Belgian Report - Johns Hopkins University Center for Civil Society …ccss.jhu.edu/.../08/Belgium_Handbook_TestReport_1999.pdf · 2014-12-27 · Mertens, S., Lefèbvre, M.[2001],

Faculté d'Economie, de Gestion et de Sciences Sociales Centre d'Economie Sociale

TESTING THE HANDBOOK

ON NONPROFIT INSTITUTIONS IN THE SYSTEM OF NATIONAL ACCOUNTS

Belgian Report

"Global Nonprofit Information System Project" Johns Hopkins University and UN Statistical Division

Sybille Mertens and Mathieu Lefèbvre

in collaboration with the General Statistics Department of the National Bank of Belgium

November 2001

Mertens, S., Lefèbvre, M.[2001], Testing the Handbook on Nonprofit Institutions in the System of National

Accounts : Belgian Report, Global Nonprofit Information System Project (Johns Hopkins University and UN Statsistical Division), Center for Social Economy, University of Liège

The Center for Social Economy (University of Liège) carries out research into different aspects of the third sector. List of publications is available upon request or can be found on the following web-site : http://www.econosoc.org.

Centre d'Economie Sociale (ULg)- Sart Tilman, Bât. B. 33, bte 4, 4000 Liège - Belgium - tel : +32(0)4 366 27 51 - fax : +32(0)4 366 28 51 - e-mail: [email protected]

This study is the belgian contribution to the "Global Nonprofit Information System Project" directed by the Johns Hopkins University and the UN Statistics Division. It has received the financial support of the Federal Office for Scientific, Technical and Cultural Affairs (SSTC) as part of the prospective socio-economic research programme (contract SE 12/049). We are grateful to Michel Marée, Christine Deville and Pierre Dusart (University of Liège) as well as to Béatrice Thiry and Bertrand Jadoul (National Bank of Belgium) for helpful research and comments. Other comments are welcome (e-mail: [email protected]).

Testing the Handbook on Nonprofit Institutions in the SNA : Belgian Report, page 2

Sybille Mertens - Center for Social Economy - ULg 30/11/01



Preface Since the end of the 80s, well before the possibility of creating a satellite account of nonprofit organisations in our country, the Center for Social Economy has gradually taken the first steps towards better statistical coverage of the Nonprofit Sector. In 1989, J. Defourny has proposed an initial measure of nonprofit employment, as part of an inventory of the third sector in Wallonia1. If it had the advantage of being exploratory, this initial assessment presented certain failings : the survey sample was no random and the areas covered were of a limited size2. In the wake of this initial attempt and faced with the absence of satisfactory official data, the Center for Social Economy at the University of Liège, working with a research team directed by I. Nicaise (HIVA-Catholic University of Louvain), undertook a very large scale pilot survey covering 1995 amongst NPIs in a territory restricted to the cities of Liège and Hasselt. Thanks to the information collected through the pilot survey, our country has been particularly able to contribute to the Comparative Nonprofit Sector Project co-ordinated by the Johns Hopkins University (Baltimore, USA). The interest of the Belgian participation has been twofold. First of all, it lay in the improvement of the macroeconomic description of Nonprofit Sector in Belgium. For the first time, it has been possible to demonstrate that with a share of more than 10% in terms of paid employment, the socio-economic strength of nonprofit organisations is not negligible and that this sector constitutes an entire section of our economy3. But this participation has also placed the analysis of our Nonprofit Sector in an international-scale movement4. In so doing, it has contributed to the discovery of a little-known reality that is poorly covered by official statistics, and has succeeded in creating a growing interest in political circles for the statistical information about this sector. The pilot survey also served to compare the information with data collected by the National Accounts Institute in its account of the NPISH Sector. In the context of the construction of this account, the National Accounts Institute (Institut des Comptes Nationaux - ICN) entrusted the National Institute of Statistics (NIS) and the National Bank of Belgium (NBB) to conduct a structural survey amongst NPIs with paid employees. The comparison of results from our research on the one hand and results from NPISH account published in the central framework of the national accounts on the other hand has demonstrated the need for a satellite account for NPIs. The Ministry for the Social Economy recently showed its interest in the establishment of an observatory of the social economy whose initial major task would be to prepare a satellite account for NPIs. In the same time, the Ministry of Economy has asked to the National Accounts Institute to develop a satellite account on NPIs. In the course of its recent research work5, the Center for Social Economy has identified the main limits that the official statistical bodies come up against when considering the economic realities of NPIs. An in-depth analysis of the way in which the national accounting bodies process associations, both at European conventions level and at operating level has convinced the Center for Social Economy to prepare a 1 Wallonia corresponds more or less to the french-speaking part of Belgium. 2 See the Walloon Council for Social Economy [1990]. 3 For details of the results (and in particular a description by branches of activity), see Defourny, J., Dubois, P.,

Perrone, B. [1997] and Mertens, S. et al. [1999]. Several differences in the results between these two publications can be put down to a revision of certain hypothesis at the time when the results were extrapolated on a national scale.

4 The interested reader will find further details on the research project results in Salamon, L., Anheier, H. and associates [1998], in Salamon, L. et al. [1999].

5 See Mertens, S. [2000 a and b] and Deville, C., Marée, M. [2001].



methodology for the satellite account and the drafting of a questionnaire covering all of the variables required for the construction of the S15 and the satellite account. The methodology and questionnaire have been tested on NPIs from the city of Liège. The large number of associations in our country and the recent efforts of the National Accounts Institute to understand NPIs better (annual structural survey amongst NPIs with paid employees) and the existence of a competent scientific team (Center for Social Economy - ULg) have allowed Belgium to participate in the test for a methodology for the satellite account of Nonprofit Institutions proposed by H. Tice (Johns Hopkins University) as part of the "Global Nonprofit Information System Project" and being jointly conducted by the Johns Hopkins University and the Statistical Department of the United Nations. In proceeding with this test, we have checked the work done by the General Statistics Department of the National Bank of Belgium on the basis of which a satellite account could be set up. We have also identified the problems to be resolved and the procedures to be introduced before such an account can be published. Solving these problems and laying down certain procedures will be a major challenge for the National Accounts Institute in the coming months, if it is to meet the desires expressed by politicians for the availability of reliable macro-economic data regarding this aspect of the economy. That is why the Federal Office for Scientific, Technical and Cultural Affairs have set up the AGORA program which aim to implement an association satellite account. The Center for Social Economy associated to the National Bank’s General Statistics Department will create an associations database and afterward will use the collected information to set up the satellite account. This work will be the following of the last development of United Nations/ Johns Hopkins methodology on non-profit sector satellite account and will be done with a particular attention to the respect of international methodological decisions. The goal is to obtain an accounting scheme that might be used by the National Account Institue for a long-term implementation and publication at the end of 2003.

Table 1 Stages leading up to the Satellite Account of NPIS in Belgium

Stage Project leader 1. Preliminary work (1989 - 1999) CSE 2. Participation to the CNP Project (Johns Hopkins) (1997-1998) CSE* 3. The NPISH Sector and the survey of the ICN (1998-...) ICN 4. Satellite Account : Methodology and testing on a limited area (1999-2001) CSE 5. Testing Handbook on the NPIs in the SNA - UN/Johns Hopkins Project (2000-2001) CSE 6. Agora project : Satellite Account of NPIs in Belgium (2002-2003) ICN-CSE

* in collaboration with HIVA



Chapter 1 : Introduction

Others

1.3 The Nonprofit Sector does not always operate "outside the market". We prefer to say that it is not entirely submitted to the market rules. 1.5 In Europe, we also refer to the following terms : "social economy"6 or "associative sector". 1.6 In Belgium, the splitting of the Nonprofit Sector basically concerns the Corporate Sector, the NPISH Sector and the Household Sector. National accountants are concerned to keep the accounts of Government Sector as pure as possible. Consequently, the only nonprofit organisations to be found in S13 are those over which government units exercise an easily identifiable control (example : private schools). 1.8 The Nonprofit Sector is also recognised for its capacity (1) to participate in the market while adopting a socially responsible attitude (respect for the environment, priority for persons over capital, etc.) and (2) to encourage the reinforcement of social links. 1.11 The rules for institutional classification are not in effect the same in every country. The Belgian National Accountants do not have sufficient information on all of the NPIs and cannot therefore apply the ESA-1995 conventions.They have decided to classify the NPIs according to their main activity (NACE-BEL - 5 digits). (See appendix 1)

6 According to the Conseil Wallon de l'Economie Sociale (Walloon Council for Social Economy) [1990], "The social

economy is made up of economic activities carried out by corporations, mainly cooperatives, mutuals and associations whose ethics are reflected through the following principles: purpose of service to members or the community rather than for profit, independent management, democratic decision-making process, the precedence of people and labour over capital in the distribution of income". Since 1995, added to these three "traditional" components is the recent form of "Corporations with a social purpose", which authorises a corporation to exercise a mainly commercial activity whilst pursuing a social and thus a not-for-profit objective. In other countries, foundations are considered as an essential component of the social economy. In Belgium, they are called "public utility institutions" and they are not numerous (291). For this reason, they are not explicitly mentionned in the definition of social economy. For further details on the comparison between "social economy" and "nonprofit sector", see Mertens, S. [1999] and Defourny, J., Mertens, S. [1999].



Chapter 2 : Defining Nonprofit Institutions

Others

2.9 (b) Belgian "foundations" are assigned to the NPISH Sector. (d) Half of the NPIs are not legal entities. They are de facto associations and are assigned to the Household Sector7. Moreover, two fifth of the NPIs with legal status have no paid employees. According to the ESA-1995 rules, they are considered as "small NPIs" and also allocated to the Household Sector8. 2.11 (b) Belgian National Accountants do not seek to record flows related to NPIs allocated to the Household Sector. We do not have official data related on de facto associations. But, in a previous research, we have showed that "small NPIs" with legal status are engaged in many transactions and transfers that are not unsignificant.

Table 2 The Economic Importance of Small NPIs* with Legal Status (1995)

NPIs with paid employees

Small NPIs

(without paid employees)

NPIs total

NPISH

NPIs (#)

18 000

33 000

51 000

n.a.

Current resources (million Euros)

17 947

- schools : 5 330 - hospitals : 4 660

843

18 790

3 619

Volunteering (Head count)

858 000

(excludes schools and hospitals)

741 000

1 599 000

n.a.

Volunteering (FTE)

71 000

(excludes schools and hospitals)

30 000

101 000

n.a.

source : Mertens, S. et al. [1999], ICN [1999] (*) In this table, NPIs have the legal status of Association without profit purpose (ASBLs). See table 3.

