Editing Voluntary sector

{{Short description|Social activity undertaken by non-governmental nonprofit organizations; "third sector"}}
{{Economic sectors}}
In relation to public services, the '''voluntary sector''' is the realm of social activity undertaken by [[non-governmental organization|non-governmental]], [[nonprofit organizations|not for profit]] [[organization]]s.<ref>Potůček, Martin (1999) ''Not Only the Market: The Role of the Market, Government, and the Civic Sector''. Central European University Press. p. 34.</ref> This sector is also called the '''third sector''' (in contrast to the [[public sector]] and the [[private sector]]), '''community sector''', and '''nonprofit sector'''.<ref>See for example: 
{{cite book
| editor1-last          = Evers
| editor1-first         = Adalbert
| editor2-last          = Laville
| editor2-first         = Jean-Louis
| title                 = The Third Sector in Europe
| url                   = https://books.google.com/books?id=dyK4xo6taPUC
| series                = Globalization and welfare
| publisher             = Edward Elgar Publishing
| date                  = 2004
| isbn                  = 9781843769774
| access-date           = 2014-08-05
}}{{cite web |url=http://www.huckfield.com/wp-content/uploads/2013/01/02-HM-Treas-Role-of-VCS-in-Service-Delivery-Sep.pdf|archive-url=https://web.archive.org/web/20190505233226/http://www.huckfield.com/wp-content/uploads/2013/01/02-HM-Treas-Role-of-VCS-in-Service-Delivery-Sep.pdf |title=The Role of the Voluntary and Community Sector in Service Delivery – A Cross Cutting Review|publisher=HM Treasury |website=Leslie Huckfield Research |archive-date=5 May 2019 |date=September 2002}}</ref> "Civic sector" or "social sector"<ref>Department for Culture, Media and Sport (UK), [https://www.gov.uk/government/publications/civil-society-strategy-building-a-future-that-works-for-everyone/about-the-strategy About the Civil Society Strategy], published 9 August 2018, accesses 15 May 2024</ref> are other terms used for the sector, emphasizing its relationship to [[civil society]]. Voluntary sector activities are important in many areas of life, including [[social care]], child care, [[animal welfare]], sport and [[environmental protection]].

==Terminology==
A variety of terms is in use to describe the non-governmental, not-for-profit sector, including "voluntary sector", "third sector", "community sector", and "nonprofit sector". In 1965, [[Richard Cornuelle]] coined the term "independent sector" and was one of the first scholars to point out the vast impact and unique mechanisms of this sector,<ref>{{cite web |title=(Re)Considering the Independent Sector |last=Lohmann |first=Roger A. |work=ResearchGate |date=January 2013 |url= https://www.researchgate.net/publication/258845247}}</ref> but in some contexts, such as social care, this term includes [[business]]es operating for profit.<ref>King's Fund, [https://www.kingsfund.org.uk/insight-and-analysis/data-and-charts/key-facts-figures-adult-social-care Key facts and figures about adult social care], published 12 May 2023, accessed 15 May 2024</ref>

A formal economic theory of the voluntary, nonprofit sector and its role was developed by [[Burton Weisbrod]] in the 1970s,<ref>{{cite book|last1=Weisbrod|first1=Burton|date=1975|title=Toward a Theory of the Voluntary Nonprofit Sector in a Three-Sector Economy (in Phelps, E., Ed., Altruism, Morality and Economic Theory)|publisher=Russell Sage|pages=171–195}}</ref><ref>{{cite book|last1=Weisbrod|first1=Burton|date=1977|title=The Voluntary Nonprofit Sector: An Economic Analysis|publisher=Lexington Books}}</ref> and subsequent decade.<ref>{{cite book|last1=Weisbrod|first1=Burton|date=1988|title=The Nonprofit Economy|publisher=Harvard University Press}}</ref> It distinguishes its incentives and behaviors from that of the private and public sectors of the economy, and recognizes non-profit organizations as suppliers of [[public good (economics)|public goods]] that are under-supplied by government. This enabled calculation of the value of voluntary labor in the United States, which is a factor now considered in the analysis of [[efficiency wage]].

