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The nonprofit sector in China has experienced unprecedented growth in its scope and impact over the past four decades. Despite the significant growth, the distribution of nonprofit activities across localities is not well understood. This study combines administrative and census data to examine the size of the Chinese nonprofit sector across 334 prefectures. The study demonstrates a significant variation in nonprofit sector size across prefectures. The study further shows that population heterogeneity, government social spending, and government fragmentation have positive effects on boosting nonprofit sector size in a prefecture. Although diverse service needs affect the growth of the Chinese nonprofit sector, government activities play a more important role in mobilizing nonprofit activities and driving nonprofit sector growth.

It has been well documented in recent years that nonprofits are becoming increasingly marketized. What is less well understood from this body of research is the variation of marketization in the nonprofit sector and how it is made manifest in nonprofit organizations. This article aims to fill this gap in knowledge by recounting the results of a comparative case study of two nonprofits. We examine their marketization through a multifaceted theoretical framework that allows us to document the marketization comprehensively and to posit some preliminary explanations as to why this variation is occurring. Our findings indicate that one organization is adopting a strong entrepreneurial orientation while the other is integrating its traditional community orientation with more professionalization. The differentiation witnessed in the case organizations suggests that marketization is best understood as a situated process that may in part be explained by varying strategic responses to institutional pressures.

The size variation of the nonprofit sector across geographic locations has attracted substantial scholarly attention. One dominant theory exploring this issue is Weisbrod’s demand heterogeneity hypothesis which suggests that the nonprofit sector size in a locality is positively related to population heterogeneity of the area. However, empirical tests of Weisbrod’s hypothesis reach a very inconsistent conclusion. This study employs a meta-analysis to aggregate existing studies on the relationship between population heterogeneity and nonprofit sector size. The study finds a significant and positive association between the two variables, but the magnitude of the relationship is substantially small. Further, this relationship seems generalized across countries and is supported by both within-country and cross-country data and by different measurements of nonprofit sector size. In addition, population heterogeneity in terms of age, education, ethnicity, language, and religion supports the hypothesis better. Overall, although the demand heterogeneity hypothesis holds empirically, its explanatory power in predicting nonprofit sector size and growth might be less robust.

Do government activities discourage or leverage nonprofit activities? The extant literature has proposed competing lines of arguments, making the net effect ambiguous. The present study conducts a meta-analysis to synthesize extant studies concerning the relationship between the level of government activities and the level of nonprofit activities within a locality and explore potential moderating effects. Through systematically reviewing 30 extant studies, the study finds a mostly positive association between the level of government activities and the level of nonprofit activities, but this relationship is generally weak and sometimes statistically insignificant. In addition, the moderator analysis concludes that data structure, unit of analysis, and field of activity significantly moderate effect size estimates across extant studies. Overall, the net relationship between the level of government activities and the level of nonprofit activities within a locality ranges from null to slight positive. Government activities generally seem not to discourage nonprofit activities, but may slightly leverage them.

Based on the county-level longitudinal data in the USA, this study finds that racial diversity is positively associated with the nonprofit sector size. We further find that the share of children below poverty level is negatively associated with the size of nonprofit sectors. Our findings support the government failure theory. Random effects models also show that federal funding and local funding are positively associated with the size of nonprofit sectors, which confirms interdependence theory. Lastly, we do not find statistically significant relationship between social capital—measured by the number of associations—and the nonprofit sector size.

This study investigates the social impact investment behavior of private investors in a nonprofit setting. In particular, the influences of three effects—financial return, social impact, and age—on social impact investment behavior are tested in an online survey experiment. The study sample includes bank clients (N = 145) from Germany’s first and largest bank exclusively focused on social and ecological investments. The results with regard to the financial return effects are in line with for-profit research that social impact investors are willing to accept 1% lower financial returns. In addition, younger philanthropists are more likely to contribute part of their money to social impact investments. Further findings reveal that the perceived innovativeness of the project has a consistently positive effect on social impact investment behavior. People with certain profile characteristics (e.g., entrepreneurial spirits) also are more likely to participate in social impact investments.

Why do nonprofit organizations exist? From an economic perspective, a number of major theories have been proposed to explain their existence. However, when exploring determinants of nonprofit sector density, one needs to take into account that demand and supply factors operate simultaneously and that it is difficult to separate them. By using a stakeholder approach, we develop a more integrative framework for understanding variations in nonprofit sector density. We test this framework by investigating determinants of nonprofit sector density in Texas at the county level.

This article is an empirical examination of the government failure theory using a cross-country data set. The government failure theory is represented in the major existing literature as providing a sound explanatory basis for an interesting characteristic of the nonprofit sector, that is, there is a large variability in nonprofit sector size from one place to another. Salamon et al. (Social origins of civil society: An overview, Working Papers of the Johns Hopkins Comparative Nonprofit Sector Project, 2000) examined this theory using the Johns Hopkins Comparative Nonprofit Sector Project (CNP) data set, and consequently rejected the government failure theory. However, by applying the panel analysis approach to the CNP data set, this article shows that the government failure theory should not have been so easily rejected.