Intersectoral Cooperation for Sustainable Development: Power Asymmetry as a Source of Weakness of the Polish Third Sector

1. Introduction

The contemporary global landscape is defined by an urgent and universal call for profound change, operationalized through the 2030 Agenda for Sustainable Development. The 17 Sustainable Development Goals (SDGs) represent far more than a set of policy objectives; they constitute a mandate for a comprehensive "sustainability transformation"—a fundamental, systemic, and often radical reorganization of the social, economic, technological, and political paradigms that have precipitated current global crises (Bennett et al., 2024; Helsinki Institute of Sustainability Science, n.d.). In this context, the third sector, understood as organized civil society, has emerged from the periphery to become an indispensable partner, operating alongside the state and the market as a key driver of this transformation.

However, the third sector's engagement with the 2030 Agenda is fraught with strategic complexity. The Agenda itself contains inherent tensions, most notably the conflict between SDG 8, which calls for "sustained, inclusive and sustainable economic growth," and environmental imperatives such as SDG 13 ("Climate Action") (Regan, 2019). This contradiction creates a strategic battlefield where NGOs must navigate a difficult choice: to act as pragmatic implementers within a potentially flawed framework, or to function as radical critics striving for a deeper transformation that may question the very foundations of current economic models. This ideological conflict translates into a practical, funding-driven dilemma. Funders, both public and private, often prefer to finance specific, measurable service projects over long-term, politically sensitive advocacy or watchdog activities (Regan, 2019; Wygański, 2019). Consequently, the sector faces a risk of strategic fragmentation, with one part becoming a collaborative, service-oriented partner of the status quo, while another, more critical part is pushed to the margins, struggling for resources and influence.

Pivoting from the global to the national context, Poland presents a compelling and paradoxical case study. The Polish third sector is simultaneously vast in scale and deeply limited in its strategic capacity. Its numerical dynamism is starkly contrasted by systemic weakness. The sector is highly fragmented and its financial precarity is a direct outcome of a dysfunctional funding architecture, dominated by an over-reliance on short-term, project-based public grants—a condition aptly termed "grantoholism".

The Polish third sector has been the subject of considerable academic and policy research, which has effectively documented its legal framework, particularly the foundational Act of 24 April 2003 on Public Benefit Activities and Volunteer Work, as well as its scale, diversity, and operational scope (Journal of Laws, JoL, 2003). However, a critical gap persists in the existing literature. While much is known about what Polish NGOs do, there is a lack of systemic analysis connecting the sector's operational environment to its strategic capacity to drive sustainable transformation. The literature often treats the sector's fragmentation and financial instability as inherent characteristics rather than as the direct outcomes of a specific, restrictive ecosystem shaped by legal and financial structures (du Vall, 2017).

This study seeks to fill this gap by moving beyond description towards a systemic diagnosis. It argues that a true understanding of the Polish third sector's potential requires a holistic analysis of the interplay between its legal architecture, its dysfunctional funding model, and its deep-seated structural paradoxes. For instance, the Polish legal framework, which defines NGOs by negation (i.e., as entities that are neither part of the state nor for-profit), aligns with a rigid, "American-style" structural model that enforces a clear separation between sectors (Raszewska-Skalecka, n.d.; Zimmer & Freise, 2008).

This legal rigidity is not a neutral background condition but an active barrier that may stifle the development of innovative, hybrid organizational forms, such as social enterprises, which are considered crucial in European discourse for achieving SDGs related to decent work (SDG 8) and social inclusion (SDG 10) (Zimmer & Freise, 2008). The law, designed for a different era, may be fundamentally mismatched with the socio-economic functions required today, actively inhibiting the very innovation needed for a sustainable transformation.

2. Materials and Methods

Understanding the role of the third sector in sustainable transformation requires a precise definition of the concept itself, which in academic literature and public discourse operates under many synonymous names, such as the non-governmental sector, non-profit sector, voluntary sector, civic sector, or non-governmental organizations (NGOs) (Raszewska-Skalecka, n.d.). The most fundamental definition describes the third sector as an autonomous socio-economic space situated between the public sector (the state and its agencies) and the private sector (for-profit enterprises) (Zimmer & Freise, 2008; du Vall, 2017). It is a sphere in which citizens voluntarily associate to pursue common goals of a social, cultural, ecological, or charitable nature, rather than to maximize financial profit (Oxford Scholastica, n.d.).

International literature, particularly the work of researchers such as Lester Salamon and Helmut Anheier (1998), has developed a set of five key structural-operational features that characterize third-sector organizations. These are: 1) having a formalized structure (institutionalization), 2) being private (institutionally separate from the state apparatus), 3) being non-profit (prohibition of distributing any profits to owners or board members), 4) being self-governing (the ability to control their own activities), and 5) being voluntary (a significant share of voluntary work in their activities or management) (Zimmer & Freise, 2008).

In the Polish legal system, the framework for the third sector's operation is primarily defined by the Act of 24 April 2003 on Public Benefit Activities and Volunteer Work. It defines non-governmental organizations by negation, stating that they are entities that: 1) are not public finance sector units, nor state or local government legal persons (e.g., enterprises, research institutes), and 2) do not operate for the purpose of making a profit (Raszewska-Skalecka, n.d.). This definition, while providing legal clarity, is by nature restrictive and focused on the formal status of the entities.

An analysis of theoretical literature reveals a fundamental tension, as noted in the introduction, between two main ways of conceptualizing the third sector. The first approach, described as "American," views the sector as a discrete collection of organizations, clearly separated from the state and the market, defined by the aforementioned structural features (Zimmer & Freise, 2008). This is a vision of the sector as a distinct "third force," balancing the influences of government and business. The second approach, more common in Europe, treats the third sector not as an isolated entity but as a hybrid phenomenon, a dynamic social process, and a form of communication that connects and permeates the other sectors (Zimmer & Freise, 2008). This perspective allows for the inclusion of a broader spectrum of entities in the analysis, such as social enterprises or cooperatives, which combine economic activity with the pursuit of social goals.

The concept of "sustainability transformation" in academic and political discourse means something much deeper than gradual improvements or adaptive actions. It is not about "greening" the current system, but about a fundamental, systemic, and often radical change of the social, economic, technological, and political paradigms, practices, and structures that have led to the current crises (Bennett et al., 2024; Helsinki Institute of Sustainability Science, n.d.). It is a process that aims to ensure the long-term well-being of both people and the life-supporting systems on Earth, based on the principles of social and ecological justice (Bennett et al., 2024; Helsinki Institute of Sustainability Science, n.d.). This transformation requires a holistic approach, encompassing changes in dominant values and worldviews, behavioral models, regulatory mechanisms, and forms of institutional governance (Kuenkel, n.d.;).

