The voluntary sector, independent sector, or civic sector is the realm of social activity undertaken by organizations that are non-governmental nonprofit organizations. This sector is also called the third sector, community sector, and nonprofit sector, in contrast to the public sector and the private sector.

What do we mean by third sector?

The 'third sector' is an umbrella term that covers a range of different organisations with different structures and purposes, belonging neither to the public sector (i.e., the state) nor to the private sector (profit-making private enterprise).

Why is it called the third sector?

'Third sector organisations' is a term used to describe the range of organisations that are neither public sector nor private sector. ... For this reason TSOs are sometimes called 'not-for-profit organisations'.