2.18 You should precise that thoses categories are mutually exclusive.

1. Does the definition of a nonprofit institution given in the paragraph 2.15 of Chapter 2 of the Handbook work for your country ? What problems did you encounter in applying it ?

◊ To apply the definition of a nonprofit institution given in the paragraph 2.15, we think that the best way is to find legal status which fit the definition. 7 With the exception of (1) pension funds which are assigned to S12 and (2) unions which are assigned to S15. 8 See Mertens, S. et al. [1999]



Table 3 Legal status of NPIs in Belgium

A. Without legal personality - de facto association (association de fait (AF)) : There is no need for an association to be legally

recognised for it to exist. It is then simply regarded as a de facto association. The members of a de facto association make common cause "for a purpose other than that of generating profits for distribution amongst its members"9.

B. With legal personality (corporate bodies under private law) - association without profit purpose (association sans but lucratif (ASBL)) : "An ASBL is an

association not devoted to industrial or commercial operations and which does not seek to obtain material gains for its members." Act of 27 June 1921.

- public utility institution (établissement d'utilité publique (EUP)) : In Belgium, public utility institutions are organisations that come closest to what are known as "foundations" elsewhere. Most frequently pursuing a scientific or philanthropic objective, they are governed by the 1921 Act.

- professional association (union professionnelle (UP)) : Professional associations are "associations formed exclusively for the study, protection and development of the professional interests of their members". Act of 31 March 1898.

- international association (association internationale (AI)) : International associations pursue a charitable, religious, scientific, artistic or educational aim. Act of 25 October 1919.

◊ At this stage we prefer to devote our further analysis to the ASBL form alone. There are a number of reasons for doing so. De facto associations have less economic relevance10 and it is particularly difficult to gather details of their economic activities. In addition, it is hard to identify those that actually exist in institutional form. Public utility institutions, professional associations and international associations are less numerous and the approach we shall take with ASBLs could, all said and done, apply equally to institutions of that type. For the rest of this paper, we shall use the term NPI as a synonym for the legal form ASBL. ◊ The legal form of the ASBL in principle meets the characteristics of the definition of the NPI. However, in practice, the legal form is not enough :

- (a) Organization : Of every ten Belgian ASBLs maintaining formal legal personnalities in 1995, four had ceased all activity without publishing a formal dissolution11.

- (c) Non-profit-distributing : Under the law, the ASBL is not permitted to achieve material gain for its

members. In actual fact, the adoption of ASBL form does not guarantee compliance with the 1921 act. Certain groups have adopted the ASBL form although they are hard to identify as such. Article 18 of the Act of 1921 lays down sanctions against "false" ASBLs. In practice, "the number of ASBLs confirmed as improperly formed by the Courts, is negligibly small"12. We, for our part, find it quite difficult to lay down a dividing line between true and false ASBLs. At least, when working at macro-economic level, one can help noticing the existence of ASBLs in certain branches of activity that may accommodate false ASBLs.

- (b) Private and (d) Self-governing : The adoption of the private legal form of ABSL does not

guarantee that the ASBL may not in certain cases be regarded as forming an integral

9 Coipel, M. [1996] in Davagle, M. [1997], p. 18 10 We make an exception for unions which are de facto associations. We have data on these associations and they

are assigned to S15. 11 See Mertens, S. et al. [1999] 12 Coipel, M. [1985], p. 165. The reader should refer to the complete paper by Coipel, M. [1985] for further details on

"false" ASBLs.



part of the Government Sector. Lawyers talk about administrative authority and use a "indices bundle"13 � which allows an institution to be regarded as an administrative authority14 :

- the criterion as to origin, i.e. set up by public authorities or on their initiative; - the criterion of control (or the criterion of hierarchical dependence), i.e.

answerable to the public authorities - the civil service criterion, or the fact that it possesses "by virtue of the law,

prerogatives of public power, i.e. extraordinary powers to impose unilateral obligations, on others within legal dealings, and with a view to achieving certain objectives of general interest, especially by unilaterally determining either its own obligations towards others, namely obligations that may consist of having to recognise or submit to powers, or rights that the body endowed with public powers confers on third parties"15.

The points as to origin and control were studied by P. Lewalle. A specialist in Belgian administrative law, he states "An investigation in the supplements to the 'Moniteur' (...) reveals the continued and frequent existence of public authorities within ASBLs. (...) This situation may be found at all levels: the State, the Communities, the Regions and provinces, municipalities and public bodies are involved"16. These ASBLs with a public participation "allow the public authorities to take initiatives that would be stymied by the rules of public accountability and to arrange for the discharge of certain tasks with greater flexibility"17. In most of these categories the public authorities are dominant (sole or majority participation). These "administrative associations" are "formed and directed by the authorities or representatives of several public entities, financed exclusively or chiefly from grants made by these public entities to ensure an activity falling normally within their range of duties"18. They must therefore be excluded from our area of consideration. In practice, when the composition of the Board of Directors is known, this may indicate whether they are controlled by public authorities, if the latter participate explicitly in it19.

2. Were the examples of "borderline" cases provided in paragraph 2.19 helpful to you in making decisions on such cases in your country ? Did you identify other borderline cases ? Please provide examples of "borderline" cases that emerged in your country and how do you dealt with them.

◊ In the Belgian context, the borderline cases are "false" associations and associations with a majority public participation. Other borderline cases fall outside our purview since we are going by the legal criterion. Mutuals and cooperatives are not NPIs. We regard them as forming part of the greater set forming the Third Sector, referred to in Belgium as the "Social Economy". Social ventures and self-help groups are NPIs if they adopt the legal form of ASBL.

13 As J. Baert mentions, these indices or criteria as adopted by the Council of State are indicative and not cumulative.

Baert, J. [1993] 14 Those criteria are presented by Baert, J. [1993], pp. 164-165. 15 Arrêt Scheuermann, n°19.776 du 27 juillet 1979, in Herbiet, M. [1985, pp. 337-338) 16 Lewalle, P. [1985], p. 254 17 Mengin, J. et Seignoux, V. [1992] in Defourny, J. [1996], p. 36 18 Negrin, J.P. [1980], "Les associations administratives", A.J.D.A., p.129, in Lewalle, P. [1985], p. 253. 19 Public authorities may sometimes implicitly control the organisation by ensuring that public representatives are

members of its board of directors, being officially members in a private capacity.



2.19 (d) We hesitate greatly from including organisations distributing surplus, even if that is not their prime purpose, within the Nonprofit Sector. To cover this situation, we use the concept of "Social Economy", which includes the Nonprofit Sector and other private organisations whose primary purpose is not to distribute a profit.



Chapter 3 : Classifying Nonprofit Institutions

Others

◊ Classifying NPIs according to their main activity is essential to a proper understanding of this relatively heterogeneous sector but also for generally improving our approach by branches of national accounting. The ICNPO classification was tried and tested in phases I and II of the Comparative Nonprofit Sector Project. The survey data obtained by Belgium were presented under this classification. However, applying the ICNPO to the Belgian situation calls for some comments.

(1) The ICNPO classification has proved suitable for the first four groups. Table 4 below in fact shows that employment by NPIs is concentrated in these activities20. Group 6 is equally sizeable. In actual fact, we have used it as a residual group, which explains its size.

(2) The relevance of other groups is questionable in the Belgian context. It is likely that certain

groups cover activities which will undoubtedly undergo development in the future which must be kept in view (environment, philanthropy). But group 8 and 9 are not relevant in the belgian context at the moment.

Table 4 Paid Employment in NPIs, Belgium, 199821

Paid employment (headcount) Paid employment (FTE) ICNPO Groups # % # %

1. Culture and recreation 2. Education and research 3. Health 4. Social services 5. Environment 6. Dvlp and housing 7. Civic and advocacy 8. Philanthropy 9. International activities 10. Religion 11. Professional associations Total

13 906

178 760 91 163 97 780

756 27 735

380 - -

3 266 3 471

417 217

3.3

42.8 21.9 23.4 0.2 6.6 0.1

- -

0.8 0.8

100.0

8 447

151 106 64 945 64 847

552 21 899

302 - -

2 072 3 440

317 610

2.7

47.6 20.4 20.4 0.2 6.9 0.1

- -

0.7 1.1

100.0

source : ONSS datas ◊ If a classification by activity for all NPIs is to be made within the context of a satellite account, the question in fact no longer arises in the same way. As far as the statistical organisations in our country are concerned, there is a good deal of reticence in adopting the ICNPO to classify NPIs. NPIs already have an NACE-Bel coding in the VAT and employment registers. The NACE-Bel is the Belgian version of the 20 The concentration is the same if we take the number of organisations, the financial resources or volunteering. 21 The main difference with the numbers of 1995, presented for the CNP, comes from the fact that in 1995 the

employment was extrapolated from a sample survey. These are official from the national social welfare organisation.



statistical classification for economic activities in the European Community (NACE Rev.1). This European classification is itself based on the third edition of the ISIC (International Standard Industrial Classification). At the most detailed level, activities are classified in sub-classes (5 digits). (See Appendix 2) ◊ If we are to use the statistical information from the main administrative sources or if we compare NPIs and other organisations in certain branches of activity, we must use the standard classification. In principle, we feel that a classification specific to the Nonprofit Sector is justified but would be better if it were fully based on the ISIC (or NACE) breaking down the classes into sub-classes where necessary (on the lines adopted by NACE-Bel) and to regroup them where it make sense for this sector. Paragraphs 3.5 and 3.25 support our preference for a classification based completely on a more detailed ISIC. (See the proposed classification derived from the NACE-BEL called N-ASBL, in appendix 3) ◊ A review of the ISIC is therefore advocated, with a greater level of detail for certain activities (especially all personal services). At the Belgian level, we shall use the NACE-Bel classification and would recommend a breakdown of classes 85.316, 85.323 and 91.33. To analyse the Nonprofit Sector, we shall within the limits permitted by NACE-Bel, attempt to maintain a link with the ICNPO. See appendix 3 for a translation of the ICNPO into N-ASBL. A detailed analysis of employment in the NPIs has already enable us to confirm the first four groups of the ICNPO. (See appendix 3) 3.3 "The institutional units are not simply units underlying the preparation of sectors accounts but also units for aggregation by branch. This working method is out of line with the ESA-1995 recommendations, according to which "units of economic activity at local level " (establishments) are the most relevant units when calculating aggregations by branch. This choice of institutional units is justified by the availability and quality of the underlying information". 22 3.14 In many cases, organizations from ICNPO Group 6 should be included in "member-serving" part of the Nonprofit Sector.

