This will not be easy. The nonprofit sector is not a monolithic reality. And it is not organized or structured to deal in concert with macro issues. With such diversity, it is increasingly difficult to have a clear set of public policies that can be applied uniformly to nonprofits to assure accountability to the overall good of society. Beyond the philosophic issues of this explosion of nonprofits, there are very practical concerns.
More organizations mean more overhead.
Duplication of effort means dollars are diverted from program to competing management structures. The explosive growth of the sector also puts new burdens on the donors who must confront an array of choices. At first blush, to have the freedom of so many choices sounds very democratic. But it also means that competing causes must put more and more resources into marketing themselves to hold or grow in market share, which works against those organizations that may have creative programs, but do not have the resources, the name recognition, or the donor base to market themselves effectively. For the largest and best known agencies, there is also a danger.