The idea of a “third sector” beyond the arenas of the state and the market is probably one of the most perplexing concepts in modern political and social discourse, encompassing as it does a tremendous diversity of institutions and behaviors that only relatively recently have been perceived in public or scholarly discourse as a distinct sector, and even then with grave misgivings. Initial work on this concept focused on what is still widely regarded as its institutional core, the vast array of private, nonprofit institutions (NPIs), and the volunteer as well as paid workers they mobilize and engage. These institutions share a crucial characteristic that makes it feasible to differentiate from for-profit enterprises: the fact that they are prohibited from distributing any surplus they generate to their investors, directors, or stakeholders and therefore presumptively serve some broader public interest. Many European scholars have considered this conceptualization too narrow; however, arguing that cooperatives, mutual societies, and, in recent years, “social enterprises” as well as social norms should also be included. However, this broader concept has remained under-conceptualized in reliable operational terms. This article corrects this short-coming and presents a consensus operational re-conceptualization of the third sector fashioned by a group of scholars working under the umbrella of the European Union’s Third Sector Impact Project. This re-conceptualization goes well beyond the widely recognized definition of NPIs included in the UN Handbook on Nonprofit Institutions in the System of National Accounts by embracing as well some, but not all, of these additional institutions and forms of direct individual activity, and does so in a way that meets demanding criteria of comparability, operationalizability, and potential for integration into official statistical systems.

This introductory article on Third sector research on Latin America and the Caribbean (LAC) was designed with two objectives in mind. The first, to present readers with a general up to date of the political, economic, and social overview as well as an actualized context of the region, intending to show the needs and trends that individuals and civil society organizations have experienced in the past 20 years by underlining some main advances and shortcomings for LAC. This was done with the intent and idea to provide the understanding of the issues that require attention to be approached in a scholarly and interdisciplinary fashion with a Third sector studies lens. The second was to present a series of pertinent original articles placed into three distinct axis or categories that correspond distinctively to major trends identified by the guest editors of this special issue as social inclusion and development, human rights and public policies and governance of Third sector organizations. The article clearly introduces original material by fourteen specialists in Third sector research who provide results on an ample and wide range of studies and theoretical analysis of this particular region of the world.

This research analyzes the concept of financial vulnerability of nonprofits in depth. We review the definitions given by the prior literature, concluding that none of them is complete. We propose a definition in which financial vulnerability consists of three dimensions: operational (variation of net assets over time), leverage (relationship between total assets and debt), and liquidity (ratio of current assets to short-term debt). We use a sample of 212 Non-Governmental Development Organizations (NGDOs) from the United Kingdom to analyze these measures, observing a limited number of nonprofits simultaneously classified as vulnerable according to the different traditional concepts. Applying our proposed multidimensional model, we find that 6 % of the sample is highly financially vulnerable according to the three dimensions, and a high proportion (18 %) of nonprofits is simultaneously vulnerable in leverage and liquidity dimensions. Finally, we compare the obtained results using traditional variables and those derived from our model.

Each year thousands of immigrants and refugees begin their lives in new places, speaking new languages, and facing new challenges. Challenges include access to health/mental care, education, transportation, and employment. Researchers and practitioners frequently focus on challenges of newcomers and their deficits in meeting needs for self-sufficiency. This study explores newcomers’ giving back and emphasizes an untapped reservoir of strength and capacity. Based on qualitative semi-structured interviews with 54 immigrants and refugees, themes identified include (1) a desire to maintain ethnic identity and connection; (2) ethnic community as an extension of family; (3) a sense of duty and obligation; and (4) measure of achieved success. Researchers and practitioners should shift their view to recognize the strengths and capacities of newcomers who give back to their communities.

