The Impact of Public Resource Dependence on the Autonomy of NPOs in Their Strategic Decision Making

Private nonprofit organizations (NPO) involved in publically funded welfare programs face the challenge of maintaining autonomy in their strategic decision-making processes. In this article we study the extent to which NPO managers perceive this autonomy vis-à-vis government in defining the NPO’s mission, their working procedures, the target groups to be served and the results to be achieved. Empirical evidence is taken from a large-N sample of 255 NPOs engaged in social welfare provision in Belgium. Our findings suggest that public resource dependence does have a negative impact on the perception of NPOs about the level of organizational autonomy. Still, we will argue that, when looking at the relative share of public income in the NPO’s total budget, the nature and intensity of the consultation process between government and NPO and some measures of organizational capacity, this picture is less black and white than presumed.