Research into nonprofit organizations abounds, but not much is known about public sector nonprofit organizations. Recent funding incentives in Australia have led to significant changes in the market environment for such organizations. This study describes these market changes and explores the reactions of one environmental public sector nonprofit organization, Bushcare NSW, to these changes. This paper contends that, within this institutional environment, nonprofit organizations more successful in attracting large amounts of external funding have better administrative structures in place, whereas those less successful find themselves confronted with burdensome administrative duties. Neo-institutional theory provides a theoretical basis for this empirical investigation. Funding changes have had a major impact on Bushcare organizations, those more successful in attracting grants reporting significantly fewer recent administrative changes.