With the growth in the activities of non-governmental institutions, as well as the high demand for social services, it became necessary to create specific legislation to regulate the relationship between the government and third sector entities. To strengthen this link, Law 13.019/14 was instituted , popularly known as the Third Sector Law, with the objective of regulating and establishing partnerships between the Public Administration and Civil Society Organizations, based on a policy not only of promotion, but also of collaboration and cooperation between both.

What is the third sector law or partnership law?

To better understand what the Third Sector law or the Partnerships law is, we need to differentiate between the state and private sectors.

The state sector is an organization responsible for the management and distribution of goods and services, whether for the government or for citizens.

As for the private sector, we mainly observe economic activity based on capital, but not always aiming for profit, and it is at this moment that the union between these two groups arises. A private entity can qualify as a CSO (Civil Society Organization) by fulfilling certain requirements and thus providing typically public services, such as managing and developing projects and technologies with a social initiative and non-profit nature, while maintaining its private legal nature. On the other hand, public resources can be used to make these entities viable and maintain them.

With the increase in private entities that have acquired this title, the need to regularize them has also arisen, thus bringing into force the Third Sector law. This rule establishes, among other matters, the requirements for partnership, conditions for entering into terms, work plans, prohibitions and obligations.

According to the third sector law, who can enter into partnerships with the public authorities?

The Third Sector law establishes that CSOs (Civil Society Organizations) are qualified to enter into partnerships with the Public Authorities, where the following concepts are included: private non-profit entities that do not handle any currency from their economic activity among their personnel; cooperative societies formed by individuals in situations of risk and vulnerability; and religious organizations focused on social engagements.

What types of partnerships and projects are covered by the partnership law?

The types of partnership are also set out in the law following parameters regarding the transfer or not of financial resources and regarding the proposing entity. Thus, the types of partnerships are:

Terms of collaboration: The entity that proposes the partnership and the determinations regarding the project is the public administration, and in this modality there is a transfer of financial resources.

Funding terms: These are partnerships suggested by Civil Society Organizations where financial resources are received to encourage more original projects.

Cooperation agreements: This is the means by which partnerships proposed by the public administration are established, in which case there is no delivery of financial resources. Although there are differences between these instruments, the common point is the reciprocal interest aimed at social well-being.

What benefits has the third sector law brought to organizations and society?

Among the advantages brought by the Third Sector law for organizations, we can highlight: the opportunity to enter into Partnership Agreements with the Public Authorities; receive transfers of assets seized by the Federal Revenue Service; provide society with services that make it more participatory in matters of public interest and thus provide attention that the State alone is often unable to provide.

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