Benefits and Risks of Self-Financing of NGOs - Empirical Evidence from the Czech Republic, Slovakia and Austria.

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Authors

VACEKOVÁ Gabriela SVIDROŇOVÁ Mária

Year of publication 2014
Type Article in Periodical
Magazine / Source Ekonomie a Management
MU Faculty or unit

Faculty of Economics and Administration

Citation
Doi http://dx.doi.org/10.15240/tul/001/2014-2-009
Field Economy
Keywords Non-government organizations; non-profit organizations; self-financing; non-distribution constraint.
Description Self-financing of non-government organizations is a highly discussed topic in the theory and practice of non-government organizations (NGOs). In the presented paper we respond to the current theoretical and practical questions associated with self-financing in the context of an effort to achieve financial independence and thus a long-term stability of NGOs. Our intention is to present and interpret the results of the analysis of primary research of funding the NGOs in the Slovak Republic and Austria and preliminary results of a pilot pre-research in the Czech Republic. Based on the historical development of these countries, especially the development of the non-profit sector within the conditions of every country and on the relevant empirical findings we assess and compare the current extent and potential of self-financing in the selected countries (including the extent of other sources of funding). We point out the benefits and risks connected to the examined issue and try to show that self-financing of NGOs must be understood in a broader context than just a "business" or a commercial activity and that it can be in compliance with the core work. Furthermore we explore the effect of self-financing on the principle of non-distribution-constraint of NGOs and we try to point out that self-financing can be in compliance also with this principle. By presenting these conclusions we fulfil the scientific goal of the paper, which is to identify particular benefits and risks of self-financing of NGOs based on relevant empirical findings from the Czech Republic, the Slovak Republic and Austria.
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