Which type of organization is most likely to struggle raising funds, based on the material?

• A. A lobbying organization representing a nonprofit organization
• B. A membership organization relying on solidary incentives
• C. A membership organization relying on appeals to purpose
• D. A lobbying organization representing a collection of Fortune 500 companies

Answer: (C)

The main idea here is how incentives drive fundraising. People donate more readily when there’s a tangible benefit or a social reason to belong, not just a vague moral appeal. An organization that relies only on appeals to purpose asks members and supporters to fund the cause without offering concrete returns. Without material perks or a social payoff, some potential donors won’t see enough benefit to justify giving, making fundraising weaker and more fragile.

Other types can tap into stronger funding sources: lobbying groups connected to nonprofits often receive backing from the organization they represent, plus grants or donations tied to specific policy goals; those linked to Fortune 500 companies can rely on substantial corporate budgets and established donor networks. So an organization that depends solely on giving based on purpose tends to struggle more with raising funds.