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REFLECTIONS on the VOLUNTARY NONPROFIT SECTOR in ISRAEL an International Perspective

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REFLECTIONS on the VOLUNTARY NONPROFIT SECTOR in ISRAEL an International Perspective REFLECTIONS ON THE VOLUNTARY NONPROFIT SECTOR IN ISRAEL An International Perspective RALPH M. KRAMER, PH.D. Professor Emeritus, School of Social Welfare, University of California, Berkeley This article reflects 25 years of research on the voluntary nonprofit sector in Israel, the United States, and Europe. Although there has been an explosion of interest and research on this sector in recent years, there are still large gaps in the knowledge base. However, what we do know shatters the myth of the voluntary sector's supposed advantages in ser­ vice delivery of cost savings, efficiency, and high quality. It seems that it is more impor­ tant how a service is delivered than by whom it is delivered and that a diversity of types of service providers is preferable to a monopoly by one sector, either government or volun­ tary. his article marks the 25th year since my VNPOs in many countries, including Israel. Tfirst visit to Israel. It is therefore appropriate now to review the In 1968 I began my first research project evolution and current status of VNPOs, par­ outside the United States: a comparative ticularly in the personal social services, and analysis of community work in Israel and to look at Israel in this broader international the Netherlands. After that project I de­ context. cided to study for the first time in Israel a After first explaining the terminology group of 15 voluntary nonprofit organiza­ used in this article, I describe briefly several tions (VNPOs) serving the physically, men­ major trends affecfing VNPOs in North tally, and sensorially handicapped. Because America and Europe and three unique fea­ of my interest in the fixture of such organi­ tures of the VNP sector in Israel before zations in welfare states, I used Israel as a comparing it with its counterparts in other pilot study for the first cross-nafional com­ countries. The article concludes with impli­ parative study of VNPOs and included simi­ cations of these comparisons for the fiiture lar agencies in England, the Netherlands, of VNPOs in Israel, Europe and North and the United States. America. Shortly after the publication of a book based on this research, I returned to these DEFINITION OF TERMS 15 Israeli agencies in 1982 to study conti­ Because it is in between the state and the nuities and changes during a decade of tre­ market, the VNP sector is increasingly mendous upheavals in Israeli society. My called the third sector. Essentially, it is a last interviews with their executive directors short-hand term referring to a collecfion of occurred in 1988, before I launched an up­ many diSerent types of organizations found date of a 1975 study in England and the in all countries that have these five charac­ Netherlands and also an examination of teristics: similar agencies in Norway and Italy as part of a recently completed book. 1. They have a formal structure. In the intervening years, there has been 2. They are legally independent and self- an explosion of interest and research on governing. Presented as the Arnulf M. Pins Memorial 3. They do not distribute profits. Lecture, Paul Baerwald School of Social 4. They have some degree of voluntarism, Work, The Hebrew University, Jerusalem, at least in governance, if not in service February 21, 1993. provision. 253 Journal of Jewish Communal Service / 254 5. They are expected to produce a pubhc fessional staff for the delivery of a public benefit. service. Given the broad scope and diversity of In addition, most VNPOs share two func­ VNPOs, does it make sense to speak of a tions: service provision and advocacy. In sector? Is it more than a rhetorical device the latter capacity, they operate as interest or a statistical artifact? The concept of a groups for a cause or a constituency, seek­ third sector may be useful if we remember ing social change and to influence public that it is an abstraction—a convenient sum­ policy. In Israel, as in the Uruted States mary expression—a "guiding metaphor" and the United Kingdom, these fimctions that has implications for social policy. This are usually combined in the same organiza­ is because decisions have to be made re­ tion, in contrast to Europe where they are garding not only who should receive what usually promoted by two different types of pubhc services but also who should finance organizations. and deliver them. Such organizations are typically found in the fields of health care, educadon, social BACKGROUND welfare, culture and the arts, and the envi­ Since the mid-1970s there has been an up­ ronment. Types of organizations in the surge of public interest in North America VNP sector include self-help groups and and Europe in the role of voluntary non­ foundations; civic, religious, political, pro­ profit organizations (VNPOs) as an alterna­ fessional, and