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- Title
Funding Caps.
- Authors
Reiner, Thomas A.; Wolpert, Julian
- Abstract
Funding caps are intended to ration public support for the services provided through not-for-profit organizations and to encourage the recipients to seek other supplemental sources of revenue. Program goals and cap formulas are devised, however, in advance of the award of funds and without foreknowledge of the behavioral responses of recipients and the external circumstances which will determine program effectiveness. The selection by program sponsors of specific cap provisions is subject to constrained choices such as support limits and duration, and monitoring and enforcement rules. To assess the effectiveness of a capping formula, a case study is presented of a New York State program with an explicit cap mechanism. The findings indicate that the assisted organizations did seek out new revenue sources under the cap stimulus. Their progress toward achieving self-sufficiency was affected, however, by unexpected reductions in federal funding programs and the greater competition for alternative revenue sources. Some alternative capping formulas are evaluated to assess their suitability in these changed circumstances.
- Subjects
NEW York (State); UNITED States; REVENUE accounting; NONPROFIT organization finance; HUMAN services; PUBLIC support; FINANCE; SPONSORS (Godparents); BEHAVIOR therapy
- Publication
Public Administration Review, 1985, Vol 45, Issue 3, p391
- ISSN
0033-3352
- Publication type
Article
- DOI
10.2307/3109966