Our knowledge about the advantages of NPOs will influence our view of the kind of mission that a NPO can best serve, and the way it should go about defining and changing that mission. Normally, product quality is easily judged by customers who both pay for the good and use it. Bad products are forced out of the market by customers who stop buying and using the good. In situations like this, purchasers look for other ways to guarantee that firms are delivering on their claims. 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.