There is a long history of nonprofit organizations partnering with the government, usually at the state level, through contracts to help provide for and respond to community needs. Through this powerful partnership, local services have improved, such as: enhanced human services, increased community development, greater economic development, and superior environmental protection.
Although these positive developments are possible, the Urban Institute Center on Nonprofits and Philanthropy and the National Council of Nonprofits are well aware that there are many challenges and problems that have wormed their way into the system. In 2010, the Urban Institute conducted the first comprehensive national survey of nonprofits to assess the problems with government contracts and nonprofits (view the full report here).
Here are the problems they found: