Voluntary sector

Economic sectors
Three-sector hypothesis
Colin Clark
Jean Fourastié
Primary sector (raw materials)
Secondary sector (manufacturing)
Tertiary sector (services)
Others suggested
Quaternary sector
Quinary sector
By ownership
Public sector
Private sector
Business sector
Voluntary sector

The voluntary sector or community sector (also non-profit sector) is the sphere of social activity undertaken by organizations that are for non-profit^[1] 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.

Contents 1 Definition 1.1 Country-specific definitions 1.1.1 France 1.1.2 Japan 1.1.3 United Kingdom 1.1.4 India 2 Significance to society and the economy 3 Problems with definitions 4 Concerns 5 See also 6 References

[edit] Definition

[edit] Country-specific definitions

[edit] France

Discourse on the "third sector" began in the 1970s in France as a result of the crisis in the welfare state.^[2]

[edit] Japan

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

[edit] 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."^[3]

[edit] India

In India 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.

[edit] 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.^[4] 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.^[5] Peter Drucker suggests that the nonprofit sector provides an excellent outlet for a variety of society's labor and skills.^[6]

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.^[7] 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.^[8] In Ireland the non-profit sector accounts for 8.8% of GDP.^[9] In Sweden, the nonprofit sector is attributed with fostering a nationwide social change towards progressive economic, social and cultural policies^[10], while in Italy the third sector is increasingly viewed as a primary employment source for the entire country.^[11]

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.^[12]

[edit] 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.^[13]. 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.

[edit] Concerns

There have been long-ranging arguments regarding the financial accountability of the nonprofit sector throughout Western society.^[14] 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.^[15] 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 Washington consensus^[16].

[edit] See also

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

Examples:

• Association of Chief Executives of Voluntary Organisations
• National Council for Voluntary Organisations
• Northern Ireland Council for Voluntary Action
• Scottish Council for Voluntary Organisations
• Wales Council for Voluntary Action
• 4x4 Response

[edit] References