the third sector

Question 1

what are third sector organisations

Answer 1

The third sector is not about making a profit but rather making a difference to society.

Question 2

Features of a charity

Answer 2

aims- raising money to benefit other

controlled by- a board of trustees

financed by- donations, sponsorship, fundraising events. also a trading arm (like a charity shop)

Question 3

features of a voluntary organisation

Answer 3

aims- provide a service for their members and local community

controlled by- elected committee

financed by - membership subscriptions (local sports clubs)

Question 4

features of a social enterprise

Answer 4

Aim- to make a profit to benefit a specific group or cause

controlled by- One person (sole trader), 2 to 20 people (partnership), shareholder in a limited company, board of directors

financed by - Capital investments or bank loans

example- The Big Issue aims to help homeless

Question 5

features of democratic enterprise

Answer 5

aim- Provide a quality service for the benefit of its members and customers

controlled by- Shared among members democratically

financed by-

Question 6

1. advantage of a charity

Answer 6

Charities are exempt from paying some taxes such as VAT and Corporation Tax.

Question 7

2. advantage of a charity

Answer 7

There are low wage costs due to volunteers working for free.

Question 8

3. advantage of a charity

Answer 8

Private companies are more willing to donate to and sponsor charities than ever before as it’s good ‘PR’.

Question 9

1. disadvantage of a charity

Answer 9

Can be difficult to compete with the large marketing budgets of organisations within the private sector.

Question 10

2. disadvantage of a charity

Answer 10

Charities rely heavily on volunteers who may leave for paid work.

Question 11

1. advantage of a social enterprise

Answer 11

Social aims can endear a social enterprise to others/

Question 12

2. advantage of a social enterprise

Answer 12

Good quality employees who believe in the social ‘mission’ are attracted to the organisation.

Question 13

3. advantage of a social enterprise

Answer 13

They are likely to receive government grants due to their positive impact on society.

Question 14

4. advantage of a social enterprise

Answer 14

Asset lock means that, should the enterprise be closed down, the sale of any assets and profits will be used to benefit their cause.