The article presents a case study of the evolution of Israel's third sector. It uses quantitative data on the economic structure of the sector, as well as historical data on the changes it has undergone in the past 80 years or so. This period is subdivided into three eras, each characterised by a different dominant ideology within which third sector organisations develop. The analysis emphasises the interplay between the dominant ideology and the type of existing third sector organisations in each era, and their functions in society. The changes are illustrated using the examples of two key organisations (the Histadrut - Federation of Labour Unions, and the Jewish Agency) and two minority populations (the Charedi - Ultra-Orthodox and the Arab).
Studying the Israeli third sector within the context of its social history provides an opportunity to test some of the theories explaining the evolution and characteristics of that phenomenon. Thus, the article explores the implications and contribution of the Israeli case to international third sector theory.