Login / Logout Link

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

Policy for Thought

A social policy framework for Alberta will be comprehensive in nature, reflect our shared values as Albertans, and guide collective efforts to support all Albertans to attain a high quality of life – where all Albertans have access to the programs and services they need, when they need them.  All Albertans share the benefits when people can participate as full members of our society.

The framework will focus on the social system that serves disadvantaged Albertans while considering how the whole system works to serve its citizens. The framework will provide a foundation for governments, communities, nonprofit organizations, and individuals to make decisions about the relevance and effectiveness of social policies and programs for Albertans.  It will lay the foundation for an accessible system that produces results – both for the Albertans who use it and for those who share in the benefits of a stronger society.

The framework will be fully realized by fall and be developed in an inclusive way and will articulate the roles that government, communities, nonprofit organizations, and individuals play in the system that serves Albertans.  It will communicate Alberta’s social policy direction to the public, both within and beyond our borders.

Some of the key questions that we, as a sector, need to provide strong, collaborate  answers to:

  • What do you see as the purpose of a social policy framework for Alberta?
  • What are the respective roles of government(s), communities, individuals, and business in achieving a quality of life to which Albertans aspire?
  • What kind of society do you want for yourself, your family and community?
  • What social and economic issues should be included in the framework?
  • Social programs are delivered by government, communities, and nonprofit organizations across the province. How would you like to be engaged during this process?
  • How would you define success?
  • How should we measure success?

Become a part of the conversation and send your answers and ideas to afisher@volunteeralberta.ab.ca.

To read the draft discussion guide: Social Policy Framework Discussion Guide

Are there Enough Volunteers in Alberta?

To mark National Volunteer Week, PrimeTime Television hosted Volunteer Alberta’s Executive Director Karen Lynch for a discussion around Alberta’s nonprofit/voluntary sector.

Click here to watch the interview

Letter: Volunteer Alberta –Submission to the Premier’s Council for Economic Strategy

August 10, 2010

The Honourable David Emerson, P.C.

Premier’s Council for Economic Strategy
11th Floor, Legislature Annex
9718 – 107 Street
Edmonton, Alberta
T5K 1E4

Attn: Honourable David Emerson, P.C.

Premier’s Council for Economic Strategy, Council member

Re: Volunteer Alberta –Submission to the Premier’s Council for Economic Strategy

Dear Mr. Emerson:

The recent acknowledgement by the Premier’s Council for Economic Strategy (in An Invitation to Help Shape Alberta’s Future) of the investment and contribution volunteers make to communities in Alberta and to the overall economy was unexpected, but welcomed by Volunteer Alberta’s members and collaborating organizations.

Volunteer Alberta applauds the Council’s recognition of the strong linkages between the strategic development of Alberta’s economy and increasing the development of the ‘brainpower of people’ or the so-called social and human capital aspects of the economy. The Council rightly identified how creating strong and vibrant communities will attract and retain the human capital necessary to diversify and strengthen our economy.

It should be highlighted how the ongoing activities of the nonprofit/voluntary sector in Alberta are already complementing three of the Council’s conversations in the report, particularly related to:

  • #3 creating new wealth through knowledge and innovation;
  • #4 ensuring healthy, skilled and engaged citizens;
  • #5 ensuring communities are vibrant, supportive and inclusive.

Nonprofit/voluntary sector organizations in Alberta are actively working to make communities stronger and more desirable places to live. Volunteer Alberta encourages the Council to focus public policy and financial investment on the nonprofit/voluntary sector to achieve its objective of raising and sustaining the quality of living for Albertans.

The Social Investment Volunteers Make in Alberta

Alberta leads the way in 21st century volunteerism. The rural roots of the province established the foundation for generations of volunteers, at a time when neighbours relied on each other for social and economic stability. Although the demographics of Alberta volunteers reflect an urban shift, the intensity of the act of sharing time and talent has not diminished. Some characteristics of the sector include:

  • Alberta has a volunteer rate of 52 percent exceeding the Canadian average of 48 percent.
  • Roughly 1,445,000 Albertans contributed an average of 172 hours in community services in 2007 (6 percent more than the national average).
  • Of the 19,000 nonprofit/voluntary organizations in Alberta, approximately 58 percent have no paid staff and are entirely volunteer run.[1]

How can strategic Volunteerism contribute to Alberta’s Economic Strategy?

Nonprofit/voluntary organizations provide cost-effective structures to deliver social services and respond to grassroots level community needs. The efficiency and effectiveness of voluntary organizations goes a long way, making for a high social return on investment. However, if the only value added is that of low cost delivery systems, Alberta’s economic and political leaders are missing the overall impact that community based organizations make to create a standard of living that is unparalleled.

