Assessing government-nonprofit collaborations and density of nonprofit organizations in Brazil

This research analyzes the effects of the density of nonprofit organizations and government-nonprofit collaboration on human development and income inequality in Brazil. Governance studies assume that government-nonprofit collaboration leads to improved societal outcomes. This research tests this hypothesis in 5,562 Brazilian municipalities using ordinary least squares regressions and spatial models. Spatial analysis enables the identification of specific effects occurring across different regions. The rate of contracts between the federal government and nonprofits in each Brazilian municipality is associated with the decrease of income inequality, but it is also significantly associated with a lower level of human development. The density of nonprofits from different fields of activity presents diverse relations with human development and inequality. These results enable a more realistic analysis of governance arrangements, considering their impact over communities and the local realities.