What’s a social sector?

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The social sector is made up of organizations that carry out charitable activities for the benefit of society, often funded by donations. This includes non-profit, philanthropic, and non-governmental organizations, but not businesses or government entities. The sector provides a wide range of services, including personal services, education, and wildlife conservation, and is supported by corporate giving. The impact of the sector is difficult to measure but is considered significant. Salaries in the sector are usually lower, and workers may suffer from “compassion fatigue.”

The term social sector refers to that part of social and economic activity carried out for the benefit of society and which is financed, in whole or in part, through charitable donations. Other common terms relating to such organizations in this industry are nonprofit, non-profit, philanthropic sector, mission-based sector, non-governmental organizations, and tax-exempt organizations. Since not all charitable donations go to entities that have tax-exempt status conferred by a government entity, the term “tax-exempt” isn’t as inclusive in its definition as other terms are.

Businesses are not included in the social sector, but organizations that promote business development, career development or other aspects of entrepreneurial activity can be found in the non-profit sector. The social sector typically does not include government entities, although governments often encourage social sector activities through the provision of incentives. Well known examples of these entities include international organizations such as the Red Cross, Chambers of Commerce and non-profit hospitals. While businesses are not directly included, much capital flows from businesses into this sector through corporate giving. Businesses seek the goodwill expressed in the charitable sector through donations.

The charitable sector engages in an amazing variety of activities and provides a wide range of services to individuals and communities. A small sample of activities in the nonprofit sector include personal services to individuals such as providing basic necessities; training and education; sport events; housing programs; and wildlife conservation. Many hobs are also represented in this area.

Some charitable activities involve the collection of fees, as social sector entities may charge for services. A well-known example is non-profit health care providers. Religious organizations are also an important part of the social sector. These are also called faith-based organizations, as the purpose of religious organizations is to promote adherence to moral standards and a set of beliefs involving spiritual matters.

When considered in total, the amount of investment in the nonprofit sector, both in economic resources and in working hours, is considered difficult, if not impossible, to measure. Most agree that, taken together, it has a significant socioeconomic impact around the world. Working in the social sector is a challenge for many, as salaries are usually lower than for comparable positions in industry or government. Another potential pitfall is ‘compassion fatigue’. This describes the phenomenon where charity workers suffer emotional distress and even physical exhaustion as they attempt to ameliorate human suffering using limited resources.




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