Money First? What Actually Affects the Amount of Membership Fees in Non Governmental Non - Profit Organizations?

Authors

MÜLLNER Vojtěch PEJCAL Jakub

Year of publication 2018
Type Article in Proceedings
Conference Current Trends in Public Sector Research
MU Faculty or unit

Faculty of Economics and Administration

Citation
Keywords Non-governmental non-profit organizations; membership based organization; membership fee; financial health; financial independency
Description Membership fees are one of the attributes of organizations with a membership base; however, the function and role of membership fees hasn't been explored much yet. The present paper attempts to fill the knowledge gap, examining the role of membership fees on a sample of non - governmental non - profit organizations involved in free - time activities. The research is based both on economic and non - economic data allowing for the inclusion of a wider range of factors potentially influencing the amoun t of membership fees and for the elucidation of their true role. The results of the research indicate the insignificance of certain factors seemingly key for the amount of the membership fee. One of the significant instruments explaining the role of member ship fees was their elasticity. Among other things, this instrument disproved the widespread illusion on the relationship between the economic cycle and the amount of membership fees. Based on the data under examination, membership fees mainly play a symbo lic role, with their economic aspect being much less significant than as suggested by the literature. Organizations with a membership base use membership fees to identify their members and gather information on active members.
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