trade associadons, as well as tive to government in the provision of pub­ unions. Some examples of VNPOs in Israel lic services. Even in Eastern Europe with are the 18,000 amutot, voluntary tax-ex­ the dismantiing of former Communist re­ empt associations registered with the gov- gimes, there is mounting interest in VNPOs errunent, including about 400 major as a new form of service provider—in be­ VNPOs, many of which comprise the mem­ tween capitalism and socialism—and as a bership of the Migzar Hahitnadvut force for social change, particularly in Po­ Ve 'hamalcarim, the voluntary sector in Is­ land, Hungary, Czechoslovakia, and East rael. VNPOs include such organizations as Germany. In the European cortunuruty, Akim, Yad Sarah, Enosh, and Matav, as there are now many cross-national federa­ well as Wizo, Na'amat, ORT, and Magen tions of voluntary organizations, in addition David Adom. Some would add the large to a proposal to organize a counterpart of public organizations, such as the Jewish the Independent Sector in the United Agency, Hadassah, and Sh'aare Zedek Hos­ States—a membership organization of na­ pitals, and the universities, which are at tional nonprofit social welfare agencies— least nominally malcarim. and plans to "harmonize" the various na­ Despite their great diversity, most tional laws pertaining to VNPOs. VNPOs have the hybrid character of both a Although the relationship between the voluntary association and a service bureau­ state and voluntary associations is deeply cracy. They also have some of the features rooted in history and in political theory, of both governmental and for-profit enter­ there has probably been more public discus­ prises, although they are not part of govern­ sion and research on the role of the volun­ ment, nor do they operate for profit. Al­ tary organizations and the third sector since though there is still no agreement on defini­ the 1970s—when the concept was first in­ tions or classifications among voluntary or- troduced—than in the previous 50 years. gaiuzations, it is possible to make a rough For example, it is estimated that there are distinction between associations and agen­ now over 200 researchers in 40 different cies, depending on the role of the member­ countries, including at least 9 in Israel, who ship and the employment of paid and pro­ are studying this sector. Within the last 5 SUMMER 1994 Voluntary Nonprofit Sector in Israel / 255 years, more than a dozen scholarly books complementary services that are different in have been published, and 20 research cen­ kind. ters have been established in the United In Israel, the first, and still the only States and several in Europe. A new inter­ study of its third sector, was published in disciplinary field in the social sciences has 1985, and it estimated that VNP expendi­ emerged with its own scholarly journals and tures represented almost 8% ofthe gross na­ international conferences. tional product, which was twice its com­ parative size in the United States and the MAJOR TRENDS AFFECTING VNPOS Uitited Kingdom. Over half ofthe social services were provided by VNPOs, maiitiy At the same time there has been a conver­ in health and education, where their em­ gence of three related trends, an increase in ployees constituted 40% of the national la­ the number and type of VNPOs; greater uti- bor force. lizafion of them by government to deliver What accounts for all this activity? Re­ public services, leading to their mutual de­ lated developments in ideology and in social pendency; and a fading of the boundaries policy help explain this increased use of between the public and private sectors. VNPOs by government, both of which are a response to the crisis of the welfare state of Increase in the Number and Type of VNPOs the 1970s, mainly its costliness and rigidi­ Although VNPOs had grown up alongside ties. the post-war welfare states, there was a From the ideological perspective of halt­ takeoff in this sector in the 1980s, with a re­ ing the expansion of the welfare state, there markable growth of all types of third sector has been a rediscovery by both the Right organizations, including self-help groups and the Left of the importance ofthe civil and family and corporate philanthropic society and of the special role of VNPOs as foundations. There was also an increased intermediary organizations, acting as use of volunteers in both VNPOs and gov­ countervailing forces to the power ofthe ernmental organizations. The 1980s have state over the individual in a democracy. been called a "Golden Age" for voluntarism This special role accounts for the absence of because this expansion occurred not only in independent voluntary orgaiuzations in to­ the United States and Britain but also in talitarian countries and the critical impor­ countries differing widely in the scope of tance of their role in countries with very their welfare states and political culture, strong central governments, such as France such as France, Italy, Norway, and Israel.
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