Satellite account for non-profit institutions

Non-profit institutions are identified in the UN handbook based on a number of structural and operational criteria. Units that satisfy these criteria are included in the satellite account for non-profit institutions. In line with the handbook’s definitions, the sector for non-profit institutions consists of units that are:

1. Organisations

These units have a certain degree of internal organisational structure. The organisations’ activities, structure and objectives are fixed or laid down in the organisation’s articles of association. The criterion excludes temporary, informal gatherings and ad hoc groups. Informal activities may nevertheless be included even where the actual organisational structure has no legal status, but otherwise meets the requirement of a fixed internal organisational structure.

2. Not-for-profit and non-profit-distributing

The organisation does not conduct activities aimed primarily at generating profits, and does not pursue commercial interests. Any surplus must be transmitted back into the continued operation of the organisation and cannot be distributed to owners, members, the governing board or others.

3. Institutionally separate from the government

The organisation is not part of the general government and has no governmental authority. The organisation may, however, be mainly financed through public funds.

4. Self-governing

The unit exercises complete control over own activities. No other unit has effective control over the organisation. Organisations can be dissolved on their own initiative, and amend their articles of association and objectives.

5. Voluntary

Membership and participation, and contributions of money and time are not mandatory, statutory or compulsory.

For a more detailed definition, refer to the handbook (chapter 2E). This definition of non-profit institutions is somewhat wider and will include more units than what is presently defined under the non-profit institutions serving households sector in the national accounts.

The value of the non-market output in the satellite account is estimated from the costs, i.e. the sum of compensation of employees, intermediate consumption, consumption of fixed capital and possible net taxes on production.

The replacement cost value of volunteer work is the imputed value of voluntary, unpaid labour.

See “Concepts and definitions in the national accounts"for definitions and explanations of concepts and variables used in the national accounts and the satellite accounts.

The units included in the satellite account are not homogenous, and the UN has established a standard classification system in order to group them according to activity - ICNPO (International Classification of Non-Profit Organizations). The classification is based on the UN standard for industrial classification; ISIC rev.3, which the European industry standard NACE corresponds to.

INCPO consists of 12 main categories and 30 sub-groups. The criterion for separating non-profit institutions within this system is their main economic activity. By doing so, the intention is to identify groups with similar activities with regard to categories of goods and services that they offer. Minor adjustments have been made to the Norwegian satellite account in order to best reflect the Norwegian voluntary sector. The table below summarises the INCPO categories as they are used in the satellite account: