Fiscal Responses to COVID-19: Evidence from Local Governments and Nonprofits

The rate of expansion and the breadth of COVID-19 caught the world by surprise. From the perspective of nonprofit and public entities responsible for service provision, this pandemic is also unprecedented. The authors offer a RISE framework for navigating the fiscal effects of COVID-19 and rely on recent surveys to assess the response strategies of local governments and nonprofit organizations. They find that many nonprofits were hit fastest and hardest by the pandemic and that local governments are, essentially, trying to figure out their financial condition moving into the next budget cycle.     

Nonprofits as Local Government Service Contractors

Despite the growing role that contracts with nonprofits play in local service delivery, only limited attention has been directed to why some cities rely more on nonprofit organizations to produce services or how political institutions influence the role nonprofits play in service delivery. To investigate these issues, the authors present a transaction cost explanation that focuses on how political system characteristics and structures of service markets shape the costs of negotiating, monitoring, and enforcing contracts for local governments. The findings indicate that forms of government, mayoral turnover, racial segregation, and the market of nonprofit producers influence the role of nonprofits in delivering elder services, but decisions to contract exclusively with nonprofits are subject to different influences than decisions to jointly produce service with a nonprofit organization.     

The future of the nonprofit sector: Its entwining with private enterprise and government

The nonprofit sector—neither private enterprise nor governmental—is growing rapidly, and not only in the United States. This article explores three questions about the sector, which includes large elements of such service industries as universities, hospitals, nursing homes, day-care centers, museums, social services, and organizations promoting medical research, environmental protection, and the arts. These questions are: (a) Why is the nonprofit sector expanding worldwide?; (b) How is the growth of nonprofits affecting other parts of the economy?; and (c) What evidence is there that nonprofits make a difference, that they perform functions which private firms or government cannot perform? A major theme is that the sector's growth necessitates finding ways to increase revenues, and that has brought side effects, particularly as nonprofits have become more and more “commercial.” In the process, borders between the nonprofit and both the for-profit and public sectors are being crossed increasingly, and with consequences that often pose problems.     

Place,Time, and Philanthropy: Exploring Geographic Mobility and Philanthropic Engagement

America is a nation of movers, and this has implications for public and nonprofit managers who rely on donations and volunteers to increase the capacity of nonprofits and to strengthen local communities. This article explores the impact of time and place on philanthropic engagement, focusing on how three aspects of community—sense of belonging, social connections, and regional culture—are related to volunteering and giving to local organizations. The authors find that geographic mobility affects philanthropic engagement. Drawing on a survey of active older Americans, the authors find that three community factors —sense of community, social networks, and regional cultures— are related to one or both types of philanthropic behavior. The authors conclude by offering thoughts for future research and practice.     

Paternalistic or Participatory Governance? Examining Opportunities for Client Participation in Nonprofit Social Service Organizations

Nonprofits represent a substantial group of third-party agents that deliver public services, yet little is known about the extent to which these organizations embrace participatory governance practices. Using survey data from nonprofit social service agencies in Michigan, the author examines how these organizations provide opportunities for client participation and identifies factors that contribute to these practices. Four methods of securing client involvement are examined: participation in agency work groups, client feedback surveys, advisory boards and committees, and client service on the agency board of directors. The results indicate that government funding plays a systematic role in promoting these activities within nonprofits. These findings carry important implications for the government–nonprofit contract relationship by demonstrating that government funding shapes the practices of nonprofits in ways that promote democratic governance.     

What do nonprofit organizations seek? (And why should policymakers care?)

