ABSTRACT
This chapter considers the nature and character of organizations in the third sector (commonly referred to as “nonprofits” or non-governmental organizations) in relation the intellectual and instructional needs of students studying in the field of nonprofit management and leadership. There are inherent challenges to distill definitive features of nonprofit organizations given the variety and variation in the field and across the world, nevertheless, some consideration of unique characteristics is useful as educational programs seek to prepare professionals to work in the field. The chapter starts with a discussion of how nonprofits are distinct from public government entities and private business entities, while acknowledging overlap and hybridity of organizational forms. Then the chapter discusses a few features or characteristics that have particular implications for the management and leadership of third-sector organizations. These characteristics include differences related to ownership and decision-authority, revenue, and financial capital concerns, as well as the distinctive culture, identity, or ethos (institutional logic) that guides decision-making in third-sector organizations.
