Government-nonprofit partnerships outside the contracting relationship and public funding allocation: Evidence from New York City's park system

Yuan Cheng, Zhengyan Li

Research output: Contribution to journalArticlepeer-review

5 Scopus citations

Abstract

Government-nonprofit partnerships outside the contracting relationship have become an increasingly important mechanism in financing and supporting public service provision. However, the relationship between these partnerships and public funding allocation remains unclear. We articulate two competing mechanisms—the substitution mechanism and the exchange mechanism—and empirically test them with a unique geocoded dataset of public park capital projects allocation in New York City. Our findings indicate that parks units supported by government-nonprofit partnerships are likely to receive more public capital project funding, which supports the exchange mechanism. In addition, larger parks with a more populous community surrounding them get more public capital funding allocation. As governments at all levels are seeking new ways to finance and manage public service provision, many more empirical studies in other service subsectors, time periods, and geographical contexts are required to draw more general conclusions about how government-nonprofit partnerships may influence public funding allocation and how such dynamics may compromise or promote equitable public service provision.

Original languageEnglish (US)
Pages (from-to)319-344
Number of pages26
JournalNonprofit Management and Leadership
Volume33
Issue number2
DOIs
StatePublished - Sep 1 2022

Bibliographical note

Funding Information:
Column (1) in Table 2 shows that dedicated government‐nonprofit partnerships have a statistically significant correlation with the chances of receiving funding. Specifically, the probabilities of receiving capital project funding for parks supported by dedicated government‐nonprofit partnerships increase by 0.071, compared with parks without government‐nonprofit partnerships. This is an increase of more than 100% as the baseline probability of receiving funding in our sample is only 0.053 (Table 1 ). But when the non‐dedicated government‐nonprofit partnerships are included, the correlation becomes insignificant (Column (3)).

Funding Information:
Overall, the results (Tables 2–4 ) suggest that government‐nonprofit partnerships are positively associated with parks' capital project funding, which supports Hypothesis 2 (the exchange mechanism). Parks supported by dedicated government‐nonprofit partnerships have a larger association with public capital project funding.

Publisher Copyright:
© 2022 Wiley Periodicals LLC.

Keywords

  • government-nonprofit partnerships
  • government-nonprofit relations
  • local government management
  • public service provision
  • resource allocation

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