Nonprofit lead organizations derive their responsibilities from policies that define the course of their operations. Policies form organizational principles that determine the decision making and collective governance of the entire organization. The article by Chen and Graddy (2010) focusses on the effective methods that nonprofit organizations can consider for social service delivery. The significant aspect involves the incorporation of partnerships with other organizations to achieve its objective. Section one of this paper indicates that the policy of nonprofit organizations formulating partnerships with lead organizations through public funding depicted the sanction of the community-based network. In this section, an in-depth discussion on the determination of the problem and the reasons why the issue matters drawing relevant pieces of evidence is of essence.
Partnerships between Public Agencies and Nonprofit Organizations
What is going on is the existence of partnerships between public agencies and nonprofit organizations. Subsequently, there is organizational learning drawn from the tendency of forming alliances to enable legitimate organizations (Chen & Graddy, 2010, P. 406). Collaboration between public agencies and nonprofit organizations is evident in the contemporary setting through contracts. The nonprofit organization's contracts are acquired from public agencies to permit them to develop the duties of leading community-based networks for social service conveyance. The implementation based on the formation of partnerships is regarded as a useful model for network service delivery. However, the legitimization of the organizations using the partnerships affects organizational learning as compared to the inter-organizational relationships (Wright, 2018). As such, there has been a considerable upsurge in inter-organizational partnerships for the delivery of publicly sponsored social services. Normally, these alliances are responsible for the formation of lead-organization networks, where public funding agencies establish a singular contracting correlation with lead organizations (Chen & Graddy, 2010, P. 406). The significant reason is to encourage or mandate the provider to create a community-based network of services.
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Barriers in the Partnership between Public Agencies and Nonprofit Organizations
The partnerships are created through a contract between two parties by having each partner contribute money, property, labor or skills (Means, 2017). Through the partnership, the liable parties share the profits and losses in an equal form. However, policies that govern nonprofit organizations are limited to profit and loss sharing as far as partnership perspectives are concerned. Conversely, nonprofit organizations fall short of the conditions that partnerships bring to the business or organization. Notably, both entities are not ready to form a long term relationship with the other, therefore, disadvantageous to their policies.
Collaborative barriers exist between nonprofit organizations and public agencies. The barriers are constituted by the policies, principles, and procedures entailed in the organizations. For instance, the primary objectives of nonprofit organizations are tailored to do a nonprofit service delivery. Hence, its policies and principles are directives to propel the agenda of service delivery without profit (Simon & Teets, 2014). In contrast, public agencies are liable for the formation of strategies that profit the organization either directly or indirectly. Therefore, the collaborative operations made between the two entities lack a single platform to execute distinctive policies.
Why Barriers in the Partnership between Public Agencies and Nonprofit Organizations
Matter
There has been a struggle in operations in the partnerships between lead and nonprofit organizations. The predominant policies and principles between the two entities do not define the policies of the contract. Thus, the problem has been an operation to offer the network services effectively (Zhan & Tang, 2016). For example, nonprofits are limited in the way they distribute their profit. Despite gathering finances from facilitators and sponsors, the contributors are not guaranteed to receive profits. However, profit agencies regard the policy of sharing the gains and the losses with the aim of making profits. Hence, it is difficult to devise a common platform to distribute profits and losses. Besides, the fact that nonprofit organizations are registered into laws that protect them from paying taxes to the state is also an issue of concern. Nonprofits are mandated to provide services with tax exemptions since they avail amenities as a public good. Conversely, public agencies such as lead organizations are not exempted from paying taxes, hence, these partnerships result in the limitation of resolving the taxation laws necessary for operations.
Additionally, there are determinations to comprehend the influential aspects of partner repute including prior relationships, collective decision making, and comparison between partners, which are positively associated with alliance outcomes (Chen & Graddy, 2010, P. 411). Therefore, the problems matter since they aim at finding a solution to effective network service delivery to the community. The problem seeks to address the needs and the concerns about partnerships existing between the nonprofit organizations and public agencies.
Conclusion
The effectiveness of nonprofit lead-organization networks for social service delivery has increasingly found its channel in society through contraction by public agencies. The contracts depict partnerships between the two organizations which are limited due to various policies. Hence, there has been an extensive argument on the partnership perspectives that the public agencies form with nonprofit organizations due to barriers like profit distribution and tax payment.
References
Chen, B., & Graddy, E. A. (2010). The effectiveness of non-profit lead‐organization networks for social service delivery. Non-profit Management and Leadership, 20(4), 405-422.
Means, G. (2017). The Modern Corporation and private property . Routledge.
Simon, K. W., & Teets, J. C. (2014). Revolutionizing Social Service Delivery in China: The New Policy of Contracting out to Non-Profit Organizations. Int'l J. Civ. Soc'y L., 12, 28.
Wright, P. (2018). Fundamentals of human resource management. Management, 5(27).
Zhan, X., & Tang, S. Y. (2016). Understanding the implications of government ties for non-profit operations and functions. Public administration review, 76(4), 589-600.
