Voluntary sector

The presence of a large non-profit sector is sometimes seen as an indicator of a healthy economy in local and national financial measurements.[5] 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.[6] Peter Drucker suggests that the nonprofit sector provides an excellent outlet for a variety of society's labor and skills.[7]

[8] The first two decades of the 20th century were characterized by a public zeal for social reform and social justice known as the Progressive Era. The newly founded National Association of Societies for Organizing Charity had immediate influence during that era. Its extensive field work helped organize new societies and strengthen others. Smaller cities became well-organized, with the South and Northwest particular areas of focus. To permit membership of Canadian societies, the association changed its name in 1912 to the American Association of Societies for Organizing Charity. In 1917, it became the American Association for Organizing Charity. These agencies increasingly were providing direct service to individuals and families. Pauperism, child welfare, juvenile justice, sanitation, tuberculosis, and other health issues were emergent problems for new and existing agencies. The American Red Cross fueled a nationwide fervor for social service. Founded in the United States in 1881, it was reorganized in 1905 to focus on military personnel. With this pivotal decision, the business of organizing charities quickly evolved into the business of social work.

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.[9] 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.[10] In Ireland the non-profit sector accounts for 8.8% of GDP.[11] In Sweden, the nonprofit sector is attributed with fostering a nationwide social change towards progressive economic, social and cultural policies,[12] while in Italy the third sector is increasingly viewed as a primary employment source for the entire country.[13]

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.[14]

Although the voluntary, community and not-for-personal-profit sectors are frequently taken to compose the "Third Sector" each of these sectors or sub-sectors have quite different characteristics. The community sector is assumed to comprise volunteers (unpaid) while the voluntary sector are considered (confusingly) to employ staff working for a social or community purpose.[15] 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.

There have been long-ranging arguments regarding the financial accountability of the nonprofit sector throughout Western society.[16] 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.[17] 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.[18]

In a 2013 New York Times op-ed and radio podcast, The Charitable-Industrial Complex, Peter Buffett uses the terms "philanthropic colonialism" and "conscience laundering," and describes his insights into "searching for answers with their right hand to problems that others in the room have created with their left" rather than systemic change.[19][20]

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

Examples:

• Association of Chief Executives of Voluntary Organisations
• Community Sector Coalition
• National Council for Voluntary Organisations
• Northern Ireland Council for Voluntary Action
• Scottish Council for Voluntary Organisations
• Wales Council for Voluntary Action
• The Citizens Advice service
• 4x4 Response