The non-profit sector plays a key role in society and in the economy. Many goods and services, such as education and health care, are delivered by non-profits. Non-profits also play a central role in delivering charitable services of the kind that are often under-provided by the market. Non-profits also are active in political and public-policy arenas. Finally, non-profits are important in providing the glue - the social capital - that holds societies together and makes them work.
Starting, growing, and managing non-profits leads to challenges as complex as, and in some cases more complex than, the challenges facing the private sector. Non-profits need to identify their market, confront competitors, and manage their internal operations just as do firms. However, non-profits must address the needs of multiple constituencies, they must balance their values against the requirements of effective management, and they must attract and retain a skilled labor force without the financial resources that characterize much of the private sector.