This article analyses the influence of national context on civil society strength based on four key dimensions: level of democracy, political stability, rule of law and economic development. Whereas existing studies mainly focus on Western and post-communist countries, we explicitly include developing countries in our analysis. We use associational membership as proxy for civil society strength and include data of 53 countries. Rule of law, economic development and (to a lesser extent) political stability emerge from our multilevel regression models as the main factors affecting civil society membership. Unlike previous studies, we show that these relations are quadratic instead of linear. This means that where existing theories predict a drop in memberships in developing countries, we find a rise. In other words, harsh conditions actually strengthen civil society in terms of membership levels. We argue that this could be the case because reasons for CSO membership are essentially different in the developed and in the developing world. Contrary to theoretical assumptions, democratic rights do not appear critically important for civil society membership.

International volunteering is an increasingly popular form of service work, but the scholarship on international volunteering has done little to unpack the assertion that organizations shape the international volunteering experience. We demonstrate the utility of taking an organizational perspective by reporting on an ethnographic investigation of an international voluntary service episode in Southern India. In doing so, we attend to all of the parties common to international volunteering—the coordinating international volunteer service organization, the host NGOs, and the volunteers—and pay particular attention to the organizational dynamics that influence the service rendered. We find that the different actors in the service relationship understood successful international development efforts in different ways, which frustrated the productivity of the relationships in question. These mismatched goals were partly the legacy of a partnership-formation process that followed a cultural–historical logic rather than an instrumental one. The consequences were dissatisfaction on the part of volunteers and mixed benefits for the organizations with which they were matched. We suggest that these findings have relevance to other international volunteering sites.

This paper describes how the Brazilian Landless Movement fostered an insurgent citizenship among the poor. We describe three core organizational practices of this movement that supported this insurgent citizenship. We find that these practices bear striking resemblance to the practices of other civil society organizations (CSOs), including social service organizations, when they support the empowerment of marginalized communities. The identification of common practices suggests that despite the differences among CSOs, these distinctions may be less stark than assumed and that there may be common causal pathways between CSOs and insurgent citizenship.

With their “Beyond Nonprofits: Re-conceptualizing the Third Sector”, Salamon and Sokolowski have made an important contribution to the ongoing debate on how to define the third sector. This Voluntas symposium brings together the comments of five leading scholars both supportive and critical of the new definition. The comments are based on a debate held at the conference of the International Society for Third Sector Research, in Stockholm in 2016.

Taking a unified approach to studying nonprofit financial health, this research tackles a key question that has remained unexplored in the literature: “What lies at the intersection of the two key dimensions of financial health–financial stability and financial growth?” Specifically, we identify and compare nonprofits that exhibit high levels of financial stability and growth (high financially performing) to those that exhibit low levels (low financially performing)? Overall, we find that high financial performers (HFPs) tend to be older and larger organizations (in terms of unrestricted net assets and total revenue). HFPs are also more likely to report capital assets, and report high levels of compensation. Finally, HFPs tend to contain their overhead spending by exercising efficiency by investing in talented officers (paying more than the rest), but limiting the share of officer compensation, administrative, and fundraising expenses, as a percentage of total expenses. The results of the study should be informative to stakeholders attempting to understand the profile of an organization that is successfully able to achieve both capacity growth and financial stability.

Why do nonprofit organizations exist? From an economic perspective, a number of major theories have been proposed to explain their existence. However, when exploring determinants of nonprofit sector density, one needs to take into account that demand and supply factors operate simultaneously and that it is difficult to separate them. By using a stakeholder approach, we develop a more integrative framework for understanding variations in nonprofit sector density. We test this framework by investigating determinants of nonprofit sector density in Texas at the county level.

The majority of studies discussed the existence of a trade-off between financial performance and outreach, pointing out those MFIs that look for higher profits lead to lower outreach. Another stream of research discussed the phenomena of mission drift, which see MFIs leave from their social mission, which is to provide micro financial services to break the cycle of poverty by reducing financial exclusion and move away from the traditional microcredit business model by three different ways. The paper contribute to the debate focussing the impact of mission drift phenomena on both financial performance and outreach of MFIs. This paper uses a dataset of 194 microfinance institutions (MFIs), 788 annual ratings from 2001 to 2010, collected by MicroFinanza Rating, an international MFIs’ rating agency, to study and test three hypotheses on the relationship between mission drift, financial performance and outreach of MFIs. Data analysed with mixed effect regressions shows that a trade-off exist between financial performance and outreach. Results show that mission drift positively impacts on financial performance but it reduces outreach. MFIs should be encouraged to clearly define if their main aim is to assure remuneration of shareholders or if they want to contribute to the outreach of poor.