The academic concept of "sustainability transformation" is inherently more radical than the political compromise that is the 2030 Agenda. While academic literature calls for a "fundamental, system-wide reorganization" and the questioning of paradigms that have led to the crisis (Bennett et al., 2024), the SDGs, as a document adopted through global consensus, contain internal tensions and contradictions. The most frequently raised criticism is the conflict between SDG 8, which calls for "sustained, inclusive and sustainable economic growth," and environmental, such as SDG 13 ("Climate Action") (Regan, 2019). Critics argue that unrestrained economic growth within the current capitalist model is one of the main causes of environmental degradation and climate change. This fundamental contradiction creates a strategic battlefield where the role of the third sector becomes crucial. Non-governmental organizations face a dilemma: should they work within the framework of the 2030 Agenda to achieve measurable, yet potentially insufficient, progress, thereby legitimizing its internal flaws? Or, in line with the postulates of academic literature, should they strive for a deeper, more radical transformation, which may require openly questioning the assumptions underlying some of the goals?

A review of the literature indicates that the third sector's involvement in implementing the 2030 Agenda takes various forms, creating a broad spectrum of activities that can be divided into three main, often overlapping, categories: service delivery, advocacy and policy-making, and social innovation.

In its most basic dimension, third-sector organizations function as providers of key services, often filling gaps in public systems or reaching where neither the state nor the market is able or willing to operate (Northern Bridge, n.d.). In the area of health (SDG 3), they run clinics, vaccination programs, and educational campaigns. In the field of education (SDG 4), they establish schools, organize courses for adults, and provide educational materials (Oxford Scholastica, n.d.). In the fight against poverty (SDG 1) and hunger (SDG 2), they distribute food, run shelters, and conduct professional activation programs (United Nations, 2015; Oxford Scholastica, n.d.). In the context of environmental protection (SDG 13, 14, 15), they organize tree planting, river clean-ups, and protection of endangered species (Oxford Scholastica, n.d.). This service-providing role is fundamental to implementing the "Leave No One Behind" principle, as NGOs often specialize in working with the most marginalized and vulnerable groups, such as people with disabilities, refugees, ethnic minorities, or the elderly (Business UTM, 2024).

However, limiting the role of the third sector merely to service provision would be a significant oversimplification. Its transformative potential is revealed in advocacy and the pursuit of influencing systemic change. NGOs engage in lobbying at the local, national, and international levels, aiming to create and modify laws and public policies in a way that promotes sustainable development (Hege & Dufour, 2017). They organize public campaigns to raise public awareness about key issues and build social support for change.. Importantly, their advocacy efforts are often based on scientific research—commissioning it, conducting it themselves, or using existing publications—to strengthen the credibility and force of their arguments (Northern Bridge, n.d.).

The third sector is also a key incubator of social innovations, which are novel solutions to complex social and ecological problems. Thanks to their flexibility, proximity to local communities, and lower bureaucratic burden, NGOs can experiment with new models of action that can then be scaled up or adapted by the public and private sectors. An equally important function is building social capital and strengthening community resilience. By mobilizing volunteers, creating local cooperation networks, and promoting civic participation, NGOs strengthen social bonds, trust, and the community's ability to jointly solve problems and adapt to change (du Vall, 2017).

One of the most critical, yet most difficult, roles of the third sector in the context of the 2030 Agenda is the watchdog function. This involves systematically monitoring the actions (or lack thereof) of the public and private sectors and holding them accountable for fulfilling their commitments to sustainable development.

In relation to governments, NGOs act as independent reviewers and critics. While governments prepare official reports on the implementation of the SDGs (Voluntary National Reviews) for the UN forum, civil society organizations often create alternative "shadow reports" (Hege & Dufour, 2017). These documents, based on their own research and data collected in the field, verify government declarations, identify implementation gaps, expose inconsistencies in public policies, and give a voice to groups that are overlooked in official narratives. This activity is fundamental to ensuring transparency and democratic oversight of the 2030 Agenda's implementation process, preventing it from becoming merely a public relations exercise.

Equally important, though often more problematic, is the watchdog role towards the private sector. In the era of globalization, the influence of multinational corporations on the environment, human rights, and working conditions often exceeds the regulatory capabilities of individual states. NGOs play a key role in publicizing the negative impacts of business activities, such as environmental pollution, violation of labor rights in supply chains, or tax avoidance, which directly undermine the achievement of the SDGs (Hege & Dufour, 2017; Global Reporting Initiative, n.d.). Through consumer campaigns, legal action, and dialogue with companies, they try to compel them to be more responsible and transparent. However, the literature indicates that NGOs often show a certain reluctance to perform this confrontational role (Hege & Dufour, 2017). This may be due to several reasons: fear of losing funding from corporate donors, the risk of lawsuits (so-called SLAPPs – strategic lawsuits against public participation), or a vaguely defined framework of "partnership" with business that blurs the lines between cooperation and control.

An important aspect of the watchdog function is also the contribution of NGOs to the progress monitoring system. Official statistics, on which SDG monitoring is based, often have a limited scope and do not capture the situation at the local level, especially concerning marginalized groups. NGOs, working "on the ground," are able to collect unique qualitative and quantitative data that complement official indicators and provide a more nuanced picture of reality (van Tulder & van Mil, 2022). In this way, they contribute to filling data gaps, which is one of the key challenges in the global monitoring system of the 2030 Agenda.

The 2030 Agenda unequivocally states that the scale and complexity of the challenges related to sustainable development exceed the capabilities of any single sector. Therefore, SDG 17 ("Partnerships for the Goals") calls for the "revitalization of the global partnership," emphasizing that its implementation is impossible without close and genuine cooperation between governments, the private sector, and civil society (United Nations, 2015; Hege & Dufour, 2017). The third sector plays a dual role in this process: it is both a key partner and an animator and facilitator of cooperation.

Models of cross-sectoral cooperation are very diverse. At the most basic level, they include consultation and dialogue processes, in which NGOs provide governments and companies with their unique expert knowledge and perspective based on field experience (World Bank, 2003). More advanced forms include the joint implementation of projects and programs, where each partner contributes its resources—the public sector provides legal frameworks and funding, the private sector offers technological innovations and operational efficiency, and the third sector brings knowledge of local needs and the ability to mobilize the community. The most mature partnerships lead to the creation of permanent hybrid governance platforms, where representatives from all three sectors jointly make decisions and manage specific resources or public policy areas (van Tulder & van Mil, 2022). International institutions, such as the World Bank, formally recognize NGOs as key strategic partners, seeking to integrate their knowledge and perspective into the project cycle and policy dialogue (World Bank, 2003).

