Policy Neglect:The True Challenge to the Nonprofit Sector

Abstract The relationship between many governments and the nonprofit sector as well as organized civil society more generally has become more complex, laden with often hidden tensions. In some cases, state–nonprofit sector relationships have deteriorated, which has led experts and activists to speak of a “shrinking space” for civil society. However, this diagnosis applies mostly to illiberal and autocratic countries. More widespread is a stagnation in state — nonprofit sector relations that seems indicative of a longstanding policy neglect, which we see as the true challenge to the future of the nonprofit sector. In response, we argue for more proactive policy stances along with a differentiated model for regulatory frameworks on the basis of functional roles.