Sebok wg 2 final report
Associationism and social promotion: culture, sport, recreation
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- 3. No profit of the highly professional services and of the grand university and health institutes
- 4. No profit of the territorial welfare services: cooperation and assistance
- 5.Banking foundation and grant making foundation
- Further quantitative information about the no profit
- ECONOMIC SECTOR Institutions Local Unit employees
- MALE Employed FEMALE Employed Employed
- Total: 235.232 253.344 162.809
2. Associationism and social promotion: culture, sport, recreation Statistic composition This second group present a different situation compared to the first one. Being focus on a statistic profile we notice that they constitute the larger group with almost 132 millions of institutes (64% of the total).In spite of this largeness their income is as low as 9% of the whole no profit sector, with an average of 35 thousand euro a year each institution (versus 171 thousand euro of the sector in its totality). With few volunteers and even less employed ( this means that are small dimension organizations) and little interaction with the public sector (less than 4% of the global public income and less than 1% of the gain coming from bargain and convention with public institution) for the group has a huge importance the financial support of the members: the income coming from the members doubles the sector average and represent almost one third of the global resources. The main specialization areas are all those included in the cultural, sportive and recreational and political parties activities. This kind of association, considering the main features, give their services prevalently to their members and collect their income by transferring goods and services on the private market (mainly to their associates). Affinity factor Partial acquisition at market price and partial free ( volunteer labour and donation), inferior market price transfer. The homogeneous factor in this type of association is the following. The productive process utilizes basically productive factor provided by third parts (mainly or only at the current Market price) but the result of the production is not directed to third consumers part as much as the members who pay a periodical membership fee and occasional fee related to the services fruition. Since the economical purchasing coexist with the share of institutional purposes ( sport and cultural promotion) often the supply transfer is made at conditions that doesn’t allow to cover all the consumed wealth. Most important thing for this type of association it’s the business trade volume put on by them in the pursuing of its institutional purposes becoming a matter of finding out some other way to restore the loss of wealth (volunteer labour, donation).
They offer their services straight to the market following the current demand criteria exactly like private enterprises. Statistic says that this highly professionalized organization are about 18% of the Italian no-profit institution, which means more than 36 thousand organizations. Their income is equal to 53% of the total, an average of 763 thousand euro each institution. In this group the remunerate employees are as much as the 60 % of the entire sector (an average of 16.7 employed) and really few volunteers (normally they never show up). The income of this group mainly come from private resources and they have a marked business orientation which is testified from the (about 65% of the entire no profit sector) income coming from good and services transfers. Doesn’t surprise then that the most used juridical features are cooperatives and operative foundation. The main specialization areas are: primary and secondary education, college education, tutelage and promotion of workers interest, training and initiations and legal services. The main actors of this group can be considered the operative foundation, social cooperative, mainly type b, employers union, catholic school and patronage, in any case actors able to give highly professionalized services and able to find paying buyers in the business market. This group also includes 81 no profit enterprises that alone hire the 20% of the remunerated employees of the entire no profit sector (an average of 2400 employees each institution) and they make 23% of the sector income. Beside being the most professionalized and structured part of the Italian no profit sector this is the one able to pile up the highest resources. Considering the incoming and outgoing flow of capital at this group belong 22.5 millions Euro each year corresponding to more than 12% of income (versus an average sector value of 5 million Euro, the 15,7% of the total income). Three quarters of this institution is market type and they present two other elements: they are mainly located in centre Italy ( specially the Lazio Region) and they have more ancient origin. Affinity factor: acquisition and transfer at market price This group is homogenized by the fact that this kind of enterprises operate in and for the market in both phases consume and wealth restore. This feature make this economical model absolutely closer to an entrepreneurial profit one rather than those previously analyzed. In spite of the predominant juridical feature (foundation) the patrimonial factor is not that important for an economic balance and so for the wealth restore. Therefore the Italian situation it’s still grandly underleveraged and have chosen the foundation juridical form seem mainly directed to take advantages from the misinformation rather than make an asset and the income coming from it available for the wealth restore. In spite of several resolutions of the Council of State which stated the need of an adequate initial endowment fund not only at the constitution but also to the realization of the pursuit purpose the praxis have progressively reduced the limit of the endowment fund making it equivalent for the national foundation to that necessary to constitute a stock company and for regional foundation to personal company. The no profit enterprises of this third group, despite their juridical form (foundation), operate like lucrative enterprises, so they: purchase their productive factors straight from the market disposing of them at competitive prices, receive donation almost only in genesis phase (this may be compared to the enterprise’s constitution) and eventual without security contribution ( like any other public enterprises that obtain public fund), support all the management accounting coming from patrimonial investment, eventual devaluation and capital loss and the patrimonial management income doesn’t come from the reserve fund rather from some leasing or some positive interest coming from some management saving, but not from the constitution fund, are subjected to financial burden when the business activities volume is bigger in size of the starting off structural investment. On top of the speech this group’s financial dynamics are pretty much alike to those of any other profit enterprise. 