Despite the pervasive rhetoric of partnership, the reality is often more complicated and fraught with tension. A fundamental challenge is the imbalance of power and resources between partners. Third-sector organizations often enter into relationships with powerful government institutions and corporations from a much weaker position, which creates a risk of instrumentalization. In many cases, NGOs are treated not as equal partners but as subcontractors whose role is to legitimize pre-approved decisions or provide cheap services (Regan, 2019). Critics also point to the risk of depoliticizing the role of the third sector—within partnerships, the emphasis is on cooperation and consensus, which can weaken its ability to perform its watchdog function and raise controversial issues. A particular threat is the phenomenon of "corporate capture," in which the development agenda becomes subordinated to short-term business interests, and social and ecological goals are marginalized in favor of projects that generate profit for the private sector (Civil Society Briefing, 2023).

The literature also indicates that a key systemic challenge is the issue of third-sector financing. The dependence of NGOs on government grants, development aid funds, or corporate donations constitutes a fundamental dilemma. Although these funds make it possible to conduct activities, they can simultaneously limit independence and the ability to engage in radical, critical advocacy. Grantmakers, both public and private, often prefer to finance specific, measurable service projects rather than long-term, difficult-to-quantify watchdog or advocacy activities, which can be politically inconvenient. This leads to the "professionalization" and "projectization" of the sector, where NGOs begin to function like consulting firms, competing for grants and focusing on indicators, which can distance them from grassroots social movements and the authentic needs of communities (Regan, 2019; Wygański, 2019).

Based on the literature review and contextual analysis, the central thesis of this article posits that despite its impressive scale, dynamism, and deep local roots, the Polish third sector's ability to function as a strategic engine for sustainable transformation is fundamentally undermined by a restrictive ecosystem defined by systemic fragmentation, financial uncertainty, and a transactional relationship with the state. Within this thesis, the following research hypotheses have been formulated:

H1. The Paradox of Scale: The numerical scale and local rootedness of the Polish NGO sector are inversely correlated with its collective strategic impact, which is a consequence of systemic fragmentation, resource scarcity, and the prevalence of micro-organizations with limited operational capacity.

H2. The Constraint of "Grantoholism": The sector's dominant dependence on short-term, project-based public funding ("grantoholism") constitutes the main structural barrier that directly inhibits long-term strategic planning, undermines financial stability, stifles innovation, and limits the sector's ability for independent advocacy and to perform watchdog functions.

H3. The Adaptation Imperative: The future effectiveness and relevance of the Polish third sector are dependent on its ability to strategically adapt to transformative megatrends, particularly digitalization and the ESG framework. The current inability to do so stems from a systemic deficit of financial resources for investment and a corresponding gap in specialized competencies.

The article is based on a qualitative, descriptive-analytical research concept. The primary goal of the author was to create a synthetic, multidimensional image of the Polish third sector through critical evaluation and integration of secondary data from diverse and dispersed sources.

The selection of source materials was deliberate and dictated by the need to obtain a broad, multidimensional perspective on the phenomenon under study. The selection criteria included obtaining data from five main categories of sources: scientific and expert literature; legal acts and strategic documents; statistical data and industry reports; case studies (materials directly from non-governmental organizations); reports from companies and business organizations: analyses concerning megatrends shaping the socio-economic environment (e.g., Manpowergroup, Konfederacja Lewiatan).

The analytical framework used can be described as multi-centered and interdisciplinary. This choice was a conscious decision by the author, stemming from the fundamental assumption that the contemporary third sector is inherently interdisciplinary, operating at the intersection of civil society, market mechanisms, and state regulations. Consequently, a full understanding of it required consciously drawing from sources from various fields of science and practice: law, sociology, economics, management sciences, and environmental sciences.

In practice, methodological triangulation, serving to strengthen the validity and reliability of the analysis, was achieved through the synthesis and mutual confrontation of information obtained from the five aforementioned categories of sources. For example: the general statistical picture (GUS data) was confronted and deepened by more detailed, qualitative and quantitative data from industry reports (Klon/Jawor Association); the analysis of formal legal frameworks (legal acts) was verified by references to expert analyses indicating practical barriers to their application (e.g., Wygnański, 2019); abstract data and strategic goals (e.g., SDGs) were illustrated and substantiated through the analysis of specific case studies of NGO activities.

3. Results

Detailed analysis of statistical and qualitative data allows for drawing a portrait of the Polish third sector as a phenomenon of large scale and growing dynamics, yet fragmented and facing serious challenges. The capillary structure of the Polish third sector, its deep roots in local communities, and its capacity for social innovation represent invaluable capital. However, this potential is systematically limited by a difficult legal and economic environment that generates financial instability, hinders innovation, and leads to the burnout of human capital. The paradox of a "large yet small" sector, i.e., a huge number of entities with very limited resources, remains a central structural challenge, especially in the face of the global paradigm of sustainable development.

3.1. Legal Framework for the Functioning of the Third Sector in Poland

The key legal act that shaped the framework for the functioning of the third sector in Poland after the systemic transformation is the Act of April 24, 2003, on Public Benefit Activity and Volunteering (JoL, 2003). This document introduced fundamental definitions into the Polish legal system, such as "non-governmental organization" and "public benefit activity," thereby creating the basis for systemic cooperation with public administration (European Funds for Silesia, n.d.).

One of the most important mechanisms introduced by the act is the status of Public Benefit Organization (OPP). Obtaining it is possible for entities that have conducted public benefit activity continuously for at least two years and meet a number of additional criteria (Kuk, 2019). This status opens access to a unique source of funding, which is the possibility of receiving 1.5% (until 2022, 1%) of personal income tax (Klaus, Winiarska, 2011). This mechanism has become an important element in diversifying the revenues of many organizations, generating over one billion PLN annually nationwide (University Publishing House WSG, 2023). At the same time, OPP status imposes additional, rigorous obligations on organizations, primarily in the area of financial and substantive reporting, which aims to ensure transparency in the spending of public funds (Kuk, 2019).

Although the act forms the foundation of intersectoral relations, its practical application is associated with barriers. Organizations often point to excessively complicated formalities related to applying for and settling public grants, which consumes significant resources and distracts from their mission (Wygnański, 2019).

The Polish third sector is characterized by a diversity of legal forms, among which two dominate: associations and foundations. Associations are voluntary, self-governing associations of citizens, established to achieve common non-profit goals. Their functioning is based on the social work of their members. Two forms are distinguished: registered associations, which require at least 15 founders, are subject to entry in the National Court Register (KRS) and have legal personality, and ordinary associations – a simplified form that can be founded by at least 3 people, without legal personality, and based its finances mainly on membership fees (JoL, 2003).

