Societal Roles of Nonprofit Organizations: Parsonian Echoes and Luhmannian Reframing of the Organization-Society Interface

Nonprofit organizations (NPOs) have long been recognized as playing vital roles in society. Nevertheless, a coherent understanding of how these roles align with broader social theory, and how to conceptualize the interface between nonprofits and society is still lacking. In pursuit of a solid theoretical foundation, we conducted a systematic literature review encompassing 119 publications spanning from 1959 to 2021 that delve into the societal roles of NPOs. We reason that much of prior research has implicitly adhered to a functionalist perspective akin to that proposed by Talcott Parsons nearly seven decades ago. Our review identifies four overarching societal roles fulfilled by NPOs: service delivery, advocacy, integration, and the development of cultural patterns. Recognizing the limitations of Parsonian functionalism, we advocate for a shift towards a neo-functionalist, systems-theoretical framing to allow for an analysis of societal functions that is more sensitive to the heterogeneity and contradictions pervasive in contemporary society.