What is it about?
This article, co-authored with Erwin de Leon of the Urban Institute, looks at the negative effects of government contracts and grants on nonprofit human service organizations. Using the first national survey of nonprofit contractors, we find that government contracts and grants can be particularly dangerous for nonprofit organizations.
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Why is it important?
Our findings contradict the logic in the nonprofit sector that government contracts or grants will lead to financial stability and further funding (crowding in other dollars). This is the first of two articles about the impact of government funding on the financial viability of nonprofit contractors.
Perspectives
This stream of research should give nonprofit leaders pause about seeking out government funding. As government seeks to use contractors more to deliver human services, this paper hopefully opens a dialogue about how government might be harming its contractors.
Brent Never
University of Missouri- Kansas City
Read the Original
This page is a summary of: The Effect of Government Contracting on Nonprofit Human Service Organizations: Impacts of an Evolving Relationship, Human Services Organizations Management Leadership & Governance, May 2014, Taylor & Francis,
DOI: 10.1080/23303131.2014.896300.
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