Fact-checked by Grok 2 weeks ago

Voluntary sector

The voluntary sector, also referred to as the third sector or voluntary and sector, consists of , non-al organizations—including charities, groups, and enterprises—that operate without profit motives to pursue specific purposes and deliver public or benefits, often filling gaps left by and market failures. In the , the sector includes approximately 164,000 organizations as of 2020/21, predominantly micro- and small-scale entities with incomes under £100,000, and generates total income of £69.1 billion annually, with public sources accounting for 48% of funding. It contributes £17.8 billion to the economy, or 0.8% of , primarily through subsectors like (£3.4 billion in ), while employing 925,000 paid workers—3% of the national workforce—and drawing on 14.2 million volunteers who provide essential unpaid labor equivalent to hundreds of millions of hours yearly. Globally, nonprofit sectors in comparable economies average 4.5% of GDP, underscoring their role in , formation, and service provision in areas such as , and , where empirical studies show they enhance and beyond state capacities. However, the sector's reliance on contracts—often exceeding one-third of revenues in mature economies—has sparked concerns over eroded , with organizations facing risks of mission drift, bureaucratic constraints, and reduced to donors or beneficiaries as funding ties them to policy agendas that may prioritize compliance over efficacy.

Definition and Terminology

Core Concepts and Distinctions

The voluntary sector comprises non-governmental organizations that operate independently of profit motives, distributing any surpluses to further their missions rather than to owners or shareholders, and rely primarily on voluntary contributions, labor, and membership fees for sustenance. These entities encompass charities dedicated to public benefit, mutual aid societies formed by members for collective self-help, and voluntary associations pursuing shared interests without commercial intent. Core to this sector is the principle of voluntary participation, where individuals engage through uncoerced choice, fostering initiatives that address social needs overlooked or underserved by other mechanisms. In distinction from the public sector, which derives authority and funding from compulsory taxation and operates under governmental oversight to deliver mandated services, the voluntary sector eschews coercive mechanisms, deriving legitimacy from private initiative and consent. Unlike the , where economic activity centers on generating returns for investors through market competition, voluntary organizations prioritize mission-driven outcomes over financial gain, reinvesting resources to sustain operations or expand impact without distributing profits. This positioning enables the voluntary sector to fill gaps in provision, such as community support or , through decentralized, responsive action rooted in individual agency rather than state directive or commercial calculus. Legal recognition varies by , but in the , many voluntary organizations qualify as 501(c)(3) entities under the , granting tax-exempt status for exclusively charitable, educational, or scientific purposes, provided no private inurement occurs. As of 2024, approximately 1.48 million active 501(c)(3) organizations exist in the US, illustrating the sector's substantial presence and reliance on such frameworks for operational viability. Equivalent structures elsewhere, such as registered charities in the UK or , similarly delineate voluntary entities by emphasizing non-profit status and public benefit tests.

Historical and Regional Variations in Usage

The terminology encompassing the voluntary sector has evolved to reflect varying emphases on independence, supplementation to state functions, or interstitial positioning between government and markets. In the United Kingdom, "voluntary sector" gained prominence with historical roots in 19th-century philanthropic associations, formalized in William Beveridge's 1948 report Voluntary Action, which delineated its role alongside emerging welfare provisions without subordinating it structurally to public or private spheres. This term underscores principles of free association and unpaid contributions, contrasting with "third sector," which originated in European discourse around the 1970s—particularly in Italy—and implies a derivative space between the primary public and market sectors, often blurring into cooperatives and social enterprises in continental Europe. In the United States, "nonprofit sector" predominates, rooted in 20th-century tax-exempt legal frameworks like Section 501(c)(3) of the Internal Revenue Code established in 1954, prioritizing organizational fiscal status over voluntaristic ethos. Regional variations further highlight contextual adaptations, with European usage of "third sector" frequently overlapping with "social economy" models that integrate market-oriented mutual organizations, as seen in France and Italy where cooperatives predate modern welfare systems. In contrast, developing nations often rely on informal mutual aid networks—such as rotating savings groups or community reciprocity systems—with historical precedents in pre-colonial structures, functioning outside formalized sectors to address gaps left by weak state capacities. These arrangements, prevalent in sub-Saharan Africa and Latin America, emphasize horizontal exchanges but face scalability limits due to trust dependencies and exclusion of non-participants, challenging portrayals that idealize them as universally egalitarian supplements to governance failures without acknowledging coordination costs. Key inflection points include the United Nations Economic and Social Council's (ECOSOC) inaugural granting of consultative status to 41 nongovernmental organizations in 1946, formalizing international recognition of voluntary entities post-World War II as adjuncts to state-led reconstruction. By the 1980s, under U.S. President Ronald Reagan and UK Prime Minister Margaret Thatcher, neoliberal reforms curtailed welfare expansions, elevating voluntary organizations as alternatives to bureaucratic overreach—evident in Thatcher's devolution of services to charities amid public sector contractions—though this repositioning exposed dependencies on state funding that undermined claims of pure voluntarism. Such shifts critiqued welfare state inefficiencies empirically, yet academic and media narratives, often from institutionally left-leaning sources, tend to frame the sector romantically as a harmonious buffer rather than a corrective to policy-induced voids or prone to ideological alignments with donors.

Historical Development

Pre-Modern Origins

In , collegia served as early examples of voluntary associations, comprising artisans, merchants, and other groups that pooled resources for mutual support, including funeral rites, communal feasts, and professional advocacy, without reliance on state compulsion. These organizations, attested from the era onward, functioned through member contributions and , filling voids in individual or familial amid urban uncertainties. During the Middle Ages, European guilds extended this tradition by organizing craftsmen into fraternal bodies that offered insurance-like aid for sickness, injury, and widowhood, alongside alms distribution to non-members, driven by reciprocal obligations rather than feudal mandates. Guild statutes from cities like London and Florence, dating to the 13th century, mandated collections for indigent brethren and community charities, often surpassing lords' sporadic feudal duties to dependents. Religious confraternities within guilds reinforced this by funding hospitals and orphanages via voluntary tithes and bequests, embedding aid in spiritual reciprocity. Monastic and mendicant orders further embodied pre-modern voluntary welfare, with institutions like the operating almshouses and scriptoria-supported relief from the 6th century, sustained by endowments and lay donations independent of royal or seignorial control. By the 13th century, Franciscan and friars institutionalized itinerant almsgiving and urban hospices, drawing on networks to mitigate exacerbated by plagues and migrations, where empirical records indicate such efforts provided more consistent succor than fragmented manorial obligations. These arose causally from human tendencies toward surplus-sharing where ties and nascent markets proved inadequate for scale, yet remained localized due to agrarian economies lacking mass coordination. Philosophically, such formations presupposed a natural right to voluntary union, as later formalized by in positing as an elective compact among free associates to secure individual ends beyond the . Pre-industrial constraints, including low population densities and artisanal fragmentation, inherently limited their reach, rendering them adjuncts to rather than substitutes for hierarchical structures.

19th and 20th Century Expansion

The rapid industrialization and urbanization of the created widespread social challenges, including poverty, poor working conditions, and inadequate public services, prompting a surge in voluntary organizations to address these gaps left by limited government intervention. In the and , mutual aid societies and charities emerged to provide essential support such as sickness benefits, burial , and assistance, filling roles that mechanisms were unable or unwilling to assume at scale. For instance, fraternal societies in the US, numbering in the thousands by the late 1800s, offered reciprocal aid to members, covering medical care and for millions, thereby serving as a primary form of social welfare prior to federal programs. Similarly, organizations like the Young Men's Christian Association (YMCA), founded in 1844 in to support urban youth amid industrial dislocation, expanded internationally to promote moral and practical aid. The , established in 1865 by William and in , adopted a militaristic structure to deliver direct to the destitute, emphasizing evangelism alongside practical charity in response to urban squalor. Settlement houses, originating with in 1884, further exemplified this trend by embedding educated volunteers in impoverished neighborhoods to offer education, health services, and advocacy, countering the shortcomings of governance. By the early , the voluntary sector had proliferated significantly, with fraternal and friendly societies in the alone insuring over 10 million members by —about one in seven —demonstrating their in self-organized without state compulsion. In the UK, voluntary associations grew alongside industrialization, providing a dense of support that predated comprehensive public , though exact counts varied; historical analyses note a marked expansion in registered friendly societies and charities, reflecting over top-down solutions. This era's voluntary boom underscored causal mechanisms where private initiative responded dynamically to societal needs, often achieving efficiencies that later state expansions struggled to match, contrary to narratives in some academic and sources that retroactively attribute social progress primarily to action despite evidence of voluntary precedence. The and marked a pivot, as expanding government roles began to diminish voluntary prominence through displacement effects. In the , the programs of the 1930s, including Social Security and relief works, correlated with a sharp decline in private charity; empirical studies estimate that federal spending crowded out up to 30% of faith-based benevolent expenditures, as recipients shifted to state aid and donors reduced contributions amid tax hikes and perceived alternatives. This "crowding out" reduced the voluntary sector's relative autonomy, though it persisted in niches. temporarily reversed some trends, with non-governmental organizations scaling operations dramatically; the , for example, mobilized to serve 16 million military personnel through blood plasma collection, medical aid, and family communications, highlighting voluntary capacity for crisis response where governments coordinated but relied on private logistics. Overall, the century's trajectory revealed voluntary organizations' adaptability to exigencies but vulnerability to state encroachment, with empirical data affirming their foundational role in social provision before dominance.

