Governmental Influences on Organizational Capacity: The Case of Child Welfare Nonprofits

Abstract

When government agencies interact with nonprofit organizations they have various effects on the organization's capacity. But, it is unclear how a particular agency's environment-both internal (i. e. organizational culture) and external (i. e. resource dependency)-determines whether government's influence on that agency will be positive or negative. Using data from a survey of child welfare nonprofits, this paper examines to what extent a nonprofit's relationship with government improves or hinders their capacity. Evidence suggests that the nonprofit's organizational culture, dependency on government funds, and relational contracting has a significant impact on the perception that governmental interaction has made capacity better or worse. Contrary to expectations, there are improvements in management activities as government funding and contracts increases.