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In: Accounting

NFP-Government relationships are becoming increasingly popular based: i) NFPs increased in growth and prominence with Government;...

NFP-Government relationships are becoming increasingly popular based: i) NFPs increased in growth and prominence with Government; and ii) Government newfound desire to engage NFPs to implement governmental policies. In your own opinion, discuss this statement and provide reasons for your answer.

Solutions

Expert Solution

i. NFP-Government relationship increased the growth of NFPs in a wide range of sector i.e. some cooperative, others adversarial, and still others complementary, but all of them are important for the effective functioning of a democracy and the successful promotion of the public good. While operating independently, NFP (also known as Not for profit organizations) often come into contact with government in carrying out their missions. Various levels of government i.e. federal, state, and local, set the broad legal framework within which NFP operate. Governments at various levels rely heavily on NFP to deliver publicly financed services and provide significant financial support to NFP in the process. By this NFPs got prominence and increased growth with goverment.

ii. The relationship between government and the not for profit (NFP) has important implications for society, in relation to the implementation of goverment policies especially of public health measures and the protection of the environment i.e.  health related areas such as provision of medical services, welfare, foreign aid and education. Governments have traditionally preferred for the NFP to act as service partners i.e. implementation of policy at ground level, with the relationship mediated through grants or funding agreements.


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