Government Funding of Nonprofit Organizations: Considering Equity
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Government Funding of Nonprofit Organizations:Considering Equity
Harben Porter, Andrea Schiavoni, Brian Wiedenmeier, and Kristen
Wolslegel
PA 744
May 8, 2013
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Key Considerations
Equity: a general sense of fairness, derived from democratic principles.Government, market, and nonprofit sectors: their unique roles, and instances in which they may be in opposition to one another.Human services perspective: limiting the scope of this analysis to human service functions, is there a moral imperative to achieve equity in funding?
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Historical Perspective
• New Deal
(1930s)
• Great Society
(1960s)
• Devolution
(1970s-2000s)• American
Reinvestment and Recovery Act of 2008
• Sequester
(present day)
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AssumptionGovernment is viewed as a promoter of equity in contrast to the nonprofit sector’s presumed focus on particularism… (Garrow, 2012)
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Three Big QuestionsShould the pursuit of equity through funding
should be a primary goal of government?
Does the government have an obligation to ensure equity through the contracting process?
If so, is it fulfilling its obligation to maintain balance in our system?
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Two PerspectivesConstitutional Theory Public Goods Theory“the solid happiness of
people”- the end to which all other concerns must bend
Constitution not only permits but requires benefits that promote general welfare for all
Government provides public goods that meet the needs of the median voter- what about everyone else?
Role of market forcesTension between
market forces and governments obligation
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Is Government Fulfilling its Obligation?
Normative ValuesUnderstanding
citizenship as a legal construct guarantees special protections under the Constitution
Government accountability to citizens under the constitution
Empirical Manifestations
Issues of race, ethnicity, and gender have been used to stratify society to the great disadvantage of large numbers of people living in the United States (Shea, March 6th, 2013).
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Another Look at the Big Questions
Should government pursue equity to support the welfare of its citizens in a society that was
formed utilizing inequitable principles?
Should equity be considered a primary goal of government?
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Equity in Government Funding Across SectorsMultiple arenas where equity in funding should be considered:
- across ethnic and cultural lines- across different age groups- across the urban-rural divide- across small/community and
large/national nonprofits
Nonprofits face problems from government funders in terms of:
- late and/or reduced payments- complexity and requirements of contracts
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National Center for Charitable Statistics
Survey on nonprofits and government contracts
2010 census data on state population and density
Analysis of Government Funding
Across the Urban-Rural Divide
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Population Size but Not Population Density
is a Factor
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Urban Nonprofits Experience More Problems
with Late Payments
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Equity and Nonprofit Size
Who Receives Government Funding?
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Size as a Measure of Success
In the eyes of funders, size:
o Legitimizes
o Indicates Past Success
o Implies Future Dependability
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Inherent Flaws
• The traditional funding model shapes the topography of social service
provision, as well as the nonprofit landscape
• The traditional funding model results in a homogenized sector that precludes the infusion of new
practices and ideas.• Appealing to administrative norms
and standards, may not, in fact, correlate to greater governmental
funding as was previously stated in a great deal of literature (Garrow,
2010). • Are these large agencies really
reaching the target population in the most effective, impactful manner?
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A More Equitable Future
"Although "going to
scale" has gained
currency, there is an
emerging set of
questions about how
scale links to local
community
engagement, which
may be the linchpin of
lasting social change"
(Kim & Bradach,
2012).
• There is more to success than fiscal and reporting capacity• A Shift to Program
and Evidence-Based assessment criteria may open the door for smaller organizations
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A Way Forward?
If equity in government funding of nonprofit human service providers is a moral
imperative, and if the current state of affairs leans towards inequity, how do we correct
this imbalance?