Service Contracting with Nonprofit and For-Profit Providers: On Preserving a Mixed Organizational Ecology


Peter Frumkin, April 2002

This paper explores the differences in operational and cultural characteristics of for-profit and nonprofit organizations, highlighting why many believe business firms have certain important advantages over nonprofits when it comes to competing for large human service contracts. The second section analyzes why public managers may need to structure service contracts in a way that not only maximizes short-term results, but that also affirms the importance of preserving a mixed organizational ecology. In a third and concluding section, some thoughts are offered on policy remedies that might supplement a more nuanced managerial approach to service contracting with nonprofit and for-profit providers.

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Last updated on 03/16/2020