What is a characteristic of third sector organizations?

Third sector organizations, often referred to as non-profit or voluntary organizations, are characterized by being voluntarily run by trustees or a board of directors. This means that these organizations are typically established to serve a specific cause or the community, rather than to generate profit for owners or shareholders. The use of trustees implies a governance structure that emphasizes accountability and stewardship, where individuals are often motivated by a desire to contribute positively to society rather than financial gain. This governance model promotes transparency and ensures that the organization's mission aligns with its operational activities.

In contrast, organizations focused on maximizing profits are generally part of the private sector, while entities owned by government bodies fall into the public sector. Third sector organizations may engage in trade or other revenue-generating activities, but their primary aim is not oriented towards profit maximization, which sets them apart from businesses in the private sector.