The Policy Game of Nonprofit Organizations in Civil Society

Abstract

This book displays the nonprofit organization as a major player in the public policy process. The business firm carries its mission primarily through the market, the nonprofit does it through public policy. The nonprofit or nongovernmental organization (NGO) is engaged in policy making and implementation. It is instrumental in lobbying for bills, crafting new laws and regulations. It influences public opinion, political platforms, parties, and the choices of electoral candidates and appointed officials. Playing in public policy, advancing its mission through this process, is the first of four common characteristics of all nonprofits. The second characteristic is that the nonprofit constitutes a social capital asset. That is, the founding group (not a single private person) that funds and operates the nonprofit also owns the assets and benefits of the organization. The beneficiaries nonetheless are not only the group members, they also can be from the general public. The third common characteristic is that the nonprofit is a voluntary agent of the public. Its mission is to serve the public interest and deliver service in areas such as education, health, welfare, culture, arts, science, religion, and sports. The mission is defined in the organizational charter and meets the legal code that justifies tax exemption and other benefits granted to not-for-profit organizations. Author Bryce’s theoretical model for analysis and comparison of nonprofits closes with the fourth common feature of these organizations—namely, the principal–agent paradigm. The nonprofit performs both as social capital and public agent within the principal–agent framework. To be specific, in a liberal democracy the people are the principal and the government represents them as an agent. After the government grants a contract to the nonprofit and oversees its compliance, the government becomes the managing agent that monitors the nonprofit on behalf of Public Organiz Rev (2007) 7:191–193 DOI 10.1007/s11115-007-0030-7