Nonprofit sector
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The voluntary sector (also non-profit sector) is the sphere of social activity undertaken by organizations that are non-profit¹ 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.

Definition

What constitutes the voluntary sector may be interpreted widely or narrowly, and may include such diverse groups as advocacy/interest groups, think tanks, social movements, political parties, charitable organizations, volunteer community organisations, and religious organizations. The voluntary sector may be said to comprise organizations with a social purpose, although usually not including those with a primary focus on social enterprise or social entrepreneurship activities.

Country-specific definitions

Japan

In Japan since the 1980s, the third sector (Japanese: 第三セクター, romanized daisan sekutā) refers to joint corporations invested both by the public sector and private sector.

United Kingdom

The Cabinet Office of the British government has an Office of the Third Sector that defines the "third sector" as "the place between State and (the) private sector."²

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.³ With a growing number of non-profit organizations focused on social services, the environment, education and other unmet needs throughout society, the nonprofit sector is increasingly central to the health and well-being of society.⁴ Expert Peter Drucker suggests that the nonprofit sector provides an excellent outlet for a variety of society's labor and skills. ⁵

In 1976, Daniel Bell predicted the third sector becoming the predominate sector in society, as the knowledge class overcame the effects of the private sector.⁶ 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.⁷ In Ireland the non-profit sector accounts for 8.8% of GDP. ⁸ In Sweden, the nonprofit sector is attributed with fostering a nationwide social change towards progressive economic, social and cultural policies⁹, while in Italy the third sector is increasingly viewed as a primary employment source for the entire country.¹⁰

Concerns

There have been long-ranging arguments regarding the financial accountability of the nonprofit sector throughout Western society.¹¹ 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.¹²

See also

• Advocacy group
• Mission-based organization
• Social economy
• International organization
• Philanthropy
• Foundation (nonprofit organization)

Examples

• National Council for Voluntary Organisations
• Northern Ireland Council for Voluntary Action
• Scottish Council for Voluntary Organisations
• Wales Council for Voluntary Action

References