The third sector (TS) is made up of all those entities that are not for profit and not part of government, together with volunteer activities which sustain them. These entities, nowadays, are major players/partners in different sectors and areas of service provision, such as health, education, culture, housing, rural services, sports and recreation. It should be emphasized from the start that there is no agreed upon single term or definition to refer to these entities. Among others, the terms civil society and non-profit sector are frequently used interchangeably. In this study, though acknowledging the extensive discussions on the subject and recognizing the important nuances/differences in the content and coverage of the various terms, nevertheless, for sake of convenience, the terms third sector, nongovernmental organizations (NGOs) and civil society will be used interchangeably. The main justification for this approach is that the interaction of all these entities with the state can be handled within the same conceptual framework and generalizations.