Third sector is formed by non-profit associations and entities, and is classified as the third sector in sociology. The term is of American origin, Third Sector, widely used in the United States, and Brazil uses the same classification.
Civil society is divided into three sectors, first, second and third. The first sector is formed by the Government, the second sector is formed by private companies, and the third sector is the non-profit associations. The third sector contributes to reaching places where the State has not been able to reach, carrying out solidary actions, therefore, it has a fundamental role in society.
There are several organizations that are part of the third sector, such as the NGOs (Non-Governmental Organizations) and OSCIPs (Civil Society Organizations of Public Interest). The third sector is composed almost entirely of voluntary labor, people who work and do not receive remuneration for it.
The third sector is maintained with private initiatives and even government incentives, with transfers of public funds. The entities of the third sector have as main objective to improve the quality of life of the needy, be they children, adults, animals, environment, and so on.
Foundations, associations, third sector institutions are often involved in philanthropic works. It is important to note that companies that have social responsability they can also contribute to a more balanced and just society.
Third sector and social service
The third sector is closely related to the area of social service, and often social workers play a key role in the performance of third sector elements in the society. Thus, it is possible to affirm that the third sector is responsible for social development.
Third sector in Brazil
In Brazil, the third sector is not as strong as in countries like the United States of America, which has several institutions and a vast network of volunteers.
A third sector player operating in Brazil may have its headquarters abroad. Even if this happens, in the accounting sphere, this entity must follow the NBC (Brazilian Accounting Standards), which are established by the Federal Accounting Council (CFC).
See also what it means to Philanthropy and tertiary sector.