Current theories on nonprofits focus primarily on the situation in developed countries. By performing a systematic evaluation based on Salamon and Anheier’s theory of the “social origins of the nonprofit sector,” the writers posit that there exist structural differences between the nonprofit sectors in developed and developing countries. Moreover, the differences are determined by the social structures and social institutions in which nonprofit sectors are embedded. Important factors identified include division of labor in society, legal classifications, and the influence of the welfare state. The article describes the relationships between the state of the nonprofit sector and three factors: division of labor, legal classifications, and the welfare state.