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Counting Non-profit Institutions in New Zealand 2005
Embargoed until 10:45am  –  16 April 2007
Commentary

Purpose

This release fills an information gap that has long been identified as a barrier to a clearer understanding of non-profit institutions and their contribution to New Zealand society. It does this by showing:

  • a snapshot of the number of non-profit institutions that were operating in New Zealand at October 2005
  • a breakdown of the number of non-profit institutions into groups by their main activity
  • the number of paid staff employed by non-profit institutions
  • the distribution of paid work in these institutions
  • the total number of paid staff in relation to the total number of volunteers.

Background

This release is the first step towards a satellite account for non-profit institutions, which will present both financial and non financial data and show their importance to the New Zealand economy.

In counting the non-profit institutions, this report applies international frameworks developed by Johns Hopkins University and the United Nations Statistics Division for producing non-profit institutions satellite accounts. It also uses a definition developed for Statistics New Zealand’s Non-Profit Institutions Satellite Account (refer to Defining non-profit institutions below for further information). Organisations that do not match this definition are not considered non-profit institutions and are excluded.

Counts of paid employment are shown for all those non-profit institutions that match the definition. Counts for volunteers are also shown, but include some volunteering for government due to the way this data was collected.

Number of non-profit institutions

The number of non-profit institutions identified as at October 2005 was 97,000. Sources used for identifying these non-profit institutions included:

  • Statistics NZ's Business Frame, a register of New Zealand businesses
  • the registers of incorporated societies and charitable trusts held by the Companies Office.

October 2005 was chosen as the date to count all non-profit institutions as it was the most recent date for which consistent data was available across all three data sources.

Of these 97,000 non-profit institutions, 18 percent were sourced from the Business Frame, with the remaining 82 percent sourced from the other registers. Generally where Statistics NZ produces data on a number of organisations, it uses the Business Frame as the source. The Business Frame only includes organisations that are economically significant, however the majority of non-profit institutions do not fit the economic significance criteria (see Technical notes for further details). Therefore, searching for and identifying additional non-profit institutions from other administrative registers has now been done for the first time. Where a non-profit institution has been large enough to be registered and counted on the Business Frame, it has been excluded from the other registers in the count for this report.

Some other non-profit institutions will not be listed in the main registers. To test how many additional non-profit institutions can be picked up in other sources, a study of a defined geographic area, Masterton District, was conducted. An additional eight percent of non-profit institutions were identified in this study. While this result needs to be interpreted with caution and cannot be extrapolated to the whole country, it provides some indication that the majority of non-profit institutions are on the three main registers (the Masterton study is elaborated upon below in the Technical notes of this release).

Defining non-profit institutions

Statistics NZ used an internationally agreed definition to define a non-profit institution. A non-profit institution is:

  • organised, to the extent that it can be separately identified
  • not-for-profit and does not distribute any surplus that may be generated to those who own or control it
  • institutionally separate from government (that is, private)
  • self-governing, that is in control of its own destiny
  • non-compulsory, that is membership and participation are voluntary.

The range of non-profit institutions is extensive. It includes:

  • museums, performing arts centres, orchestras, ensembles and historical or literary societies; sports clubs, racing clubs; social clubs
  • non-profit private hospitals, primary health organisations, pre-school centres, kindergartens, private schools, industry training organisations, social service providers and environmental groups
  • religious congregations
  • trade unions, business and professional associations; political parties
  • advocacy groups that work to promote civil and other rights, or advocate the social, environmental and political interests of general or special constituencies
  • community-based associations that offer services to or advocate for members of a particular neighbourhood or community, community trust boards
    whanau, hapū and iwi-based organisations that provide governance and / or offer services to or advocate for tangata whenua
  • philanthropic trusts; international aid and relief organisations.

Government controlled organisations are excluded. Also excluded are producer boards, co-operatives, trading societies, friendly societies and credit unions, because they do not meet the not-for-profit criterion of the definition.

For more information about the application of the definition, refer to Identifying Non-Profit Institutions in New Zealand – April 2006  on the Statistics NZ website.

This release uses the term non-profit institution. Non-profit organisation may also be used.

Classification of non-profit institutions

Forty-five percent of non-profit institutions were engaged in the arts, cultural, or sport and recreation activities. The next largest groups were organisations providing social services (12 percent) and religious organisations (10 percent).

