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What is the third sector (a.k.a. voluntary sector)?
Third sector (also written as III sector or 3 sector) is an umbrella term for all the non-governmental organizations. The term refers to the concept of dividing the socio-economic activity of modern democratic states into three sectors.
- the first sector includes state institutions (central and local government, public institutions)
- the second sector includes private for-profit entities, i.e. business, private enterprises
- the third sector includes the organizations that are neither for-profit (non-profit) nor part of the state structure, and in this sense are non-governmental.
The third sector includes all forms of social activity that fill the niche between the state and the market. The third sector is also called the civic sector, the social sector, or the non-governmental sector.