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The book presents the economic, historical, legal and policy dimensions of the Sector with a focus on its contribution to the Welfare State and civil society. It then analyzes those findings in the context of major theoretical frameworks of the sector. While Israel shares certain similarities with other countries, its history, demography, and politics have created unique features that make it impossible to fit the country into existing Third Sector theories, which are presented in this seminal reading for the global discussion on nonprofit theory. Furthermore, that analysis, with the focus on the Third Sector in the context of society is also providing a new lens through which to analyze contemporary Israeli society.