Current theories on the origin of the nonprofit sector do not adequately ex
plain changes in the relative scale of social welfare service provision by
the state versus private nonprofit entities. French and Japanese experience
s illustrate that nations can undergo significant change, cycling through p
eriods of expansion then restriction of the legal status and role of the no
nprofit sector. This article considers the potential for legitimation strat
egies to explain the shifts in nonprofit status in France and Japan. The ar
ticle concludes that although some theoretical foundation exists on legitim
ation concepts, additional work needs to be done to derive a sufficient the
ory of how legitimation issues affect change in the nonprofit sector.