The role of private non-profit organisations in modern economic systems is poorly understood. The tax and subsidy treatment of non-profits relative to private firms affects the competitive position of each, and thus their relative strength within any industry; in the United States, for example, non-profit organisations play major competitive roles in such industries as hospitals, nursing homes, day care centres, schools and arts organisations.

This paper reports results from a survey of tax policies toward nonprofit organisations in eleven countries. The major findings are: (1) the definition and scope of such organisations varies considerably; (2) non-profit organisations are typically regulated by the tax collection agency, but in some countries there is also involvement from the government agency responsible for the particular realm of activity, such as health or education; (3) tax subsidies to non-profits take many forms — not only exemption from corporate profits tax but, depending on the country, for land, buildings, mail and motor vehicles; (4) almost every country limits non-profit organisations’ ‘unrelated’ business activities; and (5) donors are generally permitted to deduct donations of money from taxable income, although there are typically both minimum and maximum limits. These findings point up the larger task of understanding why such differences exist across countries, and what are the effects.

This paper examines the long-term grassroots empowerment strategies endorsed by non-governmental development organisations (NGDOs) in Lima, Peru and their application in concrete development programmes. An examination of NGDO literature and projects permits the synthesis of three ideal-typical empowerment strategies (Neo-Marxist, Neo-Anarchist, Coalition-Building). These strategies are described and compared, especially with respect to their diverging conceptions on processes of ‘bottom-up’ development, the characterisation of grassroots mobilisation and the role of the state and political parties. These differences, however, tend to be compromised once actual advocacy work with the grassroots is contemplated, when development projects have to deal with the micro-mobilisation patterns of the poor and the political conjuncture. Several interpretations of the contradiction between ideal-typical strategies and actual advocacy tactics are discussed, concluding that such contradictions are inherent to any political process based on grassroots empowerment and a ‘bottom-up’ agenda.

This paper explores the differing approaches and objectives of Japanese and American philanthropy, as well as aspects of corporate giving and corporate citizenship. The historic roles of philanthropy, and the scope and purposes of the non-profit sector in both countries are examined, as is the concept of corporate good citizenship and the tendency towards giving by individuals and corporations. In addition, the paper examines the differing tax treatments, such as deductibility of charitable gifts, tax exemption of organisations, and relation of exempt entities to government, that logically follow from the two approaches, including changes in law and regulation through to the end of 1990. Although written by an American, this paper is not intended to present American-style philanthropy as a model for any others. Rather, it is intended to provide useful information for comparative study and to express the hope that Japan will bring a fresh approach to philanthropy around the world that goes beyond giving to traditional American causes and purposes and beyond giving solely as an export product used as a means of easing trade and investment friction.

The paper describes how the non-profit sector in East Germany has passed through several distinct phases in recent years. It shows how the role of the non-profit sector under the system of party dominance and centralised economic and social planning signified a major contradiction of East German society: the artificial under-development of civic society in eastern Europe's most successful economy. During the first phase of the transition period in late 1989, the expression and manifestation of political views was predominant. With the disintegration of the socialist party-state, the needs for social service provision increased. West German organisations have increasingly become the dominant factor in East German non-profit sector affairs. The paper argues that the East German non-profit sector will emerge as a slightly poorer and more secular version of its West German counterpart.

This paper explores the roles that the public and private non-profit sector can play in the economic reform process in the Soviet Union. Using a taxonomy based on earlier work on the economic theory of the non-profit sector, it specifies which types of institution might be appropriate for doing so. It does so in a way that broadens the neo-classical economic model and puts it in perspective.

The paper does two other things as well. By specifying elements of the economic system and its political and social environment, it reduces the chances that economists will inadvertently leave something out in analysing the reform process. Also, by attempting to specify the goals of the leaders (and to some extent the public) of the country involved, it leads to policy prescriptions that are more realistic and feasible.