NOCSUS Ch. 3 Reflection

Because there exists a genre of study on nonprofits, there are theories concerning that study, not all of which fully explains the full extent of what happens within any single nonprofit organization. However, there are theories whether economic or non-economic that can present themselves within that organization. Like any discipline, there are "exceptions to the rule" that the theories provide. Some of these theories have to do with the role that the government plays in helping to sustain nonprofits.

A theory that produces a great deal of grey area is the Government Failure Theory. "When provision of goods and services by for-profit firms would lead to the kinds of market failure problems described above, government often intervenes as an alternate producer of the goods and services." Basically, the apparent majority of people in theory would have the most say as to which goods and services are in highest demand at the moment. This calls into question who exactly the majority represents. While this looks good on paper, it's hard to say if those who are in need of the aid that non-profits provide have the means and enough information to contribute their feedback to this kind of conversation. If those who are of reasonable means are the voice for governing bodies as to the needs of all, including those living below the poverty line, the government will most likely not get an accurate depiction of the most effective actions to take.

In describing Government Failure Theory, this chapter gives the following example: "The federal government directly provides military, defense, and security services, because a majority of Americans agree these services are necessary and desirable." Currently, the American government spends a great deal more on military services than direct aid to those in poverty. Nonprofits who are focused on working with people who are in poverty like the CAC tend to focus on these statistics to help raise awareness and send calls to action to donors.

So far as The Poverty Simulation is concerned, the purpose is to help those participating to understand the standpoint of people that the CAC wants to help. It answers the question of why they are a necessary organization, and might perhaps convince them that poverty is currently a more dire situation than the strength of the military. "Governments are also seeking government-nonprofit partnerships because of the trend toward government outsourcing that has been prevalent in the US since the early 1980's." Again, this looks good on paper, but many nonprofits want very little government intervention except for legal and financial purposes.