The Third Sector Flashcards
What is the third sector?
This consists of organisations that have been set up to provide goods or services to benefit others.
What are the key features of a charity?
No recognised owner and is instead a trust.
Controlled by a board of trustees.
Financed by donations, sponsorships and fundraising events.
What are the advantages of being a charity?
Charities are exempt from paying some taxes, such as VAT and corporation tax.
There are low wage costs due to volunteers working for free.
Private companies are more willing to donate to and sponsor charities than ever before as it is good ‘PR’.
What are the disadvantages of being a charity?
It can be difficult to compete with the large marketing budgets of organisations within the private sector.
Charities rely heavily on volunteers who may leave for paid work.
What are the key features of voluntary organisations?
No recognised owner.
Controlled by an elected committee and helped by volunteers.
Financed by membership subscriptions.
What are the key features of social enterprises?
Owned by an individual, partners or limited shareholders.
Controlled by a board of directors or paid managers.
Financed by capital investment or bank loans.
What are the advantages of being a social enterprise?
Social aims can endear a social enterprise to customers.
Good-quality employees who believe in the social ‘mission’ are attracted to the organisation.
They are likely to receive government grants due to their positive impact on society.
‘Asset lock’ means that, should the enterprise be closed down, the sale of any assets and any profits will be used to benefit their cause.
