Nonprofit organizations are heavily relied upon for the provision of many services in our society. Despite their importance and the dramatic growth the sector has experienced in the past forty years nonprofits have received very little critical attention.This thesis examines one type of nonprofit organization, the Voluntary Social Service Agency (VSSA), and the impact that one key variable, funding, has on its ability to contribute to the implementation and delivery of effective social services.The method chosen for this investigation was a qualitative case study of a single VSSA. The decision to conduct a qualitative case study was based on three factors. These were the extent of existing knowledge of funding impacts as identified in the literature review, the strengths and weaknesses of alternative research methods, and the theoretical orientation of the author.There are five principle findings from the study. In addition to confirming some impacts identified in the literature and downplaying others, the study highlights that, for this particular VSSA, funding has played a key role in reducing services to disadvantaged clientele, reducing staff morale, and reducing program staff participation in the development of new programming. In terms of lessening negative funding impacts, it appears that increased involvement by funders with both VSSAs and the community may play an important role. The study also identifies the opportunity and programming costs associated with fee-for-service income--a relatively new and increasingly important source of revenue for many nonprofit organizations.Perhaps the most important of the studys findings is the involvement of funding in the increased emphasis that the participating VSSA placed on agency efficiency, perhaps at the expense of program effectiveness.