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Steven Rathgeb Smith

In many countries, nonprofit organizations are central to the delivery of public services and critical to the representation of citizen interests in the policy process. Yet, this nonprofit role is also in transition. The widespread emphasis on transparency and accountability is creating new pressures and incentives for nonprofits to focus on outcomes, evaluation, “pay-for-success” service models, and more reporting. Increased competitive contracting with nonprofits is creating ongoing financial pressures on nonprofits, especially smaller community-based agencies. At the same time, public managers are adopting new programs and policies requiring more collaboration and cooperation among public and nonprofit agencies to foster more integrated services, greater efficiency, and improved accountability. This chapter will specifically address the implications for the governance of public services of these emergent developments with recommendations for public and nonprofit managers to consider to improve the governance and delivery of nonprofit services.