The direct relationship between international volunteer experiences and impacts has rarely been explored and yet is important for understanding why certain impacts occur in the lives of volunteers upon returning home. This information helps organizations to develop effective international volunteer programs. This interpretive case study of the Nova Scotia-Gambia Association’s volunteer program explores the interactions between motivations, experiences, and impacts of volunteers who participate in short-term, development aid projects. It utilizes qualitative interviews and participant observation with recent volunteers and interviews with past alumni to understand these relationships. The findings identify three distinct types of volunteer narratives connecting experiences and impacts—personal, professional, and negative categories. The key characteristics of the experience are living situations and conditions, location selection, work placement options, and non-work related activities, frame experiences and effect impacts, influencing the nature of the narrative. Narratives are also strongly influenced by volunteer personalities and characteristics of the local culture.

With the abolition of the double registration regime, on paper Chinese NGOs are more independent from the Government’s bureaucratic commands than ever. Nevertheless, in reality the Chinese Government’s control over Chinese NGOs remains heavy-handed. Through giving NGOs bianzhi and purchasing services from NGOs, the Chinese Government caused and continues to cause the Chinese NGOs to adopt certain attributes of the danwei tradition. Specifically, the Government strives to embed the CPC into the Chinese NGOs and make the Chinese NGOs financially dependent on the Government. The danwei tradition is not merely a lingering legacy of China’s Communist past but also a result that the Government today actively seeks to bring about.

This article engages the debates on the basic parameters of the study of ‘the space’ between the state and the market, including definitions of the organizations, theories, and boundaries of the space. This article divides the debates into two camps, ‘the non-profit paradigm’ and ‘the new paradigm’, and credits the contribution of both sides, respectively, delineating the sector and advanced theorization. It then distinguishes operationalization methods for the non-profit paradigm from operationalization methods for the new paradigm. The task is to develop the latter. The article then introduces an organizational identity approach from organizational ecology as a promising method.

The objective of this paper is to analyze the historical roots and contribution to human development of civil society organizations in marginalized communities based on fieldwork undertaken in seven informal settlements of the City of Buenos Aires, Argentina. The paper provides evidence of a dense network of organizations whose principal function is the provision of social services, especially food assistance, through a complementary relationship with the state. The current effectiveness of the settlements’ representative organizations—the principal vehicles through which community members voice their collective demands—is limited by a mix of factors intimately related to civil society–state relations, including irregularities in election processes, conflicts between organizations, and lack of transparency in the allocation of public resources. The paper concludes that true empowerment of these communities to act as a unified force for change requires the strengthening of neighborhood organizations and greater government openness to civil society participation in public decision-making processes.

This paper seeks to explain the process by which an innovative social and solidarity economy initiative allowed a marginalized population that had no say in development activities to meet certain urgent needs and bring about sustainable social and institutional change. The article looks at the case of a solid waste management program initiated by a group of residents and structured around a third sector organization in Cerro el Pino, a hillside slum located in the La Victoria District of Lima, Peru. We analyze this project through a processual model that focuses on three dimensions: context, process, and consequences. The results highlight the role of social and human capital and the presence of various types of knowledge in the implementation of an initiative driven by locals.

This study examines the anti-incinerator protest in Guangzhou in China. It uses the advocacy coalition framework to analyze the dynamics between Guangzhou Municipal Government and the protesters. The research covers the establishment of a Public Consultative and Supervision Committee for Urban Waste Management in Guangzhou, a public consultative mechanism for waste management, which is a new development in the policy-making process in socialist China. The ultimate plan will be to demonstrate how policy adjustment is not determined solely by the outcome of protests but is also affected by both a decentralized political structure and the socio-cultural foundation. Consequently, the discussion also explores the gradual transformation of public participation in China’s environmental policy.