Contemporary Evolution and Recent Trends

From the 1980s onward, neoliberal policies in Western nations promoted the outsourcing of public services to nonprofits as a means to reduce and enhance , a shift accelerated under administrations like Ronald Reagan's, which drew on ideologies favoring market-oriented delivery of . This trend expanded the voluntary sector's role in areas such as and , with governments increasingly contracting nonprofits for program implementation. Concurrently, and post-Cold War geopolitical changes spurred a proliferation of international NGOs, with U.S.-registered relief and development organizations growing from approximately 1,000 in 1990 to over 11,000 by 2010, reflecting broader worldwide expansion driven by new norms on and development. In the 2010s and into the 2020s, the sector underwent professionalization, marked by greater emphasis on managerial practices, accountability metrics, and skilled staffing to handle complex funding environments and demonstrate impact to donors. However, heightened reliance on government grants has correlated with elevated administrative burdens, where a 1% increase in such funding is associated with a 2.1% rise in the share of administrative expenses the following year, often due to compliance requirements and reporting demands that divert resources from direct services. This professional shift has improved operational sophistication but strained smaller organizations amid volatile funding landscapes. Recent disruptions, particularly U.S. federal funding cuts in early 2025, have affected about one-third of community-serving nonprofits, leading to service reductions, staff layoffs, and operational challenges for two-thirds of surveyed groups facing potential closures within six months. Despite these pressures, empirical patterns indicate the sector's resilience during economic downturns, with employment and charitable giving holding steady relative to for-profit sectors, supported by diversified revenue and adaptive strategies like cost controls and . Nonetheless, 2025 policy shifts under the incoming administration have intensified scrutiny of ideologically oriented nonprofits, with funding freezes and proposed restrictions on tax-exempt status targeting groups viewed as misaligned with national priorities, potentially exacerbating politicization and selective over merit-based need.

Economic and Social Role

Quantitative Contributions to Economies

In high-income countries, the voluntary sector employs approximately 10% or more of the in several nations, such as , , and the , based on data from 16 comparable economies where nonprofits constitute a major source of growth. Globally, nonprofit accounts for about 7.4% of the total , though this varies widely by region and excludes volunteers. In the United States, nonprofits contributed 5.2% to GDP in 2023, equivalent to $1.4 trillion in economic value, surpassing the output of many for-profit industries like construction. This includes employment for 12.3 million paid workers, representing over 10% of the non-government workforce. Similar patterns hold in other developed economies; for instance, in the UK, the sector's GDP share hovers around 6-7%, driven by health, education, and social services. Funding for the sector derives predominantly from earned income rather than pure voluntarism, with over 80% coming from private fees for services, government grants, and contracts. Donations constitute a smaller share, often below 20% for many organizations, underscoring reliance on market-like revenues and public procurement. Early 2025 saw disruptions from U.S. federal budget actions, including funding freezes and cancellations announced in January, affecting one-third of service-providing nonprofits by mid-year and straining operations dependent on government contracts. The sector supplements market and state provision in areas of public goods and externalities, such as care or services where for-profits underinvest due to low profitability. However, empirical comparisons reveal lower in nonprofits versus for-profits for analogous services; for example, in sectors like and healthcare, nonprofits often exhibit higher administrative costs and slower output growth per employee, linked to the non-distribution constraint limiting surplus reinvestment incentives. Studies in further indicate mixed efficiency, with for-profits achieving cost containment advantages despite quality variances.

Qualitative Impacts on Society

Voluntary organizations contribute to cohesion by facilitating interpersonal and reciprocal exchanges, which align with Robert Putnam's conceptualization of as the features of social life—such as trust, norms, and —that enable . In Putnam's analysis, serves as a key indicator of , correlating with higher levels of community trust and participation, though he notes a decline in such activities since the late has eroded these bonds. Empirical studies reinforce this, showing that volunteer involvement in local initiatives enhances social ties and mutual support within neighborhoods. In crisis scenarios, voluntary groups often deliver initial aid more nimbly than state bureaucracies, as seen in the rapid deployment of thousands of NGOs following the January 12, , where international agencies mobilized staff and resources ahead of fully coordinated governmental efforts hampered by the disaster's scale and local capacity gaps. This agility stems from decentralized decision-making, allowing quicker on-the-ground responses, though long-term coordination challenges persist. Research indicates associations between volunteering and reduced community crime rates; for instance, longitudinal data link adolescent volunteering to lower adult criminal involvement, potentially through strengthened social bonds and informal oversight. Similarly, the presence of local nonprofits focused on community life correlates with a 9% drop in murder rates per 10 additional organizations in mid-sized cities. However, causal inference remains contested, as selection effects—where prosocial individuals self-select into volunteering—may confound these patterns, and rigorous controls often weaken direct attribution. Critiques highlight limitations inherent to reliance on , including the , where individuals benefit from collective voluntary efforts without contributing, leading to under-provision of public goods and inefficient in non-coercive settings. This dynamic undermines the scalability of voluntary action, as rational incentivizes shirking in large groups. Furthermore, prolonged from voluntary entities risks fostering dependency, akin to state welfare pitfalls, by disincentivizing and perpetuating cycles of need without addressing root causes, as observed in critiques of nonprofits that prioritize ongoing service delivery over empowerment. Such outcomes challenge assumptions of inherent benevolence, emphasizing the need for voluntary efforts to incorporate accountability mechanisms to mitigate .

Organizational Structures and Sub-sectors

Primary Types and Classifications

The voluntary sector encompasses organizations classified primarily by their functional roles, including advocacy groups that seek to influence policy and , service delivery entities that provide direct aid or support to individuals, and mutual benefit societies that serve members' shared interests without distributing profits. organizations, such as the (ACLU), focus on legal challenges, , and awareness campaigns to advance or specific causes. Service delivery organizations, exemplified by food banks like , distribute essential resources such as meals and emergency supplies to address immediate needs like hunger. Mutual benefit organizations, including credit unions, operate on cooperative principles to provide financial services exclusively to members, emphasizing and democratic control. are generally excluded from these classifications, as they prioritize electoral competition over voluntary, non-partisan public or member benefit. A prominent taxonomic framework is the Johns Hopkins Comparative Nonprofit Sector Project's distinction between advocacy-oriented nonprofits, which aim to shape broader societal or governmental actions through representation and policy influence, and service-providing nonprofits, which deliver tangible goods or assistance to beneficiaries. This model, developed through cross-national analysis, highlights how advocacy entities often prioritize systemic change over direct intervention, while service providers address individual or community-level gaps, though overlaps exist where organizations engage in both. The project's International Classification of Nonprofit Organizations (ICNPO) further refines these into 12 major fields, such as health, education, and social services, underscoring functional diversity grounded in operational mandates rather than revenue models. In the United States, these types manifest across approximately 1.5 million 501(c)(3) public charities, the majority of which are small, local entities with fewer than 10 employees, focusing on community-specific services or . Globally, formalization varies significantly; developed economies like the feature extensive legal registration and tax exemptions, enabling structured operations, whereas in many developing regions, voluntary activities often occur through less formalized associations or informal networks due to regulatory barriers or resource constraints. Boundaries blur with social enterprises, which integrate voluntary missions with market-like revenue generation, challenging traditional nonprofit classifications by prioritizing sustainability alongside non-distribution of profits.

Funding Mechanisms and Governance

The voluntary sector relies on a mix of revenue streams, including individual and foundation donations, earned from fee-based services, and grants or contracts. In the United States, the proportion of households contributing to charities has declined sharply, falling from 66.2% in 2000 to 45.8% by 2020, reflecting reduced per capita participation despite aggregate giving increases driven by high-net-worth donors. Earned , such as program fees and revenues, constitutes a growing but variable share, often comprising 50-70% of total funding for service-oriented organizations in developed economies. Government grants and contracts have become a dominant funding mechanism, with two-thirds of U.S. nonprofits receiving at least one such in 2023, accounting for an average of 25% of their revenue; over one-third derived more than a quarter from this source, exposing many to fiscal vulnerabilities when public budgets fluctuate. This dependency can exceed 50% for specific subsectors like in certain nations, amplifying risks to organizational as funders impose requirements that prioritize metrics over intrinsic goals. Governance in voluntary sector entities typically features boards of trustees or directors—frequently composed of volunteers—who hold fiduciary duties for strategic oversight, ethical , and financial , while professional chief executive officers (CEOs) or executive directors handle day-to-day operations and staff management. Volunteer-led boards, however, often face empirical challenges, including limited time and expertise to effectively supervise professional executives, leading to governance gaps that exacerbate issues like inadequate . Heavy reliance on non-voluntary funding sources introduces causal risks to independence, as organizations experience mission drift by adapting programs to align with government priorities rather than founder intentions or community needs, empirically demonstrated in cases where public contracts encourage incompatible activities. Government funding further imposes bureaucratic overhead, increasing administrative burdens and reducing operational efficiency; studies show that receipt of such grants correlates with higher inefficiency and formalized processes that dilute the sector's voluntary, agile ethos. These dynamics underscore how external dependencies can erode the core principle of voluntarism, prioritizing funder directives over self-directed impact.