3. Does the ICNPO classification given in paragraphs 3.7 - 3.13 of Chapter 3 work for your country ? What problems, if any, did you encounter in applying it ?

3.11 As we have already mentioned, we are unable at the present time to work at establishment level. We have therefore classified institutional units by their principal activity. 3.12 The ICNPO is essentially a classification of activities but it includes elements closer to the idea of purpose than of activity. Group 6, for example, includes organisations concerned with development. This tells us nothing about their activities. Furthermore, it is not always easy to identify the nonprofit organisation's main activity. The difficulty often stems from horizontal integration methods. Horizontal integration is spoken of when several activities are conducted simultaneously using the same factors of production, although a splitting of the value added could not be considered. Horizontal integration is relatively frequent in the Nonprofit Sector and very frequently, it is through the knowledge of the nonprofit organisation's purpose that its main activity is thus identified. However, in certain situations, the objective does not involve the product but rather the production method. It is the process, the treatment of inputs that is emphasised, far more than the result. This is a

22 Ackx, R., Van Meensel, L. [1999], p. 3



common practice: sheltered workshops, fair trade, organic agriculture, etc. It can be explained by the innovation mission often attributed to nonprofit organisations. They are led to offer new products, but also to devise new means of production, particularly in reaction to damage caused by the requirements of a capitalist objective (environmental damage, growing imbalance between rich and poor countries, exploitation of peasants in the third world and the social exclusion of certain categories of people, etc.). Generally speaking, nonprofit organisations are distinguished from other private sector organisations in the economy through the statement of an objective other than profit. This feature is placed above the non-distribution constraint. As a result, the "purpose" or "objective" variable appears relevant in a separation of the sector and in a more subtle understanding of it. The use of a functional classification system should thus be envisaged, alongside an activity classification. National accounting provides for a functional approach. There is a functional classification for the NPISH (COPNI) and the Government (COFOG) Sectors. Their use is confined however to an analysis of the expenditure undertaken (means) and could be extended to the description of main production (results). 3.15 The ICNPO is not a classification system that can be used to classify the activities of other organizations in the social economy. Cooperatives and mutuals are better dealt with under NACE-Bel.

4. Were the clarifications provided in paragraphs 3.17 - 3.21 necessary or helpful in your country ? Please provide examples of types of organizations that were difficult to classify and how you dealt with them.

3.18 The geographical location of activity does not determine its nature. We suggest either that group 9 is eliminated and NGOs are distributed according to their activity, or that all NGOs chiefly active abroad are regrouped under group 9. We feel that allocation on the merits of each case is hazardous. When NACE-Bel is applied, NGOs are effectively classified according to their activity. In actual fact, we would have to find a system that permits them to be integrated into their classes of activity while at the same time allowing NGOs to be identified.

5. Is the concordance between the ICNPO and ISIC, Rev.3 given in Table 3.3 workable ? Please provide specific comments about any subgroups and classes that do not seem to match in practice.

We prefer to use the N-ASBL (See appendix 3) and so our ICNPO is the translated version from the N-ASBL. The appendix 3 gives the details from teh NACE-BEL.



ICNPO Groups

Comments

1 1. Class 91.33 has not been broken down. NPIs classified under 91.33 belonging to group 1 cannot be identified.

2. Some NPIs classified under 63.3 are included in this class. 2 1. Education and research cannot be separated under universities.

2. For us, 80.22 is included in 2100 instead of 2300 3. Class 91.33 has not been broken down. NPIs classified under 91.33 belonging to group 2 cannot

be identified. 3 1. We cannot split the first three ICNPO sub-classes.

2. 85.32 is included in Social Services. 3. We have followed a different sub-classification (currative or not, with or without accomodation). 4. Class 91.33 has not been broken down. NPIs classified under 91.33 belonging to group 3 cannot

be identified. 5. We classify 90.00 in Environment. 6. For us, 75.23 is from the public area and not from non-profit sector.

4 1. We prefer to classify activities according to beneficiaries 2. We cannot split sub-classes 85.316 et 85.323. We put them together in a sub-group. 3. Belgian sheltered workshops are allocated to the Social Services branch. 4. Class 91.33 has not been broken down. NPIs classified under 91.33 belonging to group 4 cannot

be identified. 5 1. This group is too limited having regard to the studies undertaken for phase II.

2. Class 91.33 has not been broken down. NPIs classified under 91.33 belonging to group 5 cannot be identified.

3. 92.33 cannot be splitted, we classify it into 5100. 6 1. Having regard to the study made for phase II, this group is too wide and it is not always easy to

decide where organisations should be allocated. Belgian politicians would like to be able to identify NPIs active in the economic integration of less employable people. But the economic integration is more an objective than an activity.

2. We think that 74.1 and 74.2 are individual services and dont have a collective dimension. So we put them in group 12. Except for 74.11 which is classified in group 7.

3. We find NPIs in the following sub-classes : 40, 41, 60 to 64, 67, 71 and 72. They are all classified into group 6100.

4. For us, 80.42 is included exclusively in Education. 5. For us, 85.32 is included exclusively in Social services. 6. Class 91.33 has not been broken down. NPIs classified under 91.33 belonging to group 6 cannot

be identified. 7 1. Only political activities can be clearly identified. We feel that a regrouping with group 11 is

indicated. "Citizen" activities are often classified in group 4 or appear in class 91.33, which has not been broken down.

2. We cannot split the first two ICNPO sub-classes. 3. For us, 75.24 is exclusively from public area. 4. For us 85.32 is exclusively included inSocial Services. 5. Class 91.33 has not been broken down. NPIs classified under 91.33 belonging to group 7 cannot

be identified. 8 1. Having regard to the study undertaken for phase II, this group is very small. In addition,

foundations have a very distinctive legal form. Group 8 could form a sub-group of a residual group.


9 1. We are not convinced about group 9. Development aid organisations can be classed under 9 as well as under other groups (2,3,4,5,6 and 7 for example).


10 1. This group is too limited having regard to the studies undertaken for phase II. Group 10 could form a sub-group of a residual group.

2. Class 91.33 has not been broken down. NPIs classified under 91.33 belonging to group 10



cannot be identified. 11 1. Very easily identified. We feel that a regrouping with group 7 is indicated.


12 1. The ICNPO regroups NPIs active in the generally more commercial branches of the economy in group 12. A recent study has shown that in the Belgian case this group 12 could cover approximately 10% of NPIs with paid employees. For those NPIs, the NACE-Bel proves to be more complete than the ICNPO and the level of detail it offers is almost as good as that of the latter.

2. Class 91.33 has not been broken down. NPIs classified under 91.33 that would belong to this residual group cannot be identified.

6. Does the sectoral classification given in paragraph 3.26 of Chapter 3 work for your country ? What problems, if any, did you encounter in applying it ?

3.26 According to our understanding of the Nonprofit Sector, mutuals and cooperatives are not NPIs. Mutuals belong to the Government Sector (they have a function in the compulsory social security system, where they play an intermediary role between the National Institute for Health Insurance and the insured)) and to the Financial Corporate Sector for their non compulsory activities. Cooperatives, like corporations, are allocated to the Financial Corporate Sector or to the Non Financial Corporate Sector, according to their main activity. For the sector classification we cannot really see what it adds to what is already stated in ESA-1995.

Table 5 Institutional Splitting of the Nonprofit Sector in the ESA-1995 - the Belgian Case

. Non-financial Corporations (S11) : Nonprofit organisations with a legal status that are market producers, whose main function is to produce non-financial goods and services or which are at the service of non-financial corporations (ESA-1995, 2.23). Examples : Hospitals, nursing homes, sheltered workshops, institutions for the

handicapped, crèches, business associations, fair trade, etc.

. Financial Corporations (S12) : Nonprofit organisations that are market producers with a legal status, whose main function is to supply financial intermediation services and/or exercise auxiliary financial activities, or which are at the service of financial corporations(ESA-1995, 2.40). Example : Pension funds

. Government (S13) : Nonprofit organisations with a legal status that are non-market producers of goods and services intended for individual or public consumption, controlled and mostly financed by government units.(ESA-1995, 2.69) Examples : Private schools, psycho-socio-medical centers, etc.

. Households (S14) : Nonprofit organisations at the service of households that do not have a legal status, along with those which are less sizeable.(ESA-1995, 2.76) Example : NPIs without paid employees

. NPISH (S15) : Nonprofit organisations with a legal status that serve households and are private non-market producers (i.e. they are not controlled or mainly financed by government units), which produce goods and services intended for individual consumption(ESA-1995, 2.87) Examples : Foundations, unions, religious organisations, political organisations, sport

federations, etc.



Chapter 4 : Key Variables and Tables of the NPI Satellite Account

7. Are the variables selected for the "short form" of the satellite account appropriate ones in your opinion ? Are there variables you would delete ? Are there variables you would add ? Please, be specific.

4.12 The ESA does not conceive the existence of a non-market activity beyond market institutional sectors 23. Consequently, the non-market activity of nonprofit organisations classified elsewhere than in S13 or S15 is not assessed. This clearly goes against the principle of invariance. 4.31 Data on volunteering are not kept by any official statistical body. We feel that these data should not be included in the short form since they already go further than what the national accounts require in the way of information. This also applies to paragraphs 4.32 and 4.33. However, survey data exist.24. 4.32 Data on membership have not been gathered by any official statistical body. Ad hoc survey data are available but (1) we cannot avoid double counting of members since these data come from a survey of NPIs and not from households and (2) the data quality is poor.

8. The tables of the satellite account are specified in three versions - SNA Basis, With Volunteer Labor, and With Volunteer Labor and Output Valued by Expenses. Did you find this three-fold distinction workable ? Did you encounter any problems with this format or concept ?

4.44 We suggest to add a fourth version :

(a) SNA basis (b) with volunteer labor (c) with output valued by expenses and with volunteer labor (d) with output valued by expenses

4.44 (c) et (d) : What should we consider by operating expenses ? National accountants chose to assess non-market production by adding intermediate consumption, compensation of employees, consumption of fixed capital and other taxes less subsidies on production25. These production costs do not include the whole cost of using capital. Indeed, if a part is counted in the intermediate consumption and in the consumption of fixed capital, it does not include the property income (D.4) Consequently, their net operating surplus (B.2n) is equal to zero. In fact, this balance is calculated precisely by subtracting from non-market output (P.13) the items that already make it up (P.2 + K.1 + D.1 + D.29 - D.39).

23 ESA-1995 (3.39) 24 See Mertens, S. et al. [1999] 25 ESA-1995 (3.53)



This rule of accounting results from the supposed not-for-profit objective of the non-market producers. They are subjected to a constraint of non-distribution of their surplus and consequently, it can be assumed that their net operating surplus is equal to zero26. We may not confuse this surplus with the net operating surplus. The non-distribution constraint concerns the residual surplus, i.e. the balance after contractual payments. Moreover, the constraint does not say that the surplus must be equal to zero but that it can not be distributed. The net operating surplus is the result which can be used to pay the capital that has financed the production process. Part of this "advance" is contractual and it should thus be paid whatever result is achieved. This payement is not a distribution of the surplus but a true cost of production, just as compensations of employees are. The assessment of production costs should thus also include the interests (D.41) 27 and rents on land (D.45)28.This innovative proposal is made by the Center for Social Economy29. The National Bank is reluctant to take this path because it goes against the SNA and ESA rules.

9. Do the table sequence and its description make sense. If not, what do you suggest ?

Yes

10. Guidelines for valuing volunteer work are provided in paragraph 4.26. Is this method feasible in your country ? If you are already measuring unpaid work, please describe your methodology. Would it be more appropriate to use an economy-wide or industry average wage for valuing volunteer labor ? What differences do you estimate it would make ?

◊ We evaluated the volunteering in NPIs in the university pilot survey in 1995. The data are available by FTE and by numbers of persons. Other household surveys exist but volunteering is covered only superficially. ◊ We are well aware of the limits of each method used for attributing a monetary value to volunteering. In particular, we feel it worthwhile to distinguish between tables with and those without imputed value for volunteering. We know the average wage per FTE in our country, but in table 6 we have also calculated the average wage per FTE in NPI in certain branches of activity.

26 Séruzier, M [1996], p. 212 27 This argument is also used by Bos, F [1997], p. 179: "Economic theory suggests that production costs (which are

used for valuing non-market output) should include interest payments on loans that help to finance the production process".

28 We are extending the remuneration of capital to rents on lands (and subsoil assets) (other rents are considered as the purchase of services and not as property income and are not therefore included under D.45). The other components of property incomes are rare (reinvested earnings on direct foreign investment (D.43)) or form part of the residual surplus (distributed income of corporations (D.42), property income attributed to insurance policyholders (D.44)) and, depending on the legal form of the producer, may be disallowed by law.

29 For a fuller dicussion on NPI's production assessment, see Mertens, S. [2001].



Table 6 Compensation of Employees and Average Wages in NPIs (1998)

Branches FTE (NPI)

Compensation of employees (NPI)

million Euro

Average wages (NPI)

Thousand Euro 1. Culture and recreation 2. Education and research 3. Health 4. Social Services 5. Business and prof. associations, unions, politics 6. Other activities 7. Other n.e.c. 8. Prime, TCT

10 493.4 138 729.8 64 945.1 84 333.6 3 741.9

14 037.5 6 590.6

13 550.8

344.6 4 625.4 2 580.4 2 386.1

172.3 507.4 221.1 329.4

32.8 33.3 39.7 28.2 46.1 36.1 33.5 24.3

Total NPI 338 685.3 11 257.1 33.2 Total Economy 2 714 869.3 114 799.3 42.2

source : Deville, C., Marée, M. et al. [2001], based on ONSS data. ◊ As we can see from table 7, the figures recorded for volunteering vary considerably, depending on whether the average wage in the economy or an average wage per NPI by branch of activity is applied.

Table 7 Imputed Value if Volunteering

ICNPO Groups Volunteering FTE (1995)

Average wage in NPI

(1998) Thsd Euro

Imputed value of volunteering million Euro

Imputed value of volunteering if average wage = 42.2 thsd Euro

Million Euro 1. Culture and recreation 4. Social Services

33 391 55 422

32.8 28.2

1092.6 1566.2

1 409.1 2 338.8

source : Mertens, S. et al. [1999], Deville, C., Marée, M. et al. [2001]

11. Table I of the satellite account presents the Consolidated NPI Sector Account, which records the key variables in the short form for all NPIs that meet the specified definition at the aggregate level. Is the structure of this table understandable ? Were you able to complete this table ? Which data item or items presented the most difficulty for you ? What gaps did you have to leave in this table and why ? How complete, in your estimation, is the coverage of the data items you were able to report in this table ? Please be specific.

Structure of the table ◊ Part B is not concerned by the three versions. We propose the following framework for part B.



Part B : Other Variables : Employment A. Paid

1. Number 2. FTE 3. Compensation of employees

B. Volunteer 1. Number 2. FTE 3. Compensation of employees (imputed value)

C. Total 1. Number 2. FTE 3. Compensation of employees

Completing the table ◊ We have no official data concerning NPIs that do not employ paid staff. The only available data come from the university pilot survey30. ◊ We have no official data concerning volunteers. We have evaluated volunteering in NPIs, using the results of the university pilot survey of 199531. ◊ Implicit Flows : National accounting leaves aside some implicit transfers that are frequently found within nonprofit organisations32. Such transfers take often the form of tax advantages or of a renunciation of remuneration for factors of production, other people taking responsibility for the remuneration of factors. In reality, national accounting is reluctant to attribute imputed values to certain transactions, for two main reasons. Firstly, imputed values do not have the same meaning as monetary values. Using and combining them with monetary values increases the risk of rendering the national accounts less reliable for economic analysis. Furthermore, it is still not easy to give a monetary estimate that is economically relevant33. We are at present considering the possibility of registering implicit transfers related to employment. Certain jobs in NPIs are in fact funded directly by the public authorities or benefit from substantial advantages in the form of total or partial exemption from the employer's contribution to social security system. These labour costs should appear under "uses" of NPIs and be offset by transfers from the Government Sector. This would have the advantage of attributing the value added created by these staff within the NPIs and to make the support given by the public authorities to NPIs more evident. It is likely that the initial satellite accounts of the Nonprofit Sector will not measure these implicit flows. This may be a possible extension in due course.

30 See appendix 4. 31 See appendix 4. 32 Rudney, G. and Anheier, H. [1996], p. 4, acknowledge the growing importance of these implicit transfers. 33 The SNA advances these arguments to explain its reluctance to impute values to flows generated by production and

the consumption of services within households. (SNA-1993, 6.21 and 6.22, pp. 124-125)



12. Table II of the satellite account presents the variables of the Consolidated NPI Sector Account of Table I, disaggregated by type of nonprofit institution, using the ICNPO. Is the structure of this table understandable ? Were you able to complete all four parts of this table ? What gaps did you have to leave in this table and why ?

◊ We have no official data concerning NPIs that do not employ paid staff. The only available data come from the university pilot survey34. ◊ We have no official data concerning volunteers. We have evaluated volunteering in NPIs, using the results of the university pilot survey of 199535. ◊ We are unable to classify NPIs on the basis of the ICNPO. All we can suggest is a regrouping close to the ICNPO on the basis of the NACE-Bel 5 digits. Table II.1 ◊ The column "with volunteer labor and output valued by expenses" has no sense for the "operating expenses". ◊ As far as "other expenses" are concerned, when we consider the versions "with volunteer labour" and "with volunteer labour and output valued by expenses", we should authorize non-market output in Corporate Sector and in Household Sector36. Moreover, it should be said that "other expenses" are calculated by adding non-market output to "purchases on third party account". In this case, non-market output is equal to output valued by expenses less receipts from sales. Table II.2 ◊ The column "from private philanthropy" in the version "with volunteer labor and output valued by expenses" has no sense. Neither do "Total from Gifts, Grants and Contributions" and "Total Revenue". ◊ In the case of "other sources", if we accept the "with volunteer labour" and "with volunteer labour and output valued by expenses" versions, we should authorize non-market output in Corporate Sector and in Household Sector37. Moreover, we should precise that the "other resources" are equal to output valued by expenses less receipts from sales. Table II.3 You should precise that social transfers in kind are not included in this table. Table II.4 ◊ We have no official data concerning volunteers. We have evaluated volunteering in NPIs, using the results of the university pilot survey of 199538.

13. Table III of the satellite account presents a derivative of the Integrated Economic Accounts disaggregated by sector, but with the NPI and non-NPI components of each sector recorded

34 See appendix 4. 35 See appendix 4. 36 ESA-1995 (3.39) 37 ESA-1995 (3.39) 38 See appendix 4.



separately. Is the structure of this table understandable ? Were you able to complete all three versions of this table : SNA basis, With Volunteer Labor, With Volunteer Labor and Output Valued by Expenses ? What problems did you encounter in separating NPIs from non-NPIs in each sector? Was one version more difficult to complete than another ?

◊ We have no official data concerning volunteers. We have evaluated volunteering in NPIs, using the results of the university pilot survey of 199539. We must assume that there is no volunteering outside the NPIs. In fact, we know that volunteering exists within the Government Sector (state schools, public hospitals). ◊ We have no official data concerning NPIs that do not employ paid workers or associations that have no legal status. The only available data was obtained from a university pilot survey.40. It is therefore impossible to break down the Household Sector. Moreover, it is more than likely that the national accounts do not in actual fact cover these associations, which fall under S14. ◊ Separating the NPI component from the non-NPI component in each sector would present no difficulty if NPIs were correctly entered up in existing national accounts. It would be enough in each sector to subtract the data concerning NPIs (collected within the satellite account framework) from the total. The problem arises from the fact that information concerning the NPI component contained in the totals for each sector is probably unreliable. Recourse to the structural survey41 used to prepare the satellite account would in due course allow the quality of NPI data in the sectors accounts to be improved and subtraction would make sense.

Sectors Accounts National accounts

Satellite Account

non-NPIs (good quality)

NPIs (bad quality)

—

NPIs (good quality)

≠

non-NPIs (good quality)

14. Table IV of the satellite account breaks down the data in the three versions of Table III by activity or purpose, as appropriate, for a subset of critical variables : output, value added, employment, and final consumption expenditure. Is the structure of this table understandable ? Were you able to complete all parts of this table ?For which variable(s) or version(s) did you encounter problems, if any ? Please explain in detail the nature of the problem and how it was or could be resolved.

◊ See question 13. ◊ However, we are able to make a breakdown for employment on the basis of the ONSS data. Table IV.4.a and b 39 See appendix 4. 40 See appendix 4. 41 See appendix 5.



