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Government-reliant SPOs

In: Financing Nonprofits and Other Social Enterprises

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Abstract

Many SPOs, especially those in the social services where benefits are redistributive in nature, or in such fields as relief and development, criminal justice or environmental protection where benefits are widespread and public in character, depend heavily on government support through programs that have been enacted via a political process which in principle at least, reflects a public consensus. Such organizations may not be able to charge for their services because of their public goods character, and they may be hampered by serious free rider problems if they try to subsist on philanthropy. This chapter will illuminate the rationale for government- derived support and will offer examples of SPOs where a government-reliant income portfolio prevails. Understanding the opportunities for government support requires an appreciation of the complex, multifaceted relationships between SPOs and government. Broadly speaking these relationships fall into three categories – supplementary, complementary and adversarial (Young and Casey, 2016). In particular, SPOs often supplement with their own resources the public services that might otherwise be provided by government. Alternatively, SPOs may work in complementary fashion to help deliver services that government pays for. Finally, SPOs may advocate for government to develop new programs and government may oversee or regulate services provided by SPOs. Each of these kinds of relationships reflects ways in which government can help finance the work of SPOs.

Suggested Citation

  • ., 2017. "Government-reliant SPOs," Chapters, in: Financing Nonprofits and Other Social Enterprises, chapter 7, pages 132-148, Edward Elgar Publishing.
  • Handle: RePEc:elg:eechap:15956_7
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    Cited by:

    1. Miriam Marcén & Marina Morales, 2021. "The intensity of COVID‐19 nonpharmaceutical interventions and labor market outcomes in the public sector," Journal of Regional Science, Wiley Blackwell, vol. 61(4), pages 775-798, September.
    2. Cornelsen, Laura & Smith, Richard D., 2018. "Viewpoint: Soda taxes – Four questions economists need to address," Food Policy, Elsevier, vol. 74(C), pages 138-142.
    3. Hunter, Benjamin M. & Murray, Susan F. & Marathe, Shweta & Chakravarthi, Indira, 2022. "Decentred regulation: The case of private healthcare in India," World Development, Elsevier, vol. 155(C).
    4. Datzberger, Simone, 2018. "Why education is not helping the poor. Findings from Uganda," World Development, Elsevier, vol. 110(C), pages 124-139.
    5. Frimpong Boamah, Emmanuel & Sumberg, James, 2019. "The long overhang of bad decisions in agro-industrial development: Sugar and tomato paste in Ghana," Food Policy, Elsevier, vol. 89(C).

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