More recent researchers such as [[Peter Frumkin]](2005) have also supported the concept of considering "non-profit" and "voluntary" organizations together.<ref>{{cite book|last=Frumkin|first=Peter|title=On Being Nonprofit: A Conceptual and Policy Primer|year=2005|publisher=Harvard University Press|location=Cambridge, Massachusetts|isbn=978-0-674-01835-8|edition=1st}}</ref> Rob Macmillan observed that the nature of this sector is "a hugely contested domain", with issues raised over "whether there is a coherent 'sector' at all, and if so what it should be called".<ref>Macmillan, R., [https://www.birmingham.ac.uk/Documents/college-social-sciences/social-policy/tsrc/working-papers/working-paper-20.pdf The third sector delivering public services: an evidence review], Third Sector Research Centre ([[University of Birmingham]]), Working Paper 20, p. 2, published July 2010, accessed 15 May 2024, quoting also Alcock, P. (2010) "A strategic unity: defining the third sector in the UK", ''Voluntary Sector Review'' 1(1): pp. 5–24</ref>

==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.<ref>Verdier, D. (2002) ''Moving Money: Banking and Finance in the Industrialized World''. Cambridge University Press. p. 145.</ref> With a growing number of non-profit organizations focused on [[social services]], the [[Environmentalism|environment]], [[education]], and other unmet needs throughout society, the nonprofit sector is increasingly central to the health and well-being of society.<ref>{{cite web |url=http://www.scoop.co.nz/stories/PA0706/S00378.htm |title=Laban: Volunteering Canterbury - 2007 Awards |date=June 20, 2007 |access-date=June 26, 2007 |website=Scoop News}}</ref> [[Peter Drucker]] suggests that the nonprofit sector provides an excellent outlet for a variety of society's labor and skills.<ref>{{Cite web |last=Drucker |first=Peter |date=2007-06-26 |title=Drucker Wisdom: Leadership And The CEO |url=http://www.brandingstrategyinsider.com/2007/06/drucker-wisdom-.html |access-date=June 26, 2007 |website=Branding Strategy Insider |language=en-US |url-status=live |archive-url=https://web.archive.org/web/20070703203118/http://www.brandingstrategyinsider.com/2007/06/drucker-wisdom-.html |archive-date= Jul 3, 2007 }}</ref> 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.<ref>Bell, D. (1976) ''The Coming of Post-Industrial Society: a venture in social forecasting''. Basic Books. p. 147.</ref><ref>"Chapter 3: Progressive Era Promotes Growth (1900-1920)". Alliance for Strong Families and Communities. N.p., 2015. Web. 12 June 2017</ref>

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.

According to a recent study by [[Johns Hopkins University]], the Netherlands has the largest third sector of 20 countries across Europe.<ref>Evers, A. and Laville, J. (2004) ''The Third Sector in Europe''. Edward Elgar Publishing. p. 150.</ref> Ireland's non-profit fundraised income formed 0.33% of Irish [[GDP]], less than the UK and US, in 2016.<ref>{{Cite web |title=Growth in Giving Accelerates for the Irish Not-for-Profit Sector in 2018 – Giving Ireland 2020 Report Launched |author= |work=2into3 |date=2020 |url= https://2into3.com/news/growth-in-giving-accelerates-for-the-irish-not-for-profit-sector-in-2018-giving-ireland-2020-report/}} [https://www.2into3.com/wp-content/uploads/2020/10/GivingIrelandReport2020final.pdf PDF report]</ref> In Sweden, the nonprofit sector is attributed with fostering a nationwide [[social change]] towards progressive economic, social and cultural policies,<ref>Muffels, J. (2001) ''Solidarity in Health and Social Care in Europe''. Springer. p. 90.</ref> while in Italy the third sector is increasingly viewed as a primary employment source for the entire country.<ref>Antonelli, G. and De Liso, N. (2004) ''European Economic Integration and Italian Labour Policies''. Ashgate Publishing, Ltd. p. 228.</ref>