Foundations are a legal form whose essence is assets (founding capital) designated by the founder for the realization of specific, socially or economically useful goals. Unlike associations, a foundation can be established by even one natural or legal person. The basis of its operation is its statute, and the declaration of its establishment must take the form of a notarial deed (unless it is part of a will). Foundations, like associations, can conduct business activity if the statute provides for it, and the profits from it are allocated to statutory goals (JoL, 2003).

In addition to these two basic forms, the broadly understood third sector also includes other entities, such as social cooperatives, which are a key element of the social economy, as well as trade unions, employers' organizations, and chambers of commerce and crafts (Semper Foundation, n.d.).

3.2. Diagnosis of the Potential and Resources of the Polish NGO Sector

The Polish third sector is a phenomenon of large scale and growing dynamics. According to the latest data from the Central Statistical Office (GUS), in 2022, 103.4 thousand active non-profit organizations operated in Poland, including associations and similar social organizations, foundations, social religious entities, and economic and professional self-government organizations (GUS, n.d.). These data show a clear upward trend over recent years – in 2020, there were 95.2 thousand entities, and in 2018, 88.1 thousand (GUS, n.d.).

In terms of legal form, the sector is dominated by associations, which, according to the "Condition of Non-Governmental Organizations 2024" study, constitute 72% of all organizations, while foundations account for 28% (Charycka, et al., 2025). However, it should be noted that there is a discrepancy between the number of registered and actually active entities. The ngo.pl portal database contains over 210 thousand records (Klon/Jawor, 2024), but estimates indicate that about 70-75% of them conduct real activity (Wygnański, 2019). The average operating period of a Polish non-governmental organization is 11 years, which indicates a certain stability and maturity of the sector (Charycka, et al.. 2025).

Table 1. Key statistical data of the Polish third sector (dynamics of changes).

Indicator	2018	2020	2022
Number of active non-profit organizations (in thousands)	88.1	95.2	103.4
Number of members (in millions)	8.9	-	8.3
Number of full-time jobs (in thousands)	141.4	150.3	153.4
Share of NGO employment in the national economy	-	1.4%	1.4%

Source: own elaboration based on GUS data.

Table 1. Key statistical data of the Polish third sector (dynamics of changes).

Indicator	2018	2020	2022
Number of active non-profit organizations (in thousands)	88.1	95.2	103.4
Number of members (in millions)	8.9	-	8.3
Number of full-time jobs (in thousands)	141.4	150.3	153.4
Share of NGO employment in the national economy	-	1.4%	1.4%

Source: own elaboration based on GUS data.

The third sector is not only an important animator of social life but also a significant employer. In 2022, non-profit organizations created 153.4 thousand full-time jobs, which constituted 1.4% of the average employment in the national economy. Together, they gathered 8.3 million members, which indicates a huge potential for social mobilization (GUS, n.d.).

An extremely important, though difficult to precisely measure, resource is volunteering. According to research, about 61% of organizations cooperate with volunteers. However, this involvement is often sporadic – in 72% of organizations, the average volunteer devotes no more than 10 hours per month to work (Charycka, et al., 2021). The sector also faces serious challenges in the area of human capital. Among the most frequently mentioned problems are difficulties in retaining staff and volunteers, a lack of people willing to engage, and the phenomenon of fatigue and burnout among organizational leaders (Wygnański, 2019).

The activities of Polish non-governmental organizations are extremely diverse thematically, which allows them to respond to a wide spectrum of social needs. The largest part of the sector, about 25 thousand organizations, concentrates its activities in the area of sport, tourism, recreation, and hobbies. The next most popular areas are education and upbringing, and culture and art, in which about 10 thousand entities operate each (Charycka, et al., 2021). Significant groups also include organizations providing social services and social assistance (approx. 5 thousand), operating in the sphere of health protection (approx. 4 thousand), and dealing with local development (approx. 4 thousand). The ecological sector, although extremely important from the perspective of sustainable development, is represented by a smaller number of entities, estimated at about 2 thousand (Charycka, et.al., 2021).

Geographically, the Polish third sector has a strongly decentralized and local character. As many as 37% of organizations declare that their activities do not extend beyond the immediate neighborhood, commune, or district. Regional reach is held by 25% of entities, and nationwide by 28%. Only 10% of organizations are active internationally.9 What is important, the sector is strongly rooted in smaller towns – half of the organizations have their headquarters in villages and towns with up to 50 thousand inhabitants (Charycka, et al., 2025).

This capillary structure constitutes the strength of the sector, but at the same time, it is its challenge. We are dealing with the paradox of a "large yet small" sector: it is numerous and ubiquitous, but at the same time very fragmented, and its strength is largely based on non-monetary resources, such as social work and volunteering. The average annual budget of an organization is only about 30 thousand PLN (Wygnański, 2019). Such characteristics require a diversified approach in public policies – on the one hand, supporting the professionalization and financial stability of larger entities, and on the other hand, creating flexible and simple support mechanisms for the vast multitude of small, local initiatives for which complicated grant procedures are an insurmountable barrier (Wygnański, 2019).

3.3. Economy of the Third Sector—Financing Structure

The financing structure of the Polish third sector is complex and based on many pillars, which reflects its hybrid nature. Data analysis indicates that public funds play a key role, but organizations actively diversify their revenue sources.

The most important and common source of funding are public funds from grants, both from local and central government (Wygnański, 2019). In 2023, 47% of organizations applied for a grant from their local government, and 41% received it (Dązbłaż, 2025). Other important sources include membership fees, which form the financial foundation of many associations, and donations from individuals and companies. An important element of this mosaic is the 1.5% income tax mechanism, available to organizations with OPP status. Organizations' own revenues, generated through paid statutory activities and business activities, are also becoming increasingly important. These are supplemented by funds from European funds, loans offered by specialized institutions, and support from foreign organizations (Wygnański, 2019).

Table 2. Main sources of income for non-governmental organizations in Poland (% of organizations using a given source).

Source of income	% of organizations
Local government funds	52%
Membership fees	46%
Donations from individuals	33%
1.5% (formerly 1%) tax	33%
Government and central administration funds	25%
Fees for paid statutory activities	22%
Donations from companies, sponsorship	17%
Income from business activities	10%
Support from foreign non-governmental organizations	8%

Source: own elaboration based on data from the Klon/Jawor Association report.

Table 2. Main sources of income for non-governmental organizations in Poland (% of organizations using a given source).

Source of income	% of organizations
Local government funds	52%
Membership fees	46%
Donations from individuals	33%
1.5% (formerly 1%) tax	33%
Government and central administration funds	25%
Fees for paid statutory activities	22%
Donations from companies, sponsorship	17%
Income from business activities	10%
Support from foreign non-governmental organizations	8%

Source: own elaboration based on data from the Klon/Jawor Association report.

