Public versus private funding of nonprofit organizations : implications for collaboration
By: JANG, Hee Soun
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Contributor(s): FEIOCK, Richard C.
Material type: 
ArticlePublisher: Armonk, NY : M. E. Sharpe, December 2007Public performance & management review 31, 2, p. 174-190Abstract: The ability and inclination of nonprofit organizations to engage in collaborative service arrangements depends on the organizational incentives shaped by their financial stakeholders. We anticipate that nonprofit organizations that rely primarily on private funding will avoid the costs of collaboration and, thus, be less likely to engage in service collaborations. Based on data derived from a national survey of nonprofit organizations, we statistically estimate the effect of reliance on public and private funding sources for the organizational choice to engage in interagency service collaboration. Consistent with our expectations, we find that nonprofits mainly supported by private funding sources are less likely to collaborate than publicly funded nonprofits
The ability and inclination of nonprofit organizations to engage in collaborative service arrangements depends on the organizational incentives shaped by their financial stakeholders. We anticipate that nonprofit organizations that rely primarily on private funding will avoid the costs of collaboration and, thus, be less likely to engage in service collaborations. Based on data derived from a national survey of nonprofit organizations, we statistically estimate the effect of reliance on public and private funding sources for the organizational choice to engage in interagency service collaboration. Consistent with our expectations, we find that nonprofits mainly supported by private funding sources are less likely to collaborate than publicly funded nonprofits
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