ABSTRACT
New public management (NPM), with its hands-on, private sector-style performance measurement, output control, parsimonious use of resources, disaggregation of public sector units and greater competition in the public sector, has signifi cantly affected charitable and nonprofi t organisations delivering community services (Hood, 1991; Dunleavy, 1994; George & Wilding, 2002). The literature indicates that nonprofi t organisations under NPM believe they are doing more for less: while administration is increasing, core costs are not being met; their dependence on government funding comes at the expense of other funding strategies; and there are concerns about proportionality and power asymmetries in the relationship (Kerr & Savelsberg, 2001; Powell & Dowling, 2006; Smith & Lipsky, 1993; McGregorLowndes & Turnour, 2003; Lyons & Dalton, 2011; Smith, 2002, p. 175; Morris, 1999, 2000a). Government agencies are under increased pressure to do more with less, demonstrate value for money, measure social outcomes, not merely outputs and minimise political risk (Grant, 2008; McGregor-Lowndes, 2008). Government-community service organisation relationships are often viewed as ‘uneasy alliances’ characterised by the pressures that come with the parties’ differing roles and expectations, and the pressures of funding and security (Productivity Commission, 2010, p. 308; McGregor-Lowndes, 2008, p. 45; Morris, 2000a).
