Profiles of Nonprofit Startups and Nonprofit Entrepreneurs

Abstract

The nonprofit sector has been expanding rapidly, but little attention has been paid to the organizations that comprise the group of new market entrants. In 2010 more than 45,000 new nonprofits incorporated, braving crowded grant markets and grueling periods of organizational adolescence. Some reach revenues over $1 million within a couple of years. We implement a survey of these organizations to understand this group of nonprofit entrepreneurs. What drives them to create? What factors are important for survival and growth in the initial years? What are the obstacles they desire more support in addressing? Do they intend to grow aggressively, steadily, or simply stay about the same size for the time being? We consider the policy and management implications of understanding nonprofit startups and their entrepreneurs and provide a baseline of these organizations’ characteristics as well as those of their founders.