Ressler introduces a sociological theory of transformative symbolic reality to illuminate a specific, but often overlooked, impact of the nonprofit sector that is directly tied to improving the quality of life for individuals and groups within society. Grounded in the sociology of communities and nonprofit theory, transformative symbolic reality states that society reproduces itself or changes through social reality, and that social reality can be purposefully manipulated to challenge the forces of inequity. Specifically, individuals or organizations can create both the physical and metaphysical spaces in which people manifest and manipulate social norms, expectations, and behaviors in an inter-relational way that generates transformative social capital. Through the lens of transformative symbolic reality, the chapter conceptualizes the nonprofit sector as a wellspring of this overlooked public good and argues that it is this transformative aspect of the nonprofit sector that undergirds connections between nonprofit organizations and any long-term social impact.

This chapter critically considers the historic and contemporary entanglements of the nonprofit sector with the state and the market, and the implications of such entanglements on nonprofits, marginalized communities, and the possibility of social change. Interrogating what happens to the structural institutional form of the nonprofit when intertwined with the state and the economy in what some call the nonprofit industrial complex, Rojas assesses the fallout that leads to exacerbated policing and incarceration of women and communities of color, among other deleterious impacts. The work of naming these concerns and critiques is necessary for nonprofits to potentially become avenues for social transformation. The chapter concludes with practical interventions toward building organizations capable of creating more just futures.