Determinants of Nonprofit Sector Density: A Stakeholder Approach

Why do nonprofit organizations exist? From an economic perspective, a number of major theories have been proposed to explain their existence. However, when exploring determinants of nonprofit sector density, one needs to take into account that demand and supply factors operate simultaneously and that it is difficult to separate them. By using a stakeholder approach, we develop a more integrative framework for understanding variations in nonprofit sector density. We test this framework by investigating determinants of nonprofit sector density in Texas at the county level.