Structuring Neoliberal Governance: The Nonprofit Sector, Emerging New Modes of Control and the Marketisation of Service Delivery

Governments in the Anglo-American democracies have restructured their relationships with nonprofit organisations (NPOs). New modes of control have emerged which represent the paradox of centralised decentralisation. We examine the impacts on NPO financing, accountability and human resources. While the experience of Canadian NPOs is used to illustrate the impact of neoliberal induced restructuring, comparative evidence suggests that the Canadian experience is broadly representative. The imposition of neoliberal governance structures on nonprofit service providers serves to compromise their autonomy and advocacy function, while commercialising nonprofit operations and imposing burdens that have strained organisational capacity. The neoliberal model of market-based regulation has moved many nonprofit service organisations away from their community oriented focus and towards a “business model”. In various forms, the state has introduced quasi-markets or, at a minimum, required NPO's to engage in more competitive practices with negative consequences for nonprofit mission, culture and labour-management practices. The result is a growing level of instability within the sector.