ABSTRACT

The term “nonprofit” describes both a concept and a legal framework. As a concept, it is relatively new and claimed by several academic disciplines, so its meaning is still undergoing refinement and debate. This entry explores the conceptual controversies and presents several definitions of nonprofit organizations that have universal applicability. This entry also reviews the advantages and disadvantages of being nonprofit with special attention to the relationship between nonprofit status and tax exemption. It briefly describes several American experiments with hybrid legal structures. Finally, it presents data on the size of the nonprofit sector relative to the economies of various countries with an emphasis on the United States.