ANALYSIS OF RESULTS


KEY RESULTS

Non-profit institutions (NPIs) have the following characteristics: they are organisations, they are not-for-profit and non-profit-distributing, they are institutionally separate from government, they are self-governing, and are non-compulsory. For further information about identification of NPIs, refer to Appendix 5. There were 56,894 NPI organisations in Australia registered with the ATO at June 2013 and in scope of the NPI Satellite Account.

The direct value that NPIs add to the economy is measured in NPI gross value added (GVA). NPI output that is sold in the market is valued by sales, whilst the non-market output is valued at cost. In 2012-13, NPIs accounted for $54,796m or 3.8% of total GVA. This is an increase on the revised 2006-07 NPI contribution to GVA (3.2%).

Gross domestic product (GDP) measures the value of production inclusive of product taxes. NPI GDP in 2012-13 is $57,710m. The revised NPI GDP for 2006-07 is $34,662m.

NPIs received income of $107,480m in 2012-13, and held $176b worth of assets.

NPIs contribute significantly to employment, accounting for 1,081,900 employed persons and almost 3.9 million volunteers. Volunteers contributed 521 million hours to NPIs, equating to an equivalent of 265,600 full time employed persons. The economic value of these hours was estimated at $17.3b.

Key Results
	2012-13
Number of NPI organisations	(a)56 894
NPI value added - national accounts basis	$54.8 billion
NPI value added - NPI satellite account basis	$79.2 billion
NPI income	$107.5 billion
NPI assets	$176.0 billion
NPI employment	1,081,900 persons
NPI volunteers	3,882,300 persons
NPI volunteering hours	520.5 million hours
(a) Registered with ATO and in scope of the NPI Satellite Account

NPI GROSS VALUE ADDED

NPI gross value added measures the value of goods and services produced by NPIs (or output), less the cost of goods and services used up in their processes of production. While it is not separately identified in the core national accounts, this value added is already included in the national accounts and is termed NPI gross value added on a national accounts basis. In 2012-13, NPI gross value added on a national accounts basis was $54,796m, an increase of $22,240m (68%) in original terms on 2006-07. In real terms, that is, adjusted for inflation, NPI gross value added increased 42%.

When additions are made to NPI value added on a national accounts basis to include the non market-output of market producers and the imputed value of volunteer services, this is termed NPI value added on NPI satellite account basis. NPI value added was $79,193m in 2012-13 on this basis.

On a national accounts basis, education and research NPIs were the largest contributors to gross value added (30.9%), followed by social service NPIs (19.5%). These NPIs were also the largest contributors to gross value added in 2006-07.

NPI INCOME

NPIs received $107,480m worth of income in 2012-13. Market NPIs generated most of their income from service provision ($57,870m), while the main type of income for non-market NPIs was transfers and donations ($15,093m). Most of the income received by market and non-market NPIs was from government, $27,571m and $13,359m respectively, in 2012-13. In 2006-07, most market and non-market NPI income was received from households. For further information about the market/non-market distinction, refer to the glossary.

Education and research NPIs generated the largest share of income in both 2012-13 ($26,561m) and 2006-07 ($16,016m). Social service NPIs were the second largest contributor to total NPI income in 2012-13, generating $19,194m.

NPI USE OF INCOME

The main way in which market NPIs used their income was to pay for labour costs ($37,388m). This was also the main expense for non-market NPIs ($14,301m). The second largest expense for both market and non-market NPIs was purchases of goods and services, $23,974m and $12,842m respectively.


NPI EMPLOYMENT

NPIs employed 1,081,900 persons in 2012-13. The majority of these employees were full time employees (413,100 persons). Market NPIs employed 742,500 persons, whilst non-market NPIs employed 339,400 persons. Social services NPIs employed the most people (296,900), followed by education and research NPIs (276,300).

NPI VOLUNTEERING

A volunteer is someone who willingly gives unpaid help in the form of time, service or skills, through an organisation or group. Almost 3.9 million Australians aged 18 and over volunteered for NPIs in 2012-13. The most people volunteered for culture and recreation NPIs (2 million), followed by social services NPIs (1.4 million).

In 2012-13, 521 million hours were volunteered to NPIs, equating to 265,600 full time equivalents. The majority of hours were volunteered for culture and recreation NPIs (163 million hours), and social services NPIs (159 million hours). Females volunteered 274.3 million hours or 140,500 full-time equivalent persons compared to 246.1 million hours or 125,000 full-time equivalent persons for males.

The number of hours volunteered in NPIs and average hourly ordinary time earnings in selected occupations have been used to impute the value of volunteer services in NPIs. Further information about the calculation of volunteer services is detailed in Appendix 6. In 2012-13, the imputed value of volunteer services was $17,323m.