This presentation was given October 18, 2010 by by Professor Nora Silver, Haas School of Business at UC Berkeley, Harumitsu Inouye, CEO of the Shinnyo-en Foundation, and Professor Jim Lincoln also of Haas.

1. Welcome 2010 JIAM Guests

2. Agenda
 Welcome from UC Berkeley & Shinnyo-en Foundation
 The US Nonprofit Sector
 US Government-Nonprofit Relationships
 White House Office for Faith-Based and Neighborhood
Partnerships

3. The Nonprofit Sector is Large
 1.5 million nonprofits, $823 billion revenue
 $282 billion in Japan
 7.5% gross domestic product (expenditures)
 4.5% in Japan
 > GDP of all but Japan, Germany, UK, France, Italy, China
 7% of workers
 3.5% Japan; 2nd largest in world
 Employs > people than in agriculture, mining, construction,
transportation, communication and other public utilities,
finance, insurance and real estate
 With volunteers = 11%

4. Most Nonprofits are Small
43
30
9
12
3 4
Less than $100,000
$100,000-499,999
$500,000-
999,000
$1- 4.9 million
$5-9.9 million $10 million or more
82% of Nonprofits have less than $1M in expenses per year

5. Revenue Comes from 3 Sources
Individuals
Bequests
Foundations
Corporations

6. Government Funds Differ by Industry
19.9
86.1
43.5
35.2
19.6
4.0
7.7
20.7
18.9
56.1
46.9
31.3
9.7
30.2
52.1
19.4
42.2
11.3
6.2
18.9
13.9
9.4 11.1 6.9
13.4
37.5
27.9
0.0
All other
Percent, $ Billions
Program
service fees
Private
contributions
All non-
profits*
Civic,
social, and
fraternal
organiza-
tions
Arts and
culture
Education
and
research
Religious
Organiza-
tions**
Government
grants
Social
and
legal
services
Health
services
1,250 67
29 243
2.7 171 699
100% =
4.4
Average revenues
$ million 4.0 0.9 2.6 1.6 4.6 19.6

7. Governments Fund Nonprofits Because…
Nonprofit
Flexible
Responsive
High
Quality/Low
Cost
Innovative

8. Many Levels to the US Government
 1 federal government
 15 federal cabinet-level departments
 50 states
 3,033 counties
 19,492 municipalities/cities
 16,519 townships or town governments
 13,051 school districts
 37,381 special districts

9. Funding Flows From Different Levels
Federal
Region
City County
State
Neighborhood

10. Governments Fund Nonprofits Different Ways
 1: Grants
 Promise of service
 2: Contracts
 Contract specifying services and payments per service
 Reimbursement
 3: Vouchers
 Payments to end user

11. What works Challenges
 Stabilize funding
 Formal standards
 More paid staff
 Meeting needs of more
people in need
 Specialization/bureaucritization
 Fewer volunteers
 Expensive to maintain
 Organizational capacity and
compliance: staff and board
 Reporting and accounting
requirements: audit
 Culture conflicts
 The political process
 Cash flow
 Little overhead cost coverage
 Matching funds
What Works and Challenges

12. What Nonprofits Said: 2009 Study
In 2009, $100 billion  200,000 contracts/grants
 33,000 human services nonprofits have government contracts
 Government is the largest funder in 3 out of 5 cases
 “Changes to existing contracts are a significant
problem” (1/2 said)
 “Late payments are a problem” (1/2 said)
 “Complexity and time commitment are too complex
and time consuming” (3/4 said)

13. City Government
 City departments
 Health
 Human Services
 Children and Youth
 Disaster Response
 Redevelopment
 San Francisco Redevelopment Agency
 San Francisco Redevelopment Agency, Bayview Hunters Point
 India Basin Neighborhood Association and Bayview Hunters Point
Project Area Committee

14. State Government
o has the US’ first state
cabinet secretary for service and volunteering
o National service corps: AmeriCorps
o Disaster preparedness contracts with nonprofits
o Jobs programs contracts with nonprofits

15. Federal Government
The White House Office of Faith-Based and
Neighborhood Partnerships

16. Thank You
http://www.sef.org http://nonprofit.haas.berkeley.edu