The public is subsidising services that government should be paying a proper price for.
The end result is that no other operator can compete without that second cash flow.
Apart from this incorrect business arrangement,
People like supporting not for profit organisations.
How is that an incorrect business arrangement?
What is wrong with people's donations allowing an organisation to charge the community less? So what if it means that a company that is out to line its owner/shareholders' pockets cannot compete!
At the end of the day the community is better off!