◊ Data on transactions are not available

15. Table V of the satellite account presents indicators of NPI structure, capacity and output. It also builds some links to other statistical systems covering labor force and other population characteristics ? Is the structure of this table clear ? What problems, if any, did you encounter in completing Tables V.1 - 3 ? Please be specific. With respect to Table V.4, for which capacity and ouput measures would it be desirable and feasible to collect and report estimates in the NPI satellite account ? (Table V.4 provides some examples of such measures). Please list the desired capacity and ouptput measures and, where available, provide estimates.

Table V.1 ◊ Data on membership have not been gathered by any official statistical body. Ad hoc survey data are available but (1) we cannot avoid double counting of members since these data come from a survey of NPIs and not from households and (2) the data quality is poor. ◊ We have no information about assets. We measure the median size by employment (FTE). ◊ We are unable to classify NPIs on the basis of the ICNPO. All we can suggest is a regrouping close to the ICNPO on the basis of the NACE-Bel 5 digits. Table V.2 ◊ We cannot find those datas for employees in NPIs. Table V.3 ◊ Such data do not exist. Table V.4 ◊ Capacity and Output Indicators are not used by our national accountants. A recent study42�concerning the output of NPIs and the public sector in the branches of education, health, social services, culture and leisure have shown how difficult it is to select an indicator in certain sub-groups. Moreover, data are scant and it is quite often difficult to distinguish between the physical output of NPIs and that of other operators in these branches.

42 Deville, C., Marée, M. et al. [2001]



Table 8 Indicators of Output (1998)

Indicators

Total economy

Gov. Sector

Corp. Sector

Nonprofit Sector

Nonprofit Sector

Share (%) Enrollment Primary and Secundary Education French-speaking part of Belgium

980, 766

414, 711

—

566, 055

49 %

Enrollment Higher Education and Research French-speaking part of Belgium

136, 206

55, 791

—

80, 415

59 %

Number of beds Homes for elderly French-speaking part of Belgium

54,099

13, 361

30, 954

9, 784

18 %

Number of places Day-Care for Children French-speaking part of Belgium

19, 924

11, 556

8, 368

?

Number of Volumes Libraries French-speaking part of Belgium

9, 463, 087

7, 455, 058

(- 345, 501)*

—

2, 008, 029

(+ 345, 501)*

21%

(25%)* Number of days Hospitals Belgium

—

66 %

source : Deville, C., Marée, M. et al. [2001] (*)Certain operators have mixed status. They cannot therefore be allocated either to the Government Sector or to the Nonprofit

Sector.

16. Table VI of the satellite account summarizes key dimensions of the Consolidated NPI Sector using variables presented elsewhere in the satelllite account, but presented in a form more accessible to nonprofit specialists. Is the structure of this table understandable ? Where you able to complete this table ? If not, what items are missing and why ?

◊ Fees from households are considered as transfer payments from private philanthropy.



Chapter 5 : Implementing the Satellite Account - Data Sources

17. Is the data compilation framework given in Chapter 5 workable for your country ? What problems did you encounter in using it ?

Identifying NPIs ◊ NPIs with legal status are registered, like every legal entity, in the National Register for Legal Entities and it is easy to find them with their code number.

Table 9 NPIs in the National Register of Legal Entities (1995)

Legal status # of organisations (1995)

- associations without profit purpose (code 017) 86, 154 - public utility institutions = foundations (code 018) 291 - professional associations (code 020) 1, 220 - international scientific associations (code 022) n.a.

source : INS [1995], Annuaire statistique de la Belgique ◊ This register poses two types of problems :

(1) It does not contain list of NPIs without legal status. In fact, a part from a few, rare exceptions, there is no data related to the activities conducted within de facto associations. Most of the time, these organisations do not use paid employees, do not have marketable production, are not subject to VAT, do not receive subsidies, do not have to publish their accountancy documents, etc. Transactions related to their activity often fall outside the monetary sphere and are thus untraceable. This entire section of the Nonprofit Sector is thus practically impossible to pinpoint43. (2) As we have already said, a pilot-survey has revealed that of every ten Belgian NPIs maintaining formal legal personnalities in 1995, four had ceased all activity without publishing a formal dissolution. Consequently, it is estimated that, of the 86 154 NPIs registered, just over 50 000 associations were actually in operation in 199544.

Finding NPIs in existing data sources and collection activities ◊ The National Institute of Statistics (NIS) has produced the DBRIS file since 1999. This is a listing of enterprises processed on the basis of three major administrative files:

- the VAT declarations file, - the "employers" files (declarations to the National Office for Social Security - ONSS),

43 A survey carried out in two municipalities in the province of Liège (Herve and Rocourt) show that it can be assumed

that de facto associations are as widespread as ASBLs (Janvier, C. [1990]) 44 Mertens, S. et al. [1999]



- the National Register for Legal Entities (which indicates the legal form). All NPIs are included in the DBRIS file45. This central file can therefore be used to access data concerning VAT and employment (certain jobs financed by the public authorities are not regarded as NPI jobs and are not therefore registered as such on the ONSS files). ◊ The ONSS and VAT files allocate a main activity code (5 digits NACE-Bel) to each NPI46. We have an activity code only for NPIs which are or have been included in the ONSS file or in the VAT file. The activities of other NPIs remain unknown. Developing new data sources on NPIs ◊ Data concerning activities, employment and VAT are insufficient to meet the needs of the satellite account. We must therefore refer to three other sources of information:

(1) The official data at the appropriate Ministries Data concerning hospitals and schools are collected by the authorities concerned. They are combined with the information obtained from ONSS.

(2) Data from the annual structural survey

Data on employment and VAT are insufficient to prepare a sector account for the NPISH47. In order to make good these shortcomings the National Accounts Institute (ICN) has entrusted the National Institute of Statistics (NIS) and the National Bank of Belgium (NBB) with the conduct of a structural survey on NPIs with paid employees. In the absence of any obligation to publish or centralise NPI accounts, this survey would certainly be the most reliable way of obtaining most of the information required to prepare a macro-economic information system on the Nonprofit Sector. But it seems that the survey should be adapted (See appendix 5)

(3) Other data

Certain variables are not collected within the national accounts framework. The data must therefore be supplemented by recourse to more specific sources of information, such as the work of research teams, data on output collected by the subsidising authorities, etc.

18. Please describe the principal data sources you used to develop your estimates. For examples, does the source contain transactions data as well as establishment totals ? Is there a registry of NPIs or several registries ? How are NPIs treated in the business and establishment registers ? How are NPIs treated in the VAT system and other administrative records ?

◊ To complete the various satellite account tables, recourse will chiefly be made to two sources of information:

- the NIS structural survey (see appendix 5), - compensation of employees actually paid (the NBB file based on ONSS).

45Certain de facto associations are included in DBRIS because they appear on the ONSS or VAT files. This is

especially the case with unions. 46 The allocation of the NACE-Bel code may differ from one file to another. The VAT administration classifies ASBLs

in relation to their main commercial activity. In cases of doubt, the NACE-Bel code attributed by the ONSS is used for DBRIS.

47 In an NBB internal document, the responsible of the NPISH sector demonstrates the inadequacy of administrative data and advocates the setting up of a survey specific to NPIs. Thiry, B. [1996]



The survey covers the necessary variables to draw up the national accounts. Most of the results of the survey are extrapolated on the basis of the "compensation of employees" variable, for which quasi-exhaustive data are available obtained from the social security system (ONSS). ◊ Table 10 below describes this extrapolation process, based on the hypothesis that most flows passing through NPIs are linked (in size) to labourcosts.

Table 10 Extrapolation process for structural survey data

Sample (survey data)

----------->

Population (ONSS data)

. Compensation of employees . Sales, Gifts, Transfers . Other costs . etc.

. Compensation of employees

example : Sales population = Sales sample x Compensation of employees population

Compensation of employees sample

◊ Insofar as this survey does not cover all NPIs and does not include data on volunteering and physical output, information obtained from other sources will also be used :

- official data related to private hospitals - official data related to private schools - surveys of the Center for Social Economy on NPIs without paid employees - data of the Center for Social Economy on volunteering in NPIs with or without paid employees - data collected by the Center for Social Economy on ouput measures - ONSS data on employment (ETP and headcount) - data related to the age of NPIs : National Register of Legal Entities

19. Were most NPIs already covered by the data collection systems used in your national accounts - e.g., establishments censuses and surveys, labor force surveys, administrative records, etc. ? Were they easily identifiable ?.

◊ Part of the collection of data concerning NPIs is common to the national accounts and the satellite account for the Nonprofit Sector (see table 11). In fact, the ICN uses the structural survey and the ONSS data to draw up the NPISH accounts and to measure the flows of NPIs active in the personal services branches and classified under S11. When drawing up the satellite account, recourse to the survey will be extended to all NPIs with paid employees (except for schools and hospitals, which this survey does not cover). ◊ The present approach adopted by national accountants will therefore permit the satellite account to be drawn up for NPIs on the basis of the steps already taken in connection with the national accounts.

Table 11 National accounts and satellite account approaches.

National Accounts Satellite Account



Population = NPIs with paid employees (DBRIS)

Population = NPIs (National Register of Legal Entities)

— Data on NPIs without paid employees (Center for Social

Economy)

Data on private hospitals and private schools (Ministries) Structural Survey on a sample of NPIs with paid employees

Data on employment and compensations (National Office for Social Security) Extrapolations

— Data on volunteering, membership, output (Center for

Social economy)

S15

Data on personal services in S11

NPIs Satellite Accounts

20. Did you find many entities that were previously not covered by the statistical system ?

No

21. How much time (person-days) was required to complete the tables to the extent you were able to complete them ? Do you consider this a reasonable amount of time for this work ?

We can offer no precise reply to this question, for a number of reasons, i.e.

(1) The analysis of the proposed methodology is based on research work conducted at the Center for Social Economy for a number of years.

(2) The test was not conducted with the objective in view of completing the satellite account tables but of concentrating efforts to identify the problems encountered.

(3) The National Accounts Institute is contemplating a Satellite Account for NPIs. Senior staff of the General Statistics Department of the NBB assess the increased work that this would entail for the staff in charge of national accounts at 2.5 FTE.



22. What are the major gaps in data coverage on NPIs ? What additional steps would be needed to collect these missing data on NPIs or fill in data gaps ? How much additional time do you estimate would be needed to undertake these additional steps ?

