The primary purpose of this book is to develop the rudiments of a theory of behavior of nonprofit organizations on which public policies that govern the use of these organizations for public service can be intelligently based. A review of literature on nonprofit organizations is presented to give the reader a sense of the state of existing theory and knowledge about these agencies. The function of entrepreneurship serves as the point of departure for theory development, necessitating considerable review and discussion of this subject. Thus clarification of the entrepreneurial process and its role in the nonprofit sector occupies a major part of this book and is presented as an important ancillary contribution.