Introduction

Nonprofit organizations serve important roles and fulfill vital functions in communities, at the local, national, and global levels, by addressing a multitude of instrumental and expressive needs, pioneering novel solutions, and creating employment opportunities. In this virtual issue, we focus on the early life of these nonprofits, acknowledging that they are not instantaneously formed but are purposefully organized and founded. This emphasis on the emergence and evolution of new ventures is a core feature of entrepreneurship scholarship, and here, we intend to examine entrepreneurship-related research that has appeared in VOLUNTAS over the past decades.

VOLUNTAS was an early outlet for research on entrepreneurship in the nonprofit sector (see, for example, Badelt, Reference Badelt1997), and the journal still publishes articles related to nonprofit and social entrepreneurship. Still, even though scholars have extensively theorized and studied how new businesses emerge and evolve (Reference GartnerGartner, 1985; Reference Shepherd, Souitaris and GruberShepherd et al., 2021), and despite the significant growth of the number of registered nonprofit organizations across the world, much remains to be understood about the process of how nonprofit organizations are created and the dynamics involved during the formative and early life stages (Reference Chowdhury and AudretschChowdhury & Audretsch, 2024; Reference Shepherd and PatzeltShepherd & Patzelt, 2025). There are signs that interest in nonprofit entrepreneurship is growing (e.g., Reference AnderssonAndersson, 2017, Reference Andersson2019, Reference Andersson2022; Reference Dixon and SvenssonDixon & Svensson, 2019; Reference Lecy, Van Slyke and YoonLecy et al., 2016; Reference McSweeney, Svensson, Hayhurst and SafaiMcSweeney et al., 2023), yet to date, research on nonprofits remains fragmented across disciplines and due to differences in the terminology used. Consequently, we see this virtual issue as an opportunity to synthesize and highlight important examples of research on the emergence and evolution of nonprofit organizations to develop a base for future theoretical and empirical advances. Though it is not possible to include all valuable articles on the topic, we hope that it promotes the discussion and inspires scholars to further explore the difficult terrain of nonprofit emergence and evolution with a plurality of theoretical and methodological perspectives.

Background

Today, the third sector consists of various forms of informal and formal organizations, from community groups to registered nonprofits or social enterprises. While definitions vary across disciplines, what these organizations share is the centrality of a value-based mission. The reasons for the creation of nonprofits tend to involve efforts to step in and fill the gap where the for-profit or public sectors have failed to deliver goods or services (Reference Chowdhury and AudretschChowdhury & Audretsch, 2024; Reference Morris, Santos and KuratkoMorris et al., 2021; Reference Shepherd and PatzeltShepherd & Patzelt, 2025). In contrast with for-profit businesses, the nonprofit sector is also unique in how peer organizations serve as co-contributors toward collectively developing meaningful solutions with the same peer nonprofits they may be competing against for resources and market share (Reference Chen and GraddyChen & Graddy, 2010; Reference SharpSharp, 2018).

The nonprofit sector itself has undergone significant changes over time. Today, nonprofits are increasingly formalized and expected to adopt a variety of ‘business-like’ strategies and ways of operating (Reference KingKing, 2017; Reference Maier, Meyer and SteinbereithnerMaier et al., 2016; Reference Suykens, Maier, Meyer and VerschuereSuykens et al., 2023). Leaders and founders of nonprofits face a variety of institutional and external demands, which often may create conflicting prescriptions of how an organization should operate (Reference Dixon and SvenssonDixon & Svensson, 2019; Reference Marshall and SuárezMarshall & Suárez, 2014; Reference SætreSætre, 2023). As a result, nonprofit leaders are having to navigate complex decisions and increasingly uncertain environments. We argue that advancing our understanding of key practices and processes during the formative and early stages of nonprofits is of critical importance. As Shepherd and Patzelt (Reference Shepherd and Patzelt2025) recently noted, developing a more robust body of knowledge in these areas is necessary for theoretical advances on nonprofit venturing.