The activity group classification used is the New Zealand Standard Classification of Non-Profit Organisations (NZSCNPO), which is based on a similar international classification. The NZSCNPO differentiates between non-profit institutions according to their primary activity (for further details refer to the Technical notes of this release).

Number of Non-profit Institutions
By activity group
October 2005
 Activity group  Activity of non-profit institutions  Number  Percent
 1  Culture, sports and recreation  43,220  44.6
 2  Education and research  7,400  7.6
 3  Health  2,210  2.3
 4  Social services  11,280  11.6
 5  Environment   1,310  1.4
 6 Development and housing    7,580  7.8
 7  Law, advocacy and politics  2,500  2.6
 8  Grant making, fundraising and volunteerism promotion  610  0.6
 9  International   300  0.3
 10  Religion   9,890  10.2
 11  Business and professional associations, unions  3,130  3.2
 99  Not elsewhere classified 7,560    7.8
   Total  97,000  100

Note: All count data has been randomly rounded to protect confidentiality. Individual figures may not sum to the totals.

The largest number of non-profit institutions are in the culture, sports and recreation group, which includes organisations such as film societies, community theatres, toy libraries, historical associations, pipe bands, Māori performing arts groups, sports clubs, regional sports trusts, racing clubs, social clubs and vintage car clubs.

The next largest groups and their constituent organisations are:

  • Social services: Includes a vast range of social service providers, emergency and relief services and organisations providing income support and maintenance. Examples are early intervention services, services for the disabled and elderly, food banks, self help and other personal social services.
  • Religion: Includes churches and associations promoting religion or administering religious services. Examples include Bible chapels, churches, and temples. Service agencies with religious affiliations, in fields such as health, education and social services, are grouped with other relevant service providers rather than being included here.
  • Development and housing: Includes organisations working towards improving the quality of life within communities or the economy to improve general public well-being. This includes community centres, community development trusts, neighbourhood support groups, employment services, and tangata whenua governance organisations that manage the affairs of iwi, hapū and marae.
  • Education and research: Includes kindergartens, playcentres, kohanga reo, private primary and secondary schools, private tertiary providers, other education providers such as English language institutions, and research organisations. Public education organisations such as universities, colleges of education, polytechnics, state and integrated schools are not included.

Business and professional associations, unions: Includes organisations that promote, regulate and safeguard interests of businesses, professionals and workers, such as trade unions and chambers of commerce.

Employment counts

This section provides information on employment in non-profit institutions including:

  • the total number of paid staff for each activity group
  • the proportion of non-profit institutions that employ paid staff
  • the average (mean) number of paid employees for all non-profit institutions, as well as those institutions employing paid staff
  • the number of volunteers in non-profit institutions (also includes some volunteering for government due to the way this data was collected).

Ninety percent of all non-profit institutions do not employ paid staff.

The non-profit institutions identified had a total employment count (number of salary and wage earners) of 105,340 (refer to the Technical notes for further details). These paid employees were employed by only 10 percent of all non-profit institutions. However this increases to 56 percent when including only the non-profit institutions on Statistics NZ's register of businesses (the Business Frame). Employment counts do not distinguish between full-time and part-time employment.

Employment Count
By activity group
October 2005

 Activity group  Activity of non-profit institutions  Employment count  Percent
 1  Culture, sports and recreation  16,820  16.0
 2  Education and research  20,140  19.1
 3  Health  15,090  14.3
 4  Social services  31,480  29.9
 5  Environment  1,020  1.0
 6  Development and housing  3,730  3.5
 7  Law, advocacy and politics  2,490  2.4  
 8  Grant making, fundraising and volunteerism promotion  570  0.5  
 9  International  560  0.5
 10  Religion  9,390  8.9
 11  Business and professional associations, unions  3,400  3.2
 99  Not elsewhere classified  640  0.6
   Total  105,340  100

Note: All count data has been randomly rounded to protect confidentiality. Individual figures may not sum to totals.

Employment counts were much more concentrated by activity than were the number of institutions. Most employment (79 percent) was in the first four activity groups, with almost half the total employment count being in just two groups: social services (30 percent) and education and research (19 percent). A further 16 percent of employment was in culture, sports and recreation, and 14 percent in health. The next largest group was religion with 9 percent of employment. The seven remaining groups contributed just 12 percent.

