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A cohort of twenty British national voluntary agencies serving handicapped people was studied in 1976 and again in 1989 after a decade of major shifts in public policy. Changes and continuities were identified in income, structure, governance, management, programme, interorganisation relations and advocacy. A consistent pattern of growth, bureaucratisation and professionalisation was found, with relatively little change in the dominant mode of financing, statutory or philanthropic. A three-stage model is proposed to describe the development of British voluntary agencies since the 1970s, and some of the organisational implications of current policies for the 1990s are noted.

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The growing reliance of voluntary nonprofit organizations on governmental funds ties their future to the fate of the welfare state. A mixed, three-sector, social service economy has blurred organizational differences and made a more rational division of responsibility unlikely. This article suggests that the traditional roles of voluntary agencies can still be reformulated to suggest a more realistic view of their distinctive areas of competence and vulnerability. To avoid goal deflection in the future, the author concludes that voluntary agencies must cope effectively with the dilemmas of entrepreneurialism and vendorism.