Although several significant knowledge gaps remain regarding the formative and early life stages of nonprofits, some scholars have made important contributions for several decades, even if different terminologies may have been used or the purpose was not intentionally focused on the nascent or early stages of nonprofits. Prior nonprofit scholars have identified specific boundaries related to these life stages. For example, the nascent life stage is commonly used to characterize the phase of someone developing an idea or intention, which unifies people who start resource mobilization efforts, yet before the organization has been legally registered and incorporated (Reference BessBess, 1998; Reference Edenfield and AnderssonEdenfield & Andersson, 2018). In contrast, the startup life stage typically delineates organizations with formally established boundaries after legal registration and emerging organizational structures, such as human resources and finance (Reference Lecy, Van Slyke and YoonLecy et al., 2016; Reference StevensStevens, 2008). Next, organizations may continue to develop through the growth life stage and eventually the mature life stage (Reference StevensStevens, 2008).

It is important to recognize that nonprofits are purposefully organized by people (Reference AnderssonAndersson, 2022; Reference Andersson and WalkAndersson & Walk, 2022). These types of organizations often emerge organically through volunteering and civic engagement and can even operate for years before any formal legal actions occur, which concurrently increases their chances of being noticed by the researchers (Reference AnderssonAndersson, 2022; Reference Lecy, Van Slyke and YoonLecy et al., 2016). To date, most research has focused on more established and mature organizations. While such entities are easier to access, ignoring organizations before they formalize or reach the maturity stage results in a large population of nonprofits being overlooked in nonprofit scholarship. Prior research indicates that organizations have distinctly different capacity needs and challenges across different life stages, with the startup stage demonstrating the lowest capacity levels across all dimensions (Reference Andersson, Faulk and StewartAndersson et al., 2016). Understanding the specifics of organizational development during formative stages is crucial for founders and managers to increase their chances of success in establishing organizations, and for support providers to offer programs relevant to emerging organizations. Decisions made during the formative or nascent stage also affect the future development of an organization, defining potential opportunities and challenges (Reference Dixon and SvenssonDixon & Svensson, 2019; Reference Edenfield and AnderssonEdenfield &Andersson, 2018; Reference Stinchcombe and MarchStinchcombe, 1965). Understanding the underlying attributes and identities imprinted during the nascent and early life stages can better support leadership and prepare the founders and their respective nonprofits to address challenges that will certainly arise during the organizational evolution.

Overview of Contributions

The archives of VOLUNTAS contain a long tradition of scholars studying different aspects related to the emergence and/or evolution of nonprofit organizations, including Badelt's (Reference Badelt1997) seminal contribution on entrepreneurship in nonprofit contexts. Other relevant articles range from those focused on funding profiles of nonprofits (Reference Guo and PengGuo & Peng, 2020; Reference Shaw and AllenShaw & Allen, 2006) and the creation of nonprofits through an organizational ecology lens (Reference Andersson and FordAndersson & Ford, 2016) to examining emergence of an entire sector (e.g., Reference Molina, Valenzuela-García, Lubbers, Escribano and LobatoMolina et al., 2018). Others have examined the characteristics of individual social entrepreneurs (Reference Korstenbroek and SmetsKorstenbroek & Smets, 2019; Reference Nicolás Martínez, Rubio Bañón and Fernández LaviadaNicolás Martínez et al., 2019; Reference Van Ryzin, Grossman, DiPadova-Stocks and BergrudVan Ryzin et al., 2009) as well as the resource profiles and capacity needs across organizational life stages, including those in the startup stage (e.g., Reference Andersson, Faulk and StewartAndersson et al., 2016; Reference Ogliastri, Jäger and M PradoOgliastri et al., 2016), or pathways for how nonprofits scale up their operation (Reference Asemota and ChahineAsemota & Chahine, 2017; Reference Sobeck, Agius and MayersSobeck et al., 2007; Reference van Lunenburg, Geuijen and Meijervan Lunenburg et al., 2020). Several scholars have also provided in-depth case studies of specific organizations over time (Reference Carmin and JehliCarmin & Jehli, 2005; Reference ToeplerToepler, 2006). Additionally, the international scope of VOLUNTAS has also attracted descriptive profiles of the development of domestic nonprofit sectors through country-specific analyses. For example, Sen (Reference Sen1992) provided a detailed historical analysis of the emergence of nonprofits in India since the 1800s, along with key trends and developments at the time. Others have examined the development of nonprofits in contexts including Australia (Reference LyonsLyons, 1993), Hong Kong (Reference LeeLee, 2005), China (Reference WhitingWhiting, 1991), Czech Republic (Reference Carmin and JehliCarmin & Jehli, 2005), Israel (Reference GidronGidron, 1997), Kazakhstan (Reference NowickiNowicki, 2000), Mexico (Reference MéndezMéndez, 1999), Poland (Reference RegulskaRegulska, 1999), Peru (Reference BéjarBéjar, 1997), and Vietnam (Reference SidelSidel, 1997).

