BLOOMINGTON and INDIANAPOLIS, Ind. – Although most local government officials (LGOs) in Indiana report providing services directly or relying on collaborative service arrangements with other units of local government, many contract with nonprofits to provide important services to their communities. According to a 2017 survey, LGOs are most likely to extend contracts to nonprofits for economic development or for addiction services in correctional facilities (both reported by 17% of LGOs), followed closely by mental health services in correctional facilities (14%) and vocational education (13%).
These and other findings are the subject of a new report on Indiana Local Government Officials’ Contracts With Nonprofits released today by the Indiana University O’Neill School of Public and Environmental Affairs and the Lilly Family School of Philanthropy.
The report is based on data from periodic surveys by the Indiana Advisory Commission on Intergovernmental Relations (IACIR) on issues affecting local governments and residents in Indiana. The report relies mainly on data from the 2017 survey with comparisons to similar questions in the 2010, 2012, and 2014 surveys.
“It is important for communities to have a flourishing nonprofit community because nonprofits provide important services which enhance the quality of life and meet key needs in local communities,” said Kirsten Grønbjerg, Ph.D., Distinguished Professor at the O’Neill School and Efroymson Chair in Philanthropy (2001-2020) at the Lilly Family School of Philanthropy at IUPUI, who directs the Indiana Nonprofits Project. “While local governments may provide some of these services directly, most count on local charities and nonprofits to complement, supplement, or provide such services. In some cases, that involves direct contracting with nonprofits.”
The types of services studied ranged from addiction services in correctional facilities and special education to those involving no contracts with nonprofits, such as sewer utility.
The report shows that LGOs’ contracting patterns with nonprofits remained largely unchanged between 2010 and 2017, with two exceptions: contracting with nonprofits for fire services significantly increased from 2010 to 2012, while contracting for vocational and special education significantly decreased over the same period.
Other findings show that LGOs are more likely to report that their unit of local government contracts with nonprofits if they are a county-level official or if their local government has established alternative service arrangements with nonprofits. Additionally, LGOs are less likely to report contracting with nonprofits if they are a township trustee, and less likely to report contracting the longer they have been in their current elected position.
“Overall, the level of contracting between local governments in Indiana and nonprofits appears to be modest and limited to a handful of services: fire, correction-related services (substance abuse and mental health), vocational education, and special education,” Grønbjerg notes. “This may be an artifact of the limited range of services included in the survey. However, it also reflects the dominant patterns of local governments providing most services directly and/or relying on collaborative service arrangements with other units of local government.”
“The Indiana Nonprofits Project’s work provides valuable information for policymakers considering how to work most effectively with nonprofits and other institutions to provide services in an efficient and effective manner. I expect renewed conversations in light of the fiscal challenges local governments are facing in light of the COVID pandemic and the associated economic challenges,” said Jamie Palmer, Director of IACIR.
The complete Indiana Local Government Officials’ Contracts With Nonprofits, including additional findings, is available free of charge at https://nonprofit.indiana.edu/doc/publications/localgov/contract-nonprofits-2017.pdf. For more information on the Indiana Nonprofits Project: Scope and Community Dimensions, see https://nonprofit.indiana.edu.
About the report
This is the tenth report in a series on nonprofit-government relations in Indiana from the Indiana Nonprofits Project: Scope and Community Dimensions. The data for these briefings come from periodic surveys by the Indiana Advisory Commission on Intergovernmental Relations (IACIR) on issues affecting local governments and residents in Indiana. Other briefings have examined 2-1-1 services, payments in lieu of taxes (PILOTs), and LGO trust in nonprofits.
These analyses are a joint effort of the O’Neill School of Public and Environmental Affairs at Indiana University Bloomington and the Indiana University Lilly Family School of Philanthropy at IUPUI. The co-authors of the briefing include project director Kirsten Grønbjerg and research assistant and Indiana University undergraduate student Elizabeth McAvoy.
For more information, contact Emily Cox at the O’Neill School of Public and Environmental Affairs, 812-855-5273 or ebatman@iu.edu, or Adriene Davis Kalugyer at the Lilly Family School of Philanthropy, 317-278-8972 or adrldavi@iupui.edu.
About the Indiana Advisory Commission on Intergovernmental Relations (IACIR)
The mission of the IACIR is to create effective communication, cooperation, and partnerships between the federal, state, and local units of government to improve the delivery of services to the citizens of Indiana. The Center for Urban Policy and Environment, now known as the IU Public Policy Institute, was named by the General Assembly to staff the IACIR.
About the O’Neill School of Public and Environmental Affairs at Indiana University
The O’Neill School is a world leader in public and environmental affairs and is the largest school of its kind. In the 2020 "Best Graduate Public Affairs Programs" by U.S. News & World Report, O’Neill ranks first in the country. Additionally, six of its specialty programs are ranked in the top-five listings, including the number one nonprofit management program.
About the Lilly Family School of Philanthropy
The Indiana University Lilly Family School of Philanthropy at IUPUI is dedicated to improving philanthropy to improve the world by training and empowering students and professionals to be innovators and leaders who create positive and lasting change. The school offers a comprehensive approach to philanthropy – voluntary action for the public good – through its academic, research and international programs and through The Fund Raising School, Lake Institute on Faith & Giving, the Mays Family Institute on Diverse Philanthropy and the Women’s Philanthropy Institute. Follow us on Twitter, LinkedIn, or Instagram and “Like” us on Facebook.