With the exception of the culture, sports and recreation group, the non-profit institutions in the other three significant groups (social services, education and research, and health), in general exist to provide services to the general public. In contrast, organisations in the culture, sports and recreation group primarily aim to provide services to their own members. The employment counts suggest that these non-profit institutions may be more reliant on unpaid volunteers to deliver their services.

Graph, Employment Count By activity group.

Proportion of non-profit institutions employing paid staff

The group with the largest proportion of non-profit institutions employing paid staff was education and research, where 23 percent of institutions employed paid staff. The next largest was health, where 20 percent of institutions employed paid staff. At the other end of the scale, six percent of the culture, sports and recreation group and seven percent of the development and housing group employed paid staff. Across all non-profit institutions, 9,780 (10 percent) employed paid staff. Of these, 930 (9.5 percent) employed 20 or more paid staff.

Graph, Non-profit Institutions Employing/Not Employing  Paid Staff.

Average number of paid staff per non-profit institution

Across all non-profit institutions, each institution employs on average 1.1 paid staff.

For non-profit institutions that employ paid staff, the average (mean) number of paid employees is 10.8. Institutions in the health group have a higher average number of paid staff than any other group. This group includes hospitals and primary health organisations which, due to their size and structure, are more likely to employ larger numbers of paid staff. There are 33.5 paid employees for each non-profit institution in the health group that does employ paid staff.

The next highest employer is the social services group with 18.0 paid staff per non-profit institution, out of all those institutions that employ paid staff. At the other end of the scale the religion group employs 4.9 paid staff per institution.

Graph, Average Number of Paid Employees per Non-profit Institution Employing Staff By activity group.

Volunteering

Conventional measures of employment do not include the contribution of volunteers. However, the Satellite Account for Non-Profit Institutions (refer below to Future developments), will measure the value to the economy of volunteer work within these institutions.

The Census of Population and Dwellings collects data on the number of volunteers in New Zealand, and on the type of institutions they volunteer for. Using the 2001 and 2006 Census data, there were an estimated 436,506 volunteers across all non-profit institution activity groups at October 2005. This release shows there were 105,340 paid employees across all non-profit institutions. Therefore, volunteers in these institutions outnumbered paid employees by approximately four to one.

However, the categories used in the census are not directly comparable to the definition of non-profit institutions used in this release. Therefore, this figure may not represent the actual number of volunteers in non-profit institutions, as it includes some volunteering that takes place in government organisations such as boards of trustees.

Legal types of non-profit institutions

Organisations registered as either incorporated societies or charitable trusts are prevented under legislation from distributing any surpluses to their members or directors. Consequently, these organisations are non-profit institutions.

In October 2005, 22 percent of all non-profit institutions counted were incorporated societies. The largest proportion of non-profit institutions (61 percent), were unincorporated societies and 15 percent were charitable trusts. The balance was made up of trusts not registered as charitable trusts and charitable (not-for-profit) companies. Refer to the Technical notes below for further detail on the business types referred to here.

Future developments

This report is part of Statistics NZ's development of a satellite account for non-profit institutions. Satellite accounts are recognised internationally as a way of presenting information in particular areas of interest not covered by conventional economic accounts. In the case of non-profit institutions, this entails collecting, assembling and analysing financial and non financial data for the institutions, then determining their value to the New Zealand economy.

Statistics NZ will publish the first satellite account for non-profit institutions in August 2007. The account will include a fuller discussion of:

  • the economic size of the non-profit sector (as represented by non-profit institutions)
  • sources of income for non-profit institutions
  • the characteristics and contribution of each NZSCNPO activity group
  • the valuation of volunteer labour.

The development of the satellite account is also part of New Zealand’s participation in an international comparative study of the non-profit sector led by the Johns Hopkins University (Baltimore, USA) in partnership with the Office of the Community and Voluntary Sector, and guided in New Zealand by the Committee for the Study of the New Zealand Non-Profit Sector.

Acknowledgments

In the preparation of this release, Statistics NZ acknowledges the advice of the Committee for the Study of the New Zealand Non-Profit Sector and the co-operation of the Companies Office for the use of its registers.

For technical information contact:

Hendrikje Buss, Christchurch 03 964 8700 Andrew Rae, Wellington 04 931 4600 Email: info@stats.govt.nz

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