Voluntary sector
Encyclopedia
The voluntary sector or community sector (also non-profit sector) is the sphere of social activity undertaken by organization
s that are for non-profit and non-governmental
. This sector is also called the third sector, in reference to the public sector
and the private sector
. Civic sector is another term for the sector, emphasizing the sector's relationship to civil society
.
.
since the 1980s, the refers to joint corporation
s invested both by the public sector
and private sector
.
of the British government until 2010 had an Office of the Third Sector that defined the "third sector" as "the place between State and (the) private sector." The Conservative/Liberal Democratic Government renamed the department the Office for Civil Society. The term third sector has now been replaced in Government usage by the term Civil Society or more usually the term Big Society
, which was devised by political advisers and which featured prominently in the Conservative Party's 2010 election campaign.
this sector is commonly called the "joint sector", and includes the industries run in partnership by the state and Private Sector
. In a wider sense the initial investment is made by the state and later the handling is done by the private sector. But here the private sector is responsible to the state when it comes to handling.
this sector is commonly called the "Third Sector", ( in ) and generally refers to non-profit organizations (NPO's) and non-governmental organizations (NGO's) with the line between the two quite fine. These organizations generally fill a gap in the existing government or municipal service provision. Examples include United Hatzalah for emergency medical first response, Yad Sarah
for free loan of medical equipment and Akim for assistance the mentally handicapped.
, education
and other unmet needs throughout society, the nonprofit sector is increasingly central to the health and well-being of society. Peter Drucker
suggests that the nonprofit sector provides an excellent outlet for a variety of society's labor and skills.
In 1976, Daniel Bell
predicted that the third sector would become the predominant sector in society, as the knowledge class overcame the effects of the private sector. This presently holds true in a number of European countries. According to a recent study by Johns Hopkins University
, the Netherlands
has the largest third sector of 20 countries across Europe
. In Ireland
the non-profit sector accounts for 8.8% of GDP. In Sweden
, the nonprofit sector is attributed with fostering a nationwide social change
towards progressive economic, social and cultural policies, while in Italy
the third sector is increasingly viewed as a primary employment source for the entire country.
In the United States approximately 10% of GDP is attributable to the third sector. Donating to private religious organizations remains the most popular American cause, and all religious organizations are entirely privately funded because the government is limited from establishing or prohibiting a religion under the First Amendment
.
. There is also ongoing concern whether the nonprofit sector will unequally draw retiring workers from the private sector
as the currently large Baby Boomers
age. Development of the third sector, it is argued, is linked to restructuring of the welfare state
and further globalization of that process through neo-liberal strategies of the Washington consensus
.
Examples:
Organization
An organization is a social group which distributes tasks for a collective goal. The word itself is derived from the Greek word organon, itself derived from the better-known word ergon - as we know `organ` - and it means a compartment for a particular job.There are a variety of legal types of...
s that are for non-profit and non-governmental
Non-governmental organization
A non-governmental organization is a legally constituted organization created by natural or legal persons that operates independently from any government. The term originated from the United Nations , and is normally used to refer to organizations that do not form part of the government and are...
. This sector is also called the third sector, in reference to the public sector
Public sector
The public sector, sometimes referred to as the state sector, is a part of the state that deals with either the production, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal.Examples of public sector activity range...
and the private sector
Private sector
In economics, the private sector is that part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state...
. Civic sector is another term for the sector, emphasizing the sector's relationship to civil society
Civil society
Civil society is composed of the totality of many voluntary social relationships, civic and social organizations, and institutions that form the basis of a functioning society, as distinct from the force-backed structures of a state , the commercial institutions of the market, and private criminal...
.
France
Discourse on the "third sector" began in the 1970s in France as a result of the crisis in the welfare stateWelfare state
A welfare state is a "concept of government in which the state plays a key role in the protection and promotion of the economic and social well-being of its citizens. It is based on the principles of equality of opportunity, equitable distribution of wealth, and public responsibility for those...
.
Japan
In JapanJapan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
since the 1980s, the refers to joint corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
s invested both by the public sector
Public sector
The public sector, sometimes referred to as the state sector, is a part of the state that deals with either the production, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal.Examples of public sector activity range...
and private sector
Private sector
In economics, the private sector is that part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state...
.
