Welfare reform: Impact on the infrastructure of rural nonprofit organizations (Minnesota)

PRWORA, or welfare reform, was the catalyst for the Federal government to overhaul social welfare policy. In this process, nonprofit organizations (NPOs) have been placed in a leadership role in the provision of social services to the poor resulting in unprecedented organizational changes. This study utilized focus group interviews with CEOs and senior staff of 23 NPOs in a rural county of northern Minnesota. It examined the impact of welfare reform on the organizational infrastructure in five areas: client characteristics, programs and services, funding, collaboration, and staff characteristics. Findings indicate that welfare reform, along with other mitigating societal factors, has created considerable infrastructural changes that are further exacerbated by challenges unique to rural service delivery systems. Implications are discussed that address capacity building issues, infrastructural challenges, and future organizational needs of rural nonprofits.