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The Impact of Government Funding on Competition in the Nonprofit Sector: An Integrative Model and Review of Empirical Research

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  • Ashley Shena

    (Syracuse University, Syracuse, NY, USA)

Abstract

Changes in the scope and structure of public sector funding over the past few decades have had significant effects on the organizational environment in which nonprofit organizations operate. This article presents an integrative model within which the empirical literature regarding government funding effects on nonprofits is reviewed. This model conceptualizes the effects as deriving from two discrete forces – supply dynamics that have immediate population-level influences and a set of implementation dynamics that shape competition via organizational effects. This integrated model provides coherence to the literature and supplies a framework for future research.

Suggested Citation

  • Ashley Shena, 2014. "The Impact of Government Funding on Competition in the Nonprofit Sector: An Integrative Model and Review of Empirical Research," Nonprofit Policy Forum, De Gruyter, vol. 5(2), pages 289-305, October.
    • Handle: RePEc:bpj:nonpfo:v:5:y:2014:i:2:p:17:n:6
    DOI: 10.1515/npf-2014-0011
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    References listed on IDEAS

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    1. Katherine O'Regan & Sharon Oster, 2002. "Does government funding alter nonprofit governance? Evidence from New York City nonprofit contractors," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 21(3), pages 359-379.
    2. Andreoni, James & Payne, A. Abigail, 2011. "Is crowding out due entirely to fundraising? Evidence from a panel of charities," Journal of Public Economics, Elsevier, vol. 95(5), pages 334-343.
    3. Yoshiho Matsunaga & Naoto Yamauchi, 2004. "Is the Government Failure Theory Still Relevant? A panel analysis using US state level data," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 75(2), pages 227-263, June.
    4. Jeremy P. Thornton, 2014. "Flypaper Nonprofits," Public Finance Review, , vol. 42(2), pages 176-198, March.
    5. Oster, Sharon M., 1999. "Modern Competitive Analysis," OUP Catalogue, Oxford University Press, edition 3, number 9780195119411.
    6. Mark A Hager & Joseph Galaskiewicz & Jeff A Larson, 2004. "Structural embeddedness and the liability of newness among nonprofit organizations," Public Management Review, Taylor & Francis Journals, vol. 6(2), pages 159-188, June.
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    Cited by:

    1. Orkhan ISMAYILOV, 2016. "Flypaper Nonprofits: Crowding In And Crowding Out Effects Of Grants On Nonprofit Finance," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(3), pages 77-87, December.
    2. Orkhan ISMAYILOV, 2016. "Flypaper Nonprofits: Crowding In And Crowding Out Effects Of Grants On Nonprofit Finance," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(3), pages 77-87, December.

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