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					The emerging role of the
   Non-profit sector
      Ann G. Kramer, Ed. S



           Copyright 2011, Good 4U Inc.
                    www.lifepuzzle.com
Presentation’s Key Themes:
   An Integrative
    Economy is on the
    horizon
        “Knowledge” will be a
                                         Non-profits will play an
         primary asset of it’s
         success.                         ever-larger role in the
        Quality of Life will be          next economy
         it’s major driver               No longer are we “non”
                                          (market/government)
                                         Focus will be on what
                                          we are: Local
                                          Community Capacity

                                   Copyright 2011, Good 4U Inc.
                                            www.lifepuzzle.com
What is an “economy”?

       Describes how we manage
        life
       What is important to us
       Employment sectors
       Major driver: shows focus of society
       Changes over time; becomes more
        complex
   Economics:
       the study of mankind in the
        ordinary business of life
                             Alfred Marshall

                                   Copyright 2011, Good 4U Inc.
                                            www.lifepuzzle.com
Economy is concerned with:
Work/Employment sectors
    Markets—factories, industrial production
    Government—military, schools, federal,
     state, local
    Illegal: drugs, prostitution, crime etc.
        If you can’t find work in the market or
         government sector…..here’s where you go




                                 Copyright 2011, Good 4U Inc.
                                          www.lifepuzzle.com
   Economy is concerned with:
  Wealth & Wealth Accumulation
 Money, $$$$
 Power
 Possessions
 Property




                Copyright 2011, Good 4U Inc.
                         www.lifepuzzle.com
         Economic History: where we’ve been

   Agricultural Economy              Industrial Economy
       Time frame:1600-1900              Time frame: 1850-1975
       Major driver:                     Major driver: consumerism
        management of the                  (consumer ed sciences)
        home (home                        Expansion of manufacturing
        economics)
                                          Unlimited production and
       Home & community                   growth meant success
       Enough to get by                  Agribusiness replaces small
                                           farms




                               Copyright 2011, Good 4U Inc.
                                        www.lifepuzzle.com
                         Where we are:
               Economic transitions in our lifetime:


  1975 Oil embargo
 Cost of manufacturing goes up
       Example: expensive oil drives costs
                1960            1975                  2006

                        $10                $40                $100




   Profits go down


                               Copyright 2011, Good 4U Inc.
                                        www.lifepuzzle.com
The Solution to Declining Profits
   Profits decline           Less expensive employees
                               reduces costs; increase
                               Profits




                      Outsourcing begins in early 80s
                          Copyright 2011, Good 4U Inc.
                                   www.lifepuzzle.com
Service/Consumer Economy

   1975-2000 Blue collar production outsourced
   Service jobs replace manufacturing jobs
     Lower wage for many
     Services: retail, real estate, financial, medical,
      entertainment, and travel




                             Copyright 2011, Good 4U Inc.
                                      www.lifepuzzle.com
Service/Consumer Economy
   Time frame: 1975--2005
   Major driver: consumerism
   Consuming intangibles (services)
       Investments: Finance, Insurance, Real Estate
       Medical and Health Care
       Entertainment & Travel
   Individual wealth and competition valued
   Decline of industrial manufacturing
   Continued decline of family farms; consolidation of
    agribusinesses
   Globalization in all sectors




                                      Copyright 2011, Good 4U Inc.
                                               www.lifepuzzle.com
A second transition begins…1995
   1995-2010 White collar jobs begin declining, too
       High unemployment overall (2000 Dot Com crash)
   “Knowledge” becomes the primary asset for
    employment
       High paying—access to Knowledge (25% of jobs)
       Low paying—delivery of Service (75% of jobs)
   Uncharted territory
   Does not fit Consumer/GDP model
       Grow, grow, grow harder to maintain
       Environmental challenges—resources depleted
       Huge increase in Non-profits and NGO’s becomes
        visible

                                  Copyright 2011, Good 4U Inc.
                                           www.lifepuzzle.com
Where we were going: subtle shift to a
Knowledge economy
   Time frame: 2005-future
   Major driver: quality of life
   Information acquisition and growth
   Knowledge as a tool and resource
   Only impacts a small part of the population—
    creates the greatest income disparity since
    1930’s
   Services are growing; many are NGO’s and
    Non-profits



                            Copyright 2011, Good 4U Inc.
                                     www.lifepuzzle.com
But in 2008 the Economy Falters
   2008 Great Recession                   Everyone is confused
       15 million unemployed                  How do we get the
       Jobless recovery predicted              economy going again?
   Wake up call                               Restart the Service /
                                                Consumer economy?
       After 25 years of
        outsourcing jobs overseas,             Consider some new
                                                approach?
        both blue-collar and white
        collar jobs are gone.
       Middle-class decimated




                                 Copyright 2011, Good 4U Inc.
                                          www.lifepuzzle.com
           The Government efforts to
               restart economy
   $700 billion to bail out the “Too Big to Fail”
    banks
   Auto Industry rescue package
   $800 billion Stimulus package
   Cash for Clunkers


