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The non-profit business definition is based on the fact that it exists for a social purpose. These organizations serve the public good and often enjoy a special legal status. This status enables nonprofits to provide services when other sectors do not. The basic role of a nonprofit is to meet a need or advocate for a particular population or community. These organizations can also foster civic engagement or foster innovation. In addition, nonprofits offer opportunities for experimentation and new ideas. There are a variety of theories on the emergence of nonprofits, including market failure, contract failure, and government failure theory.










