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Non-profit organisations are major providers of services in many fields and often receive financial support from government. This paper investigates a number of different forms of government/non-profit relationships, with the viewpoint being mainly, though not exclusively, from the perspective of the non-profit agencies. Research methods included collecting primary data from peak agencies, service providers and government staff; and gathering secondary data from government and the agencies connected with the specific funding programs. Two programs were selected for further examination and became case studies in order to identify the elements of what makes a successful funding program. Three typologies of government/non-profit relations were identified as relevant. An analysis of the models shows that, while they provide an excellent springboard for the process of typifying government/non-profit relationships, there are inconsistencies when the models are compared with one another. In particular, none of the models allows for a comparison of relationships across a number of variables such as those of values, power and objectives. In view of this, a new model is proposed and explained, which builds on previous models and provides a means for the advancement of government/non-profit relationships. The model may prove useful in analysing the current condition of relationships between non-profit agencies and government departments.

While some conflict in organisations may be a healthy incentive for action and competition, conflict that becomes the dominant feature of the organisation's culture is damaging. In non-profits it cripples the organisation's ability to function because the organisation is unable to set goals or to present a coherent, united front when applying for government grants. Research theory in management and non-profits discusses the need for consonance, but our research demonstrates that some community organisations do not fit the model presented in the literature. The paper presents the results of a consultancy engaged in by the authors between December 1994 and August 1995 with a small, church-based, non-profit organisation. The organisation works in an environment where there is a need for unity, but our research found conflict between the volunteers and the paid workers, and among the volunteers themselves. Conflict, which had become the over-riding consideration in all decisions, was paralysing the organisation. The paper gives some background to the organisation and the context in which it operates, describes the nature of the consultancy and the findings, and explains the recommendations we made to the organisation.