United Kingdom
The Cabinet OfficeCabinet Office
The Cabinet Office is a department of the Government of the United Kingdom responsible for supporting the Prime Minister and Cabinet of the United Kingdom....
of the British government until 2010 had an Office of the Third Sector that defined the "third sector" as "the place between State and (the) private sector." The Conservative/Liberal Democratic Government renamed the department the Office for Civil Society. The term third sector has now been replaced in Government usage by the term Civil Society or more usually the term Big Society
Big Society
The Big Society was the flagship policy idea of the 2010 UK Conservative Party general election manifesto. It now forms part of the legislative programme of the Conservative – Liberal Democrat Coalition Agreement. The aim is "to create a climate that empowers local people and communities, building...
, which was devised by political advisers and which featured prominently in the Conservative Party's 2010 election campaign.
India
In IndiaIndia
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
this sector is commonly called the "joint sector", and includes the industries run in partnership by the state and Private Sector
Private sector
In economics, the private sector is that part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state...
. In a wider sense the initial investment is made by the state and later the handling is done by the private sector. But here the private sector is responsible to the state when it comes to handling.
Israel
In IsraelIsrael
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
this sector is commonly called the "Third Sector", ( in ) and generally refers to non-profit organizations (NPO's) and non-governmental organizations (NGO's) with the line between the two quite fine. These organizations generally fill a gap in the existing government or municipal service provision. Examples include United Hatzalah for emergency medical first response, Yad Sarah
Yad Sarah
Yad Sarah is currently the largest Israeli national volunteer organization, aiding disabled, elderly and housebound people and aimed at making home care possible...
for free loan of medical equipment and Akim for assistance the mentally handicapped.
Significance to society and the economy
The presence of a large non-profit sector is sometimes seen as an indicator of a healthy economy in local and national financial measurements. With a growing number of non-profit organizations focused on social services, the environmentEnvironmentalism
Environmentalism is a broad philosophy, ideology and social movement regarding concerns for environmental conservation and improvement of the health of the environment, particularly as the measure for this health seeks to incorporate the concerns of non-human elements...
, education
Education
Education in its broadest, general sense is the means through which the aims and habits of a group of people lives on from one generation to the next. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts...
and other unmet needs throughout society, the nonprofit sector is increasingly central to the health and well-being of society. Peter Drucker
Peter Drucker
Peter Ferdinand Drucker was an influential writer, management consultant, and self-described “social ecologist.”-Introduction:...
suggests that the nonprofit sector provides an excellent outlet for a variety of society's labor and skills.
In 1976, Daniel Bell
Daniel Bell
Daniel Bell was an American sociologist, writer, editor, and professor emeritus at Harvard University, best known for his seminal contributions to the study of post-industrialism...
predicted that the third sector would become the predominant sector in society, as the knowledge class overcame the effects of the private sector. This presently holds true in a number of European countries. According to a recent study by Johns Hopkins University
Johns Hopkins University
The Johns Hopkins University, commonly referred to as Johns Hopkins, JHU, or simply Hopkins, is a private research university based in Baltimore, Maryland, United States...
, the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
has the largest third sector of 20 countries across Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
. In Ireland
Ireland
Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...
the non-profit sector accounts for 8.8% of GDP. In Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
, the nonprofit sector is attributed with fostering a nationwide social change
Social change
Social change refers to an alteration in the social order of a society. It may refer to the notion of social progress or sociocultural evolution, the philosophical idea that society moves forward by dialectical or evolutionary means. It may refer to a paradigmatic change in the socio-economic...
towards progressive economic, social and cultural policies, while in Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
the third sector is increasingly viewed as a primary employment source for the entire country.
In the United States approximately 10% of GDP is attributable to the third sector. Donating to private religious organizations remains the most popular American cause, and all religious organizations are entirely privately funded because the government is limited from establishing or prohibiting a religion under the First Amendment
First Amendment to the United States Constitution
The First Amendment to the United States Constitution is part of the Bill of Rights. The amendment prohibits the making of any law respecting an establishment of religion, impeding the free exercise of religion, abridging the freedom of speech, infringing on the freedom of the press, interfering...
.