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 to the United States Constitution|First Amendment]].<ref>Christopher Eaton Gunn ''Third-sector Development: Making Up for the Market'' (Cornell University Press, 2004) 0801488818, 9780801488818 [https://books.google.com/books?id=1tDYuib1Oz0C Partially Accessible Copy on Google Books] (accessed July 6, 2009 on Google Book Search)</ref>

==Sub-sectors==
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 is considered to employ staff working for a social or community purpose: "hence the phrase 'voluntary and community sector' (VCS) [is used] to encompass the full range".<ref>VolResource, the original information site for voluntary and community organisations, [https://web.archive.org/web/20170301053237/https://www.volresource.org.uk/moreres/glossary.htm Sector Glossary], updated on 20 May 2013, archived on 1 March 2017, accessed on 28 August 2024</ref> In addition however, the not-for-personal-profit sector is also considered to include [[social firm]]s (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 organizations. These other types of institutions may be considered to be quasi-private or quasi-public sectors rather than stemming from direct community benefit motivations. Other sub-divisions within the overall voluntary sector include distinctions as to purpose, such as [[social care]], child care, [[animal welfare]], sport, [[cultural development]] and [[environmental protection]]; organisations with religious roots; organisations which operate on a national basis such as [[Mind (charity)|Mind]] in England and Wales; and organisations with a solely local presence.

==Concerns==
The entry of nonprofit organizations into commercial activities (competing with the private sector) was identified in the 1980s.<ref>{{cite book|last1=Weisbrod|first1=Burton|date=1998|title=To Profit or Not to Profit: the Commercial Transformation of the Nonprofit Sector|publisher=Cambridge University Press}}</ref> There have also been concerns about the financial accountability of the nonprofit sector throughout [[Western culture|Western society]].<ref>Gettler, L. [http://www.theage.com.au/news/business/nonprofits-can-be-more-accountable/2007/05/30/1180205336926.html "Non-profits can be more accountable"], ''The Age''. May 31, 2007. Retrieved June 25, 2007.</ref> There is also ongoing concern whether the nonprofit sector will unequally draw retiring workers from the private sector as the currently large [[Post-World War II baby boom|baby boomers]] age.<ref>{{cite web |author=The Conference Board |agency=PRNewswire |url=http://www.earthtimes.org/articles/show/news_press_release,114420.shtml |title=Non-Profit Firms Face Many Challenges and Some Opportunities With Advent of Retirement of Baby-Boom Generation |website=Earth Times |date=May 31, 2007 |access-date=June 25, 2007 |url-status=dead |archive-url=https://web.archive.org/web/20071010100534/http://www.earthtimes.org/articles/show/news_press_release,114420.shtml |archive-date= Oct 10, 2007 }}</ref> Development of the third sector, it is argued, is linked to the restructuring of the welfare state and further globalization of that process through neo-liberal strategies of the [[Washington consensus]].<ref name="global">Pawel Zaleski ''Global Non-governmental Administrative System: Geosociology of the Third Sector'', [in] Gawin, Dariusz & Glinski, Piotr [ed.]: "Civil Society in the Making", IFiS Publishers, Warszawa 2006</ref>

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.<ref>{{Cite news
| last = Buffett
| first = Peter
| title = The Charitable-Industrial Complex
| work = [[The New York Times]]
| access-date = 2014-01-03
| date = 2013-07-26
| url = https://www.nytimes.com/2013/07/27/opinion/the-charitable-industrial-complex.html
|url-access=subscription
}}</ref><ref>{{Cite episode
| publisher = KCRW 89.9 FM
| credits = Matt Miller (Director)
| title = The Charitable Industrial Complex – Peter Buffett
| series = This...Is Interesting
| access-date = 2014-01-03
| date = 2013-11-06
| url = http://www.kcrw.com/news/programs/in/in131106the_charitable_indus
}}</ref>

