Perceptions of Nonprofits and For-Profit Social Enterprises: Current Trends and Future Implications

Nonprofits and for-profits use the term entrepreneurial to describe the mind-sets, behaviors, and strategies they employ to achieve organizational goals. Relatively little analysis has been conducted about public perception of the differences between nonprofit organizations (NPOs) and for-profit social enterprises (FPSEs) and how these perceptions influence the behavior of potential investors, donors, employees, and volunteers. This study explores how Gen Z respondents (those born in the early 1990s) perceive NPOs and FPSEs along multiple dimensions, including values, motivations, and organizational culture. Overall, Gen Z young people perceive NPOs and FPSEs as having distinct orientations to expressive roles (values and social welfare goals) and affiliative roles (inclusive community engagement), but perceive NPOs and FPSEs as more likely to have overlapping approaches to instrumental roles (getting the work done). Our results identify some perceptions that align with a priori assumptions, as well as views that indicate new ideas about the NPO and FPSE sectors. These results have implications for leaders of all types of organizations, but especially for leaders of FPSEs who may seek to assert their expressive and affiliative similarities with their nonprofit peers.