33 Nonprofit & Voluntary Sector Q. 5 (2004)

handle is hein.journals/npvolsq33 and id is 1 raw text is: 














                                ARTICLES




Funding Relations Between
Nonprofits and Government:
A  Positive Example


Laura   K.  Brown
Elizabeth Troutt
University   of Manitoba


   This article examines the attributes of a successful contracting model for the financing
   and support of nonprofit organizations. It describes how, through government initiative,
   a program can be built in which transaction costs are minimized through a cooperative
   approach to contracting based on mutual trust. It shows how investment in a long-term,
   trust-based, cooperative relationship underlined by professional standards and a contin-
   uous focus on a common mission by all levels of actors within and without government
   can provide the impetus for a system in which high standards of service are maintained,
   accountability is organic, and organizations feel supported in their mission but not con-
   trolled. The example presented is a provincial government program for the prevention of
   family violence in Manitoba, Canada, but the features that make it successful can be
   applied widely.

   Keywords:   nonprofit sector; nonprofit organizations; government funding; contract-
               ing; accountability; cooperation


Governments' increasing use of contracting with nonprofit organizations is
well established  in both  Canada   and  the Untied  States (Auger,  1999; Blasi,
2002; DeHoog, 1996; Gronbjerg, 1993; Hall & Banting, 2000; Salamon, 1995;


Note: This research was supported by a grant from the Social Sciences and Humanities Research
Council of Canada and the Kahanoff Foundation. We thank participants in the Nonprofit Sector
Research Initiative Workshop held at Queen's University, Department of Economics seminar
series, and anonymous reviewers for their insightful comments on earlier drafts. We gratefully
acknowledge the contributions of our research respondents, especially the staff at Manitoba's
Family Violence Prevention Program who so generously shared with us their time, their expe-
rience, and their ideas.

Nonprofit and Voluntary Sector Quarterly, vol. 33, no. 1, March 2004 5-27
DOI: 10.1177/0899764003260601
@ 2004 Association for Research on Nonprofit Organizations and Voluntary Action
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