Despite diversified funding sources, the sector struggles with chronic economic problems. Financial instability and difficulties in obtaining funds are indicated as the biggest development barriers by over 60% of organizations (Wygnański, 2019). A key challenge is excessive dependence on public grants, often referred to as "grantholism." The dominance of a short-term, project-based funding model forces organizations to operate in a "grant-to-grant" cycle (PFP, n.d.). Such a system hinders long-term strategic planning, covering fixed costs (administrative, salaries), and building institutional stability.

The financing structure directly determines the organization's strategy and often limits its innovative potential. The need to constantly apply in grant competitions, whose themes are imposed by the grantor, diverts valuable resources from carrying out key mission activities. Organizations are forced to implement not necessarily what is most important from the perspective of their mission and needs diagnosis, but what funds are available at a given moment. This model promotes reactive rather than proactive attitudes and inhibits risk-taking or investing in development. An additional burden is the complicated formalities and excessive control by public administration indicated by NGO leaders, which generate high transaction costs (Wygnański, 2019).

The introduction of the Public Benefit Organization (OPP) status and the associated mechanism of 1.5% personal income tax deduction was one of the most important steps towards strengthening and diversifying the financing of the third sector (Kuk, 2019). For many organizations, this is a key source of income, allowing for greater independence from public grants and financing activities for which it is difficult to obtain subsidies. The scale of this mechanism is significant – in 2021, taxpayers transferred over one billion PLN to OPPs (University Publishing House WSG, 2023).

However, access to this source is limited. Obtaining OPP status requires fulfilling a number of conditions, including conducting public benefit activity for at least two years (Kuk, 2019). Moreover, this status involves increased reporting and transparency requirements, which can be an administrative barrier for smaller, entirely volunteer-based organizations. Nevertheless, the 1.5% mechanism remains one of the most successful examples of building a civic pillar for financing social activities in Poland.

3.4. Genesis and Three Pillars of Sustainability

To fully understand the role and significance of the Polish third sector, it is necessary to place it in the broader context of global development paradigms. The concept of sustainable development and its operationalization in the form of Agenda 2030 is not merely a background for the activities of non-governmental organizations, but a key analytical tool that allows for evaluating their goals, methods of operation, and ultimate impact.

The concept of sustainable development, which today constitutes a global development paradigm, was first defined in the Report of the World Commission on Environment and Development entitled "Our Common Future" from 1987, known as the Brundtland Report. This definition defines sustainable development as "development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs" (EUR-Lex, n.d.). It is an idea that calls for a harmonious and integrated approach to development, reconciling the pursuit of prosperity with intergenerational responsibility.

The foundation of this concept is the integration of three inextricably linked dimensions, called the pillars of sustainability (SGS Poland, 2022):

Economic pillar: focuses on supporting economic growth based on knowledge, innovation, and efficient use of resources. It promotes sustainable trade practices and building a competitive economy.

Social pillar: emphasizes social inclusion, cohesion, equal opportunities, access to education and healthcare, and improving the quality of life. Its goal is to build a responsible society that implements the idea of intra- and intergenerational order.

Environmental pillar: focuses on the protection and rational management of natural resources, protection of biodiversity, mitigation of climate change, and transition to a low-carbon economy.

The essence of sustainable development is therefore the pursuit of lasting improvement in the quality of life by shaping appropriate proportions between three types of capital: economic, human, and natural (IRWiR PAN, 2011).

The most important contemporary expression of the global commitment to implementing the idea of sustainable development is the document "Transforming our world: the 2030 Agenda for Sustainable Development," adopted by UN member states in September 2015 (EUR-Lex, n.d.). Agenda 2030 is a universal plan of action for people, the planet, and prosperity, to be implemented by all countries and all stakeholders.

At the heart of Agenda 2030 are 17 Sustainable Development Goals (SDGs) and 169 associated targets, which cover a wide spectrum of challenges, from eradicating poverty and hunger, through ensuring health, education, and gender equality, to protecting the climate, aquatic and terrestrial ecosystems, and building peaceful and inclusive societies (Raczkowska, et al., 2021). These goals focus around five key areas, referred to as "5xP": People, Planet, Prosperity, Peace, and Partnership (Gov.pl, n.d.).

Although the SDGs are not legally binding, they create a global framework that guides public policies, business strategies, and civil society actions, and mobilizes capital for sustainable investments (SGS Poland, 2022). The commitment to implementing Agenda 2030 by all parties – governments, international organizations, the non-governmental sector, science, and business – makes it a universal language of cooperation. This common reference platform allows for the integration of actions of various actors around common, globally defined priorities. For Polish non-governmental organizations, the ability to position their mission and projects within specific SDGs becomes a key strategic competence, facilitating the building of partnerships and legitimizing actions.

It is worth noting that sustainable development is one of the long-term goals of the European Union, enshrined in Article 3 of the Treaty on European Union (EUR-Lex, n.d.). The EU actively implements Agenda 2030 through a number of strategic initiatives, such as the European Green Deal, the circular economy action plan, cohesion policy, and the European Pillar of Social Rights. In 2023, the EU for the first time presented a voluntary review of the implementation of Agenda 2030 at the UN forum, which testifies to the importance it attaches to this process (EUR-Lex, n.d.). Poland, as a signatory to Agenda 2030, has also committed to its implementation (Gov.pl, n.d.). At the national level, the Ministry of Funds and Regional Policy (formerly the Ministry of Development) is responsible for monitoring progress in implementing the SDGs. At the international level, the Ministry of Foreign Affairs supports the implementation of the Agenda in developing countries as part of the Polish Aid development cooperation program (Gov.pl, n.d.). The inclusion of sustainable development goals in national and regional strategies creates a framework for financing and implementing projects in which the third sector can and should play a key role.

3.5. The Third Sector as an Actor of Sustainable Transformation

The third sector in Poland is not only a beneficiary of public support but, above all, an active and key actor in the process of implementing sustainable development. Its activities, often carried out at the local level, directly contribute to achieving the SDGs adopted by the UN. The table below illustrates how various initiatives of Polish NGOs fit into the global Agenda 2030.

Table 3. Examples of activities of Polish NGOs in relation to selected UN SDGs.

SDGs	Examples of activities of Polish NGOs
1. No Poverty; 10. Reduced Inequalities	Activities of Social Integration Centers and social cooperatives for the professional and social reintegration of excluded persons (MCPS, 2020).
3. Good Health and Well-being	Running hospices (36% of facilities in Poland), facilities for people in homelessness crisis (85% of facilities), activities in the field of mental health protection (Wygnański, 2019).
4. Quality Education	Running schools and educational institutions (e.g., 8% of primary schools), extensive activities in informal education, supporting youth from disadvantaged backgrounds (Wygnański, 2019).
13. Climate Action	Advocacy for a just energy transition (e.g., Climate Coalition), climate education, monitoring public policies (NGO.pl, 2024).
14. Life Below Water	Comprehensive project for the protection of the Baltic Sea (Blue Patrol, retrieving ghost nets, advocacy for marine protected areas) implemented by WWF Poland (Climate Coalition, n.d.).
15. Life on Land	Watchdog and advocacy activities for the protection of the most valuable ecosystems, e.g., Białowieża Forest (activities of the Workshop for All Beings) (Chroń Bałtyk, n.d.).
17. Partnerships for the Goals	Building intersectoral cooperation (NGO-business-administration) within CSR projects and ESG strategies, creating coalitions and thematic networks (Pracownia.org.pl, n.d.).