4. No profit of the territorial welfare services: cooperation and assistance Statistic composition This fourth group utilize prevalently, but not exclusively, the social cooperative juridical form. Statistically talking they can be qualified no profit of the territorial welfare services: cooperation and assistance, they consist of a group as large as 25 thousand institutions (with an income of more or less 236 thousand euro each one) with about the 19% of the remunerated and volunteers ( an average of , 5.6 and 2.8 respectively each institution ). This group prerogatives thought, it’s the income, which represent the 33% of the entire public free of charge earning and the 31% of the no profit income entire sector coming from bargains or conventions. Cooperative seem to be the most relevant juridical form, and the main areas of specialization are socio medical services excluded the hospital care, civil defence, environment, welfare services, professional training. The business orientation seem to be superior to the other feature’s average, whilst the geographical location it’s pretty much sectorial. Transfers to an inferior market price This no profit enterprises appear to be characterized by the fact that they receive almost 90% of the total public’s institution earning, of which: half allocated free of charge (contributes directed to insert indigent workers in underdeveloped areas or, in the broadest sense, to finance projects) half allocated in force of bargains and conventions. If the wealth restore would be fully accomplished there would not be much differences with private profit enterprises: it would be a different type of market but still a market. Happen instead that, however giving supplementary public services ( otherwise wouldn’t be understandable a so strong state intervention) , the services transfer almost never fully restore the consumed wealth. Most of the time this loss of wealth happen ‘cause the income coming from bargains and convention with public institution is not well-proportioned to the volume and the value of the given services, being instead defined on historical bases with an incremental procedure (lately decreasing) or through parameters that consider the number of people potentially assisted. Considering this loss of wealth, because of all the motivations up listed, became absolutely relevant for an economic balance the level of efficiency put in the productive process and also the business volume. For both this factor, especially where the execution’s parameters are fixed (ex. Contracts with the public institution) there’s not much to do because services, apparently, identically negotiated may have results, efficiency and volume, a lot different from each other, especially because this kind of service it’s based on a relational value, really hard to price. On conclusion, in these no profit enterprises, the impact on the economic balance of supplementary patrimonial investment it’s really limited, same as the results of the financial management.
Belong to this last group all those foundation that make their income through a collection of all those earnings coming from a patrimonial management. They are mainly developed on a Anglo-Saxon soil and in a minor measure in Italy too, so this type of enterprise although theirs economic influence are numerically reduced to a few. Are included in this group 89 banking foundation that in 2002 allocated around 1.076 millions Euro and other few dozens, precisely 24, belonging to the grant making type.
This group homogeneity’s factor are at least two. First of all we must notice the marginal role (if not the absence) of the production of goods and services to transfer or to allocate to third parts and – consequently – respective costs and gains. Differently from the other enterprises the consume of wealth doesn’t come from, if not in limited part, the utilization of productive factors, but from transfer made to third’s part favour that the foundation use as a donation, without security contribution, and oriented devolutions. The wealth’s restore mainly is originated from earnings coming from patrimonial management investment (ex. Real estate investment or stock market investment) Second of all, since this associations doesn’t undergo to any legal obligations to the year-end dividend distribution, differently from the other countries, it’s clear that the economic balance substantially depend on the capacity of making income out of the asset and the consequent management’s common sense when it comes about distribution of dividends which must be proportioned to the produced wealth. So this group’s business dynamic is deeply different from any other group previously analyzed. Conclusions Considering the heterogeneity of areas of activities and the juridical form of the no profit enterprises, as well as the differentiation among the same juridical form, in Italy happen that, i.e.: there are foundation, that under a business management profile are more alike to association, rather than foundation, some no profit enterprises perform identically to private profit enterprises ( market acquisition, transfer on a market price), two enterprises having the same volume and performing in the same area, might represent two realities that operate under a business management profile totally different, the so called “association network”, that are nothing but big associations, operate with entrepreneurial dynamic structurally different from small association. Further quantitative information about the no profit Further quantitative data can be deduced from the following charts referring to variuos aspects of the no profit sector (8° general census of Industry and Services – 2001 – ISTAT). Chart nr 4: ISTAT - Census 2001 of the non profit institutions - Economic Sector.
Chart nr 5: ISTAT- Census 2001 of the Non profit Institutions - Economic Division.
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