This paper about "Public Policy and Non-Profit Sector" provides an overview and study of key stakeholders in the process of public policy making regarding the non-profit sector. It defines the concepts of non-profit sector, public policy and types of non-profit organizations. Focus is given on typical participants in these areas and on relations between various nonprofit organizations and the government. The non-profit sector is sometimes referred to as not-for-profit, independent, voluntary, non-governmental, third sector as well as civic society. The non-profit title indicates that its goal is not a profit, but rather an achievement of a general benefit. The term independent means independence from government or the market. However, this claim is not always true, as non-profit organizations providing social services are often funded by the government. The non-governmental term means that the entity is neither dependent nor governed by government. The voluntary sector refers to the members of a non-profit organization that operates on a volunteer basis. The civic sector is made up of citizens who want to change something or provide help, who want to get involved and be engaged in public decision-making. One reason for the emergence of the non-profit sector is the demand for services and goods that are non-rivalrous and non-excludable. Such activities are not attractive for private companies because their price and customer are not clear. In this case, the state takes over, but it usually serves the benefit of the majority and the minorities might be omitted. This domain is served by non-profit organizations that address the needs of smaller groups. Public policy is the result of a legitimate decision of government and its bodies, it sets out certain objectives that respond to the resolution of a problem or need of the society, and the reason for the adoption of this decision is well known. This paper describes government creates public policy towards non-profit organizations, the level of funding and the legislative system, as well as the participation of representatives of non-profit organizations in its creation.