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

In this paper we discuss the role of commercial non-profit firms in the provision of public services, referring to three case studies to illustrate the main issues. We consider problems of corporate governance, including the role of the board of members and the scope for performance-related pay. We discuss the performance of such non-profit firms in terms of quality and costs, the particular finance problems of these firms and the implications for risk taking. We also suggest various aspects of non-profit behaviour in public service provision that present interesting avenues for future research. Copyright 2003, Oxford University Press.