In this chapter we argue that the emergence of organized civil society in European countries differs to Latin American history, where societies suffer from weak or non-functioning democratic institutions and informal markets, and therefore large parts of the population are excluded from societal benefits. This difference implies a theoretical shift from “blurring sectorial borders and hybrid organizations” – as discussed in regard to developed countries – to what we call “advocacy and impact inclusion.” In advocacy inclusion, NPOs adopt a political role to claim the right of excluded groups to obtain access to resources of states and/or powerful elites; and in impact inclusion, NPOs assume an economic or social role and function to directly increase the life quality of excluded groups. The chapter shows Latin American NPOs emerged to politically and structurally counteract the process of the elites accumulating wealth and power. At first, they supported the advocacy inclusion of excluded groups. Over time, many transformed their role and function from advocacy to impact inclusion, as it became important to include those in poverty in centralized welfare systems, and informal market participants or first-nation tribes into formal market structures.