This article examines the potential of the non-governmental sector in the social sphere as a strategically important and promising direction of state social policy. It provides a comprehensive analysis of scientific approaches to the participation of non-governmental organizations (NGOs) in the social protection system, highlighting their key roles and functions, including supplementary, initiative, service, advocacy, mobilization, innovative, and monitoring functions. The study investigates various forms of interaction between the state and the non-governmental sector, including public-private partnerships, social procurement, competitive selection of social projects, implementation of social programs, and active cooperation with territorial communities, emphasizing the diversity of mechanisms for partnership. Special attention is given to the impact of martial law conditions and the results of decentralization reform on increasing the role and significance of NGOs in providing social services. The article identifies key challenges that limit NGO participation, such as insufficient experience, lack of trust, limited access to information, staffing constraints, and bureaucratic barriers. Empirical data illustrating the low level of NGO engagement in providing social services in territorial communities are presented, alongside examples of successful practices that demonstrate the sector’s effectiveness, flexibility, and innovation in addressing social needs. The study concludes that the development of the non-governmental sector represents a promising and necessary component of state social policy, serving as a vital partner for public authorities in ensuring social welfare, promoting community engagement, and improving access to quality social services. The article formulates conclusions regarding the need to revise state social policy to expand NGO participation in social programs and service delivery and provides recommendations to enhance the effectiveness of state-NGO collaboration and optimize social protection outcomes.