ABSTRACT
Almost all third sector organisations interact with governments in some manner, some far more extensively and diversely than others. The few that do not are those that are not incorporated and do not possess a bank account. For many basic interactions, third sector organisations are treated by governments in the same way as for-profit organisations. Third sector organisations are given special support by being exempted from various forms of taxation. These exemptions are many and varied and are enjoyed in various combinations by different third sector organisations. They include exemption or part exemption from income tax, fringe benefits tax, payroll tax, stamp duty, rates and certain government charges. It is possible to distinguish five models of the way governments provide financial support for nonprofit organisations. Each model describes a different orientation of government to the activities performed by nonprofits and a different way of conducting relations between the two classes of organisation.
