THE ROLE OF THIRD SECTOR IN ECONOMIC CRISES

Joanna Dominowska

DOI: http://dx.doi.org/10.12775/EiP.2016.011

Abstract


The aim of this study was to present the role of third sector in economic crises with the particular case study of its role in the last economic crises in Europe. The economic crises brought about a reduction of both government funding and corporate giving, also decline in income from philanthropy. Most responses from the third sector were reactive and passive in nature — reduction or freezing of wages, dismissal of workers, shutting down existing and delaying the beginning of new programs, and the reduction or cancellation of services. However some of the actions were more proactive. These can be divided into two groups. The first one is external in nature. Statutory activity of the third sector has focused on the introduction of programs and initiatives designed to counter the effects of economic crises and increasing the transparency of doing business, in particular financial operations. The second type of activity is associated with the still unappreciated role of the third sector as a business player. Nonprofit organizations can ameliorate the impact of an economic crisis by making efforts to maintain their activity despite zero or negative rate of return diversifying funding sources and entrepreneurship, increasing cooperation with other sectors (governmental and private).

Keywords


institutional changes; European Union; nonprofit sector; charities; independent sector; voluntary sector; social economy

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