One key role in the relationship between state and local government and community-based nonprofits is regulation; imposing accountability on bad actors (2 examples):

http://www.sfchronicle.com/bayarea/article/California-attorney-general-investigating-12380481.php

http://www.dentonrc.com/news/denton/2017/11/27/denton-city-governments-investigation-parks-foundation-following-money-trail