Nonprofits and Government

In this article from the Union Leader, the role of nonprofits and their impact on the size of government is commented on.

The principle of subsidiarity, from the Catechism of the Catholic Church, which informs my thinking about this subject, states:

“Socialization also presents dangers. Excessive intervention by the state can threaten personal freedom and initiative. The teaching of the Church has elaborated the principle of subsidiarity, according to which "a community of a higher order should not interfere in the internal life of a community of a lower order, depriving the latter of its functions, but rather should support it in case of need and help to co- ordinate its activity with the activities of the rest of society, always with a view to the common good." (#1883)

An excerpt from the Union Leader article.

“Lew Feldstein, the liberal head of the New Hampshire Charitable Foundation, doesn't get up in the morning to enable the conservative movement, but limited government depends on a thriving nonprofit sector and Feldstein's NHCF cultivates just that.

“New Hampshire nonprofits are proliferating. The state's 7,317 registered nonprofits make New Hampshire a national leader in nonprofits per capita. Another 700 registered this year. They range from schools with large endowments, such as Dartmouth College and St. Paul's School, to hospitals with thousands of employees to local youth soccer leagues. They also include United Ways, humane societies, visiting nurses, food banks and hospices that provide needed services through private means instead of bigger government.

“New Hampshire gets by with a relatively small state government, Feldstein posits, because of its strong nonprofit sector. He cautions, "It's a mistake to assume that one substitutes for the other one for one." He describes the foundation's $25 million in grants as a "rounding error" compared to the state budget.

“The foundation is a clearinghouse, an amalgamator and matchmaker that pairs givers with organizations. NHCF manages some $410 million in assets, receives an average of $25 million to $30 million in gifts each year and gives away a similar amount to hundreds of donor-advised grantees while managing more than 1,000 educational scholarships. Donors pay a 1 percent fee on assets in return for professional investment management and grant-making administrative support.”