The articles we chose to feature in this virtual issue cover a variety of organizational forms, levels of analysis, geographical locations, and research methodologies utilized to specifically explore organizational emergence and evolution of nonprofits and social enterprises over the past 25 years. We have included these articles to highlight the diversity of organizations, the scope of their work, and the broad range of approaches employed by researchers. As VOLUNTAS approaches 40 years since it was founded, we believe that it is pertinent to showcase the relevant research on the nascent and early stages of nonprofits across different contexts published in the journal.

The entrepreneurship process is hard to capture, especially during the nascent and early life stages. Therefore, we open with an article by Andersson (Reference Andersson2022) identifying the methodological challenges related to studying nonprofit entrepreneurship, but importantly, also key suggestions for future researchers interested in investigating these aspects of nonprofits. Andersson calls for capturing entrepreneurs as early as possible in the nonprofit entrepreneurial process, while being intentional in terms of what feature, action, behavior, or event has been identified as a point of departure and why. Diverse research methods are suggested to unpack the process.

Considering that nonprofits emerge from ideas, it is perhaps not surprising that researchers have also been interested in studying the individuals at the center of the entrepreneurship process and what inspires founders to pursue an organization with a social mission. Scheiber (Reference Scheiber2016), for example, draws on experiential learning theory to unpack how novel social entrepreneurs in Brazil gain skills, knowledge, and the desire to pursue their third-sector ventures. This study explores the interplay of sociocultural factors and the impact of life experiences on novel social entrepreneurs. Besides the synergistic role of specific experiences, critical reflection is also identified as an essential building block of future nonprofit founders, along with the influential role of social contexts.

Relatedly, Chandra and Shang (Reference Chandra and Shang2017) analyze biographical profiles of social entrepreneurs from the Ashoka and Schwab Foundations and identify eight biographical antecedents of social enterprise emergence across dimensions of social and economic skills. Based on their findings, the researchers propose a typology of social enterprise hybridity, distinguishing between four types of entrepreneurs. Their article demonstrates heterogeneity among founders and the range of different paths for prospective nonprofit founders.

In another study focused on individuals creating new nonprofits, Pedrini et al. (Reference Pedrini, Bramanti, Ferri and Minciullo2016) explore organizational social capital of nonprofits and how founders and staff contribute to organizational development. Using a case study of an Italian startup community foundation, the authors demonstrate how the social capital and credibility of founders represent a crucial element for convincing potential partners to cooperate with an emerging organization. Their study highlights the interaction between the individual and the organizational level factors contributing to the emergence of nonprofit organizations.

Stages of early organizational development and pathways for emerging nonprofits’ maturity have also attracted scholarly attention. For example, almost 30 years ago, Selsky (Reference Selsky1998) argued that nonprofit evolution does not occur without tensions and challenges. Drawing on a 10-year study of the evolution of nonprofit associations during the 1980s and early 1990s, he identifies how organizational pressures can stem from a mix of both internal and external factors, including misalignments in needs, expectations, and capacities of young nonprofits. Tensions require a response and may result in reorientation, replacement, or demise. Selsky's important work highlights the role of leadership in recognition and responding to emerging challenges. Nonprofits are especially vulnerable during the transition period from an informal to a formal organizational structure.

