ABSTRACT
People are less ready to belong to and identify with third sector organisations and to engage in voluntary activity; market conditions have changed, leading to challenges from for-profit firms; finally, there have been dramatic changes in the way governments construct their relationship with the third sector. Each of these changes generates challenges to the leadership and management of third sector organisations. A third sector organisation should have sufficient management capacity at the centre of the organisation, and sufficient reserves, to enable it to respond to new needs as they emerge. It should also invest significant resources in research and development to discover if there are better ways of delivering a service, ways that are better for the client and more efficient for the organisation. Third sector leaders should make an effort to inform themselves about the ways of business and be able to glean accurate information about a firm quickly.
