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Nonprofit and Voluntary Sector Quarterly
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Funding Relations between Nonprofits and Government: A Positive Example

Laura K. Brown

University of Manitoba

Elizabeth Troutt

University of Manitoba

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.

Key Words: nonprofit sector • nonprofit organizations • government funding • contracting • accountability • cooperation

Nonprofit and Voluntary Sector Quarterly, Vol. 33, No. 1, 5-27 (2004)
DOI: 10.1177/0899764003260601
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