Source: own elaboration.

Table 3. Examples of activities of Polish NGOs in relation to selected UN SDGs.

SDGs	Examples of activities of Polish NGOs
1. No Poverty; 10. Reduced Inequalities	Activities of Social Integration Centers and social cooperatives for the professional and social reintegration of excluded persons (MCPS, 2020).
3. Good Health and Well-being	Running hospices (36% of facilities in Poland), facilities for people in homelessness crisis (85% of facilities), activities in the field of mental health protection (Wygnański, 2019).
4. Quality Education	Running schools and educational institutions (e.g., 8% of primary schools), extensive activities in informal education, supporting youth from disadvantaged backgrounds (Wygnański, 2019).
13. Climate Action	Advocacy for a just energy transition (e.g., Climate Coalition), climate education, monitoring public policies (NGO.pl, 2024).
14. Life Below Water	Comprehensive project for the protection of the Baltic Sea (Blue Patrol, retrieving ghost nets, advocacy for marine protected areas) implemented by WWF Poland (Climate Coalition, n.d.).
15. Life on Land	Watchdog and advocacy activities for the protection of the most valuable ecosystems, e.g., Białowieża Forest (activities of the Workshop for All Beings) (Chroń Bałtyk, n.d.).
17. Partnerships for the Goals	Building intersectoral cooperation (NGO-business-administration) within CSR projects and ESG strategies, creating coalitions and thematic networks (Pracownia.org.pl, n.d.).

Source: own elaboration.

Non-governmental organizations play an irreplaceable role in building social cohesion and counteracting marginalization. They often operate in areas where public institutions prove to be insufficiently flexible or efficient. Data show that the NGO sector runs as many as 85% of aid facilities for people in homelessness crisis and 36% of hospices in Poland (Wygnański, 2019). These are services of key importance, requiring specialized knowledge and enormous commitment.

NGO activities focus on supporting groups particularly vulnerable to social exclusion. This includes broad-based activities for professional and social integration and reintegration, support for people with disabilities, activation programs for seniors, assistance for families in crisis, and support for victims of violence (Gov.pl, 2020). Thanks to their deep knowledge of local problems and the trust they enjoy in communities, these organizations are able to reach out with help where it is most needed.

The contribution of the third sector to the realization of social goals extends far beyond the sphere of social assistance. Non-governmental organizations are an important actor in the education system, not only by running their own educational institutions (e.g., social schools and kindergartens), but above all by enriching the educational offer through informal activities, workshops, youth projects, and educational equal opportunities programs (Wygnański, 2019).

In the area of health protection, NGOs conduct preventive, educational, therapeutic, and care activities, often complementing the public health care system (Gov.pl, 2020). Their role is particularly visible in palliative care, supporting people with chronic diseases and their families, and promoting mental health.

The role of organizations in the sphere of local development is also extremely important. They animate community life, initiate activities aimed at improving public space, support civic participation, and build social capital, which is the foundation of sustainable development at the local level (Charycka, et al., 2021).

A special tool for achieving social goals, combining mission with market mechanisms, is social entrepreneurship. Social economy entities, such as social cooperatives, Social Integration Centers (CIS), Social Integration Clubs (KIS), and Vocational Activity Establishments (ZAZ), were created to professionally and socially activate people who, for various reasons, found themselves in a particularly difficult situation on the labor market (MCPS, 2020).

Their primary goal is not profit maximization, but reintegration – rebuilding social and professional skills of long-term unemployed, disabled, addicted, or homeless people (MCPS, 2020). By creating protected, yet real, workplaces for them, social enterprises become a bridge to the open labor market. In Poland, social cooperatives successfully operate in various industries, such as construction, cleaning, care, gastronomy, and tourism services, proving that it is possible to effectively combine economic and social goals (sendzimir.org.pl, n.d.).

Non-governmental organizations perform a key watchdog function in the area of environmental and climate protection. They monitor the implementation and compliance with environmental law, intervene in cases of its violation, and exert pressure on political decision-makers to introduce more ambitious pro-environmental policies.

An example of effective advocacy is the Climate Coalition, which brings together 27 Polish non-governmental organizations (NGO.pl, 2024). Through common positions, information campaigns, participation in public consultations, and education, the Coalition actively influences the shape of Polish climate and energy policy (NGO.pl, 2024). The activities of ecological organizations are often highly specialized – they cover areas such as combating smog (e.g., Polish Smog Alert), river protection, promotion of renewable energy sources, and sustainable agriculture (Łojko, 2020).

Importantly, the activities of ecological NGOs are not only advocacy but also concrete, often multi-year field projects that bring measurable results in nature protection. One example of such undertakings is the WWF Poland program and the protection of the Baltic Sea ecosystem. The WWF Poland Foundation has been implementing a comprehensive program for the protection of the Baltic Sea for years, which is an excellent example of a multidimensional approach to the problem. A key element is the WWF Blue Patrol – a network of nearly 200 trained volunteers who monitor the Polish coast throughout the year, intervening in cases of finding injured or dead marine mammals (seals, porpoises) and birds (Climate Coalition, n.d.). Another pillar of activities is the fight against so-called "ghost nets" – abandoned fishing gear in the sea, which constitutes a deadly trap for marine organisms. As part of projects implemented in cooperation with fishermen and divers, WWF has removed about 300 tons of such nets from the Baltic Sea (ireform.eu, n.d.). These activities are complemented by advocacy for the creation and effective management of marine protected areas and extensive education and cooperation with the business sector (e.g., with the Lidl Polska network). This project directly contributes to the implementation of SDG 14 (Life Below Water).

Another example is the Workshop for All Beings and the defense of the Białowieża Forest. The Workshop for All Beings Association is an example of an organization conducting uncompromising activities for the protection of wild nature. Its involvement in the defense of the Białowieża Forest, the most valuable lowland forest in Europe, dates back to the 1990s (Pracownia.org.pl, n.d.). The association's activities, referring to the philosophy of deep ecology, cover a wide spectrum of methods: from manifestations and direct actions, such as blockades of tree felling in 2017, to effective use of legal avenues at national and European levels, including filing a complaint with the European Commission, which led to the intervention of the EU Court of Justice (Pracownia.org.pl, n.d.). The Workshop's activities are a vivid example of the implementation of SDG 15 (Life on Land) through independent civic oversight.

