Sectors of Economy - Third Sector

• Sectors of the Economy: Third Sector - Owned by Members/sponsors/donors. Controlled/run by Board of Trustees, Committee of members. Financed by Donations, Lottery Funding.
• Organisations in the Third Sector - Charities

  They are regulated by the government and to achieve charitable status, they must do one of the following:

  • Relieve Poverty
  • Advance Education
  • Advance Religion
  • Carry out activities beneficial to the community.
• Organisations in the Third Sector - Features of Social Enterprises

  • Must have a clear social and/or environmental aim.
  • Majority of profits are invested into meeting the aim of the social enterprise.
  • Provides benefits to the local community.
  • Can be funded by grants and sponsorship
  • Operates using employees and volunteers.
  • Operates in the Third Sector.
• Organisations in the Third Sector - Advantages of Social Enterprises

  • Helps to deal with social cause/problems it has chosen.
  • Attracts customers who want to help the social cause.
  • Attracts quality staff who want to help the social cause.
  • Some funding/grants is only available to social enterprises.
  • Can sell shares to raise finance if they are a limited company.
  • Can make use of an asset lock - prevents proceeds from sale of the enterprises assets being used for private gain.
• Organisations in the Third Sector - Disadvantages of Social Enterprises

  • They have to compete in a commercial market so face the challenges and risks of all businesses.
  • Staff in paid role usually earn less than if they worked in the Private Sector.
  • They depend on unpaid volunteers and on the generosity of the community.
• Business Objectives - Third Sector Organisations

  • To provide support for worthy causes like homelessness, poverty, disability etc.
  • To raise awareness of good causes
  • To find research into medical conditions
  • To relieve poverty
  • To recruit more volunteers