Questions: A nonprofit organization that has high brand equity can use the value stakeholders associate with the organization to do which of the following? (Check all that apply.) Garner support for its mission Generate profits Raise needed funds Increase sales

A nonprofit organization that has high brand equity can use the value stakeholders associate with the organization to do which of the following? (Check all that apply.) Garner support for its mission Generate profits Raise needed funds Increase sales
Transcript text: A nonprofit organization that has high brand equity can use the value stakeholders associate with the organization to do which of the following? (Check all that apply.) Garner support for its mission Generate profits Raise needed funds Increase sales
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Solution

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The options that apply to a nonprofit organization with high brand equity are:

  • Garner support for its mission
  • Raise needed funds

Explanation for each option:

  1. Garner support for its mission: High brand equity means that stakeholders have a strong, positive association with the organization. This can lead to increased support for its mission, as people are more likely to trust and engage with an organization they perceive positively.

  2. Generate profits: This option is generally not applicable to nonprofit organizations. Nonprofits are not designed to generate profits; instead, they aim to reinvest any surplus funds into their mission-related activities. Therefore, this option is incorrect in the context of a nonprofit.

  3. Raise needed funds: High brand equity can significantly aid a nonprofit in fundraising efforts. Stakeholders are more likely to donate to an organization they trust and value, making it easier for the nonprofit to raise the funds it needs to support its activities.

  4. Increase sales: While nonprofits may sell products or services as part of their operations, the primary goal is not to increase sales for profit but to support their mission. Therefore, this option is not directly applicable to the core objectives of a nonprofit organization.

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