Others have employed qualitative research methodologies to take a deep dive into studying the transition between life stages. For example, Edenfield and Andersson (Reference Edenfield and Andersson2018) utilize an ethnographic and narrative approach to explore the process of a transition from a nascent to a formal status in a startup cooperative in the USA. Their study demonstrates how nonprofit evolution is a complex, nonlinear process involving periods of crises and tensions between entrepreneurs and their organizations, as well as profound changes throughout the nonprofit venture creation process. Imprinting of key values is identified as a key component, suggesting the importance of understanding the underlying structures and identities of nonprofits to better prepare for life stage transitions.

The evolution of nonprofits has also been explored through theoretical approaches. Valeau (Reference Valeau2015), for example, addresses an underlying challenge with identity during nonprofit evolution—a potential conflict between grassroots and professional structures as an organization matures. He argues that nonprofit culture does not occur automatically or spontaneously but rather results from key decisions of entrepreneurs. Valeau contributes to theoretical advances on nonprofit creation and evolution through the development of a four-stage model of nonprofit development.

Performance of emerging nonprofits is another crucial topic for research and practice. Zhou (Reference Zhou2016) proposes a tool to assess the organizational stage of grassroots nonprofits, considering that existing capacity assessment tools are often not applicable to younger nonprofits. Drawing on data from 78 rural developing organizations in China, Zhou identifies four different clusters of nonprofits. Measuring social impact also remains another point of interest across nonprofit scholarship. Lall (Reference Lall2017), for example, addresses the motivation for the adoption of social performance measurement among nascent social enterprises, utilizing a large sample of 1864 entities from around the world. Contrary to many studies that suggest that social enterprises are mainly driven by external forces to implement performance measurement, this study highlights how an internal desire to improve was a stronger factor. Lall's work provides insights into the potential impact of past experiences of founders, as well as participation in professional training and accelerators, on the adoption of performance measurement practices.

The concept of nonprofit entrepreneurship also needs to be understood within the context of the environments where nonprofits operate. Therefore, it is not surprising that researchers have been investigating various environmental factors potentially influencing the emergence and evolution of nonprofits. Ebrahim (Reference Ebrahim2001) explores how nonprofits are influenced by conditions surrounding their founding. Drawing on a historical analysis of two well-established nonprofits in India, Ebrahim demonstrates how nonprofits can be profoundly influenced during their formative years by surrounding contexts and environmental factors.

Kerlin (Reference Kerlin2010) specifically compares seven regions and countries around the world to identify how regional and socioeconomic differences impact the creation of nonprofit social enterprises. This study provides a unique opportunity to examine the global phenomenon of social entrepreneurship through a contextual lens to advance why certain nonprofit structures and approaches prevail more in different contexts than others.

Dipendra and Lorsuwannarat (Reference Dipendra and Lorsuwannarat2022) provide another interesting perspective on the influence of geographical location. The authors conduct a spatial analysis of the founding patterns of nonprofits in Nepal, providing important insights into where organizations emerge. Building on the ongoing discussion on whether nonprofits emerge in response to community needs or in areas with the available resources, the authors find nonprofits emerging in relatively prosperous areas, suggesting organizational needs often prevail. Moreover, the authors demonstrate that the density of existing organizations positively affects the emergence of new nonprofits. These findings contribute to the important discussion about the legitimization of new organizations, but also the need for more nonprofits amid growing competition for already limited resources.

Last, but not least, Svensson and Gallo (Reference Svensson and Gallo2018) provide another perspective on the role creation of new nonprofits through the study of institutional entrepreneurship and the creation of an unsolicited organization in Sweden. Their study unpacks a story of a nationwide nonprofit combining multiple logics from other fields. Their case study highlights how nonprofit entrepreneurs not only can create awareness, but, in fact, also construct a new organizational field within their country. This study demonstrates the potential and power of entrepreneurs in the nonprofit sector to shape the context in which organizations emerge and evolve.

Future Directions

Understanding how and why nonprofit organizations emerge and evolve is crucial both for building better support systems for aspiring social entrepreneurs undertaking this challenging journey as well as for improving the sustainability of nonprofit organizations. Articles featured in this virtual issue demonstrate some of the complex challenges involved in the creation of nonprofits and the early life stages of developing and growing such organizations. The nonprofit venturing process will inevitably involve unforeseen challenges and various crisis moments at some point in time. What is important is, therefore, the ability of leaders to recognize what is happening and identify strategic ways to address the situation. We hope the articles featured in this virtual issue provide an initial set of tools and knowledge for nonprofit leaders to navigate such circumstances. Additionally, we believe that there are many different potential directions for future research on the emergence and evolution of nonprofit organizations. Next, we highlight a handful of examples we believe are viable pathways for advancing theoretical and empirical work in this area of nonprofit research.