Strengths and Empirical Achievements

Innovation and Adaptability

The voluntary sector demonstrates through decentralized structures that facilitate trial-and-error experimentation, allowing organizations to test novel approaches unhindered by the bureaucratic inertia often characteristic of state systems. This agility stems from reliance on voluntary participation and private funding, enabling rapid iteration based on direct feedback from beneficiaries rather than top-down mandates. For instance, in addressing credit access for the impoverished, the pioneered group-based in 1976, issuing small loans without traditional collateral to rural Bangladeshi women, achieving repayment rates exceeding 97% through peer accountability mechanisms. This model outperformed state banking's exclusionary practices by leveraging local social dynamics, subsequently influencing over 100 million borrowers worldwide via replications. Post-2010 technological advancements have further amplified this adaptability, with apps enabling microvolunteering—short, on-demand contributions via smartphones. The Be My Eyes application, launched in 2015, connects visually impaired users to global volunteers for real-time assistance through live video, amassing over 6 million volunteers by 2019 and demonstrating scalable, niche problem-solving beyond government welfare programs' scope. Similarly, during the COVID-19 pandemic, grassroots mutual aid networks emerged swiftly in 2020, with thousands of neighborhood groups in cities like New York and London organizing grocery deliveries and medical supply distributions, filling gaps in delayed state responses and reaching vulnerable populations through hyper-local coordination. In environmental conservation, voluntary organizations innovate in areas where state incentives falter, such as private land stewardship. Groups like have protected over 125 million acres globally since 1951 by experimenting with conservation easements and community partnerships, achieving outcomes in niches like restoration that bureaucratic regulations often overlook due to enforcement costs. However, these innovations frequently face limits without integration into market mechanisms, as voluntary funding constrains expansion beyond pilot phases reliant on donor enthusiasm.

Evidence-Based Successes

A Bayesian meta-analysis aggregating evidence from 115 randomized controlled trials and other studies on unconditional cash transfers, primarily implemented by voluntary organizations in low- and middle-income countries, estimated positive effects on key outcomes including a 0.15 standard deviation increase in household consumption and reductions in hunger by approximately 10 percentage points. These interventions, often delivered through nonprofits like , demonstrate cost-effectiveness ratios exceeding those of many in-kind aid programs, with recipients achieving greater flexibility in addressing needs such as and , yielding returns on investment estimated at 5-10 times the cost in terms of wellbeing improvements. In the domain of housing provision, 's model has enabled over 62 million individuals worldwide to build or repair homes since its founding in 1976, with longitudinal surveys of participants indicating sustained gains such as 65% reporting improved physical health and 80% of affected children showing enhanced academic performance. Independent research on homeownership, applicable to such voluntary efforts, corroborates these findings through causal links to better child outcomes, including higher graduation rates and reduced behavioral issues, derived from quasi-experimental designs tracking families over decades. Systematic reviews of within the voluntary sector reveal empirical benefits for both participants and recipients, with meta-analyses of longitudinal studies showing reduced mortality risk by up to 22% among regular volunteers and improvements in metrics like scores by 0.2-0.4 standard deviations. These effects stem from relational and community-building activities, where RCTs in crisis support demonstrate voluntary organizations achieving comparable or superior short-term resolutions to state-led services, with follow-up data confirming persistence in 60-70% of cases without . While long-term sustainability requires integration with market or private incentives, as evidenced by attrition rates in unsubsidized programs exceeding 30% after five years, the causal pathways—enhanced and direct service delivery—underpin verifiable societal gains.

Criticisms and Empirical Shortcomings

Operational Inefficiencies and Failures

Nonprofit organizations in the voluntary sector often incur higher administrative overhead costs than comparable for-profit entities, with empirical analyses showing administrative expenses averaging 20-35% of budgets in many cases, driven by the absence of profit-driven cost minimization incentives. This disparity arises because nonprofits lack market signals that compel efficiency, leading to resource allocation prioritizing compliance and reporting over streamlined operations. Donors respond to these ratios by reducing contributions when overhead exceeds thresholds like 35%, yet sector-wide persistence of elevated costs indicates limited internal reforms. Service duplication represents another operational inefficiency, as multiple organizations provide overlapping assistance without coordination mechanisms akin to market competition. For instance, in community food assistance, numerous pantries operate in proximity, redundantly sourcing and distributing supplies, which fragments efforts and inflates costs rather than consolidating resources for broader reach. Such proliferation stems from decentralized decision-making and donor preferences for visible, localized initiatives, resulting in suboptimal coverage and wasted capacity, as evidenced by reports urging mergers to avoid redundant . Scaling limitations become apparent in crisis responses, where voluntary efforts struggle to match demand without sustained, enforced contributions. During the 1983-1985 Ethiopian famine, international NGOs mobilized unprecedented aid but failed to avert widespread , as fragmented voluntary and dependency on episodic donations proved inadequate for rapid, large-scale . This shortfall highlights causal constraints: without compulsory funding, voluntary systems cannot reliably expand to address acute needs exceeding individual or group capacities. The exacerbates funding constraints, as potential beneficiaries and even non-beneficiaries consume collective goods like community services without contributing, eroding the donor base essential to voluntary operations. In practice, this dynamic limits total resources available, fostering chronic underfunding and forcing trade-offs that perpetuate inefficiencies, such as reliance on low-cost but ineffective volunteer labor over professional expertise. Absent an equivalent to for-profit bankruptcy, inefficient nonprofits endure without market-forced dissolution, allowing persistent underperformance to continue under charitable auspices. While nonprofits can file for , such cases remain rare, depriving the sector of automatic culling of low performers and enabling survival through appeals to mission over results. This structural leniency contrasts with profit-oriented firms, where financial failure triggers exit, thereby sustaining a pool of organizations with suboptimal outcomes.

Mismanagement and Scandals

In the voluntary sector, the absence of market-driven profit incentives and rigorous state regulatory enforcement has facilitated notable instances of financial abuse and operational failures, where donor funds were diverted for personal gain or squandered through unchecked expansion. High-profile scandals often stem from concentrated power in charismatic leaders, leading to inadequate internal controls and delayed . A prominent U.S. example involved of America, where its president, William Aramony, was indicted in 1994 on 71 counts of , , , and after embezzling approximately $1 million in donor funds for personal luxuries, including lavish travel and gifts to mistresses. Aramony was convicted in 1995 on 25 counts and sentenced to seven years in , exposing how the organization's rapid growth under his long tenure masked opaque financial practices and weak board oversight. This case highlighted vulnerabilities in large federated charities, where national headquarters siphoned funds without proportional transparency to local affiliates. In the UK, Kids Company exemplified founder-driven mismanagement, collapsing into administration on August 5, 2015, after receiving at least £46 million in public grants despite persistent warnings about unsustainable spending and lack of evidence-based outcomes. Founded by in 1996, the charity prioritized rapid scaling and anecdotal success stories over financial prudence, accruing debts and failing to secure private donations amid cash flow crises, including repeated delays in tax payments to HM Revenue & Customs. A 2022 Charity Commission inquiry deemed the closure a result of "chaotic mismanagement," attributing it to over-reliance on the founder's personal charisma, which fostered a cult-like internal culture resistant to scrutiny, and inadequate governance that prioritized program expansion over fiscal viability. Broader patterns in voluntary sector scandals include the formation of " cults," where organizations become extensions of individual leaders' visions, sidelining audits and diversified , as seen in repeated nonprofit fraud cases involving executive . Opaque finances exacerbate these risks, with many entities delaying public disclosures or relying on donor rather than verifiable metrics, enabling or wasteful spending absent competitive pressures. In the 2020s, the rise of has amplified such vulnerabilities, with fraudsters posing as charities to solicit irreversible digital donations during crises, such as fake appeals for Ukrainian aid in 2022 or conflicts in 2023, where attackers exploited untraceable transfers to divert funds without recourse. Critics across ideological lines have attributed these failures to structural flaws, though emphases differ: progressive analyses often link scandals to chronic underfunding that pressures charities into risky growth tactics, while conservative viewpoints stress insufficient regulatory teeth allowing by insiders unchecked by profit-loss discipline. Such episodes underscore deficits in the sector, where reputational damage rarely triggers swift compared to for-profit entities.

Interactions with State and Market

Government Funding Dynamics and Dependencies

In developed nations with extensive welfare systems, government grants and contracts frequently account for 30 to 50 percent of revenue for voluntary organizations focused on social services and welfare delivery, fostering a dynamic where state funding supplants traditional voluntary contributions. This reliance has been highlighted by events such as the 2025 U.S. federal funding disruptions, where cancellations and freezes in January affected organizations comprising roughly one-third of the sector's operational budget, exposing acute vulnerabilities to policy shifts and bureaucratic delays. Such dependencies drive organizational professionalism through standardized reporting and compliance requirements but often induce mission alignment with government priorities, prioritizing grant-eligible activities over core voluntary missions and creating incentives for bureaucratic expansion. Public choice theory elucidates these perverse incentives: politicians allocate funds to secure electoral support or bureaucratic alliances, while voluntary entities, behaving as self-interested actors, adapt by lobbying for subsidies, which erodes genuine voluntarism as organizations morph into extensions of state apparatus. Empirical evidence supports crowding-out effects, where government grants reduce private donations by approximately 75 percent of the grant value, as donors perceive public funding as substituting for their contributions, further diminishing civic independence. Critics, drawing on frameworks, argue that these subsidies transform the voluntary sector into quasi-governmental entities, incentivizing risk-averse behaviors and reducing innovation tied to private accountability, as organizations prioritize over empirical outcomes or donor-driven goals. This dynamic undermines the sector's foundational independence, as evidenced by patterns where grant-dependent groups exhibit lower adaptability to volatility compared to privately supported counterparts.