== Country-specific==
===France===
Discourse on the "third sector" began in the 1970s in France as a result of the crisis in the [[welfare state]]. Many associations rely at least partly on government subsidies or other payments, it has been criticized at times by association heads (among some), as a way to control charities, some charities do refuse all government payments, while others try to rely partly on gov's aid.<ref>{{cite journal 
  | last = Zaleski
  | first = Pawel
  | title = Tocqueville on Civilian Society. A Romantic Vision of the Dichotomic Structure of Social Reality
  | journal = Archiv für Begriffsgeschichte
  | volume = 50
  | pages = 260–266
  | publisher = Felix Meiner Verlag
  | year = 2008
  | jstor = 24360940
  }}</ref>

=== 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.{{clarify|date=May 2024}}

===Israel===
In Israel, this sector is commonly called the "Third Sector", ({{langx|he|המגזר השלישי}}) and generally refers to non-profit organizations (NPOs) and non-governmental organizations (NGOs) 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, [[Yad Eliezer]] for poverty relief efforts, Akim for assistance for the mentally handicapped, and [[SHALVA]] for children with special needs.

===United Kingdom===
The [[Cabinet Office]] of the [[Her Majesty's Government|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".<ref>Cabinet Office, [http://www.cabinetoffice.gov.uk/third_sector UK definition of third sector]</ref> The Conservative/Liberal Democrat Coalition 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 for a while under the Cameron government, the term [[Big Society]], which was devised by political advisers and which featured prominently in the Conservative Party's 2010 election campaign.

Organisations leading and supporting the voluntary sector in the United Kingdom include the [[Acevo|Association of Chief Executives of Voluntary Organisations]] (Acevo), the [[National Council for Voluntary Organisations]], [[Northern Ireland Council for Voluntary Action]], [[Scottish Council for Voluntary Organisations]], and [[Wales Council for Voluntary Action]].

=== United States ===
The U.S. nonprofit sector consisted of approximately 1.56 million organizations registered with the [[Internal Revenue Service]] in 2015. These reporting nonprofits identified $2.54 trillion in revenues and $5.79 trillion in assets in 2015. Over $400 billion in revenue comes through private support and [[fundraising]].<ref>{{cite web |last1=McKeever |first1=Brian |title=The Nonprofit Sector in Brief |url=https://nccs.urban.org/publication/nonprofit-sector-brief-2018 |website=National Center for Charitable Statistics |access-date= 30 November 2018}}</ref> The U.S. nonprofit sector contributed an estimated $985.4 billion to the U.S. economy in 2015, composing 5.4 percent of the country's gross domestic product and employed 11 percent of the U.S. workforce in 2015.<ref>{{cite web |last1=McKeever |first1=Brian |title=The Nonprofit Sector in Brief |url=https://nccs.urban.org/project/nonprofit-sector-brief |website=National Center for Charitable Statistics |access-date=3 January 2019}}</ref> Each year, seven out of ten Americans donate to at least one charitable cause. Contributions are from two to 20 times higher in the U.S. than in other countries of comparable wealth and modernity.<ref>{{Cite web|url=http://www.philanthropyroundtable.org/topic/excellence_in_philanthropy/how_philanthropy_fuels_american_success_intro|title=How Philanthropy Fuels American Success {{!}} Excellence in Philanthropy {{!}} The Philanthropy Roundtable|website=www.philanthropyroundtable.org|access-date=2016-03-17}}</ref>

==See also==
{{Portal|economics}}
* [[Advocacy group]]
* [[Foundation (nonprofit organization)]]
* [[International organization]]
* [[Mission-based organization]]
* [[Philanthropy]]
* [[Social economy]]
* [[Social entrepreneurship]]
* [[Social threefolding]]
* [[Three-sector model]]
* [[Volunteering|Volunteer]]
* [[Volunteerism]]
* [[Community Sector Coalition]]
* The [[Citizens Advice]] service

==References==
{{reflist|2}}

{{Charity|state=expanded}}
{{Authority control}}

{{DEFAULTSORT:Voluntary Sector}}
[[Category:Social philosophy]]
[[Category:Non-profit organizations]]
[[Category:Volunteering]]
[[Category:Economic sectors]]