MARK LYONS is Professor of Social Economy at the University of Technology, Sydney, and is Australia’s leading expert on third sector organisations. He was the inaugural chair of Australian and New Zealand Third Sector Research and a founding director of the International Society of Third Sector Research. He has been a member of several government advisory bodies, including the Prime Minister’s Round Table on Business/Community Partnership and the Reference Group on Welfare Reform. THIRD SECTOR The contribution of nonprofit and cooperative enterprise in Australia MARK LYONS ALLEN & UNWIN First published in 2001 Copyright 䉷 Mark Lyons 2001 All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without prior permission in writing from the publisher. The Australian Copyright Act 1968 (the Act) allows a maximum of one chapter or 10% of this book, whichever is the greater, to be photocopied by any educational institution for its educational purposes provided that the educational institution (or body that administers it) has given a remuneration notice to Copyright Agency Limited (CAL) under the Act. Allen & Unwin 83 Alexander St Crows Nest NSW 2065 Australia Phone: (61 2) 8425 0100 Fax: (61 2) 9906 2218 Email:
[email protected] Web: http://www.allenandunwin.com National Library of Australia Cataloguing-in-Publication entry: Lyons, Mark. Third sector: the contribution of nonprofit and cooperative enterprises in Australia. Includes index. ISBN 1 86448 742 9. 1. Cooperative societies—Australia. 2. Nonprofit organizations—Australia. I. Title. 068.94 Set in 10/12 pt Janson by Midland Typesetters, Maryborough, Victoria Printed by Griffin Press, Adelaide 10 9 8 7 6 5 4 3 2 1 iv CONTENTS vii viii ix List of tables Acknowledgments Introduction PART I 1 2 3 WHAT Defining the third sector Diversity Distinctive characteristics of third sector organisations PART II 4 5 6 7 8 9 10 11 12 13 WHERE HOW 33 41 46 50 53 59 63 71 82 91 IS THE THIRD SECTOR WHERE IT IS? The third sector in Australian history The dynamics of third sector growth and decline PART IV 16 17 18 WHY 5 12 22 IS THE THIRD SECTOR? Community services Health Education and related activities Other human services Religion Arts and culture Sport and recreation Interest organisations Economic cooperation Philanthropic intermediaries PART III 14 15 IS THE THIRD SECTOR? 99 105 THIRD SECTOR ORGANISATIONS WORK Governing and managing third sector organisations Financing third sector organisations Staffing third sector organisations v 123 138 150 vi THIRD SECTOR PART V 19 20 21 RELATIONS WITH OTHER SECTORS Drawing support from households Relations with business Relations with government PART VI THINKING 161 170 180 ABOUT THE THIRD SECTOR AND ITS IMPORTANCE 22 23 Making an economic contribution Making a social and political contribution PART VII 24 25 Notes Index 197 204 CHALLENGES The challenge of the third sector The challenge to third sector organisations 217 226 230 239 LIST 2.1 II.1 4.1 5.1 6.1 6.2 7.1 8.1 9.1 10.1 11.1 12.1 13.1 OF TABLES Numbers of third sector organisations, 1996 Basic economic dimensions of Australia’s third sector, including Australia’s nonprofit s