The Effects of Government Funding on Non -Profit Organizational Behavior (original) (raw)

This dissertation addresses the problem o f determining the effects of government funding on non-profit organizational behavior. The definition of a non-profit organization is a formal organization, privately incorporated but serving a public purpose, self-governing, voluntary to some degree and non-profit distributing (Salamon, 1993). The literature review demonstrates the increasing role of non-profit organizations as a means o f social service delivery in the United States. As a result o f policy changes and funding opportunities, nonprofit organizations are increasingly providing services that were in the purview o f government. The hypothesis for this study is that government funding positively affects the organizational behavior of non-profit organizations in terms of advocacy behavior, alliance behavior and program diversification. The principal research question for this study is: "What is the direct effect o f government funding on nonprofit organizational behavior in terms of (a) advocacy behavior; (b) alliance behavior; (c) diversity o f programs?" This study relies on a data set o f 170 cases of nonprofit organizations in Louisiana generated by a random mail survey in 1997 and five extensive case studies completed in 1999. The results o f the study indicate that the organizational behavior of non-profits is affected by government funding. The results o f the logit and regression models o f the different funding/organizational scenarios are not as clear and convincing as one would like to report. However, the results generally confirm the premise o f the study. 1 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. services, forty-seven are non-profit organizations. Many of these organizations actively pursue state funding through advocacy and alliance activities. Several o f the largest non profit contractors are new organizations formed in the last ten years specifically for the purpose o f contracting with government. As non-profit organizations alter their missions to ''chase the funding," it is apparent that government funding is affecting the non-profit's organizational behavior. One o f the concerns in the non-profit sector is how to maintain the trust o f the public and the traditional expectations o f the sector, as the funding and regulatory landscape changes. This dissertation examines the effects o f government funding on the organizational behavior of non-profit organizations in Louisiana. This introduction addresses the historical importance and scope o f the non-profit sector, the significance of this study, and the conceptual framework and outlines the organization o f the dissertation. The study o f non-profit organizations is a growth industry because of the recognition among scholars and practitioners that non-profit organizations are institutions playing vital roles in modem democratic societies by serving as the guardian of the public good, providing essential community services, mobilizing community responses to problems through advocacy and education, and generally serving as a means to build the social capital o f the country (Salamon, 1997, 3). The scholarly community has increased its interest in non-profit organizations as a result of a better appreciation o f the significant economic and programmatic role of non-profit organizations. In the last forty years, non-profits have greatly expanded in i Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ' ARNOVA, is a community o f people dedicated to fostering the creation, application and dissemination o f research about voluntary action, non-profit organizations and philanthropy (www.amova.org). 5 ARD1 accomplishes this mission through advocating the importance o f effective leadership and management and conducting applied research which creates, enhances and facilitates utilization o f knowiedgefwww.ardi.org).