Third sector
The third sector is not about making a profit but rather making a difference to society.
Third sector organisations are categorised into:
- charities and community groups
- social enterprises
Charity
A charity is an organisation set up for a specific cause.
Charities receive grants from many fund raising organisations such as the National Lottery. Money is also raised for them by sales in charity shops and through public donations.
All money goes to help the specific cause or to pay for the operation and running of the charity.
Examples of charities are:
- Oxfam
- Save the Children
- Cancer Research UK
Community groups
Community groups exist to provide a service for people. They are non-profit making and all of the profit goes back into the organisation to ensure it can keep running.
Examples of non-profit making organisations are:
- rugby clubs
- golf clubs
Social enterprise
A social enterprise is an organisation that exists with a clear goal to help the community but runs the organisation like a business with the aim to generate profit.
The majority of this profit is used to help the social enterprise's social or environmental cause rather than withdrawn by the owners.
A case study of one social enterprise, set up to help migrant women
Examples of social enterprises include:
- Street Soccer Scotland is a non-profit social enterprise that delivers a range of football-related services to socially disadvantaged adults and young people across Scotland.
- Social Bite is a chain of retail stores and catering concessions in Scotland which employs a quarter of its workforce from a homeless background.
