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Erschienen in: Public Organization Review 2/2007

01.06.2007

Revisiting the Dartmouth Court Decision: Why the US has Private Nonprofit Agencies Instead of Public Non-Governmental Organizations (NGOs)

verfasst von: Mordecai Lee

Erschienen in: Public Organization Review | Ausgabe 2/2007

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Abstract

In 1819, the US Supreme Court ruled in Dartmouth v. Woodward that Dartmouth College, even though originally chartered by government, was legally akin to a private corporation. This landmark decision was the founding legal document of what has become the American private nonprofit sector. While the decision has attained hagiographic status, this paper explores what the US nonprofit sector would look like if the Supreme Court had ruled the other way. Using alternate history and scenario writing as research methodologies, it highlights the invisible losses due to the decision and depicts what a public nonprofit sector would have looked like.

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Fußnoten
1
They also saw a negative in the decision, but that was regarding the limits it placed on government regulation of for-profit corporations.
 
2
Like everything else, historical writing goes through fads. At present, it is more fashionable to write history from the perspective of rank-and-file citizens and to focus on societal conditions. This historical approach is sometimes called ‘history from below.’
 
3
Thomas C. Cochran, “Did the Civil War Retard Industrialization?”, Degler, 1966, Vol. I, pp. 210–23.
 
4
Richard Hofstadter, “Could a Protestant Have Beaten Hoover in 1928?”, Degler, 1966, Vol. II, pp. 236–42.
 
5
While Gould generally wrote about the natural sciences, he made this observation in the context of human history as well.
 
6
The original handwritten pre-decision and post-decision filings in the case are located in the New Hampshire State Archives, Box 11294, B07-04 (copies in author’s files).
 
7
1 NH 115.
 
8
1 NH 117.
 
9
The sharp expansion of the scope municipal corporations to include special purpose districts began about 1911 and was briefly of strong interest to political science, prompting creation of a repeating feature in the American Political Science Review. See, for example, Kettleborough, 1914; Guild, 1920.
 
10
1 NH 138.
 
11
For the text of the oral arguments before the US Supreme Court, see Kurkland and Casper, 1978, 600–24.
 
12
While an archaic term in 21st century usage, it was more commonly used in the 18th and 19th centuries, especially in Great Britain. It generally means ‘charitable.’
 
13
However, beginning with the 4th edition, the authors deleted the comment about Webster’s illogic, inserting a period after “characteristic eloquence” (New York, Oxford University Press, 1950), p. 438.
 
14
For example, even after issuing the verbal opinion, Chief Justice John Marshall corresponded with Justice Joseph Story about Marshall’s draft of the written decision and accepted some of Story’s suggested revisions in the printed version (Hobson, 1995, Vol. 8, 309–10, 313–15), all this even though Story had issued his own concurring opinion (17 US 667–713). For more details on Story’s role, see Dunne, 1966, 887–89, 897–99 and 905–913; Newmeyer, 1961, 489–90).
 
15
1819 US LEXIS 330.
 
16
78 Stat. 516.
 
17
In general, the book provides a good (if opinionated) history of the development and enactment of CAAs.
 
18
78 Stat. 516, emphasis added.
 
19
81 Stat. 691. While the definition was repealed in 1981, it continues to be valid by indirect reference in subsequent laws. See, for example, the section on in the Community Opportunities, Accountability, and Training and Educational Services Act of 1998 (Section 683, 112 Stat. 2755).
 
20
Based on the list of all CAAs in the US affiliated with their national association. Retrieved April 13, 2006: http://​www.​communityactionp​artnership.​com/​about/​links/​map.​asp.
 
21
Wisconsin 2003–04 Stat. 46.30.
 
22
Wisconsin 2003–04 Stat. 66.0125(2).
 
23
81 Stat. 656. That the National Park Foundation was chartered and incorporated by act of Congress is another indication that is not a ‘real’ nonprofit in the common sense meaning of the term.
 
24
Given that the court decision went in the other direction, the ‘real’ University of New Hampshire was eventually established by state government in 1866.
 
25
Besides the already cited literature, see especially Seidman, 1952. This article contains a comprehensive literature review demonstrating that this topic was subject to a lively debate within public administration at the time.
 
26
12 Stat. 796.
 
27
25 Stat. 640.
 
28
39 Stat. 227.
 
29
61 Stat. 403.
 
30
72 Stat. 1691.
 
31
98 Stat. 237.
 
32
99 Stat. 1020.
 
33
102 Stat. 3849.
 
34
111 Stat. 1963.
 
35
72 Stat. 375.
 
36
72 Stat. 1741.
 
37
31 Stat. 1280–1316.
 
38
Congress revised and codified the laws affecting the incorporation of nonprofits in Washington, DC in 1962 when it adopted the District of Columbia Nonprofit Corporation Act (76 Stat. 265). Probably still being careful about the Dartmouth ruling regarding irrevocable incorporations, Congress explicitly retained the right to revise that law, too (76 Stat. 306).
 
39
In his veto message, President Johnson stated, “I am asking the Department of Justice and the Bureau of the Budget to explore these questions also and to make appropriate recommendations to me” (Johnson, 1966, 991). However, there is no record in his presidential papers that the two agencies did that (email from Allen Fisher, Archivist, Johnson Presidential Library, April 19, 2006, author’s files).
 
40
98 Stat. 1239.
 
41
98 Stat. 1343.
 
42
98 Stat. 2428.
 
43
98 Stat. 2910.
 
44
98 Stat. 2920.
 
45
98 Stat. 3097.
 
46
98 Stat. 220.
 
47
98 Stat. 2263.
 
48
100 Stat. 804.
 
49
102 Stat. 3337.
 
50
Renamed Government Accountability Office in 2004.
 
51
81 Stat. 655.
 
52
12 Stat. 806.
 
53
31 Stat. 277. Before 1900, the Red Cross existed as a ‘regular’ nonprofit association that was incorporated under the laws of the District of Columbia. It was first incorporated in 1881 and then re-incorporated in 1893.
 
54
98 Stat. 127.
 
55
81 Stat. 369.
 
56
42 USC 2996.
 
57
98 Stat. 3336.
 
58
81 Stat. 370.
 
59
42 USCA 2996b(a).
 
60
9 Stat. 102. It is possible that the word establishment was put in quotation marks in the statute to reflect that it was a quote from James Smithson’s will regarding the bequest to the United States. Regardless, the term was not commonly used in the statutes and in the federal government up to then, so clearly an entity that was out of the ordinary was being created.
 
61
Ibid.
 
62
9 Stat. 106.
 
63
Ibid.
 
64
31 USC 9101(3)(C) and (H).
 
65
31 USC 9101(2)(B).
 
66
2000 US LEXIS 4487.
 
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Metadaten
Titel
Revisiting the Dartmouth Court Decision: Why the US has Private Nonprofit Agencies Instead of Public Non-Governmental Organizations (NGOs)
verfasst von
Mordecai Lee
Publikationsdatum
01.06.2007
Erschienen in
Public Organization Review / Ausgabe 2/2007
Print ISSN: 1566-7170
Elektronische ISSN: 1573-7098
DOI
https://doi.org/10.1007/s11115-006-0025-9

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