THE THIRD SECTOR

Third Sector

The Third Sector

Introduction

Australians commonly divide the world of organisations into two: business and government.  But there are hundreds of thousands of organisations that are neither part of government nor run to make a profit for their owners.  Such organisations are as diverse as the Australian Football League, the Red Cross, the Australian Medical Association, the Arthritis Foundation, the RSPCA, the Australian Workers Union, St Vincent's Hospital, Geelong Grammar, Surf Lifesaving Australia, the Uniting Church - to name some with a national reputation.

In suburbs and towns throughout Australia, there are numerous sporting groups, recreation clubs, charities, churches (and some mosques, temples and synagogues), private schools, parent associations, progress associations, community service clubs, self-help groups, youth groups, reading groups, environment associations and so on. Two-thirds of adult Australians belong to at least one association, club or society; one-quarter, more than three million, describe themselves as active members. More than two-thirds make at least one donation to such organisations during a year.  These organisations constitute a third sector(Chitts 2005).  

Third sector organisations

Third sector organisations are the product of private initiative. The great majority are both democratically governed and constrained from distributing any profit to members. A very few modify one or other (but never both) of these two distinguishing features.  They are huge differences within this third sector - differences in the size of organisations, in what they do and in the way they operate. But there are equally huge differences within the government and the business sectors.  What third sector organisations have in common (and what distinguishes them from organisations in the other two sectors) are six features: the centrality of values; the complexity of revenue generation; their reliance on volunteers; the difficulty they have in judging their performance; their complex accountabilities and the likelihood that they will experience board/staff conflict.  (www.abc.net.au)

Third sector organisations make a huge contribution to Australia. Without them we would be a very different country, and greatly impoverished.

Third sector organisations contribute to our economy - In 1996 there were about 700 000 of them, 320 000 of which were incorporated; only 34 000 employed people . In 1996 these 34 000 employed 630 000 people - 12% of private employment, more than the communications and hospitality industries combined. In 1995/96 these 34 000 organisations turned over $59 billion, more than the mining industry. They contributed 3.3% to GDP.

Third sector organisations contribute to our society - They are expressions of peoples' capacity to join together, to work together for self (mutuality) and for others (altruism) They practice people in voluntary collaboration. They are the product of, but also regenerate, our social capital.

Third sector organisations contribute to our democratic political system - They are the vehicles that enable everybody to participate in the political process between elections. They are our “elementary schools of democracy”. They are the single most important manifestation of civil society.

Case Study: OXFAM Australia

Oxfam Australia, previously known as Oxfam Community Aid Abroad, is an Australian aid and development ...