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Contributions of the Nonprofit Sector

Very interesting report on the nonprofit sector in Ontario:

Contributions of the NonProfit Sector

The nonprofit sector is an often-overlooked contributor to the Canadian economy. In 2007, the value-added or gross domestic product (GDP) of the nonprofit sector was $35.6 billion, accounting for 2.5 per cent of the total Canadian economy. This share increases to 7.0 per cent when hospitals, universities and colleges are included, reaching $100.7 billion in 2007.14 Excluding hospitals, colleges and universities, the nonprofit sector employs 600,000 people and has over five million volunteers, supporting a wide variety of sectors including health, education, environment and social services in Ontario. These same nonprofit organizations in the province have annual revenues of $29 billion, 45 per cent coming from earned income, 29 per cent from federal and provincial government grants and service contracts, and 26 per cent from gifts, donations and other sources.15

Most nonprofit organizations (53 per cent) in Ontario are completely volunteer-run, having no paid staff.16 We must not underestimate the contributions of volunteers to care for our elderly, retrain the unemployed, educate our children and care for our environment. Steps should be taken to ensure that these organizations continue to get funding. However, there is room for improvement in terms of streamlining administration and ensuring that accountability frameworks focus on outcome metrics. In addition, multi-year agreements can help create predictable budget cycles for nonprofit organizations.

Recommendation 8-17: Reform funding practices in the nonprofit sector to increase flexibility and reduce administrative costs by focusing on measuring outcomes rather than inputs.

There is also room for improving the responsiveness of the government to the nonprofit sector. The Commission notes the precedent set by the Open for Business initiative that creates a single window through which business can engage all government ministries. We believe a similar model would be helpful to the nonprofit sector, which is just as varied and diverse as the private sector.

Recommendation 8-18: Provide a single point of access within government for the nonprofit sector to improve and broaden relationships across ministries that enter into contracts with the nonprofit sector, using a model such as the Open for Business initiative.

Read the full report here: http://www.fin.gov.on.ca/en/reformcommission/index.html

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