Problems with definitions
There are considerable problems with terminology, however. Although the voluntary, community and not-for-personal profit sectors are frequently taken to comprise the "Third Sector" each of these sectors or sub-sectors have quite different characteristics. The community sector is assumed to comprise volunteers (unpaid) whilst the voluntary sector are considered (confusingly) to employ staff working for a social or community purpose. In addition however, the not-for-personal-profit sector is also considered to include social firms (such as cooperatives and mutuals) and more recently governmental institutions (such as Housing Associations) that have been spun off from government, although still operating fundamentally as public service delivery organisations. These other types of institutions may be considered to be quasi-private or quasi-public sector rather than stemming from direct community benefit motivations.Concerns
There have been long-ranging arguments regarding the financial accountability of the nonprofit sector throughout Western societyWestern culture
Western culture, sometimes equated with Western civilization or European civilization, refers to cultures of European origin and is used very broadly to refer to a heritage of social norms, ethical values, traditional customs, religious beliefs, political systems, and specific artifacts and...
. There is also ongoing concern whether the nonprofit sector will unequally draw retiring workers from the private sector
Private sector
In economics, the private sector is that part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state...
as the currently large Baby Boomers
Post-World War II baby boom
The end of World War II brought a baby boom to many countries, especially Western ones. There is some disagreement as to the precise beginning and ending dates of the post-war baby boom, but it is most often agreed to begin in the years immediately after the war, ending more than a decade later;...
age. Development of the third sector, it is argued, is linked to restructuring of the welfare state
Welfare state
A welfare state is a "concept of government in which the state plays a key role in the protection and promotion of the economic and social well-being of its citizens. It is based on the principles of equality of opportunity, equitable distribution of wealth, and public responsibility for those...
and further globalization of that process through neo-liberal strategies of the Washington consensus
Washington Consensus
The term Washington Consensus was coined in 1989 by the economist John Williamson to describe a set of ten relatively specific economic policy prescriptions that he considered constituted the "standard" reform package promoted for crisis-wracked developing countries...
.
See also
- Advocacy groupAdvocacy groupAdvocacy groups use various forms of advocacy to influence public opinion and/or policy; they have played and continue to play an important part in the development of political and social systems...
- Foundation (nonprofit organization)
- International organizationInternational organizationAn intergovernmental organization, sometimes rendered as an international governmental organization and both abbreviated as IGO, is an organization composed primarily of sovereign states , or of other intergovernmental organizations...
- Mission-based organizationMission-based organizationMission-based organization is often used as an alternative to terms such as non-profit and non-governmental organization.Mission-based organizations range from formally incorporated foundations and philanthropic agencies to informal neighborhood groups that undertake an ad hoc project.They may be...
- PhilanthropyPhilanthropyPhilanthropy etymologically means "the love of humanity"—love in the sense of caring for, nourishing, developing, or enhancing; humanity in the sense of "what it is to be human," or "human potential." In modern practical terms, it is "private initiatives for public good, focusing on quality of...
- Social economySocial economySocial economy refers to a third sector in economies between the private sector and business or, the public sector and government. It includes organisations such as cooperatives, non-governmental organisations and charities....
- Social entrepreneurshipSocial entrepreneurshipSocial entrepreneurship is the work of social entrepreneurs. A social entrepreneur recognizes a social problem and uses entrepreneurial principles to organize, create and manage a venture to achieve social change . While a business entrepreneur typically measures performance in profit and return, a...
- Volunteer
- Volunteerism
Examples:
- Association of Chief Executives of Voluntary OrganisationsAcevoACEVO is a membership body for the leaders of third sector organisations in England and Wales. ACEVO has sister organisations in Scotland and Northern Ireland ....
- Community Sector CoalitionCommunity Sector CoalitionCommunity Sector Coalition new article content ...Community Sector Coalition is a network of national community organisations working with communities in the UK...
- National Council for Voluntary OrganisationsNational Council for Voluntary OrganisationsThe National Council for Voluntary Organisations is the umbrella body for the voluntary and community sector in England. NCVO works to support the voluntary and community sector and to create an environment in which an independent civil society can flourish...
- Northern Ireland Council for Voluntary ActionNorthern Ireland Council for Voluntary ActionNorthern Ireland Council for Voluntary Action is the national infrastructure body for the voluntary and community sector in Northern Ireland. NICVA also hosts and manages several websites for Northern Ireland's voluntary and community sector online.-History:...
- Scottish Council for Voluntary Organisations
- Wales Council for Voluntary ActionWales Council for Voluntary Actionis the national membership organisation for the Third Sector and volunteering in Wales. It aims to make Wales a better place by championing volunteering, voluntary organisations and community groups....
- The Citizens Advice service
- 4x4 Response4x4 Response4x4 Response is the UK based national organisation using 4x4 vehicles to offer support in adverse conditions, working with Voluntary Organisations and Emergency Services.-History:...