Energy transformation, especially in regions heavily dependent on the extractive industry, such as Silesia or Eastern Greater Poland, is a huge challenge not only technological and economic, but above all social. Non-governmental organizations play a key role in this process, ensuring that the transformation is "just" – i.e., takes into account the needs of workers from declining sectors, their families, and entire communities.

NGOs, such as BoMiasto, WWF Poland, and the Institute of Reform, act as initiators and moderators of social dialogue, creating platforms for cooperation between local governments, trade unions, entrepreneurs, and residents (cdn.ug.edu.pl, 2023). They conduct research and analysis, providing decision-makers with data on the social consequences of the transformation, and also conduct educational activities, building social acceptance for inevitable changes (eurodesk.pl, n.d.). Their grassroots involvement is essential so that the transformation process is not perceived as top-down imposed, but as a common opportunity to build a new, sustainable future for the region, which aligns with the implementation of SDG 8 (Economic Growth and Decent Work) and SDG 13 (Climate Action).

4. Discussion

Analyzing the cooperation ecosystem for sustainable development, it should be noted that cooperation with public administration, especially at the local level, is the foundation of activity for most Polish non-governmental organizations. Research indicates that as many as 84% of NGOs maintain contacts with local government (Klon/Jawor, 2024). The dominant form of this cooperation is the commissioning of public tasks by local government through open calls for proposals (sektor3.szczecin.p, n.d.). This mechanism, on the one hand, allows for the effective use of NGOs' potential in providing public services, but on the other hand, often reduces the relationship to a "client-contractor" model.

Nevertheless, positive trends are observed. The latest report "Condition of Non-Governmental Organizations 2024" indicates a significant improvement in the assessment of cooperation with local governments – representatives of the sector currently give it a "very good" rating, while in 2021 it was a "good" rating (sektor3.szczecin.p, n.d.). Increasingly, cooperation takes on partnership forms, such as the implementation of joint projects, ongoing communication, or participation in consultative and advisory bodies (sektor3.szczecin.p, n.d.). At the government administration level, the Supreme Audit Office report, despite a generally positive assessment, pointed to certain irregularities, which indicates the still existing challenges in building a mature partnership (WWF, 2021).

The third sector's relations with business are historically less intense than with public administration. Only 58% of NGOs declare contacts with companies, and these are often sporadic (Wygnański, 2019). Traditionally, this cooperation was based on corporate philanthropy and activities within Corporate Social Responsibility (CSR), such as donations, sponsorship, or employee volunteering.

However, we are currently observing a fundamental transformation of this model, driven by the global ESG (Environmental, Social, Governance) trend. Growing expectations of investors, consumers, and new regulations (e.g., the EU CSRD directive) are forcing companies to adopt a strategic approach to environmental, social, and corporate governance issues. In this new paradigm, business ceases to perceive NGOs merely as beneficiaries of aid, and begins to see them as strategic partners and experts who can help achieve sustainable development goals (Pracownia.org.pl, n.d.). For non-governmental organizations, this opens up new, unprecedented opportunities to obtain funding and build long-term, common-goal partnerships (Chimczak-Bratkowski, 2025).

Intersectoral cooperation is key to effectively solving complex social and environmental problems, but it carries both opportunities and threats for all parties.

For non-governmental organizations, the main benefits are access to business resources – not only financial, but also material, human (knowledge, managerial competencies) – which leads to professionalization and increased scale of impact. An analysis of cooperation between NGOs and the business sector shows the enormous pressure on non-profit organizations to adopt more business-like management and reporting standards (Stewart, 2025). The main risks are the threat of losing missionary independence, instrumental treatment by the business partner, and reputational risk associated with legitimizing company actions that may be merely superficial "greenwashing" or "socialwashing." Both terms refer to deceptive practices used by companies that are intended to give the impression that they are engaged in social and environmental sustainable development, while in reality their actions are not as beneficial as they seem (climateandstrategy.com, 2023).

For the business sector, cooperation with NGOs primarily means easier access to local communities and knowledge about social problems, building a positive reputation and brand, implementing ESG strategies, and increasing employee engagement through volunteering.

An analysis of the third sector's activities in Poland clearly shows that it is an indispensable, though often underestimated, actor in the implementation of Agenda 2030 at the local level. Its strength lies in its deep knowledge of local problems, its ability to mobilize communities, and the public trust that administration and business often lack. Effective implementation of sustainable development in Poland therefore requires the strategic inclusion of NGOs in public policy planning and implementation processes, treating them as full partners, and not merely as executors of commissioned tasks.

The future of the Polish third sector will be determined by powerful, global transformative forces. The ability of organizations to adapt to these megatrends will decide their relevance and effectiveness in the coming decades.

The COVID-19 pandemic acted as a catalyst, rapidly accelerating digitalization processes in non-governmental organizations. Research shows that awareness of the need for change is high: almost 80% of Polish NGOs recognize the need for greater use of digital technologies, and one in three is already experimenting with artificial intelligence (AI) tools, mainly for content creation or automating simple tasks (PFP, n.d.). However, aspirations clash with harsh reality. The biggest barriers to implementing new technologies are lack of financial resources (indicated by 58% of organizations), lack of time for implementation (34%), and a shortage of digital competencies in teams (25%) (PFP, n.d.). A fundamental problem is the aforementioned "grant-to-grant" funding model, which prevents long-term investments in technological infrastructure and its maintenance and development (PFP, n.d.). In response to these challenges, initiatives supporting the digital transformation of the sector are emerging, such as programs of the TechSoup Foundation or Sektor 3.0, offering access to software, training, and consulting (du Vall, 2017).

Poland is facing one of the most serious demographic collapses in Europe. Forecasts are alarming: by 2035, the number of employees in the labor market may decrease by over 2.1 million, and the aging process of society will rapidly accelerate (Schmeichel-Zarzeczna, 2023). The demographic dependency ratio, i.e., the ratio of the number of people of post-working age to people of working age, is expected to increase from 36.6% in 2019 to 80.3% in 2060 (Sektor3-0.pl, 2025).

These changes will have a direct and severe impact on the third sector. Firstly, they will lead to a shrinking base of potential employees and volunteers, especially among younger generations, who have so far constituted the core of volunteering (Kukołowicz, et al., 2024). Secondly, the aging of society will cause a surge in demand for services provided by NGOs, especially in the areas of care, support for seniors, and healthcare (Gov.pl, 2021). The sector will therefore have to do more with fewer human resources, which will necessitate the search for new operating models, e.g., through the activation of senior volunteering or deeper automation of processes.

