It is a risk in the nonprofit sector to state that there are too many nonprofit organizations but I believe there is. I am taking classes at Regis University and it is common to hear new students state they want to start their own nonprofit. There seems to be little regard to collaboration, and researching existing organizations with similar missions.

Some people think they can do the work better than others so refuse to combine efforts to meet with need. It is less about meeting the need than it is about self-orientation (this is all about me doing the good work).

The IRS approves tax exempt status for organizations that some people question. For example an article in Chronicles of Philanthropy, June 1, 2011, by Doug White, wanted to know how a nonprofit was approved who employed Harold Camping, the California radio host who predicted the end of the world.

According to Blue Avocado, there are not enough GOOD nonprofits, http://www.blueavocado.org/content/too-many-nonprofits-no-there-arent-enough-good-nonprofits

The life cycle of nonprofits often begins with good people wanting to meet a need and the solution is starting a nonprofit. It is all volunteers and the first test is getting funds to support your organization.
http://postcards.typepad.com/white_telephone/2007/04/are_there_too_m.html

I do believe that collaborating is what is important and not another nonprofit.