Third Sector Glossary (A-Z)
- Accountability
The obligation of an organisation to explain its actions, decisions, and use of resources to stakeholders, ensuring transparency and trust. - Advocacy
Activities aimed at influencing public policy, laws, and resource allocation decisions within political, economic, and social systems to support a specific cause or policy. - Aid
Assistance provided to those in need, including humanitarian aid, development aid, and emergency relief, often delivered by charities and NGOs. - Altruism
Selfless concern for the well-being of others, often driving charitable activities and volunteerism. - Annual General Meeting (AGM)
A yearly meeting of an organisation’s general membership, required by law or the organisation’s governing documents, to discuss the past year’s activities and future plans. - Annual Report
A comprehensive report on a charity’s activities and financial performance over the preceding year, providing transparency to stakeholders. - Articles of Association
Documents that specify the regulations for a charity’s operations and define its purpose, including the roles of trustees and the structure of the organisation. - Asset Lock
A legal clause that ensures the assets of a social enterprise are used for the benefit of the community and cannot be distributed to shareholders. - Beneficiary
A person or group that receives benefits from a charity, such as services, support, or financial aid. - Board Member
A person who jointly supervises the activities of an organisation, also known as a trustee or committee member, responsible for governance and strategic direction. - Capacity Building
Activities that improve an organisation’s ability to achieve its mission, such as training, resource development, and strategic planning. - Charitable Incorporated Organisation (CIO)
A legal form for a charity that is incorporated but not a company, providing limited liability for its members and a simpler regulatory framework. - Charity Commission
The regulator for charities in England and Wales, ensuring compliance with charity law and promoting public trust. - Charity Test
The legal set of requirements that an organisation must pass to become a charity and be entered in the Scottish Charity Register, demonstrating charitable purposes and public benefit. - Community Interest Company (CIC)
A type of company designed for social enterprises that use their profits and assets for the public good, regulated to ensure community benefit. - Conflict of Interest
A situation where a trustee has a personal interest that could interfere with their duty to act in the charity’s best interests, requiring disclosure and management. - Constitution
The governing document of an organisation detailing its purposes, rules, and decision-making structures, essential for legal and operational clarity. - Corporate Social Responsibility (CSR)
Business practices involving initiatives that benefit society, often through partnerships with charities and community projects. - Crowdfunding
Raising small amounts of money from a large number of people, typically via the internet, to fund specific projects or causes. - Donor
An individual or organisation that gives money or resources to a charity, often motivated by altruism or social responsibility. - Employability
Employability is the combination of factors and processes which enable people to progress towards employment, to stay in employment and to progress in the workplace. - Endowment
A donation of money or property to a non-profit organisation, which uses the resulting investment income for a specific purpose, ensuring long-term financial stability. - Ethical Investment
Investing in companies that meet certain ethical guidelines, often related to social and environmental responsibility, aligning financial goals with values. - Fundraising Plan
A document that organises all fundraising activities over a certain period, including key dates, strategies, and communication schedules, essential for effective resource mobilisation. - Gift Aid
A UK government scheme that allows charities to claim back tax on donations made by UK taxpayers, increasing the value of donations at no extra cost to the donor. - Governance
The systems and processes concerned with ensuring the overall direction, effectiveness, supervision, and accountability of an organisation, critical for organisational success. - Grant
A sum of money given by an organisation, especially a government, for a particular purpose, often requiring detailed applications and reporting. - Impact
The measurable difference that a charity’s activities make to the beneficiaries or the community, demonstrating the effectiveness and value of its work. - Impact Assessment
The process of evaluating the effects of an organisation’s activities on its beneficiaries and the community, used to improve and demonstrate effectiveness. - Legacy
A gift left in a will to a charity, providing a significant source of funding and a way for donors to leave a lasting impact. - Memorandum of Association
A legal document required for the incorporation of a company, including a charity, outlining the organisation’s structure and purpose. - Non-Governmental Organisation (NGO)
An organisation that operates independently from the government, typically non-profit and involved in humanitarian or social activities. - OSCR
The Office of the Scottish Charity Regulator, which regulates charities in Scotland, ensuring compliance with charity law and promoting public trust. - Philanthropy
The desire to promote the welfare of others, typically expressed through the donation of money, resources, or time to charitable causes. - Programme Evaluation
The systematic assessment of the processes and outcomes of a programme, aimed at improving its effectiveness and informing future activities. - Public Benefit
The legal requirement that a charity must have purposes that benefit the public, ensuring that charitable activities provide tangible benefits to society. - Reserves
Funds set aside by a charity to ensure its financial stability and sustainability, providing a buffer against future uncertainties. - SCIO (Scottish Charitable Incorporated Organisation)
A legal form unique to Scotland, providing the benefits of incorporation and charitable status without the need to register as a company. - Service User
An individual who uses or benefits from the services provided by a charity or non-profit organisation, central to its mission and activities. - Social Enterprise
A business that trades for a social purpose, reinvesting profits into the community or the business itself to further its social aims, blending commercial and social goals. - Social Impact
The effect of an organisation’s activities on the well-being of the community, often measured to demonstrate the value and effectiveness of its work. - SROI (Social Return on Investment)
A framework for measuring and accounting for the value created by an organisation, considering social, environmental, and economic outcomes. - Stakeholder
Any individual or group that has an interest in the activities and outcomes of an organisation, including beneficiaries, donors, staff, and the community. - Strategic Plan
A document outlining an organisation’s long-term goals and the strategies to achieve them, guiding its direction and decision-making. - Sustainability
The ability of an organisation to maintain its operations and impact over the long term, ensuring ongoing benefit to the community. - Theory of Change
A comprehensive description and illustration of how and why a desired change is expected to happen in a particular context, used for planning and evaluation. - Third Sector
The segment of society that includes non-profit organisations, charities, and social enterprises, distinct from the public and private sectors. - Transparency
The practice of being open and honest about an organisation’s activities, decisions, and use of resources, essential for building trust and accountability. - Trustee
A person who has the responsibility for governing a charity and ensuring it is run in accordance with its purposes and the law, playing a critical role in its success. - Volunteering
Offering time and services for free to support a cause or organisation, providing essential support and building community engagement. - Volunteer Management
The process of recruiting, training, and supervising volunteers to ensure they are effectively contributing to the organisation’s goals, enhancing their experience and impact.