Nonprofit-Sector-Growth-and-Density

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1、iP/l/?7"23:189-214NonprofitSectorGrowthandDensity:TestingTheoriesofGovernmentSupportJesseD.Lecy*,DavidM.VanSlyke^*AndrewYoungSchoolofPolicyStudies,GeorgiaStateUniversity;^SyracuseIUniversityini/t^rcif/ABSTRACTTheoriesofnonprofitdensityhaveassumedavarietyof

2、dispositionstowardthestate,includingopposition,suspicion,indifference,andmutualdependence.Inthisarticle,weconductthefirstlarge-scalesimultaneousempiricaltestofthetwomostprominentnonprofittheories:governmentfailuretheoryandinterdependencetheory.Theformerchara

3、cterizesnonprofitactivitiesassubstituteoroppositionaltostateprograms,accountingforthelimitationsandfailuresofgovernment-providedservicesandmorereflectiveoftheheterogeneityofdemandforservices.Thelatteremphasizesthemorecomplementaryandcollaborativenatureofnonp

4、rofitactivities,focusingontheoverlappingagendasofnonprofitsandthestateandthemutualdependencythatarisesfrompartnership.Thetheoriesaredifficulttotestempiricallybecausebothpredictthesamerelationshipbetweenstatecapacityandthesizeofthenonprofitsector,albeitforthe

5、oreticallydistinctreasons.Atruejointtestrequirestheseparationofgovernmentsupportfromprivatesupportfornonprofits.UsinganewlyconstructedpaneldatasetinwhichweseparateoutnonprofitrevenuesourcesnormallyagglomeratedintheInternalRevenueService990data,weexaminetheem

6、piricalmeritsofboththeoriestoanswerthequestionofwhetherhumanservicenonprofitorganizationsthrivewhengovernmentfailsorwhengovernmentcollaborates.Ourfindingssuggestthatgovernmentfundinghasamorefavorableeffectonnonprofitdensitythanprivatedonations.Thefindingsrai

7、seseveralpolicyandmanagementimplicationsthatneedevaluation.INTRODUCTIONManynonprofitscholarshaveattetnptedtoexplainthevariationinthesizeofthenonprofitsectoracrosscommunities.Twotheorieshaveheenespeciallyprominentintheliterature:govemmentfailuretheoryandinter

8、dependencetheory.Botharetheoriesofresourcemo-bilization;govemmentfailureemphasizestheahilityofnonprofitorganizationstoleverageprivatephilanthropicsupportfromindividuals,foundations,andotherorgan