Market Competition and Crowding Effects

Nonprofits frequently compete with for-profit firms in sectors like healthcare, where they provide similar services such as operations and , often leading to overlaps that challenge efficiency. In U.S. s, for-profit entities exhibit greater , including lower employee-to-patient ratios, enabling cost containment through profit-driven incentives absent in nonprofit models. For homes, empirical analyses indicate for-profits achieve superior cost efficiency, as their structure aligns incentives toward minimizing expenses while meeting demand, whereas nonprofits, lacking residual claimants, may sustain higher administrative costs. This can displace for-profits in subsidized environments, as nonprofits leverage tax-exempt status to undercut prices, potentially reducing overall sector by shielding inefficient operators from full discipline. Tax incentives for charitable donations exacerbate these distortions by subsidizing nonprofit entry into commercial domains, encouraging duplication of services viable through private markets. A 1% rise in the after-tax of giving—induced by higher marginal tax rates—correlates with a roughly 4% decline in charitable receipts, reflecting substitution effects where donors shift resources away from toward taxable alternatives like personal or . The 2017 Tax Cuts and Jobs Act's increase in standard deductions, which limited itemized charitable deductions for many, resulted in a $20 billion reduction in U.S. giving in 2018 alone, with affected taxpayers curtailing donations by about $880 on average due to diminished incentives. These patterns suggest subsidies prop up nonprofits in roles where for-profits could allocate resources more effectively via signals and . Such crowding effects favor nonprofit intermediaries over direct privatization, where for-profit provision historically yields lower costs and faster adaptability without donor dependency. Proponents of privatization contend that transferring services like or delivery to private firms eliminates waste from nonprofit drift, as evidenced by efficiency gains in privatized functions through specialized expertise and performance-based contracting. In competitive settings, this shift reduces reliance on distorted subsidies, allowing market mechanisms to prioritize high-value outcomes over subsidized replication.

Global and Regional Variations

United States

The voluntary sector in the United States encompasses over 1.8 million tax-exempt organizations under IRS Section 501(c), with approximately 1.48 million classified as 501(c)(3) public charities eligible for tax-deductible donations. These entities generated more than $1.4 trillion in economic activity in 2023, supported by roughly $500 billion in charitable giving, including $374 billion from individual donors. Formal volunteering engaged about 75.7 million Americans between September 2022 and 2023, contributing billions of hours to causes ranging from health services to education. The tax code's deductions and exemptions have fueled this scale since the Revenue Act of 1917 formalized charitable incentives, enabling growth from localized mutual aid societies—prevalent in the 19th century among immigrant and labor communities—to a professionalized sector increasingly reliant on grants. Historically, U.S. nonprofits shifted from self-sustaining mutual aid models, which emphasized community reciprocity without state intervention, toward dependency on government funding following the New Deal era of the 1930s. This transition accelerated under Great Society programs in the 1960s, bureaucratizing many organizations and aligning their priorities with federal mandates, often at the expense of original charitable missions. By the Reagan and Bush administrations, federal pass-through funding to nonprofits had expanded dramatically, comprising up to 25% of some organizations' budgets and fostering rent-seeking behaviors where service delivery competes with administrative compliance. This dependency has drawn scrutiny for eroding operational independence, as evidenced by high-profile failures like the 2012 closure of Hull House due to overreliance on unstable public funds. Recent debates center on the sector's ideological composition and political vulnerabilities, with evidence indicating a left-leaning skew in and allocation that has diminished bipartisan . Nonprofits in Democrat-dominated districts derive higher proportions of revenue from donations tied to causes, while conservative-leaning groups face disparities and heightened IRS risks. In 2025, proposals threatened $163 billion in domestic discretionary cuts, impacting nonprofits through grant freezes and cancellations announced in , disrupting services for over 550 organizations reliant on Department of Justice subawards alone. administration policies intensified IRS scrutiny of organizations perceived as advancing agendas, including those promoting initiatives or environmental , prompting preemptive removals of such content from websites to avoid revocation risks. Congressional hearings have highlighted how leftist networks exploit dollars for , further eroding amid claims of in grant distribution. This scrutiny underscores tensions between tax privileges and , with proposals for streamlined IRS to curb politicization without broadly undermining legitimate charities.

United Kingdom

The voluntary sector in the United Kingdom evolved significantly from the Victorian era, when philanthropists and religious groups established numerous organizations to mitigate industrial-era poverty, such as through friendly societies and mutual aid groups that provided rudimentary welfare absent a comprehensive state system. The Charity Commission, created in 1853 via the Charitable Trusts Act to oversee and reform charitable trusts amid concerns over mismanagement, formalized regulation and marked a shift toward structured oversight of voluntary efforts. This period saw the rise of coordinated initiatives like the Charity Organisation Society in 1869, which aimed to rationalize aid distribution and discourage dependency by emphasizing casework and self-help. The sector's role expanded in the 20th century alongside partial state welfare development, but the 2010s austerity program under the Conservative-Liberal Democrat intensified its prominence through funding cuts to local authorities totaling over 40% in real terms by 2020, compelling charities to absorb service delivery shortfalls in areas like social care and support. David Cameron's agenda, introduced in 2010, promoted of responsibilities to voluntary groups via mechanisms like the Big Society Bank—funded by dormant accounts—to foster local innovation and reduce reliance on centralized state provision, though implementation faced challenges from simultaneous public spending reductions. These policies inadvertently heightened grant dependency, as charities competed for contracts amid declining private donations and volunteer hours, with sector income from sources rising to over 30% by the mid-2010s. In 2024, the voluntary sector sustains about 978,000 paid jobs—roughly 3% of the UK workforce—and generates an estimated £18 billion in annual economic value through direct activities and volunteer labor equivalent to hundreds of millions of hours. Yet, state commissioning frameworks have drawn criticism for imposing bureaucratic compliance burdens that disadvantage smaller, innovative organizations in favor of scaled providers able to navigate procurement processes, thereby stifling adaptability and entrenching financial ties to government priorities over independent mission-driven work. Conservative thinkers contend that welfare expansions erode voluntarism by diminishing incentives for private charity and community self-reliance, proposing targeted benefit reductions to restore a vibrant, non-state-dependent sector akin to pre-welfare state models.

Other Notable Countries

In India, the voluntary sector features a predominance of informal and small-scale organizations, supplemented by rapid expansion of registered NGOs following economic liberalization in the 1990s, which facilitated greater foreign funding and civil society activism. Private philanthropy reached INR 1.2 lakh crore (approximately $15 billion) in fiscal year 2023, reflecting growth driven by domestic contributions amid regulatory tightening. However, corruption scandals and misuse of funds prompted amendments to the Foreign Contribution (Regulation) Act in 2020, imposing stricter controls on foreign donations to curb political interference and anti-development activities, resulting in license cancellations for over 20,000 NGOs by 2024. These measures, while aimed at enhancing transparency, have constrained grassroots operations in a federal system where poverty and decentralized governance amplify informal voluntarism. France's voluntary sector, structured under the 1901 Law on Associations, encompasses about 1.4 to 1.5 million active entities as of 2022, with annual registrations exceeding 70,000, yet it remains heavily reliant on state subsidies within a statist tradition that limits private initiative. This model, evolving late compared to Anglo-Saxon counterparts, channels public funds into but faces critiques for inefficiencies arising from bureaucratic oversight and fiscal dependencies, contributing to mergers and resource strains rather than dynamic competition. Philanthropic giving constitutes roughly 0.14% of GDP, underscoring a cultural emphasis on state welfare over autonomous third-sector expansion. In , voluntarism traces roots to the kibbutzim movement's communal ideals, fostering high civic participation that persists in a third sector contributing 12-13.5% of GDP by the late 2000s, with welfare nonprofits alone generating 13.8 billion in annual revenue as of recent estimates. Security imperatives, including post-2023 conflicts, drive NGO focus on defense-related aid and , amplified by culture and religious traditions of mutual support, distinguishing it from purely welfare-oriented models elsewhere. This integration of voluntarism with existential threats sustains robust engagement, though government controls on NGO funding reflect tensions over foreign influences.

