Funding Relations between Nonprofits and Government: A Positive Example

Abstract

This article examines the attributes of a successful contracting model for the financing and support of nonprofit organizations. It describes how, through government initiative, a program can be built in which transaction costs are minimized through a cooperative approach to contracting based on mutual trust. It shows how investment in a long-term, trust-based, cooperative relationship underlined by professional standards and a continuous focus on a common mission by all levels of actors within and without government can provide the impetus for a system in which high standards of service are maintained, accountability is organic, and organizations feel supported in their mission but not controlled. The example presented is a provincial government program for the prevention of family violence in Manitoba, Canada, but the features that make it successful can be applied widely.