ABSTRACT

Before entrepreneurship became a major factor in the accomplishment of social goals, the delivery of social services was largely accomplished by entities labeled “charities” or “charitable organizations.” These were tax-exempt organizations that the U.S. government gladly relieved of their taxpaying duties because they were undertaking difficult activities that government officials were unwilling or unable to perform in areas such as health, education, and community development (Lasprogata & Cotten, 2003). Furthermore, governments at all levels routinely channeled public grant monies to these entities to help them sustain their efforts. These organizations had a simple nonprofit structure, and because they were clearly engaged in activities that neither the private nor the public sectors had an interest in pursuing, there were rarely conflicts between this sector and the other two.