References

  1. [1]
    Voluntary and community sector contribution to society
    Oct 24, 2024 · It is often used to refer to a wide range of organisations that aim to fulfil a specific social purpose including charities and community groups ...Missing: characteristics | Show results with:characteristics
  2. [2]
    https://www.open.edu/openlearn/mod/oucontent/view.php?id=21012
  3. [3]
    Income sources - Financials | UK Civil Society Almanac 2024 - NCVO
    In 2021/22, the voluntary sector generated £69.1bn from various sources. Public income The public remains the largest contributor, providing 48% of the sector' ...Uk Civil Society Almanac... · Overview · By Size Of Organisation
  4. [4]
    UK Civil Society Almanac 2024 - NCVO
    Nov 20, 2024 · In 2021/22, the voluntary sector contributed 7.5% of overall UK income. The voluntary sector workforce accounted for approximately 3% of the ...
  5. [5]
    Nonprofits a Major Source of Employment Growth Globally
    Mar 11, 2013 · The nonprofit sector accounts for an average of 4.5 percent of the GDP in the covered countries, roughly equivalent to GDP contribution of the ...
  6. [6]
    How Government Funding Compromises Nonprofit Independence
    Aug 20, 2025 · Diminished Independence and Autonomy​​ The reliance on government funding often undermines the independence and uniqueness of nonprofits. ...Missing: controversies | Show results with:controversies
  7. [7]
    Government funding compromises nonprofit independence, report ...
    Increasing reliance on government funding has the potential to erode nonprofit independence, creativity, and accountability to the communities they serve, ...Missing: voluntary controversies
  8. [8]
    The Price of Dependence: Nonprofits and Government Funding
    Sep 11, 2025 · Nearly one-third of nonprofit revenue came from government sources in 2021-2023.Missing: sector controversies
  9. [9]
    Voluntary Sector - an overview | ScienceDirect Topics
    The voluntary sector refers to the nonprofit organizations and volunteering efforts that constitute a significant economic force, exhibiting growth rates ...
  10. [10]
    Introducing the voluntary sector: 1.1 | OpenLearn - Open University
    The voluntary sector is different from the other two sectors because it is 'not-for-profit' and is not government controlled. Traditionally, it has occupied a ' ...
  11. [11]
    What is the voluntary sector? - Blog - York Online Masters degrees
    The voluntary sector, often referred to as the third sector, sits outside of the public and private sectors to focus exclusively on creating social impact ...
  12. [12]
    [Solved] Explain the differences between the private sector public ...
    The voluntary sector, also known as the third sector or non-profit sector, consists of organizations that are neither part of the private sector nor the public ...
  13. [13]
    Types Of Organisation Private Public Voluntary Sectors
    Explore the differences between private, public, and voluntary sector organizations. Understand their structures, funding, and roles in society.Introduction 3 · Private sector 4 · Public sector 5 · Voluntary sector 6
  14. [14]
    Introducing the voluntary sector: Week 1: 1.1 - The Open University
    The voluntary sector is different from the other two sectors because it is 'not-for-profit' and is not government controlled. Traditionally, it has occupied a ...
  15. [15]
    Exemption requirements - 501(c)(3) organizations - IRS
    Aug 20, 2025 · To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes.
  16. [16]
    Nonprofit Statistics 2024 - Financial, Giving, & Industry-Based Data
    Rating 4.8 (234) · $0.00 to $475.00However, with over 1.48 million active 501(c)(3) nonprofit organizations, the number of employees shouldn't be a surprise. The nonprofit industry has many ...
  17. [17]
    [PDF] What do we know about the voluntary sector? An overview 2000
    Three surveys over the last twenty years have provided us with a rich data base on voluntary behaviour, particularly on volunteering through organizations.
  18. [18]
    Understanding the Roots of Voluntary Action: Historical Perspectives ...
    William Beveridge's 1948 report on Voluntary Action¹ is rightly seen as a landmark in the history of the voluntary sector. It was written at a time when the ...<|separator|>
  19. [19]
    [PDF] The Voluntary Sector in British Society
    The convenor of the event, Professor Pat Thane FBA, charts the history of the voluntary sector from Victorian times to the present day. I. Page 2. and ...Missing: origins | Show results with:origins
  20. [20]
    [PDF] Images and concepts of the third sector in Europe - EMES
    In the United Kingdom, the term third sector is used differently by different groups: voluntary and community sector (VCS) people tend to call their sector ...
  21. [21]
    [PDF] Comparing Nonprofit Sectors Around the World
    This article documents and analyses the most significant primary sources that can be used to analyze the size and salience of nonprofit sectors in different ...
  22. [22]
    Unraveling the role of informal mutual aid networks in ... - Frontiers
    Studies show that cooperation between farmers in developing countries takes place mainly through informal mutual aid networks (Hoang et al., 2006; Zhou, 2021).
  23. [23]
    Historical and Ethnographic Perspectives on Informal Finance
    Mar 13, 2020 · These informal mutual aid groups that are based on trust networks are widespread among Haitian-born Canadian women who find themselves ...
  24. [24]
    Consultative status - United Nations Civil Society Participation (iCSO)
    The first time that non-governmental organizations (NGOs) took a role in formal UN deliberations was through the Economic and Social Council (ECOSOC) in 1946.
  25. [25]
    The shadow state: Government and voluntary sector in transition, by ...
    No sector, however, was unaffected. One effect of the Thatcher and Reagan policies has been to shine a brighter light on the nonprofit sector. Although ...
  26. [26]
    Governments and Voluntary Sector Welfare: Historians' Perspectives
    I use the term "voluntary sector" in recognition of its long, though mixed, historical provenance. There are other, more recent, contenders for the cluster ...
  27. [27]
    The Roman Collegia. The Modern Evolution of an Ancient Concept ...
    Jan 20, 2007 · ... Roman collegia by sketching the history of the early research on the firefighter associations. ... Roman voluntary associations in general.
  28. [28]
    Collegia and Thiasoi: Issues in Function, Taxonomy ... - Academia.edu
    Sep 9, 2019 · Collegia tenuiorum, or funerary associations, evolved primarily for burial purposes, reflecting changing social norms. Membership profiles ...
  29. [29]
    [PDF] Chapter 5: Guilds and Mutual Aid in England - LSE Research Online
    Guilds and charity ... Where there is a link between friendly societies and guilds it is to medieval guilds, or confraternities.
  30. [30]
    [PDF] 1 Occupational Guilds as Charitable Institutions in Urban Europe, c ...
    Corporate charity and mutual aid took a variety of forms; in general, senior guildsmen and their family members could count on relief in times of hardship.
  31. [31]
    The Art of Solidarity in the Middle Ages: Guilds in England 1250-1550
    The fulfilment of that debt called for charity, an unconditional love for others, the realization of which was the core aim of the guilds. Consistent with the ...Common goods · Urban community · Civic spirit · Guilds and polities
  32. [32]
    [PDF] MONASTIC CHARITY AND POOR RELIEF IN EARLY TUDOR ENGI ...
    Indeed, all the earlier poor relief methods were far too repressive in character. And the great growth of poverty which characterized this period called for ...
  33. [33]
    The Social and Religious Meanings of Charity in Medieval Europe
    Dec 29, 2014 · Municipal and royal authorities also began taking a more active role in relieving poverty, part of what Ruiz regards as a shift 'from heaven to ...
  34. [34]
    Monastic Poor Relief in Sixteenth-Century England - Academia.edu
    The dissolution of monasteries in the 1530s created a substantial void in charity provision for the poor. Commissioner bias and assessment inaccuracies ...<|separator|>
  35. [35]
    Political Society as a Voluntary Association
    Offers a reconstruction of John Locke's voluntaristic theory of legitimate political authority with the aim of overcoming the following two problems with tacit ...
  36. [36]
    From Mutual Aid to Welfare State: How Fraternal Societies Fought ...
    Mutual aid was one of the cornerstones of social welfare in the United States until the early 20th century. The fraternal society was a leading example.Missing: ancient pre-
  37. [37]
    Friendly Societies: Voluntary Social Security and More - FEE.org
    Mar 1, 1990 · Friendlies were voluntary serf-help associations, organized by the members themselves. The workers regarded the friendlies with great pride, as their own ...<|separator|>
  38. [38]
    Settlement Houses - Social Welfare History Project
    Oct 16, 2017 · Residents and volunteers of early settlement houses helped create and foster new organizations and social welfare programs, some of which ...<|separator|>
  39. [39]
    History of The Salvation Army
    William Booth began The Salvation Army in 1865 as a means to help the suffering souls throughout London who were not willing to attend – or even welcomed into ...
  40. [40]
    Settlement Houses: An Introduction - Social Welfare History Project
    Sep 13, 2023 · The settlement house movement started in England in 1884 when Cannon Samuel A Barnett, Vicar of St. Jude's Parrish, founded Toynbee Hall in East London.
  41. [41]
    The Growth of Voluntary Associations in America, 1840-1940 - jstor
    This article, by Gerald Gamm and Robert D. Putnam, discusses the growth of voluntary associations in America from 1840 to 1940.Missing: sector UK
  42. [42]
    Faith-Based Charity and Crowd Out during the Great Depression
    Crowd-out was small as a share of total New Deal spending (3%), but large as a share of church spending: our estimates suggest that church spending fell by 30% ...
  43. [43]
    The Space Between: Renewing the American Tradition of Civil Society
    Dec 18, 2019 · An estimated 30 percent of charitable spending by churches and other faith-based organizations was “crowded out” by New Deal policies.
  44. [44]