◊ To form a "NPI" database from the existing files. ◊ To supplement this database by providing the National Bank with the information obtained by the

Center for Social Economy on NPIs without paid employees48, on volunteering in NPIs with or without paid employees49, concerning the physical measurement of output in certain branches of activity;

◊ To extend the structural survey to data concerning volunteering, membership and the physical

measurement of output; ◊ To provide for a specific supplementary survey of official data for schools and hospitals; ◊ To obtain information from the subsidising authorities concerning direct responsibility for

compensation of employees (DACs, PRIME, TCT programs); ◊ To provide for procedures permitting this database to be used to prepare a satellite account for

NPIs; ◊ To provide for procedures permitting this database to be used to improve statistical inclusion of

NPIs classified in S15 and branches in which the NPIs are active;

◊ All these steps will be implement during the AGORA project which will be spread on a two years time.

23. For this test, we have asked you to develop estimates using current prices-or at least identify the path for doing so. What additional steps would be necessary to report the data in constant prices?

◊ This question has not been covered.

48 In Belgium, over 30,000 NPIs are believed to be active, operating only with "voluntary" workers. Mertens, S. et al.

[1999] 49 In our country, volunteering is evaluated at more than 100 000 FTE. Mertens, S. et al. [1999]



Other Questions

24. Before beginning this test, how far along was your country in developing institutional sector accounts-that is, which accounts are compiled for institutional sectors ? For what time period do you have institutional sector accounts ? How easily could compilation of these data on NPIs be incorporated in your program ?

◊ Belgium has been publishing its national accounts by the ESA-1995 method since 1998. Retrospective series up to 1985 will be published for economic research purposes. The current accounts and the capital account have up till now been included in the sectors accounts. ◊ For the preparation of the S15 accounts, the ICN has already collected an enormous amount of information on NPIs. The satellite account project will be based on the work done and will contribute towards improving the statistical coverage of NPIs in the central framework of national accounts. ◊ The NBB assess the increased work that this would entail for the staff in charge of national accounts at 2.5 FTE.

25. Did carrying out this work provide new insights for the development of institutional sector accounts ?

◊ The quality of sectors accounts will evidently be improved since data concerning NPIs will come directly from the NPI database. Besides, the branches under which many NPIs are included will also be better described.

26. Do the tables in the satellite account comparing the NPI Sector to the total economy and to other sectors add to your understanding of the "three-sector economy" ? Is there interest in producing the NPI satellite account in your country ?

◊ Within each branch of activity, the comparison of NPIs and other organisations is of interest for researchers and for political decision-makers. ◊ The Minister of Economic Affairs and the Minister for the Social Economy have both indicated their interest in and their support for the development of a NPI satellite account in our country. In that purpose, the AGORA project has been set up. The tasks that will be assessed by the Center for Social Economy and the National Bank’s General Statistics Department will be the ones that are expressed at point 22.

References, page 1


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Deville, C. , Marée, M., Mertens, S., Mignot, D., Pirard, C. [2001], Le secteur non marchand en Belgique, Analyse conceptuelle et statistique, Rapport de recherche, Centre d'Economie Sociale

References, page 2


Hadar, E.et al. (Israël Central Bureau of Statistics) [1998], "Indicators for Changes in Output of Non-market Services", OECD Meeting of National Accounts Experts, OECD, Paris

Herbiet, M. [1985], "Les ASBL et la gestion privée des services publics", in Commission droit et vie des affaires de l'Université de Liège [1985], Les ASBL. Evaluation critique d'un succès, XXXVIIe séminaire, Gand, E.Story-Scientia, pp. 303-340

Institut des Comptes Nationaux [2000], Comptes nationaux 1998, Partie III : Comptes détaillés et tableaux, Bruxelles.

Institut des Comptes Nationaux [1999], Comptes nationaux 1997, Partie III : Comptes détaillés et tableaux, Bruxelles.

Institut National de Statistiques [1995], Annuaire statistique de la Belgique, Bruxelles

Institut National de Statistique [1994], Nomenclature d'activités Nace-Bel avec notes explicatives, Bruxelles

Janvier, C. [1990] Evaluation de l'importance économique des associations dans deux communes de la Province de Liège, mémoire de licence, Université de Liège

Lewalle, P. [1985], "Les ASBL, moyen d'action des pouvoirs publics ?", in Commission droit et vie des affaires de l'Université de Liège [1985], Les ASBL. Evaluation critique d'un succès, XXXVIIe séminaire, Gand, E.Story-Scientia, pp. 249-300

Mertens [2001], "La production des ASBL dans les comptes nationaux", Working paper, Centre d'Economie Sociale, Université de Liège, Liège.

Mertens, S. [2000a], "Appréhension statistique des associations : vers un compte satellite ? " in Economie sociale. Enjeux conceptuels, insertion par le travail et services de proximité, De Boeck Université, Bruxelles

Mertens, S. [2000b], "A Satellite Account of Nonprofit Organisations. Principles and Lessons from a Pilot Test in Belgium", Working Draft Presented at the 4th International Conference of the ISTR, Dublin

Mertens, S. [1999], "Nonprofit Organisations and Social Economy : Two Ways of Understanding the Third Sector", Annals of Public and Cooperative Economics, Vol. 70:3, pp. 501-520

Mertens, S., Marée, M. [1999], "L'importance de l'emploi dans le secteur non marchand", Non Marchand, 1999/2 - n°4, pp. 11-27

Mertens, S. et al. [1999], "The Nonprofit Sector in Belgium - Results of a Pilot Survey : Statistical Overview and Elements of an International Comparison" in Salamon, L. et al. [1999] Global Civil Society, Dimensions of the Nonprofit Sector, The Johns Hopkins Comparative Nonprofit Sector Project

Ministère de la Communauté française [1997], Statistiques du personnel de l'enseignement, Annuaire 1995-1996, Bruxelles

Ministère de la Communauté française [1998], Statistiques générales de l'enseignement et de la formation, Annuaire 1995-1996, Bruxelles

Ministère de la Communauté germanophone [1998], Statistik Stand Januar 1996, document de travail interne, Service Organisation des Etudes

Ministère de la santé publique et de l'environnement[1991], Personnel occupé dans les hôpitaux [situation au 1 janvier 1991], Bruxelles

Ministère de l'emploi et du travail [1999], La population active en Belgique, 1. Le pays : situation au 30 juin 1997, Bruxelles

Ministère des affaires sociales, de la santé publique et de l'environnement[1995], Annuaire statistique des hôpitaux, parties 2 et 3 [situation au 1 janvier 1995], Bruxelles

Ministerie van de Vlaamse Gemeenschap [1998], Statistich jaarboek van het Vlaams Onderwijs + addendum, schooljaar 1996/1997, Brussel

References, page 3


Office National de la Sécurité Sociale [1998], Estimation rapide de l'emploi salarié pour le quatrième trimestre 1997, Bruxelles.

Office National de la Sécurité Sociale [1999], Employeurs et travailleurs assujettis à la sécurité sociale au 30 juin 1998, Bruxelles.

Rudney, G., Anheier H. [1996], "Satellite Accounts for Nonprofit Institutions : a Proposal", Paper presented at the 2nd ISTR Conference, Mexico, July

Salamon, L.M., Anheier, H.K., List, R., Toepler, S., Sokolowski, W. and Associates [1999], Global Civil Society. Dimensions of the nonprofit sector. The Johns Hopkins Comparative Nonprofit Sector Project, Baltimore

Séruzier, M. [1996], Construire les comptes de la nation selon le SCN 1993, Economica, Paris

Thiry, B. [1996], "Les ISBL en Belgique. Définition, population, sectorisation, enquête structurelle propre", note interne, Banque Nationale de Belgique, Bruxelles

Tice, H.S. [1994], "The Nonprofit Sector in a National Accounts Framework", Voluntas, volume 4, number 4, pp.445-464

Tice, H.S., Salamon, L.M. [2000], The Handbook of Nonprofit Institutions in the System of National Accounts : An Introduction and Overview, Paper presented for the 26th General Conference of the International Association for Research in Income and Wealth, Cracow, Poland

United Nations [1993], A System of National Accounts, New-York

Appendix 1, page 1


Appendix 1 Institutional classification of ASBLs with paid employees, according to their main activity1

The institutional classification is undertaken in three stages along the lines set out below. 1. Units relevant to S13 and S14 All NPIs without paid employees must first be allocated to S14. Some NPIs areto be classified in S13 on the basis of the list2 drawn up by ICN (under an obligation imposed on Member States of the European Union). This list includes NPIs belonging to the following NACE-Bel classes:

Code NB Comments 01 - 74 (excluding 65,66,67,73) Internats (55.233), ALE (74.50), list

73 List 80.42 List 85.11 Hôpitaux militaires 85.12 Centres de médecine scolaire, list 85.323 List 90.00 List 91.11 List 91.12 List 91.33 List

92 - 93 (hors 92.5 et 92.621) List 92.5 et 92.621 Médiathèque de la communauté française (92.51), list

2. Immediate classifications For the others, classification will be immediate for those with an NACE code appearing in the first column of the following table.

Code NACE Branches Sector 01-74 (excluding

65,66,67,73) Various branches S 11

65.11 Banques centrales S 12 65.12 Autres intermédiaires monétaires S 12 65.2 Autres intermédiations financières S 12 66 Assurance S 12 67 Auxiliaires financiers S 12 75 Administration publique S 13

80.1 Enseignement primaire S 13 80.2 Enseignement secondaire S 13 80.3 Enseignement supérieur S 13 80.41 Auto-écoles S 11 85.11 Hôpitaux S 11 85.12 Pratique médicale S 11 85.13 Pratique dentaire S 11

1 Based on Sectorisation des unités du S 15, (internal document BNB), february 2001. 2 The S13 list is available on the NBB web-site : http://www.nbb.be.