Besides delivering services that are integral to the quality of life in communities, volunteer participation also builds trust and reciprocity among people, encourages social solidarity, and enhances citizens’ belief that they live in a caring community.

There are several other benefits from volunteering noted in the recent Canada Survey of Giving Volunteering and Providing (2007) as well as in academic research about how volunteering enhances an individual’s own social capital (expression of values and what makes people fit into a social reference group) and human capital (the skills, enhancements, competencies, and knowledge an individual gains).[2] A learned and connected populace promotes civil engagement and creates a valued community.

The nonprofit/voluntary sector not only serves underprivileged and vulnerable populations (this is often acknowledged by elected and corporate leaders, but is a facile observation that does not nearly reflect the diversity and integration of the sector in every single Albertan’s life), but also serves and are supported by ordinary, middle-class Albertans. Every day in Alberta, individuals and families participate with volunteer groups such as the 4-H Club, Big Brothers Big Sisters, local sport associations, or volunteer firefighters.

Many segments of the Albertan population benefit from volunteer activities. The classification of the voluntary sector relies on the ‘John Hopkins International Classification System’.[1] Volunteer Alberta recommends adoption of this internationally recognized system, which underscores the diversity of the nonprofit/voluntary sector and its 12 distinct subsectors. [2] From sports and recreation to social services…from education to environment…from arts and culture to business and industry ­ –organizations large and small depend on volunteers as they provide community programs and services to assist, entertain and connect local residents.

Volunteer contributions generate considerable benefits for organizations, individual volunteers, people served by volunteers, communities, and society at large. These benefits should not be taken for granted. Volunteers are not free –indeed they are citizens whose investments of time and energy require support.

Challenges facing the Sector

Increasing economic pressures are challenging the capacities of nonprofit/voluntary organizations to maintain the levels of active citizenship and community engagement in Albertan communities. Some of the practical and conceptual challenges facing the nonprofit/voluntary sector include:

  • Organizations are financially vulnerable as the Alberta government decreases an already lower than national average level of investment in the sector and are struggling to meet growing demands with the same or less revenue;
  • Staff leading nonprofit organizations struggle to generate revenue, maintaining contract arrangements, and recruit and retain skilled employees – all the while trying to create an elusive level of sustainability;

Volunteer engagement trends are fluctuating dramatically. Organizations struggle to respond to changing demographics in Alberta. (For instance, a core of highly-engaged people (10 percent of volunteers) contributes 54 percent of all hours. Losing these types of volunteers

  • would have disproportionately adverse effects on organizations and local communities. New strategies are available and investment is required to implement recruitment and retention for youth, immigrant populations, baby-boomers, etc. as volunteers).

Recommendations:

Volunteers support individual Albertans and provide life to our communities.

Volunteer Alberta encourages the Council to consider strategies which harness and support the powerful spirit of citizenship in Albertan communities by supporting volunteers and nonprofit/voluntary organizations. Strategic actions might include:

  • Allocating both financial and thought investment to reinforce the efforts of volunteers and nonprofit/voluntary organizations;
  • Expanding the levels of support for ‘made-in-Alberta’ legislation, programs and services designed to remove barriers to volunteerism in Alberta. A heightened understanding of the impact of legislation on the nonprofit/voluntary sector either as delivery mechanisms or responders to the changes in community is required.
  • Supporting ‘capacity-organizations’ (such as Volunteer Alberta, Edmonton Chamber of Voluntary Organizations, Calgary Chamber of Voluntary Organizations and others) in providing human resource tools, training initiatives and more, to better assist the operations of nonprofit/voluntary organizations;
  • Assigning specific resources to support research and development in the nonprofit/voluntary sector, with the aim of generating innovative programs, services and policies in response to the needs of local communities.

Volunteer Alberta: Supporting Volunteerism in Alberta

Volunteer Alberta is the only provincial capacity builder for the voluntary sector. Since its founding in 1990, Volunteer Alberta evolved to become an expert source of knowledge on volunteerism and the nonprofit/voluntary sector, with hundreds of members reflecting all twelve subsectors –including arts and culture, social services, education and health.

Volunteer Alberta leverages its knowledge to provide tools, initiatives and resources that build internal leadership and help community organizations engage volunteers to achieve their missions.

By energizing volunteerism and empowering local organizations, Volunteer Alberta shares with the Government of Alberta the goal of improving the quality of life for Albertans by creating on-the-ground action that will build strong, engaging communities.

Volunteer Alberta accesses networks (both formal and informal) and resources/information that could assist the Premiers Council for Economic Strategy in further developing strategies for the province.