    https://www.redcross.org/content/dam/redcross/National/history-wwii.pdf
  45. [45]
    Reciprocal Aid: Fraternalism and Early Social Welfare History
    May 3, 2024 · Fraternalism fulfilled a crucial role in society. It was a social club as well as an early form of social welfare through the principle of reciprocal aid.
  46. [46]
    [PDF] Policing Charities: A genealogy of the American nonprofit in the ...
    Ronald Reagan's decision to outsource these responsibilities was largely due to his espousal of Milton Friedman's neoliberal ideologies. He offered a two-tiered.
  47. [47]
    https://oxfordre.com/socialwork/display/10.1093/acrefore/9780199975839.001.0001/acrefore-9780199975839-e-1408
  48. [48]
    New American Relief and Development Organizations
    Relief and development non-governmental organizations (NGOs) registered with the IRS ballooned from about 1,000 in 1990 to over 11,000 in 2010, and most of ...
  49. [49]
    [PDF] Density and Decline in the Founding of International NGOs in the ...
    INGO growth was particularly rapid in the 1980s and 1990s, when shifting geopolitics, technological changes, and new international norms stimulated foundings ( ...
  50. [50]
    [PDF] Professionalization of Nonprofit Organizations
    Description. Professionalization of the nonprofit workforce has been one of the most striking trends in recent years. (Salamon 1987; Frumkin 2002).
  51. [51]
    [PDF] The Effect of Government Funding on Nonprofit Administrative ...
    Specifically, a 1% increase in government funding is correlated with a 2.1% increase in the share of administrative to total expenses the following year. Note ...
  52. [52]
    https://theconversation.com/1-in-3-us-nonprofits-that-serve-communities-lost-government-funding-in-early-2025-267795
  53. [53]
    Federal Funding Cuts Would Significantly Affect Local Nonprofits ...
    Apr 14, 2025 · Two-thirds of nonprofits indicated they'd face difficult choices regarding service reductions or closures within six months of federal funding disruption.
  54. [54]
    Growth of the Nonprofit Sector: More Charities, Better Solutions
    Sep 30, 2024 · The paper will examine the overall growth patterns in the nonprofit sector, highlighting the distinct trajectories of different types of nonprofit ...Missing: reputable | Show results with:reputable
  55. [55]
    2025 nonprofit industry outlook - RSM US
    Jul 23, 2025 · Despite current economic uncertainties, history shows that charitable giving remains resilient during downturns and does not always decline.
  56. [56]
    How Government Funding Disruptions Affected Nonprofits in Early ...
    Oct 7, 2025 · In late January 2025, nonprofits nationwide began receiving notices of federal government funding cancellations and freezes.
  57. [57]
    Threats to Nonprofits — and an Opportunity — on Capitol Hill in 2025
    including threats to foundations, big endowments, donor-advised ...
  58. [58]
    EO Impact: Is There an Existential Threat to Nonprofit Status?
    Jun 26, 2025 · —there are some indications that federal policy is shifting to restrict the ability to qualify for nonprofit status or erode the financial ...
  59. [59]
    7.4% Of World Workforce In Nonprofits
    Mar 21, 2013 · Contributions by NPIs account for more than 5 percent of GDP in six of 16 nations. The highest is found in Canada at 8.1 percent (including 1 ...Missing: income | Show results with:income
  60. [60]
    Health of the U.S. Nonprofit Sector - Independent Sector
    Value of Sector. Nonprofits comprised 5.2% of GDP and contributed $1.4 trillion to the economy in 2023. Finances. The number of donors decreased 3.4% in 2023.
  61. [61]
    Economic Impact of Nonprofits
    Nonprofits employ 12.3 million people, with payrolls exceeding those of most other US industries, including construction, transportation, and finance.Missing: share high- income
  62. [62]
    Downloadable Charts & Figures - Nonprofit Impact Matters
    America's 1.3 million charitable nonprofits feed, heal, shelter, educate, nurture, and inspire people of every age, gender, race, and socioeconomic status, from ...
  63. [63]
    Money in the U.S. social sector | Key facts and figures - Candid
    Nonprofits raise an aggregate $3.7 trillion every year and spend $3.5 trillion. · Most nonprofits and foundations are small, having under $1 million in revenue ...<|separator|>
  64. [64]
    https://www.yahoo.com/news/articles/1-3-us-nonprofits-serve-130420234.html
  65. [65]
    Economic Theories of the Social Sector: From Nonprofits to Social ...
    With a for-profit firm or a social enterprise, the manager is a full residual claimant on profits, whereas the manager of a nonprofit earns only a flat wage.
  66. [66]
    [PDF] Ten Nonprofit Funding Models - Stanford Law School
    Research identified 10 nonprofit funding models used by the largest US nonprofits, to help leaders articulate models for their organizations.Missing: breakdown | Show results with:breakdown
  67. [67]
    Observational Evidence of For-Profit Delivery and Inferior Nursing ...
    Apr 19, 2016 · A large meta-analysis found that two of four outcomes were significantly superior in nonprofit compared to for-profit homes [17]: more or higher ...
  68. [68]
    (PDF) Volunteerism and the creation of social capital: A functional ...
    Aug 4, 2025 · Volunteerism is often promoted as particularly likely to contribute to social capital, the bonds of trust and reciprocity created in social networks.
  69. [69]
    Volunteering as a measure of social capital - City Observatory
    May 15, 2017 · Putnam's measures try to capture the extent to which social interaction is underpinned by widely shared norms of openness and reciprocity. As ...
  70. [70]
    An Examination of the Impacts of Volunteering and Community ... - NIH
    Nov 29, 2021 · The aim of this study was to examine the perceptions, motivations and wellbeing impacts for volunteers and contributors to Broadstairs Folk Week.
  71. [71]
    Protecting People in Cities: the Disturbing Case of Haiti | Brookings
    The international community mobilized rapidly and massively to assist Haiti. UN and other international agencies deployed staff quickly, thousands of NGOs ...Missing: faster | Show results with:faster
  72. [72]
    What the Haiti earthquake taught us about disaster response
    Jan 12, 2015 · But of the 10,000 NGOs active after the earthquake (according to a Brookings Institution estimate), only a small fraction were registered with ...
  73. [73]
    Volunteering in adolescence and young adulthood crime involvement
    Nov 21, 2016 · Conclusion. This study suggests that volunteering in adolescence may reduce crime involvement in adulthood.
  74. [74]
    https://journals.sagepub.com/doi/10.1177/10575677241237491
  75. [75]
    The Free Rider Problem - Stanford Encyclopedia of Philosophy
    Jul 4, 2025 · In its free riding manifestation, the good is being produced because some group members are contributing, but it is being produced inefficiently ...
  76. [76]
    Rethinking the Free Rider Problem - FEE.org
    Sep 1, 1991 · The reason is “free riders”: in a voluntary system of donating to a worthy project, people can get the benefit of the project without having to ...<|separator|>
  77. [77]
    Light and Dark Sides of Nonprofit Activities and the Rules to Manage ...
    Also social service nonprofits are often critiqued for creating a “culture of dependency” among their clients, where they never completely “cure” their ...
  78. [78]
    Let's Not Promote Dependency - FEE.org
    Welfare has promoted dependency in the same way that “bad” charity has and, more fundamentally, it is based on coercion.
  79. [79]
    Nonprofit Advocacy Organizations: Assessing the Definitions ...
    This article reviews how research on nonprofit organizations has traditionally defined advocacy and its function in the public policy process.
  80. [80]
    [PDF] How Much Do Non-Governmental Organizations Matter? Differing
    The International Classification of Nonprofit Organizations (ICNPO) was developed by the team of scholars working on the Johns Hopkins University Comparative ...
  81. [81]
    How many nonprofits are there in the US? - USAFacts
    Nov 16, 2023 · In 2022, there were 1.97 million nonprofits operating in the US, including 1.48 million 501(c)(3) tax-exempt organizations, according to the IRS.
  82. [82]
    [PDF] Global Civil Society : An Overview - WINGS Knowledge Centre
    Mar 16, 2003 · This report summarizes the basic empirical results of the latest phase of the Johns. Hopkins Comparative Nonprofit Sector Project, ...
  83. [83]
    (PDF) In search of the non-profit sector II: The problem of classification
    Aug 5, 2025 · This article takes on the complementary task of formulating a classification system that can be used to differentiate systematically the types of non-profit ...
  84. [84]
    Donors are down, but dollars are up – how US charitable giving is ...
    Jan 28, 2025 · The share of Americans who give to charitable causes has fallen. It plummeted from 66.2% of all US adults in 2000 to 45.8% in 2020.Missing: capita | Show results with:capita
  85. [85]
    Government Grants and Contracts for Nonprofits in 2023
    Feb 7, 2025 · In 2023, two-thirds of nonprofits from a nationally representative panel study in the United States received at least one government grant or contract.
  86. [86]
    Board Roles and Responsibilities | National Council of Nonprofits
    Board members are the fiduciaries who steer the organization towards a sustainable future by adopting sound, ethical, and legal governance and financial ...
  87. [87]
    [PDF] RE-IMAGINING PHILANTHROPY - National Development Institute
    By and large, the vast majority of volunteer board members do not have the time, experience, or skills necessary to manage a good CEO. So.<|separator|>
  88. [88]
    [PDF] Change Can Be Good: A New Perspective on Mission Drift
    Government funding has been demonstrated empirically to encourage nonprofits to take on programs incompatible with their mission (Smith 1999; Froelich 1999).
  89. [89]
    Grameen Bank: The Power of Microfinance - The Borgen Project
    Sep 30, 2024 · Microfinance could be a powerful tool in the fight against poverty. From Bangladesh to Uganda, Grameen has shown how small loans can lead to significant social ...
  90. [90]
    Microfinance: Evolution at the crossroads of high tech and high touch
