Theories of the Nonprofit Sector
â– Identify the â€œbig questionsâ€ that underlie nonprofit theories
â– Discuss key economic theories of nonprofit organizations including
â€“ market failure, government failure, and government-nonprofit
â– Examine criticisms of economic theories
â– Discuss some non-economic theories with origins in Political Science,
Big Questions Driving MacroLevel Nonprofit Theories
â– Why does the nonprofit sector exist?
â– Why are nonprofits created?
â– Why do nonprofits exist in industries where for-profits and
government also provide services?
Major Groups of Macro-Level
â– Economic theories
â€“ Economic theories of nonprofits emphasize the emergence of
organizations to produce goods and services, where markets
or government fails to meet consumer demand
â– Non-economic theories
â€“ Influenced by a variety of fields including Political Science and
â– Market failures
â– Government failures (public goods theory)
â– Government-nonprofit partnership theory
â– Private, for-profit organizations are the preferred sector for
providing most goods and services in the U.S.
â– However, sometimes markets fail to function as efficiently as
they should. Common market failure problems:
â– information asymmetries
â– inability or unwillingness to provide public needs or
Market Failure Problem
â– What is information asymmetry?
â– When do information asymmetries arise?
â– How can nonprofits correct information
Market Failure Problem: Info Asymmetries
â– What is information asymmetry?
â€“ When one party in a buyer/seller exchange has more information
than the other and has an incentive to hide information
â– When do information asymmetries arise?
â€“ In circumstances that are difficult to understand without technical
knowledge or inside information, or when the consumer has
diminished capacity to judge the quality of a good or service
â– infant or toddler cannot report the quality of care provided at his/her
â– person with a disability cannot accurately assess the quality of care
â– seniors suffering from dementia may not be able to judge quality of nursing
â– How can nonprofits correct information asymmetries?
â€“ Nonprofits are thought to be preferable providers where consumers might not be able
to adequately judge the quality of the service.
Market Failure Problem
Failure to Supply Collective
â– If providing a good or service is not profitable or is inefficient
for private markets to supply, then there is a failure to supply
â€“ Ex: fire protection is a collective good. For-profit firms do not enter
this market because it would be inefficient (unprofitable) for them
to do so.
â– Solutions to collective goods failure
â€“ For government to collect a tax from citizens to pay for this service.
â– In case some not feasible.
â€“ To rely on voluntary action (informal nonprofit organizations) to
supply the needed services through a volunteer fire fighting unit
Government Failure Theory
â– Government is limited in the types and quantities of good and
services it can supply
â– This is partially due to problems inherent in representative
â€“ responsiveness to the â€œmedian voterâ€
â€“ electoral cycles can shift political/government spending priorities
â– Government only produces the types of goods and services for which
a majority of the public is willing to pay taxes.
â€“ Or produces in quantities that are inadequate to satisfy the preferences of certain narrow
â– This means government fails to meet the demands of narrow
constituencies, minority interests, and those with intense preferences
â– Nonprofits form in order to fill these gaps
â€“ Also known as â€œInterdependence theoryâ€
â€“ Governments and nonprofits have weaknesses,
Partnerships can be used as a tool to overcome
â€“ In these partnerships government provides limited
funding for goods and services needed by the public
that the for profit market will not provide
â– Government outsourcing of functions to
nonprofits is viewed as a â€œwin-winâ€ scenario
â€“ Government benefits by expanding social welfare
spending without increasing the size of the
â€“ Government also benefits by capturing creative
programs that are often more effective in treating a
problem but not possible to implement in rule-bound
â€“ Nonprofits benefit from the money â€“ enabled them
to expand the scope and scale of their operations,
and extend their missions to serve more people.
â– Nonprofits are thought to be the more efficient
â€“ They are disciplined by market forces in ways that
government is not
â€“ They are flexible and have the capacity to innovate
â€“ The use of volunteers is â€œvalue addedâ€ labor and
creates social capital within communities
â€“ Through their tax-exempt status they can fund-raise,
bringing their own resources to bear on social
Criticisms of Economic
â– What are some of the key criticisms of economic
Criticisms of Economic Theories,
According to Lohmann
â– Economic theories of nonprofit existence emphasize the emergence of
firms to produce goods and services, where markets or government
fails to meet consumer demand.
