Third Sector

What is the third sector?

The “third sector” describes the range of institutions which occupy the space between the State and the private sector.  These include local community and voluntary groups, registered charities both large and small, foundations, trusts and the growing number of social enterprises and co-operatives.  Third sector organisations share common characteristics in the social, environmental or cultural objectives they pursue; their independence from government; and in the re-investment of surpluses for those same objectives.

The NAO's involvement

The Government is increasingly looking to the third sector to assist with the design and delivery of public services.  In addition it recognises the benefits to society of a healthy, vibrant and independent third sector.  Given that the Government has specific policy objectives in relation to the third sector and provides public money to third sector organisations, the NAO has a responsibility to report on whether this expenditure has provided value for money in relation to the Government’s objectives.

Features

Successful Commissioning: How to secure value for money through better financial relationships with third sector organisations

The Successful Commisioning guide is useful for all commissioners, procurement officers and managers, and grants officers who work in local authorities and local health organisations, including in primary care trusts. Third sector organisations will find the tool useful in thinking about their involvement in delivering public services. The guide clearly sets out the main issues for effective financial relationships with third sector organisations; makes use of existing guidance in an accessible and practical way, and; dispels some of the ‘myths’ that exist around commissioning with the third sector.

Intelligent Monitoring: New guidance to help cut red tape for charitable, voluntary and community organisations

The Government gives £12 billion to charities and other voluntary and community organisations every year. Our Intelligent Monitoring guidance will help focus time and money on key services.

Read full article: Intelligent Monitoring: New guidance to help cut red tape for charitable, voluntary and community organisations

Building the Capacity of the Third Sector

Our recent value for money report Building the Capacity of the Third Sector examines two government programmes, ChangeUp and Futurebuilders. They were set up to improve the capacity of the third sector. The report describes the findings and conclusions from our fieldwork. It also sets out a series of recommendations.

A second publication - The Impact of ChangeUp on Support and Frontline Organisations - presents the detailed findings of our research.

Read full article: Building the Capacity of the Third Sector

Working with the Third Sector

On 30 June 2005, the National Audit Office held a conference which launched its report 'Working with the Third Sector', highlighting the need for improved Government funding to Third Sector Organisations (TSOs). 

Read full article: Working with the Third Sector

Financial relationships with third sector organisations: A Decision Support Tool

The Decision Support Tool for public bodies in England provides practical support to officials who are involved in making, or advising on, 'real-life' decisions about the design of appropriate funding relationships with third sector organisations.  It takes into account such issues as programme objectives, funding channels, duration of award, full cost recovery, EU state aid considerations and much more.