Definition: Private non-profit sector

Category: Frascati Manual

The private non-profit sector covers non-market, private non-profit institutions serving households (i.e. the general public), such as professional or learned societies, charities, relief or indulgencies, trades unions, consumers' associations, etc., plus any funds contributed directly to R&D by households. By convention, this sector also covers the residual R&D activities of the general public (households). R&D performed by individuals exclusively on their own time and with their own facilities and at their own expense or supported by an uneconomic grant.

The following types of private non-profit organisations should be excluded from this sector:

- those mainly rendering services to enterprises;
- those that primarily serve government;
- those entirely or mainly financed and controlled by government;
- those offering higher education services or controlled by institutes of higher education.