In this paper we argue that the lack of attention to the third sector historically is primarily a result of the weakness and limitations of the concepts that are used to define and describe it. The purpose of this article is to remedy this situation by developing a general definition of the sector that can be used in comparative research. To do so, the article first identifies four alternative types of definitions that are potentially available and evaluates each in terms of three basic criteria. On this basis it concludes that the most useful definition is the ‘structural/operational’ one, which includes in the non-profit sector organisations that share five basic characteristics. These are: formal, private, non-profit-distributing, self-governing and voluntary. The basic definition is then tested against the realities of three disparate countries and found to perform quite well. On this basis we recommend the structural/operational definition, particularly for comparative, cross-national research.

Recent decades have witnessed a significant increase in the number of voluntary non-profit associations established to address solutions to major international social problems. Many of these associations concentrate on advocacy work, as opposed to service delivery, and are international in scope rather than based in a single country. This paper is concerned with the challenges to organising this particular type of voluntary association.

While rapid progress in communications and transportation technology has undoubtedly facilitated the development of these associations, such organisations still face formidable problems. The paper argues that international advocacy associations are successful when they adopt particular organisational structures and strategies to accommodate these problems. In particular, decentralised and federated structures appear to be more viable for the international advocacy arena.

This paper reviews relevant literature and elaborates on the theoretical expectations for successful structuring of international associations devoted to advocacy on global issues. Hypotheses are set forth and investigated in a preliminary way through the examination of case studies of three associations.

The UK has, over recent years, moved from a ‘welfare state’ to a more ‘market-oriented’ system of welfare. But the extent of this change has varied considerably according to the ideological position of local government in different parts of the country. This makes it possible within one country to assess the implications for the voluntary sector of different models of welfare. This article develops a framework for looking at different welfare ideologies and the values they espouse, with reference both to the UK and to the models that exist in other countries. It then takes four examples of UK local authorities which demonstrate the different models and examines the implications for the voluntary sector. In doing so, it examines the prospects for the voluntary sector to deliver both service and political pluralism in the future.

The impact of AIDS on Western polities serves as a useful indicator both of social values and of political and organisational relationships. At the same time, community-based nonprofit organisations have been at the forefront of AIDS policy-making and service development. Taking Britain and Germany as case studies, this paper discusses similarities and differences in the functions accorded to the voluntary sector in the pattern of responses to HIV and AIDS. Typical problems confronted by emergent voluntary sector welfare agencies are noted and particular features of AIDS service organisations described. Separate accounts are then given of the development of a federated network of AIDS service organisations (ASOs) in Germany and of contrasting experience in the UK. While governments have shared a concern to confine the activity of ASOs to serving the needs of those groups directly affected by AIDS, other significant differences in policy development may be attributed to differences in the organisational structure of the health sector.

Building on a previous Voluntas article (Salamon and Anheier, 1992b), which formulated a systematic approach to defining the non-profit sector for purposes of comparative research, this article takes on the complementary task of formulating a classification system that can be used to differentiate systematically the types of non-profit organisations that exist at the global level. To do so, the artide first assesses a number of existing classification systems, such as the International Standard Industrial Classification and the National Taxonomy of Exempt Entities. Finding these systems inadequate, the article then introduces an alternative system, which we term the International Classification of Nonprofit Organizations (ICNPO). The ICNPO classifies non-profit establishments into 12 major groups based on their primary economic activity, and then further sub-divides these into 24 sub-groups. The result is a system that scores high in terms of five key evaluation criteria: economy, significance, rigour, organising power, and richness. What is more, initial tests of the ICNPO in a set of countries show that it performs well in coming to terms with the diverse types of non-profit institutions that exist around the world.

The article documents the history of the Indian voluntary or non-profit sector involved in socio-economic development of the country. Specifically, three questions are addressed. What type of voluntary organisations existed at what periods of history, and what were their primary activities? Who were the founders, and what were their motives? Can we detect common themes or underlying patterns in the way in which the Indian voluntary sector has developed? Or in other words: what is the institutional genesis of the non-profit or voluntary sector in India? The findings are based on multiple sources - literature review, interviews and observation, and information requested through the mail. The article differs from most historical studies on Indian non-profit organisations because it takes an analytical approach by drawing from contemporary literature on such organisations.

The relationships between funding heterogeneity and organisational structure and functioning were examined for a panel of non-profit organisations. Resource dependence and institutional theory were used to derive hypotheses predicting positive associations between funding heterogeneity and non-profit boundary spanning, modelling and participation in collective efforts. For non-profits which were less vulnerable to institutional aspects of their environments, funding heterogeneity was found to have a positive effect on boundary spanning, consistent with resource dependence theory. For non-profits which were more vulnerable to institutional factors, on the other hand, funding heterogeneity was found to have positive effects on modelling and participation in collective efforts; consistent with institutional theory. These results argue that resource dependence and institutional theory need to be combined for the analysis of organisation-environment relations and suggest how this could be accomplished.