    Dec 12, 2023 · ... Grameen Bank was founded in Bangladesh. As technology has become cheaper, the pool of capital available for global investment—and the ...
  91. [91]
    Full article: Volunteering in the bath? The rise of microvolunteering ...
    Jul 30, 2019 · A popular example is “Be My Eyes”, a mobile application that allows blind and visually impaired people to connect with sighted volunteers via a ...
  92. [92]
    Coronavirus volunteering: how you can help through a mutual aid ...
    Mar 24, 2020 · Thousands of volunteers in “mutual aid” groups are bringing groceries, medications, and more to vulnerable strangers. by Sigal Samuel.Missing: sector | Show results with:sector
  93. [93]
    'Let communities do their work': the role of mutual aid and self‐help ...
    It argues that mutual aid, self‐help, and other spontaneous community measures were vital to the early response to Covid‐19 globally.
  94. [94]
    5 Conservation Projects That Are Focused on Long-Term Success
    Feb 15, 2022 · 5 Conservation Projects Focused on Long-Term Success · Community · Partnership · Funding · Science · Innovation.
  95. [95]
    [PDF] What is the role of voluntary sector organisations in tackling the ...
    Mar 19, 2024 · • Voluntary Sector's Role in Climate Mitigation and Adaptation. • The Voluntary Sector's Role in Environmental Advocacy. • The Role of ...
  96. [96]
    [PDF] NBER WORKING PAPER SERIES UNCONDITIONAL CASH ...
    Aug 4, 2024 · We use Bayesian meta-analysis methods to estimate the impact of unconditional cash transfers. (UCTs). Aggregating evidence from 115 studies of ...
  97. [97]
    Cash transfers: cost-effectiveness analysis - Happier Lives Institute
    This report explains how we determined the cost-effectiveness of cash transfers using subjective wellbeing and affective mental health.
  98. [98]
    Can Cash Do Better Than In-Kind Aid? Let's Find Out
    May 19, 2014 · New research suggests that cash grants to the poor are as good as or better than many traditional forms of aid when it comes to reducing poverty.Missing: meta- ROI<|separator|>
  99. [99]
    A blueprint for a better future | FY2024 Annual Report
    FY2024 total impact. 62 million. Since 1976, Habitat has helped more than 62 million people build or improve the place they call home.Missing: studies | Show results with:studies
  100. [100]
    [PDF] Beneficial impacts of homeownership: A research summary
    “Academic research and surveys point to one inescapable conclusion: that owning one's home enhances quality of life in a variety of specific, verifiable ways.
  101. [101]
    Exploring the Effects of Volunteering on the Social, Mental, and ...
    May 4, 2023 · Benefits were found in all three domains, with reduced mortality and increased functioning exerting the largest effects.
  102. [102]
    Is volunteering a public health intervention? A systematic review and ...
    Aug 23, 2013 · Observational evidence suggested that volunteering may benefit mental health and survival although the causal mechanisms remain unclear.
  103. [103]
    The contribution of the voluntary sector to mental health crisis care
    Jul 8, 2020 · Voluntary sector organisations can make important contributions to mental health crisis care, distinguished by a socially oriented and relational approach.
  104. [104]
    Longitudinal Associations Between Formal Volunteering and ...
    Aug 9, 2025 · Objectives: The present study examines the association between formal volunteering and cognitive functioning over time.
  105. [105]
    How High Is Too High? An Experimental Analysis of Donors ...
    May 29, 2024 · We find that individuals' donations to human service nonprofits substantially decrease when the overhead reaches 35%. In contrast, their ...
  106. [106]
    Societal trust and the economic behavior of nonprofit organizations
    Our results show that nonprofits operating in higher trust areas are more likely to overspend on administrative expenses. This positive relationship between ...
  107. [107]
    [PDF] ORGANIZING AND OPERATING A FOOD PANTRY
    Many of these organizations would benefit greatly by joining volunteer forces and resources rather than duplicating services of a new agency in the community.Missing: sector | Show results with:sector
  108. [108]
    Blind Aid: Lessons (Not Learned) from the Ethiopian Famine | Origins
    Mar 3, 2014 · Thirty years removed from the start of the Ethiopian Famine (1983-1985), lessons from the international relief effort's failure continue to be ignored.
  109. [109]
    Free Rider Problem: What It Is in Economics and Contributing Factors
    The free rider problem occurs when everyone can consume a resource in unlimited amounts, no one can limit anyone else's consumption.
  110. [110]
    Yes, Nonprofits Sometimes Do File Bankruptcy
    Mar 29, 2017 · Nonprofits sometimes file bankruptcy to resolve financial issues, though rarely, and can restructure debts or transfer assets, sometimes ...<|control11|><|separator|>
  111. [111]
    [PDF] Why Do Nonprofits Fail? A Quantitative Study of Form 990 ...
    This study identifies financial and governance factors that may indicate nonprofit failure by analyzing failed organizations' Form 990 data.
  112. [112]
    United Way leader's fraud scandal marred charitable legacy
    Nov 14, 2011 · United Way leader's fraud scandal marred charitable legacy ... William Aramony, who built the United Way of America into an empire of charitable ...
  113. [113]
    Patterns of Wrongdoing Among Nongovernmental Organizations
    Aug 5, 2025 · This paper analyzes, from a cross-national perspective, publicized incidents of wrongdoing by nongovernmental organizations (NGOs).Missing: opaque | Show results with:opaque
  114. [114]
    William Aramony, Disgraced Leader of United Way, Dies at 84
    Nov 13, 2011 · In 1994, Mr. Aramony and two associates were indicted on 71 counts of fraud, conspiracy, tax evasion and money laundering, accused of stealing ...Missing: 1990s | Show results with:1990s
  115. [115]
    Officers Of United Way Of America Sentenced For Fraud. - Tax Notes
    Officers Of United Way Of America Sentenced For Fraud. ... William Aramony, Thomas J. Merlo, and Stephen J. Paulachak -- convicted in April on charges of ...Missing: scandal embezzlement
  116. [116]
    Collapsed charity Kids Company given £46m in public cash - BBC
    Oct 29, 2015 · Collapsed charity Kids Company received at least £46m of public money despite repeated concerns about how it was run, the National Audit Office has found.Missing: million | Show results with:million
  117. [117]
    The Kids Company operating model
    Jan 28, 2016 · Kids Company experienced significant cash flow issues and struggled to meet its obligations to HM Revenue & Customs (HMRC) on several occasions.Missing: scandal | Show results with:scandal
  118. [118]
    Kids Company was mismanaged, Charity Commission finds - BBC
    Feb 10, 2022 · In October of that year, the National Audit Office said Kids Company had received at least £46m of public money despite repeated concerns about ...
  119. [119]
    Fraud Risks in Nonprofit Organizations: Learning From Real-Life ...
    Apr 15, 2025 · In this article, we explore three real-world cases, which are unfortunately quite common scenarios, to highlight some of the strategies organizations can use ...
  120. [120]
    [PDF] Financial Predictors of Fraud in Nonprofit Organizations
    responsible for management and oversight of CEO performance including oversight of financial management, legal responsibilities, and ...<|separator|>
  121. [121]
    Cryptocurrency Fraud in Charity Donations: Scams that Prey on ...
    Sep 30, 2024 · Fraudsters created fake websites and social media accounts, posing as Ukrainian aid organizations and soliciting donations in cryptocurrency. ...Missing: 2020s | Show results with:2020s
  122. [122]
    Attackers Exploit Crisis for Fraudulent Crypto Donations - Abnormal AI
    Nov 16, 2023 · Attackers attempt to solicit fraudulent donations via cryptocurrency transfers under the guise of collecting donations for children in Palestine.
  123. [123]
    Fear and Loathing in the Nonprofit Sector - by Greg Berman
    May 13, 2025 · Left-wing critics of the nonprofit sector have tended to focus on a series of problems within the sector, including racial disparities on ...Missing: mismanagement | Show results with:mismanagement
  124. [124]
    Sounding the alarm: Occurrences of fraud in nonprofit community ...
    Nov 28, 2023 · This study examines the prevalence of fraud occurrences in community sport organizations (CSOs) and compares the organizational characteristics of CSOs.
  125. [125]
    [PDF] Nonprofit Trends and Impacts 2021–2023 - Urban Institute
    Understanding trends in government grants and contracts—the second largest source of funding for nonprofits, behind private fee-for-service revenue (Carter et ...Missing: breakdown | Show results with:breakdown
  126. [126]
    Proposed Changes to Federal Grants | National Council of Nonprofits
    Oct 6, 2025 · October 16, 2025. Federal Shutdown Puts Nonprofits in Limbo, Communities at Risk. From fire recovery in Colorado to youth housing in Utah to ...Missing: 2024 | Show results with:2024
  127. [127]
    Do Government Grants to Charities Crowd Private Donations Out or ...
    We measure an overall level of crowding out of about 75 percent: private donations fall by about three quarters of the amount of government grants. The bulk of ...
  128. [128]
    [PDF] Do Government Grants to Private Charities Crowd Out Giving or ...
    Economists have long observed that crowding out of government grants to private charities is incomplete. The accepted belief is that givers treat the grants ...
  129. [129]
    Understanding the idea of 'grant dependency' in the voluntary and ...
    May 22, 2007 · The associated concept of 'grant dependency' concentrates on the development of cultures and practices within voluntary organisations, as seen ...
  130. [130]
    [PDF] NBER WORKING PAPER SERIES IS CROWDING OUT DUE ...
    The classic theory of crowding out is that individual donors, who are also often tax payers, will treat their voluntary private contributions as a substitute ...
  131. [131]
    For-profit hospitals have a unique opportunity to serve as anchor ...
    For example, for-profit hospitals are more efficient in terms of employees, which may limit the numbers of jobs they provide to the local community (Hirth, 1997) ...
  132. [132]
    [PDF] An empirical analysis of cost efficiency in non-profit and public ...
