GDP is made up of several components, including private consumption. This includes both household consumption and consumption by Non-Profit Institutions Serving Families – ISFLSF. Academically, it is not usual to pay special attention to the latter, given its low relative importance – in the last 23 years, it has not exceeded 2% of GDP. However, this should not be a reason to neglect these institutions, as they play a relevant role in the economy, especially in the social economy.
It is important to note that the economic contribution of NPISHs is certainly higher than the calculated value. Its main function, non-market production, is accounted for only by production costs, namely, salary charges and costs with the acquisition of goods and services. Therefore, as it is not possible to determine the added value of non-market production and the value of voluntary work, which is very common in these institutions, the economic value of NPISHs is underestimated.
Most are familiar with the term IPSS (Private Social Solidarity Institution), and these are part of the ISFLSF. As of February this year, 4627 IPSS were registered across the continent. IPSS take different legal forms: Associations, Foundations, Institutes of Religious Organization, Parish Social Centers and Misericórdias, operating in different areas.
Namely, the Food Bank, which despite being widely recognized for the national collection and distribution of food products through more than 2500 IPSS who deliver them to people in need, also has in practice a project called “Horta Solidária” which consists of the production of agricultural products in prison establishments. Another example will be REFOOD, which fights against food waste and contributes to the circular economy, registering 6800 beneficiaries and 150 kg of meals per month, with the voluntary work of 7500 people and 2500 partners.
The Santas Casas da Misericórdia support around 165 thousand people daily through their 388 active Misericórdias, with social support and health care as their main areas of action. It should be noted that Santa Casa da Misericórdia de Lisboa is not considered an ISFLSF like the others, but rather a Non-Profit Institution of Public Administration.
In a similar way, Parish Social Centers provide various social responses, from daycare centers, home support services, homes, ATLs, day centers, among others. There are at least 450 Parish Social Centers on the continent. Proving its impact, the Centro Social Paroquial do Amial supports more than 220 people daily in its various social services.
Housing poverty is also combated, taking as an example the “Just a Change” Association, which rehabilitates homes for those in need as an alternative solution to rehousing or the creation of social neighborhoods, relying, above all, on university volunteering. It has more than 450 interventions, of which around 350 to family homes and 100 to social institutions, benefiting more than 15,250 people and impacting more than 30 municipalities.
IPSS also operates in the area of education, not only through daycare centers, but also through educational programs aimed at students and teachers, as is the case with Associação Tempos Brilhantes. It implements educational projects in more than 60 municipalities and 120 school groups, with more than 150 thousand beneficiaries nationwide.
However, all these institutions face difficulties in guaranteeing their financial sustainability, since the sources of financing, and particularly private donations, are highly unpredictable and fluctuating. In the case of IPSS, through the cooperation agreement with Social Security, they are guaranteed a financial contribution per user/month. Despite greater security regarding financing, the amount does not necessarily guarantee the financial sustainability of the institution.
At a time when the deteriorating living conditions of families in housing credit and purchasing power are revealed, as well as the greater risk of social isolation, these institutions play a central role in supporting the population. However, it is essential to recognize that these institutions need financing, and contributions from any economic agent, private or public, are essential to guarantee their existence.
It is important to note that the economic contribution of NPISHs is certainly higher than the calculated value.
Source: www.jornaldenegocios.pt