Appendix 1, page 2


85.14 Autres activités pour la santé humaine S 11 85.20 Activités vétérinaires S 11

85.311 Instituts pour mineurs handicapés S 11 85.312 Orphelinats S 11 85.313 Instituts pour enfants en difficulté S 11 85.314 Instituts pour adultes handicapés S 11 85.315 Maisons de repos pour personnes âgées S 11 85.321 Crèches S 11 85.322 Ateliers protégés S 11 85.324 Centres P.M.S. S 13 91.11 Activités d'organisations économiques et patronales S 11 91.12 Activités d'organisations professionnelles S 11 91.20 Syndicats S 15 91.31 Organisations religieuses S 15 91.32 Organisations politiques S 15

92 (excluding 92.5 and 92.621)

Activités récréatives, culturelles et sportives S 11

93 Services personnels S 11 3. Classification case by case Finally, NPIs in the following classes not included in the S13 list and of other than minor importance will be classified on the merits of each case. Whether they should be allocated to S11 or S15 will be decided on the market or non-market dimension of the NPI. ICN has decided to adopt the following rule in translating the ESA-1995 50% criterion: the NPI is a market producer if its turnover exceeds one half of the compensation of employees multiplied by 1.5. Code NB Branches Comments 73 Recherche et développement criteria (S 11 or S 15) 80.**5 Enseignement international criteria (S 11 or S 15))

european schools ---> S 2 80.42 Formation permanente etc. criteria (S 11 or S 15) 85.316 Autres activités d'action sociale

avec hébergement n.d.a. criteria (S 11 or S 15)

85.323 Autres activités d'action sociale sans hébergement n.d.a.

criteria (S 11 or S 15)

91.330 Autres organisations associatives n.d.a

criteria (S 11 or S 15)

92.5 Autres activités culturelles criteria (S 11 or S 15) 92.621 Activités de clubs de sport et

d'associations sportives if turnover = 0 ---> S 15 if turnover < 50 000 Euro and 1< nbr of employees < 4 ---> S 15 if turnover > 0 and no paid employment ---> S 11 if turnover > 50 000 Euros---> S 11 if nbr of employees > 4 ---> S 11 sports federations ---> S 15

Appendix 2, page 1

Sybille Mertens -Center for Social Economy – ULg 30/11/01

Appendix 2 NACE-BEL (5 digits) Available upon request

Appendix 3, page 1

Sybille Mertens – Center for Social Economy – ULg 30/11/01

Appendix 3 NACE-BEL, N-ASBL, ICNPO

1. The Belgian non-profit sector classification : N-ASBL

N-ASBL NACE-BEL CPA 1. Culture, sports et loisirs

11. Culture 111. Edition 112. Activités cinématographiques et vidéo 113. Activités de radio et de télévision 114. Activités de spectacle et d’amusement 115. Autres activités culturelles

12. Sports 121. Gestion d'installations sportives 122. Activités de clubs et associations 123. Autres activités sportives

13. Loisirs 131. Agences de voyage 132. Associations de jeunes 133. Autres activités récréatives

22.1 92.1 92.2 92.3 92.5 (sauf 92.53) 92.61 92.621 92.622, 92.623 63.3 91.33* 92.7

91.33.13 : services fournis par les associat° de jeunes

2. Education et recherche

21. Enseignement fondamental et secondaire 211. Enseignement primaire 212. Enseignement secondaire

22. Enseignement supérieur et recherche 221. Enseignement supérieur et recherche

23. Autres formations 231. Formation permanente 232. Autres formations n.d.a.

24. Recherche et développement 241. Recherche et développement

80.1 80.2 80.3 80.421 80.41, 80.42 (sauf 80.421) 73

3. Santé

31. Services curatifs avec hébergement 310. Services curatifs avec hébergement

32. Services curatifs sans hébergement 321. Pratique médicale et dentaire 322. Activités paramédicales

33. Autres activités pour la santé humaine 330. Autres activités pour la santé humaine

85.11 85.12, 85.13 85.143, 85.144 85.14 (sauf 85.143, 85.144)

4. Action sociale

41. Institutions pour enfants 411. Orphelinats et instituts pour enfants en difficulté 412. Crèches et garderies d'enfants

42. Institutions pour handicapés 421. Instituts pour mineurs handicapés 422. Instituts pour adultes handicapés 423. Ateliers protégés (entreprises de travail adapté)

85.312, 85.313 85.321 85.311 85.314 85.322

N-ASBL NACE-BEL CPA

Appendix 3, page 2


43. Maisons de repos pour personnes âgées

430. Maisons de repos pour personnes âgées 44. Autres activités d'action sociale

441. Assurances sociales 442. Centres PMS 443. Autres activités sociales avec hébergement 444. Autres activités sociales sans hébergement

85.315 66 85.324 85.316 85.323

5. Défense des droits, intérêts et convictions

51. Organisations économiques, patronales et professionnelles 511. Organisations économiques et patronales 512. Organisations professionnelles

52. Syndicats 520. Syndicats

53. Organisations politiques 530. Organisations politiques

54. Environnement 541. Assainissement et traitement des déchets 542. Réserves naturelles et jardins 543. Protection et soins des animaux

55. Autres organisations 551. Associations religieuses 552. Activités juridiques 553. Militantisme pour une cause d'intérêt général 554. Défense d'intérêts spéciaux

91.11 91.12 91.2 91.32 90.00 92.53 85.20 91.31 74.11 91.33* 91.33*

91.33.11 : services militants pour une cause d'intérêt général 91.33.12 : services de défense d'intérêts spéciaux

7. Autres activités des associations

71. Agriculture, chasse, sylviculture et pêche 711. Agriculture 712. Sylviculture 713. Pêche

72. Industries extractives et manufacturières 721. Industries extractives 722. Industries manufacturières

73. Electricité/gaz/eau, construction 731. Electricité/gaz/eau 732. Construction

74. Commerce de gros et de détail, réparations 740. Commerce de gros et de détail, réparations

75. Hôtels et restaurants 751. Hôtels et autres hébergements de courte durée 752. Restaurants, cafés, cantines et traiteurs

76. Transports et communications 760. Transports et communications

77. Activités financières, immobilier, location, informatique 771. Activités financières 772. Immobilier et location 773. Activités informatiques

78. Autres services aux entreprises 781. Agences de presse 782. Autres services fournis aux entreprises

79. Autres services personnels et domestiques n.d.a. 790. Autres services personnels et domestiques n.d.a.

01 02 05 10 à 14 15 à 37 (sauf 22.1) 40, 41 45 50, 51, 52 55.1, 55.2 55.3, 55.4, 55.5 60 à 64 65 (sauf 63.3), 67 70, 71 72 92.4 74 (sauf 74.11) 91.33*, 93.00, 95.00

91.33.14 : autres services fournis par des organisat° associatives n.c.a.

Appendix 3, page 3


2. Concordance table ICNPO - N-ASBL

ICNPO N-ASBL Groupe 1 : Culture, sports et loisirs

1 100 Culture 1 200 Sports 1 300 Autres loisirs

11. Culture 12. Sports 13. Loisirs

Groupe 2 : Education et recherche

2 100 Enseignement primaire et secondaire 2 200 Enseignement supérieur 2 300 Autres activités d'éducation 2 400 Recherche

21. Enseignement primaire et secondaire 22. Enseignement supérieur et recherche 23. Autres activités d'éducation 24. Recherche et développement

Groupe 3 : Santé

3 100 Hôpitaux et revalidation 3 200 Crèches et Homes avec soins 3 300 Santé mentale et interventions de crise 3 400 Autres activités de santé

31. Services curatifs avec hébergement 32. Services curatifs sans hébergements 33. Autres activités pour la santé humaine

Groupe 4 : Action sociale

4 100 Services sociaux 4 200 Services d'urgence 4 300 Protection sociale

41. Institutions pour enfants 42. Institutions pour handicapés

sauf 423. Ateliers protégés 43. Maisons de repos pour personnes âgées 44. Autres activités d'action sociale

Groupe 5 : Environnement

5 100 Environnement 5 200 Protection des animaux

541. Assainissement et traitement des déchets 542. Réserves naturelles et jardins 543. Protection et soins des animaux

Groupe 6 : Développement et logement

6 100 Dvlp économique, social, communautaire 6 200 Logement 6 300 Emploi et formation

73. Electricité/gaz/eau/construction 76. Transports et communications 77. Activités fin., immob., loc, activités informat. 423. Ateliers protégés

Groupe 7 : Défense des droits et intérêts

7 100 Organisations de citoyens 7 200 Services juridiques 7 300 Organisations politiques

552. Activités juridiques 553. Militantisme pour une cause d’intérêt général 554. Défense d’intérêt spéciaux 53. Organisations politiques

Groupe 8 : Intermédiaires philanthrop.

8 100 Fondations 8 200 Autres intermédiaires

-- --

Appendix 3, page 4


ICNPO N-ASBL Groupe 9 : Activités internationales

9100 Activités internationales

--

Groupe 10 : Organisations religieuses

10 100 Organisations religieuses

551. Associations religieuses

Groupe 11 : Organisat° professionnelles

11 100 Associations de commerçants 11 200 Associations professionnelles 11 300 Syndicats

51. Org. écon., patronales et professionnelles 52. Syndicats

Groupe 12 : Organisat° nonprofit n.d.a.

12 100 Organisations nonprofit n.d.a.

71. Agriculture, chasse, sylviculture et pêche 72. Industries extractives et manufacturières 74. Commerce de gros et de détail, réparations 75. Hôtels et restaurants 78. Autres services aux entreprises 79. Autres services personnels et domestiques

Appendix 3, page 5


3. ICNPO adapted to the NACE-BEL

ICNPO NACE-BEL Groupe 1 : Culture, sports et loisirs

1 100 Culture 1 200 Sports 1 300 Autres loisirs

22.1, 92.1, 92.2, 92.3, 92.5 (excluding 92.53) 92.61, 92.62 63.3, 92.7, 91.33

Groupe 2 : Education et recherche

2 100 Enseignement primaire et secondaire 2 200 Enseignement supérieur 2 300 Autres activités d'éducation 2 400 Recherche

80.1, 80.2 80.3 80.42, 80.41 73

Groupe 3 : Santé

3 100 Hôpitaux et revalidation 3 200 Crèches et Homes avec soins 3 300 Santé mentale et interventions de crise 3 400 Autres activités de santé

85.11 85.12, 85.13, 85.14

Groupe 4 : Action sociale

4 100 Services sociaux 4 200 Services d'urgence 4 300 Protection sociale

85.31, 85.32, , 66

Groupe 5 : Environnement

5 100 Environnement 5 200 Protection des animaux

90.00, 92.53 85.20

Groupe 6 : Développement et logement

6 100 Dvlp économique, social, communautaire 6 200 Logement 6 300 Emploi et formation

40, 41, 60 to 64, 65, 67, 70, 71, 72 85.322

Groupe 7 : Défense des droits et intérêts

7 100 Organisations de citoyens 7 200 Services juridiques 7 300 Organisations politiques

91.33, 74.11 91.32

Groupe 8 : Intermédiaires philanthrop.

8 100 Fondations 8 200 Autres intermédiaires

-- --

Appendix 3, page 6


ICNPO NACE-BEL Groupe 9 : Activités internationales

9100 Activités internationales

--

Groupe 10 : Organisations religieuses

10 100 Organisations religieuses

91.31

Groupe 11 : Organisat° professionnelles

11 100 Associations de commerçants 11 200 Associations professionnelles 11 300 Syndicats

91.11, 91.12 91.2

Groupe 12 : Organisat° nonprofit n.d.a.

