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AbstractMajor findings and policy implications on how nonprofit social service organizations manage their funding relations are summarized. Data from in‐depth case studies of six medium‐sized social service organizations with distinctive funding profiles yielded findings on the major contingencies associated with controlling fees, the volatility of donations, and the driving force of public funding. The article examines the implications of these diverse funding relationships for funders (public and private), nonprofit managers, and the role of nonprofit organizations.

Nonprofit organizations face complex problems in managing resources on a continuing basis because their funding sources differ greatly in structure and predictability. Case studies of four nonprofit social service agencies, representing key theoretical dimensions from models of organizational behavior, show how the agencies relate to different funding sources and manage the challenges they present. Donations and government Junding vary in their predictability and in the scope of management work they demand; such funding contingencies impede strategic planning and can drain other organizational resources. Funding relationships involve gov ernment agencies and nonprofit organizations in a system of mutual dependence.

By using tested approaches to identifying the universe of local or regional populations of nonprofit organizations, researchers and pol icymakers can begin to study a variety of factors affecting voluntary organizations more effectively.