenge faced by nonprofit organizations is capturing and reporting the creation of social value. Social accounting is one way of doing this. The framework of social accounting can be applied to any type of organization, but is particularly relevant for organizations that prioritize their social objectives. This chapter outlines the development of social accounting, which grew out of a critique of traditional accounting, and focuses on models for nonprofit organizations. It details one particular model, the Expanded Value Added Statement (EVAS) which reports on the economic and social value added (or destroyed) by the organization and how that is distributed to multiple stakeholders. A case study is used to construct an EVAS for Literacy Volunteers of Rochester, and show how non-monetary items, for instance volunteer contributions, can be included in an accounting framework. Limitations and challenges to adopting social accounting are also addressed.
Daniel Tinkelman and Daniel Gordon Neely
This chapter reviews the literature on revenue interactions, in particular whether government funding ‘crowds in’ or ‘crowds out’ private donations. At an economy-wide level, we conclude that total giving in the US is independent of the growth in other revenue forms. At the ‘cause’ level, the results are mixed. While standard theoretical models predict full crowd-out of private donations by government funding, modifying key assumptions of the model leads to support for incomplete crowd-out and even crowd-in in certain cases. Finally, at the organization level the picture is mixed. Most of the 54 empirical studies reviewed find very little crowd-in or crowd-out. Recent innovations in methodology and expanding studies to countries outside the US have the potential to improve our understanding of nonprofit revenue interactions.