Abstract: In a modern society characterized by diverse social structures and complex external environments, the estrangement between grassroots nonprofit organizations and local governments frequently occurs. Based on the open natural systems theory, this paper presents a case study of the evolving relationship between the S organization in Shandong Province and the local government, from initial collaboration to eventual estrangement. The study finds that the S organization’s need for funding and legitimacy, alongside the government’s operational pressures, initially facilitated their cooperation. However, following this period of collaboration, the needs of the S organization’s participants remain unmet, and the local government struggles to implement appropriate solutions. In this context, their relationship gradually becomes estranged. The imbalance in interactions, misalignment of goals, and conflict in operational logic during the collaboration are identified as the underlying causes of this relational shift.

Key words: grassroots nonprofit organizations, local government, government-NGO relations, open natural systems theory