ABSTRACT
This chapter examines the idea and vision of distinctiveness and independence of the nonprofit sector in view of contemporary developments in American public policy and politics. Government influences nonprofit behavior in many different ways so that the term “independent sector” does not convey the diverse interconnections between government and nonprofit organizations, including the way in which nonprofit staff and volunteers choose their own priorities based, in part, on the actions of government. The vision of nonprofit organizations as a distinctively different and independent sector has deep roots in American political culture. In public discourse, the argument for independence of the nonprofit sector has often been put forth at a normative level. Many nonprofit organizations are eligible for tax-exempt bond financing and loans to help with their capital needs. The image of the government-nonprofit relationship was one of inherent tension with government as a coercive force undermining local and community responsibility and reducing the effectiveness of social programs.
