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WP2 : Conceptualizing the Third Sector in Europe Update Brussels | July 20-21,2014

WP2 : Conceptualizing the Third Sector in Europe Update Brussels | July 20-21,2014. Lester M Salamon Johns Hopkins University SAIS Bologna Centre. WP2 Conceptualizing the Third Sector BACKGROUND. WP2: Conceptualizing the Third Sector OBJECTIVES.

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WP2 : Conceptualizing the Third Sector in Europe Update Brussels | July 20-21,2014

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  1. WP2: Conceptualizing the Third Sector in EuropeUpdateBrussels| July 20-21,2014 Lester M Salamon Johns Hopkins University SAIS Bologna Centre

  2. WP2 Conceptualizing the Third Sector BACKGROUND

  3. WP2: Conceptualizing the Third SectorOBJECTIVES • To clarify the CONCEPTof the third sector in its European manifestations • To show how this conceptualization relates to cross-country, cross-regional, cross-cultural, and cross sector variations.

  4. WP2: Conceptualizing the Third SectorTHE CHALLENGE • Considerable conceptual ambiguity • Multiple terms and concepts • Diverse legal treatment • Varied histories and cultural traditions • Different conceptualizations appropriate for different purposes

  5. WP2: Conceptualizing the Third SectorTHE CHALLENGE • 4 identifiable “clusters” of potential Third Sector manifestations: • Associations & foundations (“nonprofit institutions,” or NPIs) • Cooperatives, mutuals • Social enterprises or social ventures • Individual activity without pay (“volunteering,” “the public sphere,” or “civil society”) • Sectoral blurring—Not all entities in these clusters may be in-scope of the Third Sector

  6. WP2: Conceptualizing the Third Sector government for-profit businesses for-profit businesses social ventures cooperatives & mutuals SOCIAL VENTURES COOPERATIVES & MUTUALS THIRD SECTOR NPIs ACTIVITY WITHOUT PAY family family activity without pay

  7. WP2: Conceptualizing the Third SectorNOT FULLY AT SEA • We do have a specific purpose: ASSESS IMPACT • EC Directive: “stock-taking presupposes conceptual clarification” • Some common conceptual understandings of TS exist: • Involves individual or collective action outside of businesses, government, and household • That creates value to persons other than solely oneself • That is pursued voluntarily and without compulsion

  8. WP2: Conceptualizing the Third SectorNOT FULLY AT SEA: Agreed Criteria • Sufficient BREADTH and SENSITIVITYto encompass diversity. • CLARITY, to differentiate Third Sector from government, for-profit businesses, and families or tribes. • COMPARABILITY, to highlight similarities and variations. • OPERATIONALIZABILITY, to permit meaningful, objective empirical measurement • INSTITUTIONALIZABILITY, to facilitate permanent application in official statistics.

  9. WP2: Conceptualizing the Third SectorNOT AT SEA: Some Significant Progress

  10. WP2: Conceptualizing the Third SectorNOT AT SEA: Some Significant Progress

  11. WP2: Conceptualizing the Third SectorNOT AT SEA: Some Significant Progress MANUAL FOR DRAWING UP THE SATELLITEACCOUNTS OF COMPANIES IN THE SOCIALECONOMY: CO-OPERATIVES AND MUTUALSOCIETIES CIRIEC On behalf of the European Commission, Enterprise and Industry Directorate–General, carried out by CIRIEC (Centre Internationale de Recherches et de l´Informationsurl´ÉconomieSociale et Coopérative), December 2006

  12. WP2 Conceptualizing the Third Sector OUR STRATEGY

  13. WP2: Conceptualizing the Third SectorOUR STRATEGY • Establish CRITERIA • Focus on defining a “COMMON CORE” • Retain COMPONENT IDENTITIES • Endorse a MODULAR strategy • Enlist partners in a BOTTOM-UP approach

  14. WP2: Conceptualizing the Third SectorBottom-up approach: FIELD GUIDES

  15. WP2: Conceptualizing the Third SectorKEY FIELD GUIDE TASKS • Identify COMMON TERMINOLOGY for TS-type entities or activity. • Identify the TYPES OF ENTITIES OR ACTIVITIES each term embraces. • Formulate a tentative set of DEFINING FEATURES OF THE THIRD SECTOR. • Assess tentative set of DEFINING FEATURES OF THE THIRD SECTOR in light of identified realities.

  16. WP2: Conceptualizing the Third SectorTWO SETS OF TENTATIVE DEFINING FEATURES • For ORGANIZATIONAL components of TS • For INFORMAL AND INDIVIDUAL components of TS

  17. WP2: Conceptualizing the Third SectorTENTATIVE DEFINING FEATURES I ORGANIZATIONAL COMPONENTS • Organizations, formal or informal • Private, i.e., institutionally separate from government • Self-governing, capable of acting on own authority • Voluntary, without compulsion • Totally or significantly limited from distributing profit

  18. WP2: Conceptualizing the Third SectorLIMITED PROFIT DISTRIBUTION MEANS • Full prohibition on distribution of profit, or • If distribution of profit permitted, must be: • Legally binding social mission + • 50% limit on share of profit to distribute + • Legally binding “capital lock,” + either: • At least 30 percent of workers or beneficiaries with “special needs,” OR • No distribution of profits in proportion to capital invested or fees paid

  19. WP2: Conceptualizing the Third SectorTENTATIVE DEFINING FEATURES II INDIVIDUAL ACTIVITY • Activity primarily for benefit of others, not self • Carried on for a meaningful period of time • Not-for-Pay (reimbursement of expenses OK) • Only for persons outside one’s household • Noncompulsory

  20. WP3 Advancing the Measurement of the Third Sector

  21. WP3: Advancing Measurement of the Third SectorGOALS • Work with statistical agencies and third sector stakeholders to implement new statistical procedures • Create additional statistical machinery for other TS components • Generate reliable data on Third Sector size, scope, financing

  22. WP2: Conceptualizing the Third SectorCONSIDERATIONS • Not just number of entities but scale of human resources engaged (paid staff and volunteers) • Not only aggregates but also cross-national and sub-regional variations • Differentiation of various components in terms of activity fields and institutional type • Use of standard international activity classifications to facilitate comparison/integration

  23. WP2: Conceptualizing the Third SectorINVOLVED PARTNERS • NORWAY: Institutt for Samfunnsforskning • AUSTRIA: Wirstschaftsuniversitat Wien • UK: University of Kent + TSRC • FRANCE: Centre National De La Recherche Scientifique • SPAIN: Universitat De Valencia • CROATIA: Pravni Facultet Sveučilišta Zagreb • POLAND: Uniwersytet Warszawski • NETHERLANDS: Radboud University

  24. WP2: Conceptualizing the Third SectorREMAINING TASKS: Year 1 • Initiate contact with civil society leaders • Finalize data availability field guides • Contact statistical officials • Complete FG guide responses (Partners) • Initial working paper on Data Availability • Formulate country strategies for data collection

  25. WP2: Conceptualizing the Third SectorTASKS: Year 2 & beyond • Develop new official measurement guidelines for other in-scope institutional units/activities* • Work with statistical agencies in 5-8 countries to generate data • Integrate acquired data into comparative database —Produce and disseminate Size and Scope Section of Final European Third Sector Impact Report* — November 2016

  26. THANKS!!!

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