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The non-profit sector is often referred to as the third sector, as opposed to the public sector and the business sector; the independent sector in Scandinavian countries; civil society in Central and Eastern Europe; the charitable sector or voluntary sector in United Kingdom; or the "économie sociale" in France or Belgium. The common thread between these different names is that they all refer to various types of organisations such as cooperatives, mutual societies, associations and foundations that do not operate solely for financial gain.
To overcome this situation of complex vocabulary, the term of "non-profit sector" has been used as an umbrella term in the different profiles. The non-profit sector is a collection of organisations that are private rather than governmental organisations and sometimes are named non-governmental organisations (NGO). These organisations do not generate any profit and are self-governing, voluntary and organised. The term "non-profit organisation" is used to name these types of associations.
Non-profit organisations aim to serve public or mutual benefit other than the accumulation of profits for investors or owners. They provide programmes and services to the community in an attempt to improve social conditions. Many of them are membership organisations dedicated to specific types of activities or action. Their areas of interest include different fields such as promoting arts, culture, humanities, education, protection of the environment, health, social services, disaster relief or international and foreign affairs. They draw public attention to many social issues.
The non-profit sector is diverse and ranges from small local groups to large international organisations.
Volunteerism is a key component for most of the non-profit organisations and the board of governors is often a group of volunteers who are not paid . Volunteers also fill numerous roles at non-profit organisations, serving in a range of capacities from administration to fundraising and serving at events. Volunteer commitments can be a matter of hours or lifelong commitments and are often valued more than monetary donations. Volunteers bring professional expertise and personal experiences which enhance these organisations.
In Europe, there are three main sources of income for non-profit organisations:
1) Grants from private institutions or contracts from public authorities such as the European Union, national governments, regional or local authorities
2) Individual donations, like charitable alms or legacies.
3) Fees for services, sales of products, or earned interest on investments. Funding sources vary. Much of their income also derives from private donations. Therefore these organisations play a role as economic units by providing employment and facilities; consuming and producing goods and services,; and generating funds and resources. |
