The Office of the Third Sector (OTS) was created in May 2006 when the Active Communities Directorate in the Home Office, and the Social Enterprise Unit, in the Department for Trade and Industry (DTI), amalgamated. The decision to place the OTS at the centre of government in the Cabinet Office was taken in recognition of the increasingly important role the third sector plays in both society and the economy.
The third sector is a diverse, active and passionate sector. Organisations in the sector share the common characteristics of being non–governmental organisations which are value–driven and which principally reinvest their surpluses to further social, environmental or cultural objectives. It encompasses voluntary and community organisations, charities, social enterprises, cooperatives and mutuals both large and small.