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Knowledge Management in the Third Sector

1 April 2017
Nurit Lin
A group of people forming a heart shape

The term 'third sector' is familiar, widespread, and universally recognized. However, beneath this label lies a diverse and heterogeneous realm of associations, organizations, social enterprises, and foundations, each with unique characteristics, activities, sizes, budgets, and distributions. Consequently, within this umbrella term, one may encounter both a small, developing association operating within a localized sphere and a well-established organization boasting an international presence, multiple branches, and substantial resources seamlessly integrated within state institutions.


Simultaneously, and notwithstanding those above, numerous similarities and distinctions arise when discussing knowledge management within the third sector, allowing for identifying common characteristics, needs, and challenges. Here are the primary ones:

  1. Knowledge Development: Non-profit organizations engaged in social programs, service provision, or specialized activities inherently operate as knowledge-intensive entities. Professional expertise is their primary resource, providing a competitive edge and often serving as the rationale for their existence. Consequently, many such organizations must consolidate and refine their unique knowledge and professional doctrine. This involves developing operational theories and creating practical tools for operation, support, and evaluation.

  2. Volunteer Engagement: Many third-sector organizations rely heavily on volunteers across various operations. However, managing the knowledge accrued through volunteer experiences, coupled with the inherent variability in volunteer engagement compared to paid staff, presents several challenges in knowledge management:

    1. How can volunteers’ accumulated and evolving expertise be leveraged as an organizational asset?

    2. How can organizational knowledge be effectively preserved and accessed?

    3. How should the need for comprehensive training and knowledge dissemination, including complex tools, be addressed in preparing volunteers for their roles?

  3. Shared Content Realms: Third-sector organizations and associations encounter similar challenges and professional practices stemming from the nature of their activities. Facilitating broad, cross-organizational knowledge sharing can foster mutual enrichment and optimize resource utilization. These shared content realms encompass donor and capital acquisition, engagement with governmental and municipal entities, inter-organizational collaborations, and more.

  4. Resource Allocation Challenges in Knowledge Management Processes: The economic volatility and security concerns inherent in relying on donations and investments characteristic of the third sector often hinder investments in long-term knowledge management initiatives or the adoption of costly knowledge management infrastructures and technologies.


Conversely, common traits within the third sector inherently foster and facilitate knowledge management:

  1. Trust: Nonprofits and third-sector entities typically embody a culture of trust, emphasizing partnership and a shared commitment to common objectives. These values are fundamental for cultivating a culture of knowledge exchange, significantly enhancing motivation and the willingness to share knowledge and experiences.

  2. Flexibility: The genesis and evolution of third-sector organizations often result in organizational structures and flexible, dynamic role definitions that afford ample space for individual or collective initiatives. This adaptability can streamline the implementation of knowledge management processes, allowing for swift, informal execution unencumbered by the bureaucracy and formalities prevalent in corporate and governmental bodies.

  3. Innovation: Third-sector organizations' structural and cultural attributes, along with the intrinsic motivations of their employees and volunteers, contribute to a climate of innovation. This inclination towards innovation may facilitate the tackling of the knowledge management challenges outlined earlier, empowering these organizations to devise creative, tailored, and pioneering solutions.


In recent years, a noticeable trend within the third sector involves integrating managerial practices borrowed from the business realm and growing recognition of the significance of knowledge management within these organizations. However, this sector's distinct attributes, inherent challenges, ethos, and overarching mission suggest that mere assimilation of methodologies and practices from the business domain falls short. Instead, there's a pressing need for tailored adaptation and the development of approaches specifically suited to the nuances of this sector.

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