As a former leader of a NPO, I have to say that I would never consider selling food for those prices. My job was to make money for the organization, not give it away. A NPO is supposed to be a community group that helps community members in need. If we gave away our food at cost then how would we be able to help people in need? That being said, we always held an open house for the community to come and see what we were about and that would be the day we gave away food as a thankyou for support.
As a private vendor I was always bent on venues giving prime food rights away to NPOs especially if I lived in that community. I should add that the town where I was a vol firemen did not give food rights away to NPOs, it was a FCFS basis. The town where I am living now though, the groups do give prime food rights away to NPOs first and local businesses are bent on that!