Recently, academics and professionals view the study of nonprofit organizations and its related topics as an extremely important task. But, it is still too vague for us to know the real world of nonprofit organizations in Taiwan. Actually speaking, there is a long way to go until we adequately develop a definition and typology of nonprofit organizations which are compatible with Taiwanese society. The purpose of this paper is to explore and answer the following questions: What is the whole configuration of the nonprofit sector in Taiwan? What are the primary characteristics of this sector? And how can we distinguish this sector with the other two sectors (public and private for-profit organizations)? Why the size of the nonprofit sector has grown dramatically since the mid-1980s in Taiwan? Most importantly, what are the laws and regulations enacted by the Taiwanese government to monitor the operation of the nonprofit sector, especially for foundations?