Statistics New Zealand has consulted with the public and non-profit sector groups on the definitions of non-profit institutions as part of the development of the Non-profit Institutions Satellite Account (NPISA).
As part of this process, Statistics NZ, along with the Committee for the Study of the New Zealand Non-profit Sector, conducted meetings to present the work on definitional issues to the community. These meetings took place in Wellington, Christchurch, Hamilton and Auckland. The Hamilton and Auckland meetings included discussion groups, at the request of the committee and as a result of feedback that we received during the Christchurch presentation. These groups involved participants working through questions about the definitions used in the satellite account, the categories that non-profit institutions would be grouped by, and how they thought that they, as an organisation, may use the published data. The consultation also included submissions on the definitions paper “Identifying Non-profit Institutions in New Zealand” on the Statistics NZ website.
The comments and concerns raised from the three meetings and the definitions paper have allowed Statistics NZ to:
- revise the definitions paper “Identifying Non-profit Institutions in New Zealand”
- identify the major queries of the public regarding the satellite account
- document areas for future development projects within Statistics NZ
- create wider discussions with the Committee for the Study of the NZ Non-profit Sector.
Statistics NZ would like to acknowledge the contribution that individuals and groups have made to this consultation process, and to answer general questions that have come up regarding the satellite account.
Key points
The scope of the account
Throughout the consultation process, it appeared that people had a wide range of expectations about the scope of the satellite account. The “Identifying Non-profit Institutions in New Zealand” definitions paper describes five criteria, set by Johns Hopkins University, that institutions must fulfil to be in scope for the satellite account. The entities must be:
- organised to the extent that they can be separately identified
- not-for-profit and must not distribute any surplus they may generate to those who own or control them
- institutionally separate from government
- in control of their own destiny
- non-compulsory in terms of both membership and members.
For example, the first point excludes organisations that are loosely structured by nature. The second point excludes those that are for-profit; organisations that distribute profits to members or have profit making as a goal. These criteria ensure that the satellite account is in line with the framework developed by Johns Hopkins University and the United Nations Statistics Division, which then allows for international comparisons.
Classifying ‘in-scope’ entities
Johns Hopkins University recommends the International Classification of Non-Profit Organisations (ICNPO) as a tool to differentiate between various types of organisations that have been defined as non-profit institutions. The classification groups non-profit institutions according to their primary activity. It comprises 12 major activity groups, including a catch-all ‘not elsewhere classified’ category. Statistics NZ produced a paper regarding the ICNPO classification, as well as the New Zealand Standard Classification of Non-Profit Organisations.
The limitations of the satellite account
The satellite account, like every other statistical output, has limitations in what information it can provide. It is being designed to provide an official measure of the contribution non-profit institutions make to the New Zealand economy. This will aid policy decision making, planning, and service delivery, and allow for international comparisons. However, the satellite account:
- does not measure all volunteering within New Zealand; rather it measures the institutions which make up a particular subset of all volunteering that takes place. Therefore, individuals who volunteer within market or government organisations are not included in the satellite account
- intends to measure the output of these institutions rather than the impact they have on the economy. For example, when the satellite account is published it will include the number of non-profit institutions across the country, and the number of staff employed in those non-profit institutions, as well as other statistical data
- classifies the institutions according to their primary activity. Each institution can only fall into one category. In some instances, this can be problematic for grouping non-profit institutions that have multiple activities.
Iwi authorities
The definitions paper discussed some specific iwi authorities as potentially being outside the scope of the account, suggesting they be separately identified as Iwi Governance organisations.
These organisations lie on the boundary for inclusion in the satellite account, due to their relationship to government as 'mandated iwi organisations'.
Proposed solutions included:
- excluding these organisations from the accounts
- expanding the group of organisations to include all Māori governance (naming that new category Tangata Whenua Governance)
- classifying these organisations using existing classification categories.
The consultation process has illustrated that some of these solutions may be controversial. Resolving this will require more consideration. Statistics NZ is gathering additional information in order to arrive at a solution that attempts to satisfy the users of the data, as well as aligning with the statistical frameworks of the satellite account.
Use of the data when it is produced
The satellite account includes both data and text. While some of the data presented will have to conform to the National Accounts framework, the intention is that the results will be understood, and used, as widely as possible.
Two questions the discussion groups in Hamilton and Auckland were asked to review were:
- What value do you see in developing a national measure of the contribution of the non-profit institutions to the New Zealand economy and society?
- How could your organisation make use of the information provided by the non-profit institution satellite account?
The responses to this show that benefits of producing the satellite account may include:
- measuring the contribution of non-profit institutions to the New Zealand economy and society
- providing a sense of unity for non-profit institutions
- providing a general awareness of the non-profit institutions, which will aid in gaining recognition for the contribution of voluntary work
- being a useful ‘marketing tool’ for non-profit institutions by providing some quantitative, statistical proof of the contribution of these institutions to the economy, including both financial data and non-financial information
- the quantitative analysis will help build a better relationship with the government and commercial sectors
- allowing for international comparisons
- helping to track the dynamics and changes within the institutions through time. This will help to analyse the impact of training and capacity-building programmes within the institutions
- helping to grow resources for those institutions that are shown to be relatively under-resourced
- helping individual organisations to identify and reach realistic business targets.
Organisations that were represented at the presentations thought they would use the information to:
- help to gain support from central and local government, as well as independent funders, for economic support and facility development, by making the economic value of non-profit institutions visible
- enable organisations to enhance planning and promotion of their activities
- inform discussions, in different forums with members of the institutions as well as with other organisations.