Drifting or holding firm? Public funding and the values of third sector organisations

As the involvement of third sector organisations in the delivery of publicly funded services has increased, so too have debates over the effect of such collaboration on their distinctive value base. This qualitative study asks whether the normative legitimacy of third sector organisations is being compromised by the requirements placed on them by external funding agencies. The study finds that third sector organisations are able to protect their normative legitimacy through a range of strategies, the most important of which is a mixed resource base;a strategy that also enables third sector organisations to engage in evolutionary innovation.