â€“ Misclassifies nonprofits as a form of enterprise, because a large
portion of voluntary action does not look or act like productive
â– Economic models emphasize the roles of producer and consumer in a
market transaction or exchange, but for some â€œgoodsâ€ created through
nonprofits the producer/consumer roles cannot be separated.
â€“ Goods and services produced by many NPs cannot purchased in
a market transaction; ends are intangible
â– Economic models suggest nonprofits have no independent basis of
their own for forming. They donâ€™t really explain the basis of rational
choice in voluntary action
â– Uses negative terms, â€œtells us more about what a nonprofit is not than
what a voluntary action isâ€
â– Theory of the Commons
â– Mediating Theory
â– Collective Action Theory
â– Pluralist Theory
Theory of the Commons
â€“ Theory of the commons emerged a direct response to
inadequacy of economic theories in explaining voluntary
â€“ The Theory of the Commons suggests that nonprofits
(whether legally incorporated or not) are formed with
deliberate intent to fulfill artistic, scientific, social,
athletic, or religious purposes within a community space,
â– Affirmative Theory
â€“ It is an affirmative theory of the nonprofit sector,
blending elements of economic theory, political theories
(collective action), and anthropological perspectives.
Theory of the Commons
â– Social action
â– Intrinsic valuation
â– Reliance on ordinary language
â€“ Nonprofits (and other voluntary groups) are viewed as
intermediaries between private citizens and government
â€“ Proponents of this theory argued that citizens have become
alienated from government and public life.
â€“ As a remedy to this alienation, they proposed that smaller, more
personal institutions can help to restore community by serving
as intermediaries between individuals in their private lives and
â– Examples of mediating institutions
â€“ Voluntary associations (including service
Collective Action Theory
â€“ Collective action theory (a.k.a. â€œlogic of collective actionâ€)
suggests that nonprofits arise based on individualsâ€™ demand
for organized action.
â€“ Nonprofits emerge as organizational vehicles for
accomplishing what one person cannot do alone.
â– Expression of group interests
â€“ Nonprofit organizations arise to represent group
interests such as:
â– support for same-sex marriage
â– desire to improve wages and working conditions in a workplace
â– concern for protecting wetlands or conserving wildlife habitats
â€“ Pluralist theory views nonprofits as forming as forming
â– Counteract opposing groups
â– Sustain a democratic polity, prevent against govt
â– Competing Interests
â€“ Pluralists view nonprofits as competing interest groups
vying for political influence, public resources, and
greater expression of their values in the public arena.
â– Fair Distribution of Resources
â€“ Pluralist theory suggests that multiple, competing
groups contribute to a more robust democracy and
ensure a more fair and just distribution of public
â€“ One group may gets it way on one issue, but it cannot
get its way on all issues.
Which Theory Best Explains the
Formation and Existence ofâ€¦..
â– Wounded Warrior Project
â– Habitat for Humanity
â– Greater Chicago Food Depository
â– Illinois Coalition for Immigrant and Refugee Rights (ICIRR)
â– American Red Crossâ€™s Disaster Relief Services
Get Professional Assignment Help Cheaply
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Why Choose Our Academic Writing Service?
- Plagiarism free papers
- Timely delivery
- Any deadline
- Skilled, Experienced Native English Writers
- Subject-relevant academic writer
- Adherence to paper instructions
- Ability to tackle bulk assignments
- Reasonable prices
- 24/7 Customer Support
- Get superb grades consistently
Online Academic Help With Different Subjects
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
What discipline/subjects do you deal in?
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Are your writers competent enough to handle my paper?
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
What if I don’t like the paper?
There is a very low likelihood that you won’t like the paper.
- When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
- We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.
In the event that you don’t like your paper:
- The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
- We will have a different writer write the paper from scratch.
- Last resort, if the above does not work, we will refund your money.
Will the professor find out I didn’t write the paper myself?
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
What if the paper is plagiarized?
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
When will I get my paper?
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
Will anyone find out that I used your services?
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
How our Assignment Help Service Works
1. Place an order
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
2. Pay for the order
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
3. Track the progress
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
4. Download the paper
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!