The Power of Nonprofits: Mechanisms for Nonprofit Policy Influence

• Author: Rachel Fyall
• DOI: http://doi.org/10.1111/puar.12550
• Published date: 01 November 2016
• Date: 01 November 2016

938 Public Administration Review • November | December 2016

Public Administration Review,

Vol. 76, Iss. 6, pp. 938–948. © 2016 by

The American Society for Public Administration.

DOI: 10.1111/puar.12550.

Rachel Fyall is assistant professor in

the Daniel J. Evans School of Public Policy

and Governance at the University of

Washington. Her research focuses on the

intersection of the nonprofit and public

sectors, with particular interests in the role

of nonprofits in the policy process and the

nonprofit delivery of public services.

E-mail: fyall@uw.edu

Abstract : The dramatic increase in public funding for nonprofit organizations has raised concerns about the potential

disadvantages of a nonprofit sector that is too reliant on government funding. Using nonprofits to deliver public

programs also presents risks for the public sector, but the question of nonprofit policy influence is largely absent from

discussions of public–nonprofit service collaborations. The motivation for this article stems from the contradiction

between the perceived weakness of publicly funded nonprofits and their potential for policy influence. This research

asks, how do nonprofits exert policy influence? Using a grounded theory approach, the research draws on the attitudes

and experiences of professionals and elected officials involved in policy making and policy implementation in the

area of low-income housing. The findings indicate a variety of mechanisms through which the government–nonprofit

relationship can strengthen the power of nonprofit organizations, sometimes while weakening their government

counterparts.

Practitioner Points

• Public and nonprofit managers, as well as elected officials and citizens, should recognize the power of

nonprofits within the public sphere and consider its consequences.

• Nonprofit organizations that serve as public service providers have many avenues for strengthening their

voice in policy conversations.

• Coalitions provide access to policy makers while enabling nonprofit providers to take strong policy positions.

• Relying too heavily on nonprofits for fund leveraging and service provision can undermine local jurisdictional

authority and equitable service delivery.

C ontracting out has fueled a dramatic increase

in public funding for nonprofit organizations,

especially in the areas of health and human

services (Smith 2012 ). While overlap between the

public and nonprofit sectors has both practical and

political benefits, much of the relevant scholarship

highlights the potential disadvantages of a nonprofit

sector that is too reliant on government funding (e.g.,

Brooks 2000 ; Guo 2007 ; O ’ Regan and Oster 2002 ;

Smith and Lipsky 1993 ). Empirical findings rarely

conclude that government funding is unequivocally

bad for nonprofits, but the scholarly attention to

the influence of government funding reflects the

assumption that nonprofits are the weaker actors in

relation to their government funders.

Using nonprofits to deliver public programs also

presents risks for the public sector. Privatization and

collaborative service delivery networks can magnify

the public sector ’ s accountability and transparency

challenges (Agranoff and McGuire 2001 ; Van Slyke

and Roch 2004). Not all public managers have the

contract management or network leadership skills

required for effective cross-sector service arrangements

(Brown and Potoski 2003 ; McGuire and Silvia 2009 ).

Nonprofit providers may lack the organizational

capacity or fiscal health to ensure high-quality service

delivery (Fredericksen and London 2000 ; Marwell

and Calabrese 2015 ). While some research suggests

that alternative service delivery arrangements may

reduce government effectiveness, this perspective

tends to presume that a weakened public sector also

hurts nonprofits.

Paradoxically, interest in nonprofit policy advocacy

is surging. In spite of the legal, financial, and

cultural barriers to nonprofit policy participation,

most charitable nonprofits have participated in

public policy activities, although reported advocacy

involvement and dedicated resources remain small

(Bass et al. 2007 ; Boris and Maronick 2012 ). Recent

research suggests that public funding fosters nonprofit

policy engagement, at least in the U.S. context (Bass

et al. 2007 ; MacIndoe and Whalen 2013 ; Mosley

2012 ). Prominent examples highlight the immense

potential for nonprofit policy influence (e.g., Chin

Rachel Fyall

University of Washington

The Power of Nonprofits:

Mechanisms for Nonprofit Policy Influence