Third sector in transition - A question of sustainability for community service organizations and the sector?

Third sector organizations are transitioning towards entrepreneurial and managerial models as a result of quasi-market strategies. This paper reports on the research findings of a survey of nonprofit disability organizations in Queensland and Victoria impacted upon by quasi-market reform. Enterprising organizations were found to have made substantial change to organizational structures and systems, whilst more traditional organizations made few changes. All organizations demonstrated commitment to a social justice ethos. However across the organizational archetypes there were reports of an organizational 'fragility'. It is argued that the problems of sustainability of community service organizations that existed prior to quasi-market reforms remain. This implies community service organizations will experience ongoing difficulties in the post-market era without further rationalization and change. A conceptual framework for sustainability of the community service sector is presented at the policy and organizational level.