One of the challenges for engagement with the third sector is its enormous diversity. Segmenting the third sector by type of organisation can sometimes be helpful:
Voluntary Organisations
The voluntary sector is a major employer. Evidence form the UK Labour Force Survey indicates that the sector employed 608,000 people in 2004, an increase of 45,000 since 2000. This equates to 2.2 per cent of the overall paid workforce. In addition, in the UK 13.2 million people formally volunteer [1] at least once a month with 20.2 million people formally volunteering at least once a year.
Community Organisations
It is difficult to provide an accurate picture of the size and scope of the community sector. However, estimates range from around 500,000 to 900,000 organisations (some of which may be registered charities) [2]. Other studies have suggested that 85 per cent of the local third sector is mutual aid and common interest organisations, operating with or without the help of a small number of paid staff, constituting the local community sector [3].
Charities
In 2005 there were over 169,000 general charities in the UK, an increase of around 50,000 in the last decade. Over three-quarters are based in England and one-eighth is based in London [4]. Total income was £31 billion in 2005/6. Over two-thirds of total income is generated by just over 3,200 organisations and a group of 14 'super charities' generated 1o per cent of the sector's income [5].
Social Enterprises
Social enterprises are businesses set up to tackle a social or environmental need. Many commercial businesses would consider themselves to have social objectives, but social enterprises are distinctive because their social and/or environmental purpose is absolutely central to what they do - their profits are reinvested to sustain and further their mission for positive change [6]. The most recent data from the Annual Small Business Survey, suggests that there are 55,000 social enterprises representing around 5 per cent of all businesses with employees. The combined turnover of these social enterprises is £27 billion with a contribution to GDP estimated to be around £8.4 billion.
Co-operatives
Co-operatives are social businesses that are jointly owned and democratically controlled by their members and run according to the set of principles developed by the International Co-operative Alliance. As organisations working for mutual and/or community benefit, rather than the benefit of investors, and committed to sustainable economic and social development, co-operatives and bencoms play a key role within civil society [7].Co-operatives had an income of £26.2 billion in 2005/2006. There was a total of 11 million members of 4,445 co-operatives in 2005/2006 [8].
Mutual's
A mutual is an organisation based on the principle of mutuality. It is owned by its members and run for their benefit. Members derive their right to profits and votes in a mutual society, through their customer relationship. Mutual societies include industrial and provident societies such as co-operative societies or societies for the benefit of the community, credit unions, friendly societies, working men's clubs and building societies. These groups had a combined income of £35 million in 2005/2006 [9].
- Defined as 'giving unpaid help through groups, clubs and organisations to benefit other people or the environment'. Source Citizenship Survey 2003
- The UK Voluntary Sector Almanac, NCVO 2006 and Low Flying Heroes, New Economics Foundation, 2001
- Measures of Community: A study for the Active Communities Directorate and the Research Development and Statistics Directorate of the Home Office, Community Development Foundation, 2004.
- The UK Voluntary Sector Almanac 2006. The National Council for Voluntary Organisation
- ibid
- Social enterprise coalition http://www.socialenterprise.org.uk/pages/frequently-asked-questions.html
- The UK Civil Society Almanac 2008, The National Council for Voluntary Organisations
- ibid
- The UK Civil Society Almanac 2008, The National Council for Voluntary Organisations
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