   Real estate: first time home buyer credits of
    $8,000/$6500
   Interest rates down to 0%
   Hints of deflation: sales on everything!
   Nothing seems to work!
                                Copyright 2011, Good 4U Inc.
                                         www.lifepuzzle.com
            2011 Where we’re headed…
            The next economy is here?
   All economies change over time
       Agricultural: 1800-1900
       Industrial/Consumer & Service/Consumer: 1900-2000
       Service /Knowledge: 1990-2010-Future
   It appears we can not consume our way out of crisis
       Unemployment is up
       Consumption is down
       Cheap supplies and resources — gone
       Natural Resources — minerals and water depleted (along with oil!)
       Earth exhausted: air, water, land
       Technology has taken over— no need for humans to do much of the
        work of the previous generations
   We suggest its time for an Integrative Economy
                                   Copyright 2011, Good 4U Inc.
                                            www.lifepuzzle.com
We’ve done this before…..
   Agricultural                       3 options available in 1905
    economy transition                      1. Do nothing and let the current
    to the Industrial                        rollercoaster ride continue
    economy                                 2. Grow, grow, grow
       1905: Leaders gather                     Instill insatiable desire in population
           13 cycles of                         Advertising industry explodes
            recession/depression                 Citizens become consumers
            in the 1800’s                   3. Understand whole systems—
           Looking for solutions            economic, social and environmental
                                             and design new economy
                                            (from Whole Life Economics, Barbara Brandt)




                                            Copyright 2011, Good 4U Inc.
                                                     www.lifepuzzle.com
                What did we choose? #2
   1. Do nothing?                          3. Understand whole
       No one wanted that                   systems
   2. Build insatiable desire,                 Not actually possible in
    unlimited growth and                         1905
    production system                           Didn’t have sufficient
                                                 knowledge to implement a
       Looked like this would
                                                 Triple bottom-line system
        work forever—everyone
        wins                                   Had we been
       In 1905, who could imagine           there in 1905, we
        running out of resources?            would’ve picked
                                                  #2 too.

                                  Copyright 2011, Good 4U Inc.
                                           www.lifepuzzle.com
2008: Here we are again…..
   Transitioning from                          #1. No one wants that
    Industrial/Consumer to                      #2. No longer sustainable
    Integrative economy                             Results in abundance for a few,
   We too have 3 options                            scarcity for most
                                                    Pressures on air, water, animal,
       1. Do nothing
                                                     plants, earth pushing to
       2. Maintain consumer                         breaking point
        economy/insatiable desire
                                                #3. Now possible
       3. Build a whole system
                                                    We have the knowledge,
        economy
                                                     technology, and capacity to
           Economic, Social and Natural
                                                     make this happen
            systems
                                                    Triple Bottom line makes
                                                     sense
                                      Copyright 2011, Good 4U Inc.
                                               www.lifepuzzle.com
        Three things have to happen to
        enable an Integrative Economy:
   1. Change the way we                3. Expand our vision of
    measure the economy                  wealth and wealth
       GDP is too limiting              accumulation beyond
                                            Money
   2. Broaden the number                   Power
    of employment sectors                   Property
    that people can work                    Possessions
    in to support
    selves/family




                              Copyright 2011, Good 4U Inc.
                                       www.lifepuzzle.com
 New Economic Measurements
 Agricultural economy     Integrative Economy
   We did not measure the
    national economy
                               requires going
                                beyond GDP


                                        Quality             of Life
   Industrial/Consumer,                     +
    Service/Consumer
       1946 GDP introduced             Quantity of Stuff
       Quantity of Stuff
        measured


                              Copyright 2011, Good 4U Inc.
                                       www.lifepuzzle.com
      New measurements: Its happening!
   “From April 2011 we will start                 “Looking ahead, [Chinese]
    measuring our progress as a                     party officials have
    country not just by how our
    economy is growing, but by how
                                                    indicated that their next
    our lives are improving, not just by            five-year plan, China’s 12th,
    our standard of living, but by our              will focus on the quality of
    quality of life. We’ll continue to              economic growth—how it
    measure GDP as we’ve always                     affects people’s lives—rather
    done, but it is high time we
    admitted that, taken on its own,
                                                    than the quantity.”
    GDP is an incomplete way of                        From “Shop China Shop”, NY Times
                                                        magazine November 2010
    measuring a country’s progress.”
            David Cameron
                                                     Bhutan: Economics of
            Prime Minister of Great Britain
                                                    happiness



                                         Copyright 2011, Good 4U Inc.
                                                  www.lifepuzzle.com
         # 2. Broaden Employment sectors:
            Current employment sectors
   Market                                 “Shadow sector”
       Everything connected to                Non-profits / NGOs in last 40
        unlimited production & growth           years became a significant
                                                employment sector
   Government                                 Providing necessary services but
       Taxes pay for Administration,           not measured as “real work”
        schools, military, public               like markets or government or
        utilities—fire, roads etc.              in GDP
                                               Initiated from market sector
   Illegal                                     based on philanthropic gifting
       Drugs, underground economy,            Funders now include both
        sex trade etc.                          government and market sector
       As much money paying people             organizations
        to work here as in markets!


