The non -profit institutions represent a basic pillar in the modern economy system, as their role exceeds the limits of traditional charitable work to include tangible contributions to gross domestic product, generating job opportunities, promoting social innovation, and filling gaps in services that may not be covered by the public or private sector.
A study issued by the Johns Hopkins Center for Community Studies indicates that the contribution of the non -profit sector ranges between 5% and 10% of the gross domestic product in many developed countries.
In the United States, for example, the number of employees in non -profit institutions reached about 12.5 million employees until 2023, equivalent to 10% of the total workforce, making this sector the third largest operator in the country after the retail and industry sectors.
As for financially, non -profit institutions have contributed more than $ 1.5 trillion in the national economy during the year 2022, according to the data of the American Economic Analysis Office (Bea). In the European context, the number of non -profitable institutions exceeds 2.8 million organizations, contributing to more than 7% of the European Union’s gross domestic product.
In the Arab world, the features of this economic impact are clearly crystallized, especially with the growing trend towards governance and sustainability within the non -profit sector.
In the Kingdom of Saudi Arabia, a report issued by the National Center for the Development of Non -Sector stated that the economic value of the sector exceeded 17 billion Saudi riyals in 2022, with more than 3,400 non -profit organizations, while the Kingdom’s 2030 vision seeks to raise the number of volunteers to one million volunteers annually, which contributes to enhancing the non -oil GDP.
It should be noted that volunteer work is one of the most prominent tributaries of the informal economy, as the United Nations appreciates the global economic value of volunteerism at more than $ 400 billion annually.
In light of the above, it is evident that non -profit institutions are a real economic actor, and not just a mechanism to provide assistance. Investing in developing these institutions, and providing a supportive organizational and financial environment, represents a strategic step towards achieving comprehensive and sustainable development in the long run.
Policy makers in the Arab countries and the world should support non -profit institutions not only as a complement to the role of the state, but as a strategic partner in advancing the economy and achieving the national goals of sustainable development.
This requires strengthening the legal and financial framework that organizes the work of these institutions, facilitating financing and social investment procedures, and building effective partnerships between the public and private sectors and the third sector.
The investment in building institutional capabilities and open data will contribute to raising the efficiency of performance and maximizing the economic and social impact of these bodies, which reflects positively on the well -being and stability of societies.