You have certainly heard this term, but do you know exactly what Third Sector entities do and how they work? Calm down and we’ll explain it to you.

If there is a Third Sector, it is because there must be a First and Second, right? The first sector is formed by public institutions, especially the Executive, Legislative and Judiciary branches; in the second sector, private for-profit companies fit; the third sector is what are called organizations focused on the most diverse areas that contribute to different social agendas (from the eradication of hunger, through the care for the environment and even human rights guidelines).

So far so good, right? The important role of assisting the needs that the system cannot fully meet, find in third sector initiatives the means to be met. However, due to the various possibilities of action, there are different organizations within the Third Sector segment.

Do you want to better understand how Third Sector entities work? Let’s meet them!

Non-governmental organization (NGO)

Non-profit entities, these are defined by performance that can vary the segment (health, education, citizenship, human rights and others), with different legal and formal qualifications. In Brazil, to check the seriousness of an NGO, one of the resources is to assess whether it has titles of Municipal, State and / or Federal Public Utility. One of the characteristics is the non-remuneration of those occupying management positions, fiscal, deliberative and advisory councils, for example.

Civil Society Organization of Public Interest

This qualification was conferred by the Ministry of Justice and is attributed to associations that have state and federal activities, which makes it easier for them to obtain public and private resources. This is because for an initiative to have the title of OSCIP it needs to ensure that its accounts are up to date and in compliance with the legislation in force in the country.

Institutes

This qualification was conferred by the Ministry of Justice and is attributed to associations that have state and federal activities, which makes it easier for them to obtain public and private resources. This is because for an initiative to have the title of OSCIP it needs to ensure that its accounts are up to date and in compliance with the legislation in force in the country.

Foundations

In this segment, institutions with a focus on the Third Sector fit in with the purpose of accumulating resources for project financing. It is common to establish foundations that operate in the scientific, social or cultural area.

Charitable Entity

This category includes associations that carry out direct philanthropic work, such as shelters (whether for children or the elderly), among other fronts. In general, they are activities that contribute without any costs to the various sectors of society, unlike non-profit entities that range from colleges to football teams. Charities, for carrying out activities that generate profit, most of the time, serve the interests of those who associate with them.

How do Third Sector entities work?

Now that we have distinguished the different institutions that make up the Third Sector, it remains to be seen how their reality is in terms of legalization, funding and inspection.

Money

The main financial source for the sustainability of actions and projects is donations from individuals or financing by private or government companies (such as, for example, the option explained in Article 9 of Law No. 9,790).

Regularization and Inspection

The public agency responsible for monitoring the different types of third sector institutions is the Public Ministry. It has the mission of evaluating the mandatory documentation that, periodically, is delivered by third sector institutions to present:

– Sources and applications of resources;
– Institution’s surplus and deficit;
– Balance sheet and assets;
– Changes in shareholders’ equity.

Certifications

The Ministry of Justice and Public Security, as well as the National Council for Social Assistance, are responsible for granting certain certifications to third sector institutions that meet all requirements and, consequently, receive the title and have access to rights from it.

Federal, State and / or Municipal Public Utility Title; CEBAS – Social Assistance Charity Entity Certificate.

How to know if the Institution is reliable?

There are several factors that, when evaluated, help to discern about the reliability of an institution. By turning their attention to them, citizens – with the intention of giving – can feel more secure to contribute.

History

The first point is the trajectory of the institution. Serious jobs are maintained for decades and are specific as to the social needs for which they operate, that is, the positioning regarding the mission they fulfill in society, the values ​​under which they work and the vision they seek to achieve.

Suitability

Being transparent about the accounts and the results of the actions taken is crucial to establish a relationship of trust. A sign of this is the disclosure of the legal requirements and certifications listed, financial reports, effective channels for contact, which actions receive application of contributions and means of monitoring the use of resources must be verified.

Work

Another key indicator is to evaluate ongoing and projected projects and campaigns. Where and how they happen, as well as the impact they have on the number of beneficiaries and whether the performance team has the right professionals. Attention also to the partnerships signed, in addition to the public figures that support the institution.


Donor security

One of the main sources of survival for Third Sector institutions is donations, so the process for them to be carried out needs to fulfill some requirements to earn the donor’s trust, especially in online channels. The page must have:

– Few and simple steps to effect the donation;
– Clarity about the destination of the resource;
– Institution data (CNPJ and other official records);
– Disclosure of channels to contribute and answer questions;
– Security of donor data (reliable payment services).

Source:
https://www.childfundbrasil.org.br/blog/entidades-do-terceiro-setor/

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