I do not know what Shrub's intentions are, so I cannot say whether th eabove is true. However, government-nonprofit cooperation in the implementation of social welfare policy is well and alive in Western Europe, where gov't support for nonprofits and government social programs in general are far more generous than in this country (for data see our webpage http://www.jhu.edu/~cnp/research.html). From that standpoint, it can be argued that gov't funding of nonprofits are an attempt to save social programs in the era of a massive conservative attack on welfare state.
wojtek