1. Companies engaged in international business often face this issue. Typically,
ID: 2643187 • Letter: 1
Question
1. Companies engaged in international business often face this issue. Typically, companies will turn to banks or investors to obtain financing. This works of course, but it can tie up other assets/collateral. What other options exist if you don't have enough collateral/credit to borrow from a bank; or can't attract investment because you don't have enough equity left?
2. Discuss one of the methods available to companies when seeking financial resources for their international production. What do you think the advantages of this method are? Would you change methods if operating in another country such as Brazil or South Africa?
3.Can payment methods be used as an asset/collateral? What other financing methods can be used?
Explanation / Answer
Fundraising is a significant way thatnon-profit organizations may obtain the money for their operations. These operations can involve a very broad array of concerns such as religious orphilanthropic groups such as researchorganizations, public broadcasters,political campaigns and environmental issues.
Some examples of charitable organizations include studentscholarship merit awards for athletic oracademic achievement, humanitarianconcerns, disaster relief, human rights,research, and other social issues.
Professional fundraisers
Many non-profit organizations take advantage of the services of professional fundraisers. These fundraisers may be paid for their services either through fees unrelated to the amounts of money to be raised, or by retaining a percentage of raised funds (percentage-based compensation). The latter approach is expressly forbidden under the Code of Ethics of the Association of Fundraising Professionals (AFP), a professional membership body.[1] However, by far the most common practice of American non-profits is to employ a staff person whose main responsibility is fund raising. This person is paid a salary like any other employee, and is usually a part of the top management staff of the organization.
Some non-profit organizations nonetheless engage fundraisers who are paid a percentage of the funds they raise. In the United States, this ratio of funds retained to funds passed on to the non-profit is subject to reporting to a number of state's Attorneys Generalor Secretaries of state.[2] This ratio is highly variable and subject to change over time and place, and it is a point of contention between a segment of the general public and the non-profit organizations.
The term "professional fundraiser" is in many cases a legislated term referring to third-party firms whose services are contracted for, whereas "fundraising professionals" or development officers are often individuals or staff at charitable non-profits. Although potentially confusing, the distinction is an important one to note.
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