Logit Model for Estimating Non-Profit Organizations’ Financial Status as a Part of Non-Profit Financial Management (original) (raw)
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2012
Ensuring the financial stability of non-profit organizations through financial decision in the structure of financial resources is influenced by many objective and subjective factors. However, a necessary presumption of financial stability is to reduce their dependence on one source of funding or in other words, the independence can be achieved by diversifying of the funding sources. And it is the diversification of financial sources and their acquisition through self-financing that we consider as an appropriate way to achieve financial balance and thus long-term existential security of nonprofit organizations. This scientific paper presents the partial results of a research of the current state of self-financing and diversification of financial resources of private non-profit organizations in the Slovak Republic. We analysed the primary data by the relevant scientific methods and procedures (selected mathematical-statistical methods, analysed in SPSS -Statistical Package for the Social Sciences). With the analysis we acquired a knowledge which allows us to formulate several solutions and recommendations for theory and practice. By presenting these conclusions we fulfil a scientific goal of the paper, which is to present partial results of research of current state of funding of private non-profit organizations and interpret the obtained outputs in an economic and social context.
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Non-governmental organizations play a vital role in the economy of every country. They are not only providers of special type of services that public sector is not capable of providing in full quality and quantity, and private sector is not interested in, but they are also watch dogs of the society and builders of active citizenship. Thus they have become an object of many research studies. The divergence in their goals, sizes, roles, types of services provided, and ways of funding make NGOs an interesting subject. As a goal for our research we therefore chose a comparison of the development and state of the Slovak and Austrian non-profit sector in the view of historical development of both countries. Consequently, we want to evaluate the funding of NGOs in Slovakia and Austria. In the paper we map the development of non-profit sector in Slovakia and Austria and in the context of a common historical development we assess a current state and a potential of economic strength of NGOs in both countries. The output is comparison of funding of NGOs in Slovakia and Austria based on statistical data evaluation. Subsequently, we propose recommendation for suitable diversification of the funding sources.