Significance of the global association revolution
The global association resolution was quite significant. Prior to the revolution, nonprofit making organizations were not so common ad the few that existed had to fight for their survival. Institutions that operated were closely linked to either the government or the market. There was need to developed institutions that will operate outside the confines of the market and the state.
Independent organizations that developed questioned the wide spread crisis of the state which had been going on in various countries for quite a long period. Environmental degradation, socialism, human health and safety were also issues that the institutions were to fight against in a bid to make human life better and bearable. Apart from inspiring support for market-oriented economic policies, the state questioning was to ensure that the state delivered the best to its subjects.
The nonprofit organizations have also assisted the government to handle social welfare, environmental and development problems that were threatening upcoming nations. Questioning the effectiveness and benefits that the contemporary society would reap from the neo-liberal consensus is something that helped to better lives by making Britain to reconsider an economic policy that had confronted the people. Due to pressure from the organizations, political leaders decided to look for actual ways of coalescing virtues of the market with the gains of broader social fortifications. It ended the idea of a “market society” and instead developed the concept of “market economy”.
With their improved ease of interacting with citizens at the grassroots level and flexibility, the organizations have ideally been able to protect human rights. Community advancement is its major business.
The independent institutions that developed helped in capacity building. They have partially achieved this by providing resources and training and in some cases employ members from the communities. Through civil society strengthening, partnership and organizational development, the organizations have greatly transformed the contemporary society.
Salamon et al (2003) identifies Project funding, program funding and core financing as the major patterns of sourcing for income for voluntary organizations.
In Canada the most common form of voluntary sector financing is project funding. Institutional donor agencies offer financial support to voluntary organization to support specific projects. Well-wishers also understand the important role played by the voluntary sector and most of the times, the assist fund the sector for the benefit of the majority.
Funding partners also provide funds to the voluntary sector. In Canada, a strong working relationship exists between the voluntary sector and financiers who give grants based on programme themes. Various sectors of the Canadian economy are trying to establish a close working relationship with the voluntary sector to ensure that the sector does not fail to meet its objects due to financial constraints.
The Canadian government offers grants which are relatively reliable and at most times are used to finance the core operations of the voluntary sector. Revenue from government accounts for 49% of aggregate revenues reported by the Canadian voluntary sector. Apart from this the sector also sources for its own income from within itself to ensure that it will not collapse once the external funding is withdrawn.
The funding of the voluntary sector ensures that the sector’s life is perpetual. The funding of the sector helps boost the Canadian economy since through the sector national wealth is distributed. The national budget will have to be stretched a bit in order to meet the extra cost of upholding the sector. However, the sector also contributes to economic growth and social stability. It employs close to 1.3 million people.
The private sector generates income that contributes to the general well-being of the economy. With a broad voluntary sector, the government also reaps from it. More than 30% of the total income generated by the voluntary sector also goes back to supporting community capacity building activities. The resultant effect is a general improvement in the economy.