Third Sector Organizations (TSI) all over the world and specifically in Europe are currently affected by numerous societal, political and economic trends, namely decreasing embeddedness in social milieus and local communities, changing relationships to the public sector, attuned marketization, and increased managerialism. Concepts of public management that focus on service contracts instead of subsidies are affecting the role of these organizations as well as fiscal constraints, austerity measures and financial shortages (Biwald, Hochholdinger, Köfel, & Maimer, 2010) that are causing significant restraints. Classical sources of revenues, in particular membership dues have significantly decreased. The same holds true for support from companies that nowadays constitutes an integral part of long-term corporate social responsibility-programs and hence difficult to attain. Further, a general trend towards marketization drives TSI to becoming more business-like and increasingly less community oriented (Greiling, 2014; Zimmer & Simsa, 2014). Finally, due to increased competition for government grants and other sources of revenues, the organizations tend increasingly to abstain from lobbying (Simsa 2014).
Against this background, the paper explores how TSI cope with these difficulties and how they manage to adapt to changed environments without losing their nonprofit-specificity. In particular, the following questions are addressed:
- Which barriers and obstacles to their consolidation and/or development stand in the way of TSI?
- How do TSI cope with challenges resulting from a) societal disintegration and b) austerity pressures/fiscal and funding difficulties?
- Do TSI become more business-like and if so, how does that affect their governance structures?
- Which facilitating factors enable nonprofit organizations to develop their potential?
- What resilience strategies in dealing with current challenges are identified?
Empirically, the paper is based on the EU-funded comparative research project “The Impact of the Third Sector on Socio-economic Development in Europe” (TSI-project) that was coordinated by Oslo University and in which ten European Universities were participating. More specifically, the project analyzed barriers and obstacles that are currently standing in the way of TSI and making them less effective and efficient. Further, management strategies to cope with these hurdles without losing the nonprofit specificity that guarantees their impact on modern societies were investigated. The data used for this paper was generated from 2014-2016 by quantitative and qualitative research conducted in eight countries, namely Austria, Croatia, France, Germany, the Netherlands, Spain, Poland and the United Kingdom.
The paper will start with an overview of the literature regarding developments of Europe´s third sector. Secondly, we will present the outcomes of a quantitative survey focusing on hurdles and barriers to the work of nonprofits in the respective countries. This survey was completed by interviews with NPO-managers and stakeholders. Thirdly, we will present analysis of 24 case studies of “best practice - TSI” that stand out for particularly good strategies of dealing with specific obstacles and barriers. We will show that there are significant obstacles to TSI but also impressing factors and innovative organizational forms that enable nonprofit organizations in these countries to thoroughly develop their potential.
References:
Biwald, P., Hochholdinger, N., Köfel, M., & Maimer, A. (2010). Finanzierung der Städte nach der Krise. Retrieved from Wien: www.staedtebund.gv.at/.../Städ...
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European Economic and Social Committee (2013) “Social Impact Measurement”. Opinion of the European Economic and Social Committee.
Greiling, D. (2014). Qualität und Transparenz von NPOs: Pflichtübung oder Chance? In A. E. Zimmer & R. Simsa (Eds.), Forschung zu Zivilgesellschaft, NPOs und Engagement. Quo vadis? (pp. 231-244). Wiesbaden: Springer VS.
Harlock, J. (2013) “Impact measurement practice in the UK third sector: a review of emerging evidence”. Third Sector Research Centre Working Paper 106.
Land; K. (2001) "Social Indicators for Assessing the Impact of the Independent, Not-for-Profit Sector of Society". in: Flynn, P. & Hodgkinson, V. (ed.) Measuring the Impact of the Nonprofit Sector, New York: Kluwer Academic/Plenum Publishers, pp. 59-76.
Zimmer A. & Pahl B. (2016), Learning from Europe: Report on third sector enabling and disabling factors, Comparative report, 1/2016, TSI project.
Zimmer, A. E., & Simsa, R. (Eds.). (2014). Forschung zu Zivilgesellschaft, NPOs und Engagement. Quo vadis? . Wiesbaden: Springer.
3. Governance, employment and human resource management