The objectives of nonprofit managers are not immediately apparent. Indeed, nonprofits may seek to maximize their level of service or their budgets, or they may have undefined or unstable objectives. This paper presents a theoretical model of managerial objectives that yields testable hypotheses, which I test using 2001 data on 190,000 American nonprofits. While there is substantial variation between different types of nonprofits, they generally approach a service maximization objective, but maintain fundraising budgets that are insufficient to meet this objective. These findings have significant implications for policy and nonprofit management. © 2005 by the Association for Public Policy Analysis and Management     

Competition,commercialization, and the evolution of nonprofit organizational structures

This article explores competition both in settings where nonprofits compete among themselves and where they compete with for-profits. Growing competition among nonprofits raises questions as to the impacts of this rivalry. How does competition affect nonprofit behavior and does it cause nonprofits to become more commercial in orientation? Does it alter organizational structures and does it cause nonprofits to become less focused on their charitable missions? The answers to these questions can influence public policy toward the nonprofit sector. A definition of competition is presented and Porter's five competitive forces are introduced and used to explore competition in nonprofit marketplaces. Conditions under which commercialization is likely to occur are discussed and the nature of competition is then examined in settings where nonprofits compete in mixed (for-profit/nonprofit) markets. Organizational structures from the health care industry are then used to highlight the evolving legal structures that nonprofits employ in competition with for-profits. Five policy implications of the analysis are examined and the need for additional information is highlighted.     

Fighting COVID-19 with Agility,Transparency, and Participation: Wicked Policy Problems and New Governance Challenges

Governments are being put to the test as they struggle with the fast and wide spread of COVID-19. This article discusses the compelling challenges posed by the COVID-19 pandemic by examining how this wicked problem has been managed by the South Korean government with agile-adaptive, transparent actions to mitigate the surge of COVID-19. Unlike many Western countries, South Korea has been able to contain the spread of COVID-19 without a harsh forced lockdown of the epicenter of the virus. This essay argues that an agile-adaptive approach, a policy of transparency in communicating risk, and citizens’ voluntary cooperation are critical factors. It also suggests that the South Korean government learned costly lessons from the MERS failure of 2015. This essay suggests ways that Western countries can manage future wicked problems such as COVID-19 without paying too much cost and maintaining quality of life in open and free societies.     

Post-Foreclosure Conveyance of Occupied Homes and Preferential Sales to Nonprofits: Rationales,Policies, and Underlying Conflicts

This article explores the reasons why the conveyance of foreclosed homes with occupants makes sense, and why nonprofits should be given preferential treatment as purchasers, as well as the relevant policies and practices of the U.S. Department of Housing and Urban Development and the Federal Housing Administration (HUD/FHA) and the Federal Housing Finance Agency and the Government-Sponsored Enterprises (FHFA/GSEs). It also presents recommendations for revising current policies, and suggestions for further research. These issues also raise underlying questions about how the federal agencies view their public purpose roles and the implications for possible increased long-term public costs to shelter low-income households displaced because of foreclosure of their homes. Although HUD/FHA’s guidelines allow for conveyance of foreclosed homes with occupants, the evidence—interviews with key stakeholders in Boston and data obtained from HUD through a Freedom of Information Act (FOIA) request—reveal that the guidelines are largely irrelevant in practice. Although there has been a change in an FHFA policy that could soften the GSEs’ practice of no occupants at conveyance, it is not yet clear whether this will result in former owners and tenants being allowed to remain in their homes following foreclosure. Concerning preferential sales to nonprofits, whereas positive new policies have been issued by both the FHFA and HUD, the extent of implementation is not known. Finally, it appears that HUD/FHA and the FHFA/GSEs view foreclosed homes more as financial assets, whose value they seek to maximize, rather than as dwellings for financially strained households that, if evicted, may need additional housing subsidies and as part of a strategy to preemptively stabilize neighborhoods.     

Coproducing Responses to COVID-19 with Community-Based Organizations: Lessons from Zhejiang Province,China

Zhejiang Province achieved one of the best records in containing the COVID-19 pandemic in China. What lessons can the world learn from it? What roles do community-based organizations play in this success story? Based on more than 100 interviews during and after the outbreak in Zhejiang, this article provides a road map of how community-based organizations were involved in the three distinct stages of Zhejiang's response to COVID-19. The authors recommend that public sector leaders (1) strategically leverage the strengths of community-based organizations at multiple stages of the COVID-19 response; (2) incentivize volunteers to participate in epidemic prevention and control; (3) provide data infrastructure and digital tracking platforms; and (4) build trust and long-term capacity of community-based organizations.     

