Question
Governmental entities are increasingly working with others to establish a separate not-for-profit organization to handle certain activities. For example, Monroe Community College set up an
Governmental entities are increasingly working with others to establish a separate not-for-profit organization to handle certain activities. For example, Monroe Community College set up an association to handle their dorms (and bookstore) (Monroe Community College Assn, Inc.). Often counties establish nonprofit governmental development authorities that subcontract work directly with a for-profit company. It is also not unusual for a private organization to be established that is directly related to a government operation. There are the zoo societies, "friends" of various libraries, library foundations, and "friends" of state hospitals. By establishing the separate organizations, the government does not have to fund certain aspects, donations can be raised, and the organization does not need to obtain governmental approval through the boards for a majority of their actions. What are the pros and cons of this practice?
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