Recently there has been considerable interest in the construction of photoactive organic materials designed to exhibit novel forms of optical nonlinearity. By exploiting the unique properties of these nanomaterials at high levels of photon flux, new possibilities emerge for applications in energy harvesting, low-threshold lasing, quantum logic devices, photodynamic therapy, etc. In particular, a detailed appraisal of the theory spotlights novel mechanisms for directed energy transfer and energy pooling in nanophotonic dendrimers. Characterized by a nonlinear dependence on the optical irradiance, these mechanisms fall into two classes: (a) those where two-photon absorption by individual donors is followed by transfer of the sum energy to the acceptor; (b) where the excitation of two electronically distinct but neighbouring donor groups is followed by a collective migration of their energy to a suitable acceptor. In each case these transfer processes are subject to minor dissipative losses, associated with intramolecular vibrational relaxation in the donor species. In this paper we describe in detail the balance of factors and the constraints that determines the favored mechanism, which include the excitation statistics, structure of the energy levels, selection rules, molecular architecture, the distribution of donors and acceptors, spectral overlap and coherence factors. Knowledge of these factors and the means for their optimization offers fresh insights into nanophotonic characteristics, and informs strategies for the design of new photoactive materials.