Edited by Bruce A. Seaman and Dennis R. Young
Chapter 12: Contracting out
Nonprofit organizations in the United States contract out for services annually for an estimated total of more than $1 trillion, and contract management has grown as a profession, yet this activity has not garnered much attention from researchers and scholars. The purpose of this research is to help establish a research agenda and raise management concerns for this activity driven by performance, legal, social, economic, political and ethical implications. It examines examples of nonprofits contracting out for services, the dynamics of those contractual relationships, and fiscal year data from 22 945 501(c)(3) nonprofit organizations. Types of services contracted, their cost, subsector trends, and the impacts of organizational size and specialization are revealed. Recommendations for nonprofit management practice and suggestions for how researchers and scholars can fill the existing gaps in our knowledge are discussed.
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