    A number of recent studies have compared the cost efficiency of non-profit and for- profit hospitals and nursing homes. 3. However, little empirical analysis ...<|separator|>
  133. [133]
    Not-For-Profit Ownership and Hospital Behavior - Duke Economics
    Some would argue that private not-for-profit hospitals are less efficient than for-profits. The conceptual possibility of inefficiency stems from a lack of a ...
  134. [134]
    Do Tax Incentives Affect Charitable Contributions? Evidence from ...
    Apr 20, 2018 · A one percent increase in the tax cost of giving causes charitable receipts to fall by about four percent, an effect three times larger the ...
  135. [135]
    Tax law change caused US charitable giving to drop by about $20 ...
    Jul 29, 2024 · A new study by researchers at Indiana University and the University of Notre Dame finds that US charitable giving fell by about $20 billion in 2018.
  136. [136]
    Tax policies impact donors' generosity, affecting bottom line for ...
    Jul 29, 2024 · For those taxpayers who switched to the standardized deduction, the TCJA caused charitable giving in 2018 to decrease by roughly $880 per ...
  137. [137]
    Understanding Privatization: Process, Benefits, and Real-World ...
    Supporters of privatization believe private companies are more efficient and cost-effective because they cut waste to increase profits. Additionally, private ...
  138. [138]
    Does Privatization Serve the Public Interest?
    The message is clear: the shift in ownership or control from public to private hands will necessarily lead to cheaper, better services for the citizenry. As its ...
  139. [139]
    For-Profit vs Not-for-Profit Healthcare Organizations - Azeus Convene
    Jun 25, 2024 · For-profits emphasize innovation and efficiency, while nonprofits prioritize community services. Choosing between for-profit vs non profit ...
  140. [140]
    SOI tax stats Charities and Other Tax Exempt Organizations Statistics
    This section contains statistical tables, articles, and other information on charities and other tax-exempt organizations.2019 · 2020 · 2018
  141. [141]
    Nonprofits by the Numbers: Sector's Vital Role in American Life
    Mar 18, 2025 · Nonprofits generated more than $1.4 trillion in economic activity in 2023 (the most recent year for which data is available), or 5.2 percent ...
  142. [142]
    50 Nonprofit Statistics You Must Know in 2025 and Beyond - Cazoomi
    The nonprofit sector employs approximately 12.5 million people across the U.S. as of 2024. · About 10% of the American workforce is employed by nonprofits, ...
  143. [143]
    Volunteering Statistics 2025: Who Volunteers & Why It Matters
    May 14, 2025 · 75.7 million people in the US formally volunteered (helping others through organizations like food banks and other non-profits) between September 2022 and ...Missing: sector | Show results with:sector
  144. [144]
    The Growing Role of Mutual Aid - Non Profit News | Nonprofit Quarterly
    May 1, 2022 · Despite this lengthy history, mutual aid declined in many US communities in the 20th century, in part due to the rise of the New Deal welfare ...
  145. [145]
    The Sixty-Year Crack-Up of Federal Funding for Nonprofits (1 of 2)
    Jun 19, 2025 · Over the next twelve years, the administrations of Ronald Reagan and George H.W. Bush furthered the federal government's reliance on nonprofits ...
  146. [146]
    The Sixty-Year Crack-Up of Federal Funding for Nonprofits
    Jul 15, 2025 · It had already started to sink venerable nonprofits that had come to rely on government funding. In 2012, for example, Chicago's Hull House ...<|separator|>
  147. [147]
    Is Political Polarization Affecting the Nonprofit Sector? - Urban Institute
    May 6, 2019 · Nonprofits in conservative communities were less reliant on donations. Nonprofits in Democrat supermajority districts derived 65 percent of ...
  148. [148]
    Federal Budget Proposal Threatens Billions in Cuts to Nonprofits ...
    May 5, 2025 · The proposal calls for a 22.6% ($163 billion) reduction in domestic discretionary spending, while increasing defense funding by 13%. The budget ...<|separator|>
  149. [149]
    DOJ Funding Cuts: More Than 550 Organizations Impacted, New ...
    Nonprofits lost the largest amount of subaward funding ($49.6 million), followed by state, local, and tribal government agencies ($9.3 million), universities ( ...
  150. [150]
    How the Trump Administration Could Target Nonprofits, Explained
    Sep 19, 2025 · Concern about IRS scrutiny spurred many groups to wipe diversity, equity, and inclusion references from their websites, and led environmental ...
  151. [151]
    How Leftist Nonprofit Networks Exploit Federal Tax Dollars to ...
    Jul 15, 2025 · The hearing, "How Leftist Nonprofit Networks Exploit Federal Tax Dollars to Advance a Radical Agenda," will examine how left-wing organizations have exploited ...
  152. [152]
    Independent Sector Statement on Potential IRS Changes to Pursue ...
    Oct 17, 2025 · A statement on changes at the IRS that could allow the agency to pursue criminal investigations of nonprofit organizations more easily.
  153. [153]
    Everything you need to know about the Charity Commission
    Mar 7, 2024 · The Charitable Trusts Act 1853 (CTA 1853) saw the establishment of a more effective body to regulate the charity sector. The Charity Commission ...
  154. [154]
    Charity Organisation Society
    The Charity Organisation Society adopted as the working title in 1870. Among the founders were Lord Shaftesbury, William Gladstone, John Ruskin, Cardinal ...
  155. [155]
    'Austerity' in public services: lessons from the 2010s
    The estimated £40bn of departmental savings that Jeremy Hunt needs to find would be much more damaging to public services and harder to deliver.
  156. [156]
    David Cameron launches Tories' 'big society' plan - BBC News
    Jul 19, 2010 · As well as encouraging greater volunteering and philanthropy, Mr Cameron confirmed plans to use funds stuck in dormant bank and building society ...
  157. [157]
    Charity in the time of austerity: in search of the 'Big Society'
    Oct 10, 2022 · The years after the election of the UK's coalition government in 2010 saw a decline in central funding to local government and a fall in ...Missing: impact | Show results with:impact
  158. [158]
    Executive summary - UK Civil Society Almanac 2024 - NCVO
    The voluntary sector has demonstrated remarkable resilience in the face of economic and social challenges, contributing to 7.5% of overall UK income in 2021/22.
  159. [159]
    Gary Beharrell: The commissioning process disadvantages small ...
    Jun 27, 2024 · Lloyds Bank Foundation's regional manager discusses how large charities winning local contracts could cause smaller organisations to close.
  160. [160]
    Civil Society Covenant - Summary of engagement findings - GOV.UK
    Jul 21, 2025 · We heard that public sector commissioning models and practices can provide barriers to collaboration and partnership with civil society. Firstly ...
  161. [161]
    Margaret Thatcher and the Voluntary Sector
    Apr 17, 2013 · For Margaret Thatcher, voluntary organisations were only important to the extent that they served a role in an economic or political agenda. In ...
  162. [162]
    [PDF] Non Profit Institutions in India A Profile and Satellite Accounts in the ...
    1.4 The origin and development of the voluntary sector in India has been shaped by two major influences: one rooted in indigenous traditions and value.
  163. [163]
    India Philanthropy Report 2024 - Bain & Company
    Private philanthropy grew 10% in FY 2023, to INR 1.2 lakh crore ($15 billion). This faster growth (vs. FY 2018–2023's 5% annual growth) was driven by growth in ...Missing: voluntary | Show results with:voluntary
  164. [164]
    New Indian FCRA Amendments Impact Foreign Grants to Indian NGOs
    Nov 12, 2020 · FCRA is the cornerstone law that regulates how nonprofits in India can receive foreign funding, including from U.S.-based foundations and ...Missing: sector 1990s corruption scandals
  165. [165]
    FCRA licence of NGOs to be cancelled if involved in religious ...
    Nov 11, 2024 · ... political career'. image0. 2. India must 'fire on all cylinders' to ... Foreign Contribution Regulation Act · anti-development activities NGOs ...
  166. [166]
    FCRA and its effect on indian ngos operational challenges and ...
    Oct 13, 2024 · The act regulates and governs foreign funding to NGOs/VOs. The act prohibits foreign funding to political, religious, and journalism sectors in India.
  167. [167]
    [PDF] The 2025 Global Philanthropy Environment Index France
    Jul 30, 2025 · The nonprofit sector in France continues to demonstrate strong dynamism. As of 2022, there were between 1,4 and .5 million active ...
  168. [168]
    [PDF] France: A Late-Comer to Government–Nonprofit Partnership
    Abstract This article puts the current cooperative pattern of state-nonprofit rela- tions in France into historical context against the country's statist ...Missing: critiques | Show results with:critiques
  169. [169]
    [PDF] Giving in France: A Philanthropic Renewal after Decades of Distrust
    A 2006 comparative study estimated giving in France at 0.14 percent of the GDP, including bequests(CAF, 2006). In the Giving France Study (2009) 66 percent of ...
  170. [170]
    Giving in France: A Philanthropic Renewal after Decades of Distrust
    Forced to address more needs with fewer resources, the French nonprofit sector is experiencing a wave of mergers, budget cuts and restructuration (Archambault, ...
  171. [171]
    [PDF] Mapping study of Civil Society Organisations in Israel
    The sector's share of GDP increased from 6.5% in. 1995. 19 to 13.5% in 200820, ranking fourth in size after the Netherlands, Ireland and Belgium. Echoing ...
  172. [172]
    Welfare Nonprofits in Israel: A Comprehensive Overview - מרכז טאוב
    The total revenue of the welfare nonprofit organizations examined in the study amounts to NIS 13.8 billion a year. 23% of that sum goes to organizations working ...
  173. [173]
    https://journals.sagepub.com/doi/10.1177/00113921221086824
  174. [174]
    The Government of Israel's Control of NGOs: Legal Dilemmas ... - ICNL
    In 1999, NGOs employed 10.7 percent of the Israeli non-agricultural work force, and produced 12.8 percent of the Israeli GDP![ 8]Between 1991 and 1995 total ...