The relationship of scaling and democracy in third sector organizations

Abstract

The scaling of Third Sector Organizations [TSOs] in terms of the number of beneficiaries they serve and/or the range and quality of contributions they offer, is generally assumed to be a desirable aim. At the same time, many TSOs are embedded in local communities and have the potential to act as a community voice thus contributing to the process of bottom-up democracy. The present paper aims to offer a systematic analysis of the relation between the scaling of TSOs and their potential democratic role both internally in articulating a community voice and externally in securing resources and support for their mission. It analyses inter-relationships between TSOs’ routes to scale and their democratic processes, including positive effects of democracy on scaling, and identifies TSO organization and legitimacy as intervening factors. This leads to new theoretical insights that suggest avenues for future research and inform policy guidelines.