Welfare Reform's Impact on the Failure Rate of Nonprofit Human Service Providers

Brief

Welfare Reform's Impact on the Failure Rate of Nonprofit Human Service Providers

June 1, 2001

Abstract

This brief presents a series of findings regarding the impact of AFDC waivers and other factors on the demise of nonprofit human service providers. The research uses data on nonprofit organizations from the National Center for Charitable Statistics, as well as socioeconomic data and information on AFDC waiver programs from various government agencies and other sources, to assess the variables that relate to the closings of human service nonprofits in large, intrastate metropolitan areas between 1992 and 1996. This time frame marked the widespread implementation of welfare reforms under the federal AFDC waiver program. The study uses a logistical regression model that incorporates several economic, organizational, and policy indicatorsincluding a fourfold categorization of AFDC waiver experimentationand yields several important findings.

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