This paper analyses the current conditions and future challenges faced by the Third Sector of Social Action (TSSA) in Spain to consolidate itself as an institutional sphere of sustainable welfare and as a strategic actor in the development of social policies. The empirical basis of this work has been obtained with the use of qualitative methods such as in-depth interviews, focus groups and the mixed method of Delphi. The use of these methods is aimed at interpreting TSSA leaders’ discourses, the collective voice of Non-governmental organisations (NGO) managers and representatives, and the opinions of experts on: the nature and past development of the sector.This research was carried out under the support of the Mechanism of the European Economic Area 2009-2014, in the framework of the Active Citizenship Programme (Eea Grants) and by the PECOTSAS Project of the State Plan for Scientific and Technical Research and Innovation 2013-2016 of the Ministry of Economy, Industry and Competitiveness (ref CSO2017-85486-P). The text is structured as follows. First, we analyse the institutional nature of the TSSA and how it has combined powerful organisational growth with an adaptation to what we define as the European logic of the Third Sector (TS) in recent decades. Subsequently, we examine the current conditioning factors of the TSSA’s development in Spain including the impact of the 2008 economic crisis, financing capacity, modes of social action and relations with the State and the private sector companies. Finally, we assess the challenges faced by the TSSA in the coming years in terms of financial and institutional sustainability and its capacity to influence public policies. The results have been useful for the elaboration of the III Strategic Plan of the Third Sector of Social Action (2017-2021
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