What is the Third Sector?

The Government defines the third sector as non-governmental organisations which are value-driven and which principally reinvest their surpluses to further social, environmental or cultural objectives. It includes voluntary and community organisations, charities, social enterprises, cooperatives and mutuals.

HM Treasury & Cabinet Office Third Sector Report

As part of the 2007 Comprehensive Spending Review, HM Treasury and the Cabinet Office carried out a review in December 2006 entitled The Future Role of the third sector in social and economic regeneration: interim report. The aims of the report are:

• to assess the current landscape with regard to what has been achieved so far and what remains to be done;
• to begin to clarify and define the role of the sector, identify how Government interacts with the sector and how this should be structured; and
• to identify how Government and the sector can best work together and what more it should do to achieve the long-term goals of building a more cohesive society in the context of demographic change in the global economy.

The interim report sets out the direction of travel for the next stage of the review:

• three year funding for third sector organisations should be the norm rather than the exception;
• establishment of a new Community Assets Fund worth £30 million;
• £6.5m as part of the safer and stronger communities fund allocated to the Government Offices;
• work to build the evidence base across the board; and,
• five key themes for the next stage - voice and campaigning, public services, strong and active communities, social enterprise and creating the right environment.