The Locations of Nonprofit Organizations and Their For-Profit Counterparts: An Exploratory Analysis

Abstract

This research examines the utility of spatial analysis for studying nonprofit sectors and the relations between nonprofits and for-profits. Information was obtained on nonprofit and for-profit education and human service providers in six metropolitan areas. Methods of spatial econometrics were used to examine the determinants of nonprofit locational patterns and the degree to which the locations of nonprofits were influenced by the locations of comparable nonprofits and for-profits. Similar nonprofits were found to be clustered, although the pattern differed across metropolitan areas. For the most part, a model of needs and resources explained the clustering. Exceptions were found, however, indicating clustering based on other factors over and above needs and resources. For educational support services, nonprofits were affected by comparable nonprofits in two sites. In youth services, nonprofits tend to locate near comparable for-profits. In Boston, nonprofits clustered with for-profits in a number of service categories.