Context remains an essential factor in the entrepreneurship process (Reference Dipendra and LorsuwannaratDipendra & Lorsuwannarat, 2022; Reference EbrahimEbrahim, 2001; Reference KerlinKerlin, 2010; Reference SenSen, 1992). We commend the authors highlighted in this virtual issue from across a diverse set of geographical locations and invite scholars from different parts of the world to further investigate how local changemakers start and develop nonprofits. What role existing systems and structures play in the process also represents a viable avenue for further research. Articles in this virtual issue provide a great scope of potential opportunities and challenges that arise from environmental factors and may serve as an inspiration for further investigations across the regions.

Founders play a significant role in establishing an organization as individuals who create and drive the idea that becomes an organization in the future. Research on the characteristics of individual founders has provided valuable insights into who is behind the process. Considering less than 10% of startup teams in nonprofits have just one team member (Reference Andersson and WalkAndersson & Walk, 2022; Reference Lecy, Van Slyke and YoonLecy et al., 2016), investigations of teams, their practices, interactions, and dynamics may further enrich existing knowledge. The identities and prior backgrounds of founders could also provide more detailed insights about challenges and opportunities founders experience during the process of creating and building a nonprofit organization. Previous scholarship suggests significant differences in terms of access to startup funding and other organizational resources (Reference Compion, Lough and JeongCompion et al., 2022; Reference Kanze, Huang, Conley and HigginsKanze et al., 2018; Reference Rosca, Agarwal and BremRosca et al., 2020).

Entrepreneurship-as-practice provides another viable opportunity for the emergence and evolution of nonprofit organizations. Rather than examining entrepreneurship at the individual or organizational level, entrepreneurship-as-practice places the focal point on the actual practices of people involved in organizing (Reference Thompson, Verduijn and GartnerThompson et al., 2020). Unpacking practices requires the adoption of alternative philosophical paradigms and creative methodologies (Reference Champenois, Lefebvre and RonteauChampenois et al., 2020). For example, researchers may ask questions such as how actors involved in nonprofit creation (e.g., founders, partners, and volunteers) are engaged in practices of nonprofit formalization. What nexus of practices results in the first financial partnership for a new organization? What practices of nonprofit leaders lead to successful overcoming the challenges of an evolving organization? From a methodological perspective, qualitative approaches with observations, ethnographies, and shadowing over a longer period of time are especially suitable for unpacking practices. As discussed earlier, capturing nonprofit emergence and evolution is a challenging task; creative methods employed by entrepreneurship-as-practice scholars can potentially open new perspectives and extend existing knowledge.

At the same time, we also recognize that most research to date has focused on studying award-winning organizations and those deemed to be the most successful. Yet, what if the failure is attributable to reasons other than the lack of presence of variables identified as important success factors? Any robust theoretical advancement on the emergence and evolution of nonprofits cannot be achieved without more intentional research on founders and organizations who failed in their attempts to create and develop nonprofits (Reference Helmig, Ingerfurth and PinzHelmig et al., 2014). To date, most research on failure in nonprofit contexts has focused on population-level studies of organizational records (Reference Hager, Galaskiewicz, Bielefeld and PinsHager et al., 1996; Reference MayerMayer, 2025; Reference SearingSearing, 2020). However, recent developments have seen a shift toward in-depth studies of nonprofit failure through qualitative methodologies (e.g., Reference Svensson, Raw and BramleySvensson et al., 2025).

Overall, we hope the research highlighted here provides practical insights for leaders of new and established organizations. Additionally, our intention is for this virtual issue to serve as a foundation for future research and inspire nonprofit scholars to advance our collective understanding of how nonprofit organizations emerge and evolve. Doing so will enable the identification and development of how aspiring and emerging nonprofit entrepreneurs can be better supported to think globally while acting locally within their respective communities.