This chapter discusses the life cycles of organizations and focuses on the life cycle of nonprofit organizations. Daft. R. L. argues that life cycle of an organization includes four stages: entrepreneurial, collectivity, formalization, and elaboration. Stevens. S. K. argues that nonprofit organizations evolve from vitality to regeneration, through seven stages, encompassing idea, start-up, growth, maturity, decline, turnaround, and terminal. The chapter identifies factors affecting organizational transformation process of nonprofit organizations and discusses the elements of an organizational transformation initiative. The organizational transformation of a nonprofit organization includes factors that are antecedent to the process and other elements that are part of the process. Organizational transformation is the consequence of other factors or elements, which must be taken into consideration in future plans of action. These factors include, but are not limited to, life cycles, internal environment, and external environment. The chapter explains the relationship between organizational transformation and financial sustainability.