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Government Funding of Nonprofit Organizations: Considering Equity

Government Funding of Nonprofit Organizations: Considering Equity. Harben Porter, Andrea Schiavoni, Brian Wiedenmeier, and Kristen Wolslegel PA 744 May 8, 2013. Key Considerations. Equity: a general sense of fairness, derived from democratic principles.

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Government Funding of Nonprofit Organizations: Considering Equity

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  1. Government Funding of Nonprofit Organizations: Considering Equity Harben Porter, Andrea Schiavoni, Brian Wiedenmeier, and Kristen Wolslegel PA 744 May 8, 2013

  2. 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?

  3. Historical Perspective • New Deal (1930s) • Great Society (1960s) • Devolution (1970s-2000s) • American Reinvestment and Recovery Act of 2008 • Sequester (present day)

  4. Assumption Government is viewed as a promoter of equity in contrast to the nonprofit sector’s presumed focus on particularism… (Garrow, 2012)

  5. Three Big Questions • Should 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?

  6. Two Perspectives Constitutional 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 forces Tension between market forces and governments obligation

  7. Is Government Fulfilling its Obligation? Normative Values • Understanding 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).

  8. 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?

  9. Equity in Government Funding Across Sectors Multiple 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

  10. Analysis of Government Funding Across the Urban-Rural Divide National Center for Charitable Statistics Survey on nonprofits and government contracts 2010 census data on state population and density

  11. Population Size but Not Population Density is a Factor

  12. Urban Nonprofits Experience More Problems with Late Payments

  13. Equity and Nonprofit Size Who Receives Government Funding?

  14. Size as a Measure of Success In the eyes of funders, size: • Legitimizes • Indicates Past Success • Implies Future Dependability

  15. 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?

  16. 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

  17. 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?

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