The 4 Impulses of Nonprofits and What They Each Create

A struggle is under way for the “soul” of America’s nonprofit sector, that vast collection of private, tax-exempt hospitals, higher-education institutions, day care centers, nursing homes, symphonies, social service agencies, environmental organizations, civil rights organizations and dozens of others that make up this important, but poorly understood, component of American life.

This is not a wholly new struggle, to be sure. From earliest times, nonprofits have been what sociologists refer to as “dual identity,” or even “conflicting multiple identity,” organizations. They are nonprofit organizations required to operate in a profit-oriented market economy. They draw heavily on voluntary contributions of time and money, yet are expected to meet professional standards of performance and efficiency.