DONORS, IDEOLOGUES, AND BUREAUCRATS: GOVERNMENT OBJECTIVES AND THE PERFORMANCE OF THE NONPROFIT SECTOR

Abstract

Ideologically driven managers of non profits prefer to deal with donors whose ideologies match their own. Bureaucratic managers prefer to control large organizations. In this paper, we model the goverment's interest in nonprofit service provision and how it leads goverment toprefer larger firms then pure ideologues will choose, and smaller firms then pure bureaucrates choose. We explore the effect of population growth on the optimal than pure bureaucrates choose. We explore the effects of population growth on the optimal size of nonprofit organizations from the goverment's point of view, and review policy tools available to goverment to influence the attrictiveness of the nonprofit sector to managers with varying degrees of ideological and beureaucratic motivation.