The implications of government funding for non‐profit organizations: three propositions

While the state dependency thesis seems widely accepted among students of the German non‐profit sector, there is surprisingly little research that has systematically explored its empirical base and conceptual validity. Attempts to remedy this situation and offers an initial empirical examination of this thesis. Examines the extent and pattern of state funding of the German non‐profit sector and develops three propositions, each adopting a different explanatory focus, which are then analysed with the help of data taken from a sample survey of West German non‐profit organizations.