Nonprofit Growth and Decline During Economic Uncertainty

During times of economic uncertainty, why are some human service organizations able to grow while others fail? In this paper, we present qualitative data on differences in the institutional logics adopted and managerial strategies used by child and youth-serving organizations during the 2008-2012 recession. We compare organizations that grew with those that experienced decline, looking particularly at those organizations with increased versus decreased dependency on government funds. We find differences in service population allowed some organizations to remain successful within a government-partnership logic; others faced decline if they did not entrepreneurially adopt a market logic.