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Financial Analytics: Science and Experience
 

Trends in developing the non-profit sector of economy and improving the system of its financing

Vol. 8, Iss. 36, SEPTEMBER 2015

PDF  Article PDF Version

Received: 10 August 2015

Accepted: 20 August 2015

Available online: 13 October 2015

Subject Heading: Economic policy

JEL Classification: 

Pages: 38-48

Klishina Yu.E. Stavropol State Agrarian University, Stavropol, Russian Federation
yuliya_klishina@mail.ru

Uglitskikh O.N. Stavropol State Agrarian University, Stavropol, Russian Federation
Kolga_U@mail.ru

Importance It is important to analyze changes in the economic significance of the non-profit sector due to its potential and actual role in public life. Performance indicators of the third sector in developed economies demonstrate sustainable positive trends. In Russia, the macroeconomic aspect of the civic society's organizations and their financing system has not been sufficiently studied yet, thus making this research rather relevant.
     Objectives The research is of theoretical and empirical nature. It pursues determining changes in what the non-profit organizations contribute to the national economy, and examines development trends.
     Methods Using statistical and econometric methods, we reviewed the role and trends in development of the non-profit sector of the national economy, and compared its development level in Russia and developed countries, determined non-profit organizations' contribution to the national economy in terms of national income and ensuring the population's employment and welfare.
     Results Contemporary statistics does not allow obtaining a complete understanding of the role non-profit organizations play in the economy. As the analysis shows, the development pace of the Russian non-profit sector lags behind the economic growth as a whole, thus subsequently reducing its share in GDP.
     Conclusions and Relevance We conclude that the State should actively participate in activities of non-profit organizations and support them. Non-profit organizations would substantially support the economy, if they could attract foreign grants and donations.

Keywords: non-profit sector, economy, organization, State support, financial support

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