TSI Press Release No. 2
European third sector stakeholders provide valuable input to TSI research agenda
Third Sector Impact project leaders met with stakeholders working at EU level to present TSI’s
research objectives and to hear stakeholders’ expert views on third sector impacts and the barriers
it faces at the EU policy level. Participants of the meeting were then encouraged to brainstorm on
the most important fields of third sector impact and barriers at EU policy level and provided
valuable recommendations to TSI researchers.
Brussels, October 15th, 2015. The meeting outlined the overall objectives of the project:
developing a common conceptualization of the third sector in Europe; measuring its socioeconomic impact across the continent; the identification of barriers and solutions for the
development of the third sector in Europe; and on-going exchange with stakeholders to inform
the research process. Participants from third sector organizations working at EU level and from EU
agencies generated several important conclusions:

There is a need for a clear conceptualization of the third sector in Europe in order to
strengthen the impact and recognition of the sector.

Among the multi-fold aspects of impact of the third sector, measuring the impact of
citizen participation should of special concern.

In order to recommend new and unified impact indicators to statistical bodies in Europe
we should think about a matrix with two dimensions, speaking to the mainstream
concerns as well as capturing impacts that reflect the truly distinctive contributions of the
third sector.
Why is conceptualization important?
There are two fields of discussion at European level. The first encompasses European foundations
and the social economy, the second focuses on civil society. Stakeholders underlined the need to
bring the concepts of social economy and civil society together to give the sector more visibility
and legitimacy, as the European Commission has so far failed in providing common ground.
European legislation does not usually refer to the “third sector” but to the concepts of “civil
society” or “non-profit institutions” is. The EU FP7 programme work area on inclusive growth
acknowledges that activities of the third sector often address unmet social needs. “However, the
social and economic impacts of these activities are very difficult to quantify, and reliable data
scarce.”
TSI’s working definition of the third sector in Europe
After an introduction to the challenges of conceptualization that arise from the conceptual
ambiguity that surrounds the concept of the third sector in Europe, the multiple terms and
concepts in use, and the diverse legal treatments and varied histories and cultural traditions that
shape notions of the third sector in Europe, TSI consortium member Lester Salamon (Johns
Hopkins University SAIS Bologna Centre) presented the clusters of entities that form the third
sector, agreed by TSI consortium: associations and foundations (non-profit institutions),
This project is supported by the European Commission
through the Seventh Framework Programme (FP7).
www.thirdsectorimpact.eu
participate@thirdsectorimpact.eu
cooperatives and mutuals; social enterprises or social ventures; and individual activity without
pay (volunteering, the public sphere, or civil society.
A conceptualization of the third sector must allow the development of valid data on it both by
researchers and government statistical agencies. The TSI working definition of the third sector in
Europe so far includes: organizations, both formal and informal, that are institutionally separate
from government, self-governing, engaging people without compulsion, and totally or significantly
limited from distributing profit.
Participants agreed that a profit distributing organization can be counted within the third sector if
it has clear, objectively identifiable features that limit its distribution of profits to members,
investors, or others, such as a legally binding social mission, a 50 % limit on the share of profit that
can be distributed, a legally binding capital lock, or a requirement to employ or serve a minimum
proportion of persons with special needs.
Measuring what impact?
Identifying impacts can show what makes the sector unique in its contribution. TSI researcher
Karl-Henrik Sivesind explained that there must be clarity on impact indicators before impact can
be assessed. Within TSI third sector stakeholders are invited to help prioritize impacts that the
project should focus on (areas identified so far are wellbeing and quality of life; innovation; civic
engagement, advocacy; economic impact, local community development, and human resources).
He reminded of the importance not to confuse outcomes produced by the third sector
(employment, income from different sources, volunteering etc.) with impact, which can be
cultural, economic and social and concern other parts of society than the third sector itself.
EU stakeholders spontaneously added social inclusion, the promotion of human rights and
responsible consumption, the environment, mental and physical health and skills to the list of
impacts. They proposed linking impact to the actual needs and concerns of the European
population and suggested well-being in an ageing society and impact on economic development
as important factors. Most importantly, there was wide agreement that the third sector can
nurture a culture of participation across the continent, as European civil society influences
national organizations, especially when they are membership-based.
Two types of third sector impact
In order to show third sector impact appropriately stakeholders suggested a map rather than a list
that highlights different impact indicators, including measures of the mainstream effects. The TSI
researchers picked up the challenge. Jeremy Kendall (University of Kent) suggested using a matrix
with two dimensions in order to sieve down to the most promising impacts on which to work in
order to recommend new and unified impact indicators to statistical bodies in Europe:
1. The first dimension refers to impacts that speak to the mainstream concerns but that are
frequently overlooked as impacts of the third sector. They fall heavily into the area of the
role of the third sector as a contributor to employment and an economic engine, both
directly and indirectly. Here third sector impacts can often be quantified and hence
compared directly with the market and state and be put to immediate use.
This project is supported by the European Commission
through the Seventh Framework Programme (FP7).
www.thirdsectorimpact.eu
participate@thirdsectorimpact.eu
2. The other dimension of the matrix should register the impacts that reflect the truly
distinctive contributions of the third sector. These fall heavily into the area of engaging
citizens, promoting participation, building solidarity and are perhaps less readily captured
by quantitative metrics impacts. They are important because the lives of people and of
the communities would be poorer – or at least very different, if these were missing.
Current barriers at EU policy level
The final presentation and brainstorming session of the day focused on reciprocal impacts in
relation with policy. The EU policy environment has favourable and unfavourable impacts on the
development of the third sector. There is also a difference between the design of European policy
and its actual implementation.
Stakeholders identified several impact barriers and possible remedies:

Lack of coordination between EU institutions and EU and civil society. Stakeholders
suggested that this results in part from the lack of a commonly accepted
conceptualization of the third sector. They referred to the lack of transparency in policy
processes and the lobbying and strategic behaviour that dominates all bodies: EU Council,
Parliament and Commission. Third sector organizations find it harder to manoeuver
corporatism due to their lack of resources.

Lack of reference to the third sector in the EU policy environment, which makes its
contributions hard to capture. One exception is the existing European Reform Treaty,
because this acts as the critical focal point at EU level for the framing of policy possibilities
and competences. However, stakeholders felt that the treaty has triggered little action on
citizen participation by any Commission, except the European Social Business Initiative.
Representatives of the Directorate Generale for Communication objected to this notion
and referred to a new position paper the EC is working on, as well as budgetary cuts.

Lack of progress in some policy areas, e.g. the European Statute of Association that has
been on the agenda for the past 20 years without much development. As a matter of fact,
there is no impact assessment of the European policy environment on the third sector to
this day, underlining once more the need for a commonly accepted conceptualization of
the third sector as a special entity.

Loss of political momentum. According to participants citizen consultations at EU level
have become a mechanism for expert input, not for civil society participation, external
voices are shut out by the Brussels lobby. Despite an increased demand by citizens for a
having a say, there is no European politician taking a lead on this and there is an
impression of EU institutions shrinking away from the European public sphere.
TSI will continue the conversation with stakeholders through individual feedback, consultations
on the TSI website and the next EU stakeholder meeting in 2015, which will focus more strongly
on possible solutions to perceived problems generated by the EU policy approach to the third
sector. We very much thank all participants for their inspiring and thoughtful contributions.
For a more detailed report of the Brussels meeting refer to the TSI Events section. If you wish to
interview a TSI consortium member contact Jennifer.Eschweiler@emes.net
This project is supported by the European Commission
through the Seventh Framework Programme (FP7).
www.thirdsectorimpact.eu
participate@thirdsectorimpact.eu