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The new landscape for nonprofits.

W P Ryan

    Harvard Business Review
    |May 27, 1999
    PubMed
    Summary
    This summary is machine-generated.

    The U.S. social services sector is shifting as for-profit companies increasingly win government contracts. Nonprofits must adapt to this competitive landscape without losing their core mission and unique qualities.

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    Area of Science:

    • Social Sciences
    • Public Policy
    • Nonprofit Management

    Background:

    • Historically, government and charities dominated social services.
    • The U.S. social services landscape is undergoing a significant transition.
    • Government no longer exclusively views nonprofits as the primary providers of social services.

    Purpose of the Study:

    • To analyze the shift in social service provision from nonprofits to for-profit companies.
    • To explore the implications of this transition for the mission and future of nonprofit organizations.
    • To identify factors driving the growth of for-profit entities in social services.

    Main Methods:

    • Qualitative analysis of the social service industry.
    • Examination of government outsourcing trends.

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  • Case studies of nonprofit responses (e.g., YWCA, Abraxas).

    • Main Results:

    • For-profit companies are increasingly awarded social service contracts due to size, capital, mobility, and responsiveness.
    • Nonprofits are adapting through subcontracting, partnerships, and conversion to for-profit status.
    • The lines between nonprofit and for-profit social service providers are blurring.

    Conclusions:

    • Nonprofits face the challenge of reconfiguring operations in a competitive marketplace.
    • The critical issue is whether nonprofits can adapt without compromising their distinct missions.
    • The survival of nonprofits depends on their ability to navigate this new environment while retaining their core values.