Question

what are some strategies that a not-for-profit organization might employ in order to afford the purchase of expensive capital equipment so it can stay current with the ever-changing technology and competition? Feel free to reference other sources to support your points.

Answer 1

The following strategies can be used by not-for-profit organization to raise the capital for purchase of expensive capital equipment:

1. Raising funds from individuals and from government. Since the funds given by individuals are tax deductible, it can be a recurring source of revenue for the organisation.
2. Pricing your product differently to a different customer. Since the value of a product differs from person to person, a product might have more value to a person than to another. The organization can charge more money from a customer who has more value to a product and less money to a customer who has less value to the same product.
3. Marketing your organization at places where large number of rich people meet each other regularly.
4. Employing people who are self motivated and are ready to work in less salary. This will save the money to buy the expensive equipment