1.2  Size, scope and role of the voluntary sector

It is helpful to take a step back and consider the voluntary sector as a whole to get a picture of the context, scale and scope of people working together to make a difference. If you are already part of the voluntary sector this can be useful to you, helping you view your work or organisation alongside others within the sector to make comparisons and spot emerging trends. If you are looking to get involved with a voluntary organisation, then examining the sector as a whole gives you an idea of what is out there.

The voluntary sector today is made up of an increasing variety of groups and organisations ranging in scale, organisational structure, culture, size of membership and mission. Some are large national charities with well known names and logos, others are tiny local action groups. They may operate at an international, national or local level – or perhaps at all three.

The voluntary sector is actually very hard to define. Registered charities are part of the voluntary sector, but the sector also includes all organisations run by voluntary effort but which are not necessarily registered as charities, for example sports clubs and community groups. It also includes a growing number of socially focused businesses as well as political parties and housing associations, for example. This difficulty in defining the sector is reflected in the range of terms that are used to refer to the sector, many of which overlap. The most commonly used ones are:

• 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.