Why do charities have advantages over non-charities in pricing?

Charities often have advantages in pricing over non-charities primarily due to their status as non-profit organizations, which allows them to operate with tax exemptions. When charities benefit from these tax exemptions, such as exemptions from value-added tax (VAT), they incur lower overall costs. This enables them to set lower prices for their goods or services. By not having to pass on the tax burden to their customers, charities can offer more competitive pricing, attracting customers who are motivated to support charitable causes while also seeking affordability. This pricing strategy can enhance their appeal among consumers, further supporting their mission of raising funds for social good.