Even though many people know about the Third Sector, few who are not part of this environment truly understand the terms and meanings that permeate its processes. With this in mind, the CodeBlog team created this article, in a Guide format, to clarify the most commonly used expressions in a simple and accessible way.

Certainly, the topics will be presented in a summarized manner, precisely so that you, the reader, can have an overview of this universe. Therefore, it is worth mentioning that any subject addressed is much broader and more complex. If you want to know more about any of them, it is worth doing some individual research, or even immersing yourself in the legal methodology of the Third Sector to dive deeper into the legislation.

1. What is the Third Sector?

Basically, Third Sector is the name given to the set of private non-profit entities, governed by the Civil Code, that develop activities aimed at the common good of society and contribute to solving problems, whether economic, social, or environmental.

The name "Third Sector" indicates that it succeeds two others. The first is the State, which has the mission of promoting actions aimed at meeting the demands of society, and the Second is composed of societies and private profit-making organizations.

2. What is a non-profit association?

It is any private legal entity that operates free of profit interests and is formed from the union of people with a common goal.

3. What is a non-profit foundation?

Unlike an association, a non-profit foundation is a legal entity formed from the existence of an endowment, set aside by its founder to serve a specific purpose, focused on public interest causes.

4. What is a Third Sector entity?

This is a very broad term, which defines any Third Sector association such as an NGO, institution, institute, foundation, etc.

5. What is an NGO?

The acronym for Non-Governmental Organization, also known as an "entity."

6. What is philanthropy?

It is the act of doing charity, practicing generosity, having love for humanity, and benefiting other people. It is synonymous with benevolence.

7. What is a philanthropic entity?

It is an entity that includes, in its bylaws, the purpose of providing social assistance to those in need.

However, to be officially recognized as philanthropic, the entity must meet legal requirements and hold the CEAS - Beneficent Social Assistance Entity Certificate - a deliberative body of a permanent nature and with equal composition between government and civil society.

08. What is CEAS?

The CEAS - Beneficent Social Assistance Entity Certificate is a title that can be issued by CNAS – National Social Assistance Council, a body linked to the Ministry of Social Development and Combate to Hunger. To do so, the entity must meet certain legal requirements and formally request it.

09. What is a social assistance entity?

It is an entity whose purpose includes one (or all) of the following options:

a) the provision of care, aid, and advisory services to the underprivileged, to meet their basic needs and facilitate access to goods and services;

b) acting in the defense and guarantee of the rights of the underprivileged citizens;

c) protection and assistance to: family, maternity, childhood, adolescence, and old age;

d) support for needy children and adolescents;

e) promotion of integration into the labor market;

f) training and rehabilitation of people with disabilities and the promotion of their integration into community life.

10. What is a beneficent entity?

It is an entity that includes, in its bylaws, the purpose of doing charity and conducting beneficial activities for people in a situation of inferiority or vulnerability, without charging anything for it.

11. Do philanthropic, beneficent, and social assistance entities have the same objective?

Yes! All of these institutions are non-profit entities aimed at promoting actions of public interest that may involve social, environmental, health, education areas, etc.

12. What is OSCIP?

The OSCIP - Civil Society Organization of Public Interest is a qualification that can be requested from the Ministry of Justice, if the entity meets the respective legal requirements. It has the legal nature of an association.

Upon being qualified as an OSCIP, the entity can sign a "Partnership Agreement" with the Public Authority and receive various types of resources to develop social projects.

13. What is OS?

OS is the acronym for Social Organization. It is a qualification that the entity can request from states and municipalities, provided it meets the legal requirements.

If qualified, it can sign "Agreements" with the Public Authority, allowing it to receive resources for carrying out social projects.

14. What is qualification?

Qualification is one of the ways through which the Public Authority can recognize and differentiate an entity that is properly authorized to perform a certain function.

15. What is a title?

It is synonymous with qualification.

16 – What is public utility?

It is a title that officially recognizes and declares that an entity develops activities for the benefit of the community.

17. What are contracts, agreements, and partnership terms?

Contract: is the instrument that portrays the agreement between the parties and determines reciprocal duties and rights. Therefore, when signed between a private organization and the public authority for the achievement of public purposes, it is called an "administrative contract."

Agreement: is the cooperation instrument signed between two public bodies or between a public body and a private organization, which establishes mutual rights and obligations, aiming to achieve objectives of common interest of the participants.

Partnership Term: is the name given by law to the instrument signed between the Public Authority and the entities qualified as OSCIP, in which the rights and obligations of the parties are recorded, enabling them to receive the financial resources necessary to fulfill them.

18. What is immunity?

Immunity refers to the constitutional restriction of the Public Administration to charge any type of taxes or contributions on the property, income, or services of social assistance and educational entities, provided that legal requirements are met.

19. What is exemption?

It is the legal waiver granted by the Public Administration to an entity to allow the non-obligation of the payment of a certain charge or the compliance of some tax obligation, provided that the legal requirements are observed.

20. What is a volunteer?

It is a person who, spontaneously and without any employment relationship, dedicates themselves to a certain work or to the development of an activity aiming to serve and provide assistance to those in need.

Did you enjoy discovering a bit more about the terms and processes that permeate the Third Sector?

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Best regards, and see you in the next post!