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