What does the 'third sector' refer to?

The term 'third sector' specifically refers to charities and non-profit organizations. This sector operates alongside the public sector, which includes government-run organizations, and the private sector, composed of private companies and corporations. The third sector is characterized by its focus on social goals rather than profit generation, aiming to address societal issues, provide community services, and support various causes without seeking to distribute profits to shareholders. Organizations in the third sector often rely on donations, grants, and volunteer support, distinguishing them from the profit-driven aspects of the private sector and the regulatory framework of the public sector. By reinforcing societal values and addressing community needs, the third sector plays a crucial role in a balanced economy and the welfare of the community.