For more information about volunteerism in Alberta, visit Volunteer Alberta on our website at: http://www.volunteeralberta.ab.ca/ or phone 780.482.3300.

Sincerely,

Karen Lynch

Executive Director

Volunteer Alberta

 

cc: Volunteer Alberta Board of Directors

 

[1] Salamon, Lester M. and Helmut K. Anheier, “The International Classification of Nonprofit Organizations: ICNPO-Revision 1, 1996.” Working Papers of the Johns Hopkins Comparative Nonprofit Sector Project, no. 19. Baltimore: The Johns Hopkins Institute for Policy Studies, 1996.

[2] These subsectors include: culture and recreation: education and research; health; social services; environment; development and housing; law, advocacy and politics; philanthropic intermediaries and voluntarism promotion; international; religion; business and professional associations, unions; and not elsewhere classified.

 

Letter: Submission for the Advisory Committee on Health

July 23, 2010

Mr. Fred Horne

MLA, Edmonton Rutherford Chair, Minister’s Advisory Committee on Health c/o Legislature Office #721 Legislature Annex 9718 – 107 Street Edmonton, AB T5K 1E4

Re: Submission for the Advisory Committee on Health

Dear Mr. Horne,

I am writing as Executive Director of Volunteer Alberta, Alberta’s only provincial capacity builder for the voluntary sector. Volunteer Alberta works and collaborates with a network of voluntary and non-profit organizations across the province to leverage knowledge to provide tools, initiatives and resources that help community organizations engage and retain volunteers, build internal leadership and achieve their missions.

Volunteer Alberta was encouraged to read the Minister’s Advisory Committee on Health report which emphasised wellness, prevention and overall quality of life as being intricate parts of health care. The report reiterated the insight Volunteer Alberta and its partners have long expressed about the powerful investment Alberta’s 19,000 nonprofit/voluntary sector organizations make every day creating an unparreled quality of life for Albertans. Volunteer Alberta and its member organizations agree health is about much more than medical care. Many factors impact a person’s health. Families, the environment, education systems, and communities are the widely recognized so-called “social determinants of health.”

As Alberta modernizes its health legislation, greater emphasis needs to be placed on wellness, prevention and overall quality of life. Voluntary sector organizations are about enhancing quality of life in Albertan communities. From sports and recreation to social services…from education to environment…from arts and culture to business and industry –organizations large and small depend on volunteers as they provide community programs and services to assist, entertain and connect local residents. Voluntary organizations play a critical role in supporting quality of life and peoples’ overall wellness. These organizations are often heralded as basic and elemental by community leaders, but the financial investments in this province do not always reflect that importance.

Volunteerism is vital for health care. Continuing care organizations, for example, often rely on volunteers for enhancing quality of life of their residents — engaging them in recreational activities, providing a hand to hold, offering friendship and companionship, etc. In Alberta (based on 2007 statistics) health volunteers gave an average of 71 hours annually for a total of 16 million hours volunteered for health organizations. It is noteworthy that while approximately 2% of the nonprofit/voluntary organizations in Alberta are health organizations, upwards of 8% of Alberta’s population volunteered for health organizations. Health volunteers are motivated by the opportunity to make a contribution to the community (92%), or because they are personally affected by the cause of the organization (73%). (see Volunteer Alberta’s website: www.volunteeralberta.ab.ca for more health care volunteer data and information). Volunteerism does not replace the work of health professionals. It complements their skilled work and helps enhance the overall patient or resident experience while in a health care institution. This is but one example of volunteerism’s role in health care; there are thousands more.

Volunteer Alberta understands the Alberta Health Act will make provisions for ongoing engagement of Albertans as future decisions about the health system are made. In designing such engagement processes, we encourage the increased use of existing community networks. Voluntary sector networks are extensive, and are right down at the community level. The nature of their work is such that they are engaging everyday Albertans from all walks of life. The nonprofit/voluntary sector can connect with thousands of Albertans easily and readily, be it a cross-section of society or very targeted groups from specific backgrounds and interests.

Volunteer Alberta and the many organizations it represents would welcome the opportunity to partner, participate and assist in engaging Albertans and Alberta communities in the future as decisions about health are made.

Volunteer Alberta knows that volunteers are valued in this province. The reality is that health care legislation in Alberta needs to formally recognize the inputs invested every day from volunteer-engaging organizations. Thank you for your consideration.

Sincerely,

Karen Lynch

Executive Director

Volunteer Alberta

cc: Angela Keibel, President, Volunteer Alberta

Not-for-profit Web Consulting & Digital Marketing by Adster Creative