Home  Journals  Financial Analytics: Science and Experience  2(284) - 2016 January

Analyzing the formation and use of financial resources of non-profit organizations in the current circumstances

Vol. 9, Iss. 2, JANUARY 2016

Article PDF Version

Received: 1 December 2015

Received in revised form: 15 December 2015

Accepted: 22 December 2015

Available online: 17 January 2016

Subject Heading: MONITORING OF ECONOMIC PROCESSES

JEL Classification: H41, L21, L26, L31, L33

Pages: 43-55

Importance Non-profit organizations concurrently act as producers of social benefits and market actors, thus being a reason for the specifics of their financial problems. The article points out challenges that are typical of the contemporary financial mechanism of non-profit organizations.
     Methods Using a systems analysis, I determined the specifics of contemporary non-profit organizations’ finance, pointed out and structured key difficulties in forming and using financial resources of non-profit organizations. Although the research was based on the analysis of challenges non-profit organizations faced, the findings might be applied to the financial mechanism of any non-profit organization in any economy.
     Results I pointed out and structured key difficulties in forming and using financial resources of non-profit organizations.
     Conclusions and Relevance As part of its contemporary operations, non-profit organizations have to evaluate its finance sources, choose cash inflows and income, determine the most appropriate types of monetary income, etc. Income-generating activity influences indicators of performance, sustainability and exposure to risks. While financial resources of non-profit organizations are formed, the entity addresses and resolves issues arising from its operations, thus influencing the resource formation process.

Keywords: income, proceeds, financial result, sustainability, efficiency

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