Authoritarian populism and response to COVID-19: A comparative study of the United States,India, and Brazil

As the phenomenon of populism is in the preliminary stages of exploratory research, the present study involves an empirical investigation involving a case study of the United States, India, and Brazil to examine whether a correlation exists between populism and management of COVID-19. The study adopts the ideational approach of populism as a set of ideas or discourse to review how core conceptual features of populism have impacted on management of COVID-19. The study has two main objectives: (1) to examine whether populism in the United States, India, and Brazil has determined “a populist response” to the pandemic in dealing with the health crises and (2) to explore the management of COVID-19 in the states led by right-wing populism and the commonality of populist approaches adopted in handling the health crisis. Comparing the three states' statistical data of management models, the study has argued that common populist mechanisms such as distrust for experts, contempt for institutions, and suspicion of “others” have guided the US, India, and Brazilian leadership response to COVID-19. It further argues that leadership in the United States, India, and Brazil has prevented effective management by politicizing the crisis, aggravating social polarization, and contradicting expert advice. Moreover, populist and nationalist orientation of the leadership has evaded responsibility in these states with the leadership blaming ethnicities for spreading the virus and by weakening societal solidarity.     

Are Public Service Nonprofit Boards Meeting Their Responsibilities?

Public service nonprofit organizations have long been "partners" in the delivery of public services. Such nonprofit organizations are governed by boards, typically composed of citizen volunteers, that are expected to meet substantial standards of accountability and performance. Previous research has raised questions about how well such boards are meeting their responsibilities. A 2007 Urban Institute study, based on the first large representative sample of U.S. public benefit nonprofits, provides important evidence about the extent to which nonprofit boards are meeting certain accountability and performance standards.     

Unprecedented Challenges,Familiar Paradoxes: COVID-19 and Governance in a New Normal State of Risks

This Viewpoint essay understands China's COVID-19 responses through the lens of six paradoxes, focusing on normal and non-normal governance, competing values, expertise and politics, centralization and decentralization, public and private, and technology and institutions. Preliminary lessons are drawn regarding pandemic governance: embedding resilience into all aspects of governance; developing a public value framework for pandemic governance and improving individuals' ethical capacity; institutionalizing policy capacity on pandemic governance and requiring expertise in relevant positions; balancing centralized coordination and decentralized responses with a stable and ready-to-work commanding center; enabling businesses and nonprofits for pandemic governance but regulating them appropriately; and enacting technologies to revolutionize pandemic governance with proper institutional safeguards.     

Beyond the Contract: The Scope and Nature of Informal Government–Nonprofit Partnerships

Privatization research lacks an understanding of the scope and nature of informal service delivery relationships between nonprofits and local government. This article reports on a study of local service delivery partnerships in Georgia using survey and interview data. In addition to assessing the frequency of noncontractual partnerships, this study builds on B. Guy Peters's definition of public–private partnerships to delineate the control–formality dimensions of these partnerships more clearly. The agency theory notion that a trade-off occurs between formality and control is also tested. The findings show that most public–private partnerships involving nonprofits are led by government agencies, and they are only weakly collaborative in the sense of shared authority or resources. Often, community norms substitute for formal service agreements. The study concludes with suggestions for further research regarding trust and behavioral norms in public–private partnerships.     

Social Equity and COVID-19: The Case of African Americans

Emerging statistics demonstrate that COVID-19 disproportionately affects African Americans. The effects of COVID-19 for this population are inextricably linked to areas of systemic oppression and disenfranchisement, which are exacerbated by COVID-19: (1) health care inequality; (2) segregation, overall health, and food insecurity; (3) underrepresentation in government and the medical profession; and (4) inequalities in participatory democracy and public engagement. Following a discussion of these issues, this essay shares early and preliminary lessons and strategies on how public administration scholars and practitioners can lead in crafting equitable responses to this global pandemic to uplift the African American community.     

