Despite a rhetoric of improving opportunities for poor children, critics argue that government-nonprofit collaborations tend to strengthen existing systems of inequal- ity and create adverse outcomes. Although economic theories often depict government-nonprofit collaborations as either an unexpected consequence or, at their worst, a noteworthy and unfortunate deviation, this governance model has witnessed considerable global expansion. In the Global South, central governments often exhibit shortcomings in administrative capabilities and resource allocation for delivering public services, while simultaneously contending with corruption allegations. Nonprofits operating in the Global South emerge as a solution to reduce educational in- equality. Our central hypothesis posits that government funding leverages nonprofit effectiveness at reducing educational inequality. Additionally, we theorize how the allocation of government funding on nonprofits is moderated by political ideology, thus exerting a discernible impact on the allocation of parliamentary amendments to these organizations and subsequently influencing their performance within the pub- lic educational network. We use panel data to explore the influence of government funding on the ranking ’Brazilian Index of Development of Basic Education’. Our research provides strong evidence of enhanced quality in the public educational net- work, suggesting a promising trend toward reducing educational inequality. The findings carry significant implications for educational policy and equity considera- tions, aligning with the demand for more extensive panel data analyses.