Transport services provided by voluntary organisations have grown dramatically in recent years. However, little systematic research has been undertaken on the functioning of these organisations. The aim of the research on which this paper is based was to rectify the lack of information on how decisions relating to service provision are made by such organisations - often called ‘community transport’ (CT) operators. Three organisations were selected for a comparative case study approach. The results show that the leadership approach of their key staff was of particular significance. Each organisation is moving in the direction of greater professionalism and away from its community roots. This cultural change can be attributed to responses to external forces, especially those affecting resources. Evidence suggests they are being forced towards adopting practices of the private sector, but that this need not be the case. Community transport provision is in a period of transition, the outcome of which may radically alter both its structure and its survival capacities.

The evolving democracies of Eastern Europe and the former USSR republics are keenly interested in establishing charities. They have little law on this issue because their former governments did not encourage the development of charities. This article compares US and English regulation of charities and proposes a regulatory framework based on what the authors believe are the best attributes of both. Although the framework is based on the common law system, it can be adapted to the civil law systems of the Eastern European nations and the former USSR republics. The article includes such issues as developing a body of law, tax relief and creating a regulatory agency.

The Charity Commissioners’ report of inquiry into Oxfam in 1991 was heralded as having major significance for Britain's charities and their legal position with respect to political activity. The verdict was critical of the charity, and publicly threatened trustees with sanctions in the event of a recurrence of political abuse. However, the outcome cannot be claimed as an important victory for right-wing political forces in their campaign to end what in their view is an unacceptable left-wing political bias in some of the country's leading charitable agencies. Organisations like Oxfam will be able to continue to participate in the political arena. Nevertheless, they face awkward dilemmas concerning their relationships with government, at a time when their own understanding of third world problems and increasing pressure from their overseas partners urge them to take on the mantle of a pressure group.

Worldwide disillusionment with governmental problem-solving, decline in governmental resources, increasing prominence of multinational corporations, and the collapse of communism act as powerful stimuli to international philanthropic activity. US private foundations in particular have been highly motivated by the collapse of communism to act as venture capitalists in seeking grant-making opportunities and philanthropic partners in Eastern Europe. International philanthropy of private foundations can provide expertise in and resources for global as well as regional or local problem-solving. However, resources available must be viewed realistically. This paper puts available foundation resources in perspective. Further, international philanthropy by private foundations is no panacea for the world's problems, and may only be effective at the margins. But to the extent it can be an effective problem solver, it should not be artificially limited by boundaries and laws of any one nation, as it is at present. While reviewing some trends towards increasing activity of larger US private foundations in Eastern Europe, this paper also illustrates small segments of the existing legal, tax and other barriers to international philanthropy. In many instances, simple awareness of some of these barriers will enable potential grantees and philanthropic partners to surmount these barriers. But within the larger context of globalisation of philanthropy, all such barriers to the free movement of philanthropic capital and expertise should be identified and ultimately removed so that international philanthropy, like international trade and free movement of capital and goods, can emerge to an optimal level.

Although there has been a debate in the USA for more than two decades about competition policy and non-profit organisations, the debate has not yet had the same prominence in Europe. Only in the last few years, even in the USA, has anti-trust policy toward the sector been examined. The paper examines the position for two groups of competition issues in European Community law: first, the problem of the lawfulness of grant aid, given the rules against state subsidies distorting competition; and second, the application of the rules for competition in the single market including EC anti-trust law. Particular legal problems are identified for non-profits which use geographical catchment area agreements with similar organisations. Finally, the paper examines a range of policy issues which arise on consideration of Community law, including the idea of community development as a locally autarchic objective, the terms of competition for grants and contracts, and the possible implications of the future application of European competition law to non-profits in the Community.

A significant aspect of public policies in France is the decentralisation of the public sector and the increased importance of local voluntary associations to implement programmes and influence local political arenas. Subsidies to local associations are an important vehicle for the central government in managing its decentralisation policy. Based on a locality sample, data on subsidies to associations were collected in nearly 400 municipalities. Results show that the allocation of subsidies is highly uneven, and part of a complex network in which private non-profit services are linked to the services that were previously part of the public sector. Implications for the French non-profit sector and for the government's decentralisation policy are discussed.

The pre-war Hungarian voluntary sector was relatively weak as a service-provider, but played major social and political roles, and was an important vehicle of the self-organisation of society. That is why state socialist governments could develop the nationalised system of social services quite easily, but could not completely destroy citizens’ autonomy, solidarity and private initiatives. Both the pre-war traditions and the social and economic forces brought about by state socialism are of crucial importance in shaping the newly emerging Hungarian non-profit sector. The traditional government/non-profit partnership may be the basis for contracting out state-financed public services. At the same time, voluntary organisations are expected to plug the gaps present in the state socialist service system. Large government-funded non-profit organisations may play an important role in the denationalisation process, some of them can be appropriate means of assuring that the grant making procedure remain free from politicisation.