When it is funded by the ‘first sector’, i.e. government.
From today’s Guardian:
State funding for charities has outstripped donations from the general public, putting the independence of the voluntary sector at risk, according to a report from the Centre for Policy Studies.
While donations from the general public grew by just 7% in three years (up to 2004), government funding over the same period rose 38%. State funding now accounts for 38% of charities’ total annual income of £26.3bn, compared with 27% from donations, says the report.
The theory that NGOs can provided better, more flexible services than the government sector might, if they are small and funded by donations, he true. But when they start providing government services, funded by the government?
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