Government
What is a con for the government working with a nonprofit?
Lack of oversight of taxpayer funds
Expenses of monitoring contracts
Losing control over program/policy implementation (bureaucratic drift)
Name a con for a nonprofit working with the government
Displacing goals (mission drift) or vendorism
Restricting flexibility
Inhibiting innovation
Professionalization, reducing representation
Define Market Failure Theory
For-profit businesses do not have enough incentive to provide a certain good, so governments will help nonprofits fill this gap.
What are some ways the government and nonprofits work together? (Name 2)
Contracting
Grants
Third-party payments
Tax-deductions and tax exemptions
Joint ventures (Public-Private partnerships)
Privatization
Advocacy
Name a pro for a nonprofit working with the government (Name 2)
Increase ability to meet mission
Access to funding to serve and build capacity
Partnership with government to solve social issues
A “seat at the table” in policy implementation
Contract failure
Consumers may better trust nonprofits to deliver service because of information asymmetries.
Is the government able to dictate how much money nonprofits receives based on their own agenda?
Yes
What are some traditionally for-profit fields that are moving towards nonprofit?
Elementary education schools, universities and health care services
Government failure theory
When there is not enough incentive for the government to provide a certain service (they are only concerned with the ‘median voters’) so they provide those services through nonprofits