Competition Between the Nonprofit and For-Profit Sectors, Special Report
GENERAL
Competition between the for-profit and nonprofit sectors is not new, but it does appear to be escalating. The issue is not whether competition exists, but rather, whether either sector - nonprofit or for-profit - has an unfair competitive advantage. The SBA report was notably silent on the advantages available to the business sector - small business set-asides, loan guarantees, management assistance, tax credits and deductions, depreciation allowances, access to capital and to business expertise - which may render the unfair competition point moot. The issue also is whether there is a place for both sectors in an increasingly competitive environment. If for-profits can deliver human services, what is the rationale for delivery of services under voluntary auspices? This aspect of the issue demands a reaffirmation and articulation of the role of the nonprofit sector in a pluralistic society.
Competition need not be detrimental necessarily to either sector, but how the issue is framed, and who frames it, will have a bearing on how the issue is perceived - by business, government and the public. Our findings indicate that, to date, the issue has been framed largely by the business sector. This report of The National Assembly is an attempt to begin to frame the competition issue from the perspective of the human service nonprofit sector. It is at best a beginning. To explore fully the philosophical and practical implications raised by the competition issue, and to articulate clearly the role and value of the nonprofit sector, sounder data, further debate and more systematic analysis is needed.
CONTENTS
1. Introduction.
2. Exploring the issue.
3. The role of the nonprofit sector.
4. Challenges facing nonprofits - a summary.
5. Next steps.
Appendix:
A. Individual and groups consulted.
B. Bibliography.
