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 gov… Show more
“…However, the public-spirited nature and greater trustworthiness associated with the nonprofit sector are still seen to be reasons why governments have less to fear in their contractual activities with the nonprofit organizations especially in the use of performance contracts (Brown and Troutt, 2004;Pollit, 2000). That is, performance contracts rely more on performance specifications and ties part of the compensation to the achievement of results (Kettner and Martin, 1995).…”
“…It is possible that similar ethical values may play a role in helping government overcome its ''agency'' problem in situations in which goals and missions are not closely aligned (Provan and Milward, 1995;Smith, 1989). Similarities in ethical values perceptions should add to the willingness of the two to engage in less rigid contractual arrangements and more values-based relationship (Brown and Troutt, 2004). In other words, in order to sustain long-term relationship both sides should be driven by philosophy and ethical values that go beyond merely providing efficient solutions to societal problems.…”
“…However, the public-spirited nature and greater trustworthiness associated with the nonprofit sector are still seen to be reasons why governments have less to fear in their contractual activities with the nonprofit organizations especially in the use of performance contracts (Brown and Troutt, 2004;Pollit, 2000). That is, performance contracts rely more on performance specifications and ties part of the compensation to the achievement of results (Kettner and Martin, 1995).…”
“…It is possible that similar ethical values may play a role in helping government overcome its ''agency'' problem in situations in which goals and missions are not closely aligned (Provan and Milward, 1995;Smith, 1989). Similarities in ethical values perceptions should add to the willingness of the two to engage in less rigid contractual arrangements and more values-based relationship (Brown and Troutt, 2004). In other words, in order to sustain long-term relationship both sides should be driven by philosophy and ethical values that go beyond merely providing efficient solutions to societal problems.…”
“…In the case of third sector organizations, they may be in receipt of grants or contracts from governmental organizations, perhaps even the same organizations with which they are formally also 'in partnership'. This financial nexus raises questions for both sectors, not only about appropriate accountability and monitoring mechanisms but also about the sustainability of interorganizational relationships in situations of unequal power or in situations where one party feels they have little choice about their involvement (Brown and Troutt, 2004;Evans, 2007).…”
Section: The Practice Of Government/tso Cross-sector Workingmentioning
confidence: 99%
“…Most importantly, the very process of working crosssectorally on a joint problem, supported by facilitating researchers, served to start building the trust which has been identified as an essential prerequisite of successful cross-sectoral relationships (Brown and Troutt, 2004).…”
Section: Future Research On Cross-sector Partnershipsmentioning
“…Studies exploring the adoption and use of social media among local nonprofit organizations is even sparser. Although local nonprofits play a crucial role in the development of deprived communities across the country, social media activities in these smaller nonprofits have not captured the attention of scholars (Brown and Troutt, 2004;Bryce, 2006;Grønbjerg and Paarlberg, 2001). My study builds upon the limited studies on the adoption and use of social media in nonprofit organizations (e.g.…”
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