Under the New Policy Agenda, international development institutions have promoted non-profit organizations (NPOs) in developing countries, on a dual logic: firstly, they deliver social services more efficiently than the state; secondly, they mitigate equity concerns around privatization of basic social services by reaching out to the poor. Based on a survey of twenty prominent non-profit education providers in Pakistan, this paper illustrates that the NPO sector is not monolithic: non-governmental organizations (NGOs) working in the education sector under the patronage of international donors follow markedly different models of education provision to those of Traditional Voluntary Organizations (TVOs) reliant on domestic donations. While the social service ethos of the TVOs makes them distinct from the private sector, it is not the case with the NGOs: their model of education provision, rather than meeting the education needs of the poor, ends up cultivating markets for the private sector among poor communities. (Contains 4 notes.)