Politicization,Bureaucratic Legalism,and Innovative Attitudes in the Public Sector

Previous studies have identified institutional, organizational, and individual factors that promote innovation in public organizations. Yet they have overlooked how the type of public administration—and the type of administrators—is associated with innovative attitudes. Using two large, unique comparative data sets on public bureaucracies and public managers, this article examines how bureaucratic politicization and legalistic features are associated with senior public managers’ attitudes toward innovation in 19 European countries. Results of multilevel analysis indicate that the bureaucratic politicization of an administration and the law background of public managers matter. Public managers working in politicized administrations and those whose education includes a law degree exhibit lower pro-innovation attitudes (i.e., receptiveness to new ideas and creative solutions and change orientation).     

Documentation Requirements,Intrinsic Motivation,and Worker Absence

ABSTRACT

Command systems are widely used to monitor public service provision, but little is known about unintended effects on individual workers’ motivation and work effort. Using insights from motivation crowding theory, we estimate a SEM model that captures how Danish childcare assistants and social/healthcare assistants perceive documentation requirements. We analyze how this perception relates to intrinsic motivation measured in a survey and sickness absence as reported in administrative registers, and find that individuals who perceive documentation requirements as controlling have lower intrinsic motivation and higher sickness absence. The association is statistically significant, but very small in substantive terms. The result is nevertheless consistent with the expectation in motivation crowding theory and contributes to the literature by including a new, reliable behavioral variable—sickness absence—and by drawing attention to possible downsides of command-and-control. Even though command systems can also have positive disciplining effects, knowledge about potential drawbacks is important for public managers.     

From Active Learning to Taking Action: Incorporating Political Context Into Project-Based,Interdisciplinary, International Service Learning Courses

Educational approaches that enable students to actively and directly participate in “real-world” projects are increasingly recognized as valuable pedagogical tools and, as such, being incorporated into university curriculums worldwide. Though not traditionally associated with political science courses, project-based international service learning presents a tremendous opportunity to bring classroom concepts and theories to life, provide an active approach to addressing international challenges, and assist students in the development of the hands-on, problem-solving, team-based, critical-thinking skills that are increasingly important to employers across all sectors. This article seeks to encourage political science faculty to incorporate international service learning—and/or project-based approaches—into their educational offerings. Through examination of the course Global Synthesis in Liberal Arts and Engineering Studies at California Polytechnic State University, we have identified multiple factors that can help promote successful execution of project-based international service learning as a pedagogical tool, and provide additional suggestions for faculty interested in adopting specific aspects of these educational approaches, and/or in doing so closer to home.     

A Guide to Benchmarking COVID-19 Performance Data

If the COVID-19 pandemic has taught us anything, it is that policy makers, experts, and public managers need to be capable of interpreting comparative data on their government's performance in a meaningful way. Simultaneously, they are confronted with different data sources (and measurements) on COVID-19 without necessarily having the tools to assess these sources strategically. Because of the speed with which decisions are required and the different data sources, it can be challenging for any policy maker, expert, or public manager to make sense of how COVID-19 has an impact, especially from a comparative perspective. Starting from the question “How can we benchmark COVID-19 performance data across countries?,” this article presents important indicators, measurements, and their strengths and weaknesses, and concludes with practical recommendations. These include a focus on measurement equivalence, systems thinking, spatial and temporal thinking, multilevel governance, and multimethod designs.     

Nonprofits and Civic Engagement

There are approximately 800,000 501(c)(3) nonprofits large enough to register with the federal government. Add churches, foundations, and nonprofits too small to register, and the number is far higher than that. The potential for nonprofits to engage their clients and members in community affairs and public policy making is, in theory, enormous. Yet, perversely, nonprofits are regulated by the federal government in such a way that discourages the involvement of their followers in the public policymaking process. This is a problem, not simply because we social scientists believe civic engagement is a good thing, but because these regulatory standards sharply skew public participation. Although middle- and upper-class individuals have many organizations that engage and mobilize them, nonprofits usually are the only organizations that work on behalf of the poor, those without health insurance, immigrants, the disabled, and most other marginalized constituencies. Put bluntly, federal law works against the participation of the most disadvantaged in society.