Current State of Self-Financing of Private Non-Profit Organizations in the Conditions of the Slovak Republic

Abstract

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.

Comparison of Development of Non-governmental Organizations and the Current State of Their Funding in Slovakia and Austria

“…This suggests that suitable conditions to provide public services by NGOs in SVK are still missing. On the other hand, self-financing in SVK is represented by 25.4% (Svidroňová, 2012), which is higher than the estimation reported in "ideal" diversification of funding sources, where respondents in a research in 2009 (Vaceková) stated that 32.14% should be state sources, 26.31% should be private sources, 21.,07% self-financing, 17.96% foreign sources and 2.52% other sources. Although the level of this type of financing is a quarter of the total sources of an NGO, the value of 25.4% is still lower than the European average of 36.9% (OECD, 2001).…”

Real structure of the non-profit institutions’ funding resources: market or government?

“…One of the reasons why the NPI reach for commercial sources is represented by constraints and cutbacks of public resources, typically in the tough times of economic crisis. Even here, however, there is no unanimous consensus among the authors (see Svidroňová & Vaceková, 2012).…”

Do the Selected Characteristics of Public Tenders Affect the Likelihood of Filing Petitions with the Regulators of Public Tenders?

“…Both effects have been studied as interacting (Burget, Che, 2004), but also with other accompanying phenomena, such as the example of the overpricing of public contracts for construction (Pavel, 2010), or in connection with the analysis of the impact of the evaluation criteria on the price of public contracts and the relationship between corruption and openness of the procurement procedure (Ochrana, Maaytová, 2012). There is also a relatively detailed study of the impact of outsourcing on the effectiveness of the procurement of goods and services (Měřičková, Nemec, 2007), (Mikušová -Měřičková, Nemec, 2013), (Svidroňová, Vaceková, 2012), (Horňáková, Špaček, 2013), the influence of the amount of submissions on the final price of a public contract (Iimi, 2006) and the phenomenon of accumulation of submissions in the vicinity of the price limits of the submissions (Nikolovová et al, 2012). The studies consensually agree that it is the factor of competitive effects and the transparency factor (Pavel, Sičáková-Beblavá, 2008), which have a demonstrable impact on efficiency (regarding the final price of tenders).…”