I have worked and volunteered in the not-for-profit sector for over 15 years. During this time I have put significant thought into the social impact of the work that I was doing; however, at no time did I focus my attention on the economic impact of the work I was doing, or that others were doing in this field.
It wasn't until recently when I read a report published by Statistics Canada called "Satellite Account of Nonprofit Institutions and Volunteering" (Catalogue No. 13-015-XIE) that I began to explore the full impact of the work that volunteers and not-for-profit organizations do within our communities.
And… I was a little stunned to realize the economic impact that volunteers and not-for-profits have on the communities in which we live and work.
According to Statistics Canada the non-profit sector accounted for a total of 6.9% of the standard Gross Domestic Product (GDP) in 1999. To state this a little differently, the non-profit sector is responsible for $57,484 million dollars of the gross domestic product using standard measures.
However, as we all know the non-profit sector relies heavily on volunteer labour to achieve its mission. When the extended GDP is used, which includes the value of volunteer labour estimated at $14,143 million, the percentage rises to 8.6% or $71,627 million across Canada.
These figures are significant when compared to the GDP of other sectors. The report compares the GDP impact of the non-profit sector with that of other sectors and concludes that the…
"nonprofit sector's extended GDP is more than eleven times that of the motor vehicle manufacturing industry, over four times larger than agriculture, and over twice the value of mining, oil, and gas extraction industry. It is more than 50% larger than Canada's entire retail trade industry."
It goes on to note that the non-profit sector's impact exceeds that of major Canadian industries even before the value of volunteer labour (estimated at $14,143 million) is calculated in.
For an industry that has often been considered a minor player on the economic scene, these statistics are quite startling. Suddenly we are more powerful and mainstream than we thought!
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Copyright © Angie McLeod, HIP Strategic Consulting. 2004
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