Voluntary sector

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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
Voluntary sector

The voluntary sector (also non-profit sector) is the economic sector consisting of organizations that are non-profit[1] and non-governmental. This sector is also called the third sector, in reference to it as the space between the public sector and the private sector. Civic sector is another term for the sector, emphasizing the sector's relationship to civil society.

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 organizations, 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.

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

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." [1]

The presence of a large non-profit sector is sometimes seen as an indicator of a healthy economy in local and national financial measurements.[2] 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.[3] Expert Peter Drucker suggests that the nonprofit sector provides an excellent outlet for a variety of society's labor and skills. [4]

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.[5] 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.[6] In Ireland the Non Profit sector accounts for 8.8% of GDP. [7] In Sweden, the nonprofit sector is attributed with fostering a nationwide social change towards progressive economic, social and cultural policies[8], while in Italy the third sector is increasingly viewed as a primary employment source for the entire country.[9]

There have been long-ranging arguments regarding the financial accountability of the nonprofit sector throughout Western society.[10] 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.[11]

See also: Advocacy group, Alternative society, Mission-based organization, Social economy, International organization, Philanthropy, and Foundation (nonprofit organization)
See also: National Council for Voluntary Organisations, Northern Ireland Council for Voluntary Action, Scottish Council for Voluntary Organisations, and Wales Council for Voluntary Action

[edit] References

  1. ^ PotÀuček, M. (1999) Not Only the Market: The Role of the Market, Government, and the Civic Sector. Central European University Press. p.34.
  2. ^ Verdier, D. (2002) Moving Money: Banking and Finance in the Industrialized World. Cambridge University Press. p. 145.
  3. ^ (2007) "Laban: Volunteering Canterbury - 2007 Awards", 6/20/07. Retrieved 6/26/07.
  4. ^ (2007) "Drucker Wisdom: Leadership and the CEO." The Blake Project. 6/26/07. Retrieved 6/26/07.
  5. ^ Bell, D. (1976) The Coming of Post-Industrial Society: a venture in social forecasting. Basic Books. p. 147.
  6. ^ Evers, A. and Laville, J. (2004) The Third Sector in Europe. Edward Elgar Publishing. p. 150.
  7. ^ Building a caring civil society in Ireland: http://www.2into3.com
  8. ^ Muffels, J. (2001) Solidarity in Health and Social Care in Europe. Springer. p. 90.
  9. ^ Antonelli, G. and De Liso, N. (2004) European Economic Integration and Italian Labour Policies. Ashgate Publishing, Ltd. p. 228.
  10. ^ Gettler, L. (2007) "Non-profits can be more accountable," The Age. 5/31/07. Retrieved 6/25/07.
  11. ^ The Conference Board. (2007) "Non-Profit Firms Face Many Challenges and Some Opportunities With Advent of Retirement of Baby-Boom Generation." Earth Times. 5/31/07. Retrieved 6/25/07.