Purpose - The purpose of this paper is to reflect upon the development of the third sector and its relationship with social inclusion by reference to a specific case study - the Castle Vale Community Regeneration Services (CVCRS). By drawing upon an informed understanding of CVCRS the authors examine the ways in which the discourse of 'regeneration' and the 'third sector' is played out. Design/methodology/approach - The paper uses a case study approach as the basis for framing the debate and analysis. Findings - The paper concludes that the capacity of third sector organisations to meet the expectations of local residents and local agencies and professionals represent real challenges. The case study also illustrates the way in which such organisations share the characteristics of small businesses and this raises important questions over the skills and capacities of those managing such projects. Research limitations/implications - Implications for third sector organisations can be generalised from this paper. Practical implications - The paper identifies the ways in which the medium to long-term sustainability of such projects is contingent upon enhancing both the management/governance of such projects and also the mainstream funding of projects. Originality/value - Case study material provides a richness in description and adds to understanding of the topic. Adapted from the source document.