Profit or Perish: Non-Profit Social Service Organizations & Social Entrepreneurship

Heather Gottry

J.D. Georgetown University Law Center; Class of 1999

This Note examines both the past and future of non-profit social service organizations in the United States. The author places special emphasis on non-profit entities entering the for-profit markets. While reductions in federal funding have forced many non-profits to turn to for-profit funding sources in order to continue offering their services, they have often faced criticism for such activities. Critics argue that non-profits entering the for-profit market have an unfair advantage over their competition because non-profits are able to take advantage of their tax exempt status. The author suggests that the analysis is not so simple. Finally, the author identifies issues that policymakers must resolve in order to define the role of non-profits for the future.

Vol. VI, No. 2, p. 249 (1999)

Revised July 17, 2003 (MD)