In the framework of public sector reform and the recently popularized concept of a “new public sphere,” attention has been focused on the significance and effectiveness of public private partnership (PPP). However, the smooth operation of PPP practice is yet to be realized, and the nonprofit sector still faces challenges in becoming a government partner in public service provision. We examine government behavior in PPP practice and its stance on partnership practice and collaborative relations with contemporary nonprofit organizations. Through public finance statistics and a unique set of variables, an empirical analysis reveals that the existence of nonprofit organizations (NPOs) positively affects local government decisions to implement PPP practices and outsource to NPOs for public service provision. Other influential factors include local governments’ budgetary conditions, attitudes towards public administration and finance, local chief executive characteristics, and neighboring local government behaviors.