Handbook of Research on Nonprofit Economics and Management
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Handbook of Research on Nonprofit Economics and Management

Second Edition

Edited by Bruce A. Seaman and Dennis R. Young

Building on the success of the first edition, this thoroughly revised and expanded edition explores (1) areas of general agreement from previous research; (2) areas of conflicting results and unexplored questions; (3) the relative roles of theory, data availability and empirical analysis in explaining gaps in our knowledge; and (4) what must be done to improve our knowledge and extend the literature. Selected original chapters addressing especially challenging topics include the value of risk management to nonprofit decision-making; nonprofit wages theory and evidence; the valuation of volunteer labor; property tax exemption for nonprofits; when is competition good for the third sector; and product diversification and social enterprise; international perspectives; the application of experimental research and the macroeconomic effects of the nonprofit sector.
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Chapter 21: Government funding policies

Stefan Toepler

Abstract

This chapter provides a broad overview of government funding policies, first tracing the rise of government support for nonprofits in the post-World War II period that contributed to changing the sector from a small cottage industry into a significant economic force. It then discusses the conceptual underpinnings and the prevailing theory of the government-nonprofit relation- or partnership. However, there is not necessarily consensus on whether or not this partnership has turned out to be a good thing for nonprofits. This is followed then by a review on the literature on the drawbacks of government support on nonprofits, including government dependency, loss of autonomy, mission deflection, and bureaucratization. The chapter concludes with a general assessment of the evidence, suggestions for additional conceptual considerations to come into play to help shape the debate going into the future, and a brief outlook of possible implications of the Trump presidency.

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