The impact of declining resources and purchase of service contracting on private, nonprofit agencies

The increasingly precarious and vulnerable position of the private, nonprofit social service agency in an environment of government contracting and declining funding has been the subject of a number of articles over the past few years. Nonprofit agencies have been characterized as being controlled by powerful government agencies that dictate the terms and conditions of contracts, the types of services to be provided, the methods of delivery, and the price to be paid for services. One would expect to find nonprofits anxious to terminate their relationships with various units of government, and return to a more independent status. That is not happening. If anything, purchase of service contracting (POSC) with nonprofit agencies is increasing. This national study of nonprofit agencies explores the impact of declining funding from all sources (including POSC), and seeks to determine its impact on clients, staff, and organization.