The Third Sector Flashcards
What is the third sector?
Non-profit making organisations that exist to support a cause/aim.
What are the 2 third sector organisations?
Charities
Clubs and associations
Social enterprises
What are the key features of charities?
Charities have no recognised owner.
Controlled (decision making) by a board of trustees who represent the charity.
Financed by donations, fundraising and sales from charity shops.
A charity will mostly be run by volunteers but may also have some paid employees.
What are advantages of charities?
Exempt from paying certain taxes.
Low wage costs due to using mostly volunteers.
What are disadvantages of charities?
High tunover of volunteers who may leave for paid work.
Difficult to compete for donations against thousands of other charities.
What are the key features of clubs and associations?
Clubs and associations have no recognised owner.
Contolled (decision making) by an elected committee.
Financed by membership fees/subscriptions paid by members.
Clubs are usually run locally by volunteers.
What are social enterprises?
Organisations that trade and earn income from business but use the profits to help their cause (e.g. homelessness or training for young people)
What are the key features of social enterprises?
Ownership is typically structured similar to the private sector (e.g. sole trader, partnership or private limited company)
Controlled by sole trader/partners/board of directors.
Financed by grants, private investment and donations.
Have social sims which seek to improve society in some way.
What are the advantages of social enterprises?
Social aims/cause can help attract customers to buy products/use service.
More likely to recieve grants from the government due to their positive impact on society.
Easier to attract high quality employees who want to support the aims/cause.
What are the disadvantages of social enterprises?
Due to heavy reliance on grants, levels of funsing can be unpredictable.
Difficult to compete against profit-driven private sector businesses.
What are the aims/objectives of the third sector?
Increase funds
Provision of service
Increase awareness
Pressure government
More branches
What is meant by increase funds?
Raise as much funds as possible for their cause.
What is meant by provision of service?
To provide a service to people/animals in need.
What is meant by increase awareness?
To increase the number of people in the society who are aware of the aim/cause.
What is meant by pressure government?
To campaign to government to change a law/policy related to their cause (e.g. the environment)
