Abstract
This article contributes to our understanding regarding how neighborhood associations (NAs) combine with nonprofit organizations (NPOs). In former times, most NAs were core organizations in local communities, but they have been deteriorating steadily because of societal change in the post-war period. As a result of the recent fiscal crisis of local governments, local community organizations, especially NAs, are politically and socially expected to resolve many local issues. Some local communities have set up incorporated NPOs based on NAs and established relationships between NAs and NPOs to help resolve local issues. Using case study data, we clarify the mechanisms and effects of setting up incorporated NPOs based on NAs. We highlight two cases. In one case, an incorporated NPO consists of all NA members and is dependent on the NA. In the second case, an incorporated NPO consists of voluntary NA members and is nearly independent of the NA. We find that the "performance gap" and the existing resources drive the establishment of the incorporated NPOs. We also find that both cases succeed in the coordination between NAs and NPOs, but the former breeds conflict among their members and the latter may face a decoupling risk between them.
