Satellite account of non-profit institutions and volunteering

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Canada's core non-profit sector accounted for an estimated 2.5% of the nation's economic activity in 2004, as measured by gross domestic product (GDP).

This was almost three times the contribution of the motor vehicle manufacturing industry, 50% more than the agriculture industry, and about the same as the accommodation and food services industry.

GDP in the core non-profit sector reached $29.6 billion in 2004, up 6.5% (in nominal terms) from 2003. This was a marginally faster gain than the 6.4% increase for the economy as a whole.

For the purposes of the satellite account of non-profit institutions and volunteering, the overall non-profit sector is split into two groups. The first consists of a diverse range of generally smaller organizations, known as the "core non-profit sector." They operate in myriad fields and play an increasingly important role in society.

The second consists of hospitals (including residential care facilities), universities and colleges, which account for the bulk of non-profit economic activity. These typically large organizations are classified within the government sector in the standard Canadian System of National Accounts.

Between 1997 and 2004, economic activity in the core segment outpaced that of the overall economy in five out of seven years.

During this period, the GDP in the core non-profit sector increased at an average annual rate of 7.3%. This was significantly faster than the 5.7% average gain for the economy as a whole, as well as the aggregate of hospitals, universities and colleges, which grew at the national average.

Non-profit organizations make a significant contribution to both the economy and the social well-being of Canada.

Hospitals, universities and colleges continue to dominate, while the core non-profit sector does more than maintain its share

Hospitals, universities and colleges accounted for the lion's share of economic activity in the broader non-profit sector throughout the eight-year period.

In 2004, their GDP totalled $53.8 billion, which represented nearly two-thirds of economic activity in the overall non-profit sector.

Of this total, hospitals generated $35.6 billion, almost twice as much as the $18.2 billion contribution from universities and colleges.

The core non-profit sector, which typically comprises smaller, heterogeneous organizations, accounted for the remaining one-third of economic activity. This sector has been playing an increasingly important role in Canadian society.

Because the GDP of the core non-profit sector has grown at a faster pace than that for hospitals, universities and colleges, its share of the total economic output of the overall sector rose from 33.2% in 1997 to 35.5% in 2004.

Social services group represents nearly one-quarter of core non-profit GDP

The social services group accounted for 24.2% of core non-profit GDP in 2004, still the highest share of any group in the sector.

Development and housing consistently held second place, followed by culture and recreation, religion, business and professional associations, and health other than hospitals.

Combined, these six fields of activity accounted for 79.4% of the GDP of the core segment in 2004, down from 83.2% in 1997.

On the whole, the composition of the core non-profit sector by field of activity remained relatively stable over the period. However, the share of social services, development and housing, and education other than universities and colleges advanced. Conversely, health other than hospitals, business and professional associations, and religion lost ground.

Diversified revenue sources in core non-profit sector boost overall revenue growth

In 2004, revenues for the core sector rose 8.7%, compared with 7.5% for hospitals, universities and colleges.

Core non-profit organizations also led the way in income growth between 1997 and 2004. Over this period, revenues for core non-profit organizations increased at an average annual rate of 7.4%. This was slightly faster than the gain of 6.2% in revenues for hospitals, universities and colleges.

Hospitals, universities and colleges received the vast majority (95%) of their revenue from government transfers and sales of goods and services between 1997 and 2004.

By comparison, organizations in the core non-profit sector relied on a significantly broader set of revenue sources. The core segment's performance stemmed largely from stronger average growth in each source of revenue, except transfers from households.

As was the case in previous years, sales of goods and services were, by far, the most important source of revenue for the core non-profit sector in 2004. Sales of goods and services accounted for 41.7% of total revenue, followed by government transfers, at 20.3%.

Core non-profit organizations also derived more than one-third of their revenue from three additional sources: membership fees (17.2%), transfers from households (13.7%) and investment income (5.3%).

By comparison, these same three sources contributed only 2.3% of revenue for hospitals, universities and colleges in 2004.

Vast majority of household donations go to core non-profit groups

The vast majority of donations from households (90.4%) went to core non-profit organizations in 2004. Between 1997 and 2004, these donations increased at an annual average rate of 6.9%.

However, hospitals, universities and colleges gained some ground in this area. Donations from households to these institutions more than doubled between 1997 and 2004.

As a result, their share of total household donations advanced from 6.2% to 9.6% during the period.

Government funding mostly from provincial sources, but direct federal funds on the rise for the core sector

The majority of government funding for the core non-profit sector came from provincial governments, but federal transfers were on the rise.

Between 1997 and 2004, the federal share of government transfers to the core sector rose from 16.9% to 25.6%, while the provincial share declined from 82.2% to 70.5%.

Federal transfers to core non-profit organizations more than doubled over the eight-year period, from $1.4 billion in 1997 to $3.2 billion in 2004.

During the same period, provincial transfers rose by $2.2 billion to $8.9 billion. The local share of government transfers, negligible before 2000, has increased gradually since 2003, reaching 3.8% in 2004.

Available on CANSIM: tables 388-0001 to 388-0004.

Definitions, data sources and methods: survey number 1901.

The full report for the Satellite Account of Non-profit Institutions and Volunteering, 1997 to 2004 (13-015-XWE, free) is now available from the Publications module of our website.

For more information, or to enquire about the concepts, methods or data quality of this release, contact the information officer (613-951-3640; iead-info-dcrd@statcan.gc.ca), Income and Expenditure Accounts Division.