The two types of nonprofit partners discussed in this report are  cooperating associations and friends groups. In addition, cooperating  associations and friends groups have accumulated funds and other  assets—such as land, buildings, and equipment—worth more than  $200 million that could become available for future park donations. Revenue-Generating Activities of Cooperating Associations Sometimes Compete with Those of Park Concessioners

The primary revenue-generating activities of cooperating associations are  selling educational materials in park bookstores and providing educational  services to park visitors. In  contrast, friends groups generally do not compete with concessioners  because they rely primarily on donations and membership dues to generate  revenue. This situation has  contributed to conflict between the concessioner and park management. Third, cooperating associations return a  higher percentage of their sales and service revenue to the parks compared  to for-profit businesses, giving park managers a financial incentive to  expand association operations. However, these plans are  rarely developed or used. Park Service Cannot Hold Local Park Managers Accountable for Meeting Contribution Goals

The Park Service does not have an effective process for holding local park  managers accountable for meeting nonprofit contribution goals, even  though one of the agency’s strategic goals is to increase the amount of  contributions it receives from nonprofit organizations. Conclusions

Between 1997 and 2001 cooperating associations substantially increased  their financial support to parks. Recommendations for Executive Action

In order to (1) minimize conflicts among the Park Service, cooperating  associations, and concessioners, (2) better ensure that decisions about  providing commercial sales and services are made more consistently and  that logical criteria are followed, (3) provide a predictable commercial  environment in the parks, and (4) enhance public accountability for its  decisions, we recommend that the Secretary of the Interior require the  Director of the National Park Service to  revise its policy regarding Commercial Services Plans so that all parks  offering visitor sales and services are required to develop these plans  and  ensure that Commercial Services Plans include (1) an explanation of the  roles and responsibilities of both concessioners and cooperating  associations in providing visitor sales and services in a park unit and (2)  rationale for decisions that specify associations or other nonprofits will  provide new visitor sales or services and that do not afford  concessioners and other local, for-profit businesses an opportunity to  compete. To identify the revenue-generating activities of nonprofits in the parks, and  factors that contribute to cooperating association and concessioner  competition and conflicts, and to assess how park managers are held  accountable for meeting park service goals for nonprofit contributions, we  (1) reviewed Park Service documents, plans, and policies; (2) obtained  information from each of the Park Service’s seven regional offices; and (3)  met with National Park Service officials, the Association of Partners For  Public Lands the National Park Foundation, the National Park Hospitality  Association, and the Friends Alliance.
Why GAO Did This Study

Two types of nonprofit organizations, cooperating associations and friends groups, provide substantial support to the national parks. GAO was asked to report on (1) the number of park units supported by nonprofits and the amount of their contributions, (2) the revenue-generating activities of nonprofits and how they compete with park concessioners, (3) factors that contribute to competition between nonprofits and for-profit concessioners, and (4) how park managers are held accountable for meeting goals for nonprofit financial support.

What GAO Found

Cooperating associations and friends groups help support 347 (90 percent) of our national parks. Their contributions totaled over $200 million from 1997-2001 and were an important supplement to federal appropriations. These organizations also have additional assets totaling about $200 million, which could become available for future donation to the parks. The primary revenue-generating activities of cooperating associations are selling educational materials in park bookstores and providing educational services to park visitors. In contrast, friends groups generally rely on donations and membership dues to generate revenue. Accordingly, only cooperating associations directly compete with concessioners or other local for-profit businesses. In some parks, the sales and services provided by cooperating associations have caused conflicts between park management, the associations, and concessioners. There are three major factors that contribute to conflicts between associations and concessioners: (1) Park Service policies encourage an expanding reliance on nonprofit organizations; (2) the broad discretion local park managers have in deciding the role and scope of association activities has permitted expanded sales and service activities by cooperating associations; and (3) the agency has a financial incentive to use cooperating associations because they provide a higher return on sales revenue. To minimize conflicts and better ensure that park managers consistently apply agency policies in making decisions about whether and how to use cooperating associations and concessioners, Park Service guidelines call for individual park managers to develop "Commercial Services Plans." However, these plans are rarely developed or used. In addition, even though one of the agency's key goals is to increase its reliance on partnerships with nonprofit organizations, the Park Service does not have a process for holding local park managers accountable for meeting contribution goals.