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Abstract This article explores how grounded theory (GT) can advance nonprofit research by addressing its unique complexities and practice-oriented nature. While GT’s emphasis on developing theory directly from data makes it well suited for studying the dynamic nonprofit sector, its application has been constrained by conceptual ambiguity and methodological challenges. We clarify GT’s foundational principles, including emergence, theoretical sampling, constant comparison, and its evolving interpretations that influence the use of GT. Drawing on selected studies from leading nonprofit journals, we illustrate GT’s strengths in understanding complex dynamics, bridging theory and practice, capturing emerging trends, and refreshing established concepts and theories. We also provide practical guidance and strategies for overcoming challenges such as data access and methodological confusion. We conclude by emphasizing GT’s potential to advance nonprofit scholarship and practice and encouraging its broader adoption in nonprofit research.
Seo et al. (Wed,) studied this question.