Exert Direct Control Over the Organization. Managers have different incentives than the managers of for-profit organizations. NPOs complement public organizations by supplementing or replacing public goods when individuals are unsatisfied with the level of quality of those goods and services. In general, we expect NPOs to specialize in the parts of the public good spectrum where there is the most controversy. Since these specialized sectors are neglected, the NPO can often charge fees for these services, which may give it a competitive advantage.
Ideologies attract workers.
These workers are often willing to give up salaries and benefits in order to take NPO jobs. If people are motivated by economic incentives, they'll probably want to work in the for-profit sector. If they're motivated by non-economic factors, they may prefer to work in a nonprofit organization. Thus, NPOS frequently have lower labor costs, which may give them a competitive advantage, when compared to public bureaucracies. Thus, there are three forces that give rise to the NPO 1.