Unemployment also constitutes a common socio-economic challenge and is significantly linked to the ESG framework, affecting both corporate behavior and social well-being. It has a multidimensional impact on environmental sustainability, social equity, and corporate governance practices (Lee, 2024). The impact of implementing ESG strategies on employment levels is not a one-dimensional phenomenon. It is a complex, multifaceted process of simultaneous job creation and destruction, leading to deep sectoral and regional restructuring. ESG affects the quality of employment and structural inequalities. The focus on the social pillar forces companies to improve employee well-being, implement anti-mobbing and anti-discrimination policies, which is crucial for attracting talent. On the other hand, it necessitates the retraining of workers in traditional, high-emission industries. The decarbonization process, which is the core of the environmental pillar, inevitably leads to restructuring and gradual phasing out of activities in some sectors – the largest and most socially painful consequences of this process concern hard coal and lignite mining (Konfederacja Lewiatan, 2021).

Reports also indicate that insufficient knowledge of ESG and a lack of internal specialized resources are currently key challenges for companies (Manpower Group, 2024). The lack of qualified personnel prevents companies from effectively developing and implementing strategies, effectively managing non-financial data, and conducting reliable reporting in accordance with ESRS standards (HR Standard, 2025). Many organizations, lacking internal competencies, are forced to rely on their own resources (54% of surveyed companies), which can lead to errors and inefficiencies, or compete for a very limited and expensive pool of external experts (ayming.pl, 2024). This talent deficit thus becomes not only an operational problem, but a fundamental limitation for the ability of the Polish economy to adapt to the requirements of the European Green Deal.

The main risk associated with the ESG transformation is not so much an increase in the overall unemployment rate nationwide, but the emergence of deep and long-term structural unemployment in specific regions. The fundamental asymmetry between liquidated and created jobs – both geographically and in terms of competencies – means that simple market mechanisms will not be able to ensure a smooth transition of workers between sectors. An additional, nationwide factor limiting the potential for creating new jobs is the diagnosed skills gap. The shortage of qualified specialists and technicians may become a bottleneck that will slow down the pace of the green transformation and prevent the full utilization of its employment potential.

In summary, the growing importance of ESG (environmental, social, and corporate governance) criteria in business strategies and investment decisions presents both a huge opportunity and a serious challenge for the third sector. On the one hand, companies seeking reliable partners to achieve their ESG goals open new funding streams and cooperation opportunities for NGOs (Chimczak-Bratkowski, 2025). On the other hand, entering into a strategic partnership with business forces organizations to adopt significantly higher standards of management, transparency, measurement of social impact, and reporting (Panek - Owsiańska, 2025).

The convergence of these megatrends creates powerful pressure for a fundamental change in the operating model of Polish NGOs. Demographic changes mean fewer hands to work. Digitalization, AI, and ESG offer new solutions, whether in the form of automation or increased efficiency, but require investments and competencies that the sector lacks. In turn, ESG pressure provides a potential source of funding for such a transformation, but at the same time imposes rigorous requirements for measurability and transparency, which are easier to meet with advanced digital tools. This creates a kind of feedback loop: to obtain funds (necessary due to demographics), an organization must already be professionalized to some extent and adapted to ESG standards. Organizations that are unable to enter this new development cycle risk marginalization, which can lead to a deepening polarization of the sector into a few advanced leaders and a mass of small entities struggling to survive.

5. Conclusions

The analysis presented in this article confirms the main thesis that the potential of the Polish third sector is systemically limited by its structural paradoxes. The study validates the three research hypotheses posed.

The analysis confirms “the paradox of scale” (H1) demonstrating, based on data from GUS and Klon/Jawor, that the sector is numerically vast (103.4 thousand organizations) but operationally fragmented, with a low average budget and a predominantly local focus, which limits its collective strategic impact. Hypothesis 2 was validated by data on funding structures (Table 2), which show a 52% dependence on local government grants. The analysis further links this dependence to the reported main barriers of financial instability and the inability to conduct long-term planning, as cited by sector experts. Regarding Hypothesis 3 (The Adaptation Imperative), the analysis supports this hypothesis by identifying a critical disconnect between the recognized need for adaptation to digitalization and ESG and the ability to implement it. The diagnosed lack of funds (58%) and skills (25%) for digital transformation is a direct consequence of the funding model described in H2, creating a systemic barrier to the sector's future relevance.

In summary, the empirical evidence confirms that the Polish third sector, despite its dynamism, operates in a restrictive environment that inhibits its ability to act as a strategic actor in the sustainable transformation. The analysis leads to the formulation of a series of strategic recommendations addressed to key actors shaping its ecosystem.

For the non-governmental sector, adopting a strategic perspective and adaptation is crucial. Organizations should consciously incorporate the Sustainable Development Goals and ESG language into their strategies and communication. This will facilitate the positioning of activities, as in the case of WWF Poland (implementing SDG 14) or the Climate Coalition (SDG 13), and build credibility. Financial diversification is essential to reduce dependence on unstable public grants, referred to as "grant-dependency." This means actively developing social entrepreneurship, for example, following the model of social cooperatives, and building a base of individual donors, among others, through the 1.5% mechanism. Investing in the development of digital and managerial competencies must become a priority to overcome barriers such as lack of funds (58%) and skills (25%), which hinder digital transformation despite high awareness of its need (80%). This is a condition for professionalization and building partnerships with businesses that expect measurable actions (Chimczak-Bratkowski, 2025). It is also necessary to build strategic, long-term partnerships, going beyond sporadic contacts, which only 58% of organizations currently declare with business.

Public administration should focus on changing the philosophy of financing. Efforts should be made to increase the share of institutional (operational) grants, which would allow organizations to stabilize and break free from the "grant-to-grant" cycle, hindering strategic planning. At the same time, it is necessary to simplify tender procedures, indicated as a significant bureaucratic barrier. Administration must begin to treat NGOs as strategic partners, not merely as contractors for commissioned tasks, moving away from the "client-contractor" model dominating, for example, in local government cooperation. A systematic review and amendment of the Public Benefit Activity Act is also essential to remove barriers to its practical application (GPW, n.d.).

The business sector must strengthen its strategic approach to ESG. Cooperation with the third sector should be an integral part of this strategy, and not just an addition in the form of philanthropy or traditional CSR. Business should build long-term relationships based on trust, treating non-governmental organizations as equal partners and experts in their fields. At the same time, responsible business should invest not only in joint projects but also in the institutional development of its non-governmental partners, for example, by supporting them in digital transformation or building managerial competencies. This addresses the diagnosed shortcomings in the sector, and at the same time allows business to acquire competent partners, necessary for achieving its own goals and ESG reporting. Such an investment in a partner's potential will bring long-term benefits to both sides and to society as a whole.