The Role of Commercial Non-profit Organizations in the Provision of Public Services

In this paper we discuss the role of commercial non-profit firmsin the provision of public services, referring to three casestudies to illustrate the main issues. We consider problemsof corporate governance, including the role of the board ofmembers and the scope for performance-related pay. We discussthe performance of such non-profit firms in terms of qualityand costs, the particular finance problems of these firms andthe implications for risk taking. We also suggest various aspectsof non-profit behaviour in public service provision that presentinteresting avenues for future research.