This article explores the dynamics between government and human service nonprofits for service delivery in the United States. The authors initiate the development of a dynamic resource theory to explain the process of government–nonprofit interdependence for human service delivery. The theory is conceived from the application of system dynamics to dependencies arising through the process of resource exchange. They explain how government regulations can help to improve or to lower the quality of service and how the balance of power between government and nonprofits shifts over time. Elaboration, refinement, and testing of dynamic resource theory will improve our ability to manage and benefit from the government–nonprofit partnership.
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