                                    Copyright 2011, Good 4U Inc.
                                             www.lifepuzzle.com
Current employment sectors




           Copyright 2011, Good 4U Inc.
                    www.lifepuzzle.com
The rise of non-profits
   Between 1977 and 1997,                      Between 1977 and 1997
    the revenues of America’s                    the number of 501(c)(3)
    nonprofit organizations                      and 501(c)(4)
    increased by 144 percent                     organizations registered
    after adjusting for inflation,               with the IRS increased by
    nearly twice the growth                      115%, or about 23,000
    rate of the nation’s                         organizations per year.
    economy.*                                   This compares with a 76%
   (*The State of Nonprofit America—            growth rate among for-
    Brookings Institute/Aspen Institute
    2002)                                        profit businesses.



                                      Copyright 2011, Good 4U Inc.
                                               www.lifepuzzle.com
                                            Markets




                                          Integrative
                                          Economy's
                        Government
                                                4                       Illegal

                                          Employment
                                            Sectors

  When we expand our economic
   measurements it enables us to
create this new employment sector:
     Local Community Capacity.                Local
                                            Community
   As a stand-alone sector—each              Capacity
community can determine its needs
for the work that falls in this sector.




                                             Copyright 2011, Good 4U Inc.
                                                      www.lifepuzzle.com
            New Employment sector:
         Local Community Capacity—LCC
   “LCC” enables the transition to an Integrative
    Economy
   Instead of what we’re “Non” (markets or gov’t)
   Let’s focus on what we ARE: organizations that provide a
    significant amount of the necessary work for an Integrative
    Economy:
    Quality of Life work….
        Human Capacity Development
        Social Benefit /Volunteerism
        Environmental Sustainability




                                   Copyright 2011, Good 4U Inc.
                                            www.lifepuzzle.com
              The Challenge before us:
   How do we make  Answer:
    funding Local   New measurement system enables
    Community
                     LCC
    Capacity
                        Quality of Life + GDP
    (LCC) not             Human capacity development
    dependent on          National Volunteer Service registry

    Market &              Environmental integration

    Government      New wealth accumulation supports
    sectors?         LCC
                              Beyond Money, power, possessions & property
                              Relationships
                              New exchange systems/Local currency
                              Triple Bottom Line—people, planets, profits
                                  Copyright 2011, Good 4U Inc.
                                           www.lifepuzzle.com
     A funny thing happened on the way
            to the next economy

   As markets/gov’t retract              But, if we invest directly in
    during this recession &                to LCC sector , then this
                                           increased employment can
    economic transformation,
                                           support Markets/Gov’t and
    it appears that funding for            they can then support LCC
    LCC goes down                         Integrated loop
                                           system—conscious
                                           economy

    Time for a new direction!



                                Copyright 2011, Good 4U Inc.
                                         www.lifepuzzle.com
   Integrative economy: We all win…


                                               Markets
                Gov’t




                      Local
                    Community
                     Capacity
                         Copyright 2011, Good 4U Inc.
                                  www.lifepuzzle.com
Implementing an Integrative Economy
   Who will Lead             Factors all three major
    the way?                   systems into economic
                               policy and structure
   The United States is
                                Social
    the best incubator
                                Natural
                                Business
                              Transforms and includes
                                Expands Economic
                                 measurements of success
                                Expands employment sectors
                                Expands wealth creation and
                                 accumulation options


                           Copyright 2011, Good 4U Inc.
                                    www.lifepuzzle.com
What’s our role as Non-profits (LCC)?
   Come out of the             Integrating with
    shadows                      business and
   Create LCC                   government to build a
   Collaboration with           conscious economy
    each other to
    determine community
    needs




                      Copyright 2011, Good 4U Inc.
                               www.lifepuzzle.com
An Integrative Economy: building the
most vibrant economy ever imagined
      Meets the challenges of the
       21st century
          High unemployment
          Ecological stress
          Income disparity—have and have not
          Great Recession transformed
              The next generation—living different
               than previous generation
              Different, not less




                                  Copyright 2011, Good 4U Inc.
                                           www.lifepuzzle.com
Our children are depending on us
   Using centuries of             We have a choice
    knowledge wisely =                 To see the challenges before
    An Integrative                      us
    Economy                            Create a viable solution that
                                        works for humans and the
                                        planet.
                                       An Integrative Economy is
                                        such a solution.
                                       LET’S GET STARTED!




                         Copyright 2011, Good 4U Inc.
                                  www.lifepuzzle.com

				
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