12 100 Organisations nonprofit n.d.a.

01, 02, 05, 10 to 37, 50, 51, 52, 55, 92.4, 74, 91.33, 93, 95.

Appendix 4, page 1


Appendix 4 Pilot-Survey

Confronted with a lack of reliable official data, the Center for Social Economy at the University of Liège, working with the HIVA (Catholic University of Louvain), undertook a vary large scale pilot survey covering 1995 amongst ASBLs. Thanks to the information collected through the pilot survey, our country has been particularly able to contribute to the Comparative Nonprofit Sector Project (phase II) coordinated by the Johns Hopkins University (Baltimore, USA). Most of the belgian data reported in this project has been extrapolated from the survey covering two, well-defined geographical areas : the territory of the town of Liège representative of the Nonprofit Sector in Wallonia and the town of Hasselt representative of the Nonprofit Sector in Flanders. As far as the Nonprofit Sector in the Brussels region is concerned, no specific study has been carried out : it was approached through a combination of weighted means from the Wallonia and Flanders area results. Even if it contained failings, this methodological choice1 was dictated by the need to undertake an in-depth interview survey in order to discover an almost entirely unknown reality as best they could. Table 1 resumes the applied methodology in a recapitulative diagram.

Table 1 The pilot-survey methodology)

National Register of legal Entities

Juridically legal ASBLs, established in Liège and Hasselt

Random samples (Excluding Hospitals and NP private schools)

ASBLs in operation

Inactive ASBLs

ASBLs with paid employees ASBLs without paid employees

Survey covering Liège and Hasselt Survey covering Liège

Extrapolations of results at regional level + official data on hospitals and private schools =

Results at the national level

Prior to the main survey, we had to define with precision the population to be studied. The National Register of Legal Entities, edited by the Home Office and constituted on the basis of the statutes and other essential acts required of ASBLs enabled us to know the exact number of juridically legal associations and to identify those established in Liège or those in Hasselt. Despite it being the most reliable source at the moment, the National Register of Legal Entities poses two types of problem. Firstly, it includes both the currently functioning associations and those that are inactive ( but still reputedly legal as they have not yet issued a public act of dissolution). Secondly, this Register only gives us very summary information concerning the associations. Within the Liège and Hasselt ASBL populations2 we formed two random samples3. However we chose to exclude from the survey hospitals and nonprofit private schools. This choice can be easily justified

1 For a full description of the methodology, see Defourny, J., Dubois, P., Perrone, B. [1997]

Appendix 4, page 2


by the fact that these two groups which are highly-structured and closely monitored by the corresponding and competent Ministries are the object of regular statistical readings and analyses. Even though they are not perfect, it was logical that we directly exploit the official data and then place the results side by side with those from the survey concerning the other groups. From within the samples we then differentiated the ASBLs in operation from the inactive ASBLs. Only the formers were the object of a face-to-face survey in the course of 1996. Among the active associations, we identified those employing paid staff and those that depended entirely on volunteer staff4. The results obtained from the Liège and Hasselt associations were extrapolated to a regional level by using a simple rule of three based on the number of associations in each region5. Finally , the regional results were added together and completed with data relative to the two sectors not covered by the survey so as to be in possession of national figures. If, on the whole, the extrapolation appears to be relatively satisfactory6, we are, never-the-less, conscious of the inherent limits of the method used. The main limitation is related to the hypothesis of representativeness of the two chosen samples (one French-speaking and one Dutch-speaking). If within these restricted areas, the samples were carefully created in a random fashion, the choice of areas is not random and thus the representativeness of the samples is no longer guaranteed7. More specifically, our study could be criticized as having an urban bias insofar as it is based on surveys carried out exckusively in towns. The second important weakness of our work resides in the extrapolation to the Brussels regional level. The weighted approach that we have used does not take into account that a certain number of Brussels ASBLs are of a particularly specific nature and of some considerable size because they represent the head office of federations or associative networks spreading over the whole of either the French-speaking or the Flemish-speaking community or even over the whole of the country. Neither have we taken into account that the non-Belgian population is particularly significant in the Brussels region. Despite these limits, this pilot survey has allowed some progress: (1) For the first time, it has been possible to demonstrate that with a share of more than 10% in terms

of salaried employment, the socio-economic strength of non-profit organisations is not negligible and that this sector constitutes an entire section of our economy8. This result has succeeded in creating a growing interest in political circles for the statistical information about this sector.

(2) This pilot survey has allowed an indication to be given of employment and the main activities at NPIs before the ONSS, VAT and National Register for Legal Entities files are transposed to DBRIS. It has also provided an initial outline of the resource structure of the NPIs and the extent of volunteering.

2 According to the National Register of Legal Entities, in 1995, there were 3074 ASBLs established in the town of

Liège and 993 ASBLs in the town of Hasselt. 3 Compared to the ASBL populations of Liège and Hasselt, the size of the samples was relatively high : 702 in

Liège and 684 in Hasselt. 4 This stage in the methodology was only applied to the Liège ASBLs. In Hasselt the survey only concerned

ASBLs employing paid staff. We do not know the proportion of ASBLs in Hasselt that only operate with volunteer staff. Consequently, all the data relative to this type of ASBL has been extrapolated solely from the Liège reality.

5 For the Brussels region the same extrapolations were constructed from the Liège and Hasselt realities on the basis of linguistic distribution (20% Dutch speakers and 80% French-speakers). It was not yet possible at the time of the pilot survey to extrapolate the results on the basis of the employment data. (see appendix 5).

6 A recent notice from the the Conseil Supérieur de l’Emploi (the Higher Council for Employment) on social economy highlights a convergence between the data issued as a result of this research and that of the federal Minister of Work and Employment for the health and social action branches. Conseil Supérieur de l’Emploi (1998).

7 For a more detailed analysis of the scope of this limitation, see Mertens, S. et al [1999] 8 For details of the results (and in particular a description by branches of activity), see Defourny, J., Dubois, P.,

Perrone, B. [1997] and Mertens, S. et al. [1999]. Several differences in the results between these two publications can be put down to a revision of certain hypothesis at the time when the results were extrapolated on a national scale.

Appendix 4, page 3


(3) This pilot survey will now also allow the extent of the gaps in the available statistical information to be assessed, covering NPIs without paid employment, scope of volunteering, etc.

Finally, it should be noted that, in the wake of this survey, a second pilot survey was undertaken on NPIs with paid employees in the city of Liège to test the feasibility of a satellite account9. Data related to the well-known variables in national accounts have been collected. Particular attention was paid to the question of employment, production costs, implicit flows and the physical measurement of output. A complete analysis of the findings from this survey is earmarked for summer 2001. The questionnaires for the first and second surveys are available on request10.

9 This second pilot-survey has been conducted by the Center for Social Economy of the University of Liège in

1999. 10 [email protected]

Appendix 5, page 1


Appendix 5 Structural Survey by the National Accounts Institute

In the context of the construction of the NPISH account, the National Accounts Institute (ICN) entrusted the National Institute of Statistics (NIS) and the National Bank of Belgium (NBB) to conduct a structural survey amongst ASBLs. This survey is intended for all institutional units having the legal form of an ASBL insofar as they employ paid staff, but excluding certain categories (hospitals, schools, homes for the elderly managed by public centers of social action, mutuals and pension funds that have adopted the legal form of ASBL) for which complete statistics already exist. The survey is exhaustive in the case of NPIs employing more than 20 persons or having a turnover of at least BEF 200 million, and only randomly deals with smaller NPIs (one out of every thirty). It falls within the context of the structural survey on enterprises (in accordance with European Regulations 58/97 and 2223/96, directly applicable under art. 22 (1) r. 4 of the Public Statistics Act). If the establishment of this survey represented a leap forwards in the understanding of statistics of nonprofit organisations, three factors nevertheless limited its interest. First of all, it should be borne in mind that the objective of the national accounters is not to offer a global view of the Nonprofit Sector but instead to form, as required by European legislation, an account of the NPISH Sector. It is not surprising therefore that the research efforts are limited only to those ASBLs that work with salaried employees. As demonstrated below, the pilot survey shows that, through this methodological choice1, the ICN survey only covers a small part of the non-profit reality. Indeed, it appears that de facto nonprofit organisations represent half of the Belgian Nonprofit Sector in terms of the number of organisations. The remaining 50% would be ASBLs of which 20% have ceased all activity (without publishing a certificate of dissolution however), 20% that only operate with voluntary work and finally, only 10% in which paid workers are employed2. The structural survey only covers these 10% (grey area on the diagram).

Associations ASBLs (50%)

De facto associations (50%)

Inactive (20%)

With paid employment (10%)

Without paid employment (20%)

S15 NPISH

S11-S12 Corporat°

S13 Gov.

S14 Households

S14 Households

Furthermore, owing to the conventions regarding the institutional classification of ASBLs, only a fraction of the grey area on diagram forms part of the NPISH sector (framed area). As a reminder, only the data concerning ASBLs classified in this sector are "visible" in the national accounts. The information on other ASBLs are combined in larger groups covering information on other types of organisations (government units, corporations or households).

1 This choice is in particular dictated by the non inclusion of service production by volunteers. 2 These proportions are only initial approximations drawn up on the basis of two in-depth surveys, one on

A.S.B.L.s in the city of Liège (Defourny, J., Dubois, P., Perrone, B. [1997]) and the other on nonprofit organisations in the municipalities of Herve and Rocourt (Janvier, C. [1990]).

Appendix 5, page 2


Finally, if the annual survey provides basic statistical information on nonprofit organisations: market output, production costs (intermediate consumption, compensations of employees, consumption of fixed capital and taxes), other expenditures (insurance, giving, fixed capital formation, etc.), employment (as a number of people), market and non-market monetary resources (sales, subsidies, fees and giving), main activities of NPIs, it overlooks certain interesting information on NPIs from the statistical angle: more precise analysis of the use of goods and services produced, identification of the nature of NPIs (public interest compared with mutual interest), an assessment of the voluntary work (as a number of people and in FTE), a measurement of paid employment in FTE, an estimate of certain interventions by public authorities (fiscal or parafiscal exemption, the payment of wages associated with certain employment positions) or private agents (volunteering, low interest loans, etc.) and sales under third-party system.

Documents

Belgian Report - Johns Hopkins University Center for Civil Society …ccss.jhu.edu/.../08/Belgium_Handbook_TestReport_1999.pdf · 2014-12-27 · Mertens, S., Lefèbvre, M.[2001],