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The nonprofit sector, also called the third sector, civic sector or voluntary sector, is a third area of an economy, distinct from the public sector and the private sector. It is made up of all of the non-profit organizations in the economy.^[1] The presence of a large non-profit sector is sometimes seen as an indicator of a healthy economy in local and national financial measurements.^[2]

With a growing number of nonprofit organizations focused on social services, the environment, education and other unmet needs throughout society, the nonprofit sector is increasingly central to the health and well-being of society.^[3] Expert Peter Drucker suggests that the nonprofit sector provides an excellent outlet for a variety of society's labor and skills. ^[4]

In 1976 Daniel Bell predicted the third sector becoming the predominate sector in society, as the knowledge class overcame the effects of the private sector.^[5] This presently holds true in a number of European countries. According to a recent study by Johns Hopkins University, the Netherlands has the largest third sector in twenty countries across Europe.^[6] In Ireland the Non Profit sector accounts for 8.8% of GDP reference: 2into3^[7]In Sweden the nonprofit sector is attributed with fostering a nationwide social change towards progressive economic, social and cultural policies^[8], while in Italy the third sector is increasingly viewed as a primary employment source for the entire country.^[9]

There have been long-ranging arguments regarding the financial accountability of the nonprofit sector throughout Western society.^[10] There is also ongoing concern whether the nonprofit sector will unequally draw retiring workers from the private sector as the currently large Babyboomer generation ages.^[11]

• Public services
• Government operations
• Neoliberalism
• Cultural Institutions Studies