Question

Which of the following statements is true of the marketing strategies of nonprofit organizations?

	a.	They seek to make a profit for redistribution to owners or shareholders.
	b.	They can measure their success or failure in strictly financial terms.
	c.	Their focus is often on generating enough funds to cover expenses.
	d.	The presence of a financial "bottom line" makes it easy for nonprofit managers to make decisions.

Answer 1

A non-profit organization is one whose primary goal is not to make profits but rather serve a social cause. They are mainly dependent upon donations for their operations. Every profit they make is reinvested into firm to further their cause rather than being distributed to shareholders. Since the focus is not on profit taking, they just want to have enough funds to cover their costs so that their organization can continue doing social work.

Therefore, correct answer is option C, “Their focus is often on generating enough funds to cover expenses.”