1.9 Strength of the Nonprofit Sector

Nonprofit organizations both reflect and foster a healthy civic life. Boston’s varied nonprofit sector is a source of cultural vitality, an expression of social capital, and a valuable adjunct to community life.  Often referred to as the “third” or “independent” sector, nonprofits are frequently better positioned than corporations or governments to create innovative responses to community challenges and opportunities. Partly as a consequence, nonprofit organizations here and in other parts of the country have assumed some of the former responsibilities of government, especially in support of society’s most vulnerable populations. 

On the other hand, a community can have too many staffed nonprofit organizations and institutions at the expense of local connections and capacity, or social capital.  Community-based organizations and nonprofit institutions today are facing cuts in public revenues and foundation funding.  It is impossible for the nonprofit sector alone to meet rising needs.  Sustaining a strong nonprofit sector—and civic health—during difficult times requires the generosity, assistance and engagement of the whole community.

In the wake of the recession, current economic uncertainness coupled with the lag time in reporting of nonprofit financial data hinders our understanding of the sector’s stability in real time.