The voluntary and community sector

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1. What's in a name?

There are three main sectors:

  • Private Sector
  • Public Sector
  • Voluntary and Community Sector

Aiming Higher sits within the Voluntary and Community Sector. This sector has been, and can be, referred to in many different terms. According to The Open University, the list below details the most common terms and how frequently they are used:

  • the charity sector: this is a widely recognised term but organisations must meet the strict conditions required for charity registration. Not all voluntary organisations are charities.

  • the third sector: this term refers to the sector in relation to the private and public sector. The assertion that it comes third to those sectors is often contested, so this term is no longer widely used. (Note that this term is still used in Scotland.)

  • the not-for-profit/non-profit sector: this is another widely recognised term, but it can lead to a misunderstanding when charities do make a surplus, or ‘profit’, on certain activities. This surplus is allowed if it is then applied towards the charitable mission in other ways. The term also excludes socially focused businesses, such as social enterprises. To avoid this misunderstanding or exclusion, the term ‘beyond-profit sector’ is sometimes used.

  • the non-governmental organisation (NGO) sector: this term is more commonly applied to international organisations and particularly those with a campaigning focus, hence the emphasis that they are not part of government.

  • civil society: this is the widest term and refers to people working together to make a difference to their lives or the lives of others. As it isn’t a commonly known term outside of the sector, it can be confusing to some. In 2010 the government changed its Office of the Third Sector to the Office for Civil Society.

  • the voluntary and community sector (voluntary sector): this is an inclusive term for charities and organisations or community groups not registered as charities which undertake work of benefit to society. The ‘voluntary’ part of the term refers to the fact that all of these organisations are voluntary in some way: they have a voluntary trustee board, or money and/or time is volunteered. It is the preferred term among much of the sector and the one that will be used throughout this course.

(The Open University, 2016)