ABSTRACT
This chapter focuses on governmental contributions to nonprofit organizations. Disrupting the existing system entails tradeoffs that, while justified in terms of the underlying evidence about what works, nonetheless pull at the heartstrings of the public. It is difficult to take away contracts or grants from well-meaning nonprofits delivering what seem to be well-intended programs. A nonprofit organization is a “corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive”. Nonprofit organizations exist to provide goods and services not met by the government or private sectors. Proponents argue government funding of nonprofit organizations supports the management of social services at a lesser cost than if nonprofits did not exist. Opponents say that government funding turns nonprofit organizations into quasi-government organizations unable to practice their values and beliefs as they prefer.
