The hallmark of the welfare state is the extension of social rights to the most vulnerable, a cause historically championed by nonprofit human-service organizations. With the rise of neoliberalism, these rights are threatened. This article attempts to show how the institutional, economic, and political environment of the nonprofit human-service sector is reshaped by a neoliberal ideology that celebrates market fundamentalism. The ideology institutionalizes such rules and practices as new public management, devolution, and privatization of services. Those elements shift the political discourse about the rights of the most vulnerable from the national to the local level. By turning vulnerable citizens into consumers, the ideology also reduces the national visibility of their needs. Most importantly, neoliberalism dampens the sector’s motivation to challenge the state and greatly curtails its historical mission to advocate and mobilize for social rights.