Nonprofit organisations
Nonprofit organizations are pervasive institutions affecting our lives and the world around us in numerous ways.
Three theories justify why society needs nonprofit organizations:
Public Goods Theory argues that they exist to provide services the government does not
Contract Failure Theory focuses on the concept that nonprofits can provide certain services that should not be in the commercial sector – such as day care
Subsidy Theory, which says that government directs what nonprofits offer through tax breaks and funding.

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