Abstract:
The third sector, comprising a vast array of organisations that are neither part of
government nor formed primarily to generate a profit for owners, is an important
part of a well-functioning society. Governments can assist the development of a
strong and sustainable third sector by ensuring there is a supportive legal and
regulatory environment. This article suggests ways in which well-framed laws and
regulations can help the third sector. Then, drawing on Australian examples. It
goes on to indicate how a badly managed legal and regulatory environment can
damage the third sector. It concludes that even if the legal environment is supportive,
it will be ineffective if the wider policy environment is hostile toward the third
sector. A lesson for third sector organisations is that they must work together to
ensure a favourable legal, regulatory and policy environment.
