Abstract:

Non-profit organizations fulfil a major role in an economy and society – they provide services in domains where these are not provided by neither government, nor market, i.e. the profit focused businesses. The core principle of their working is them being non-profit. It means the operations they conduct don’t bring financial benefits to their founders or owners, but all revenue proceeds must be reinvested in the pursuit of the mission of the organization for which it was founded. And for these operations, all non-profit organizations need some source of financing, whether internal or external. Financing of non-profit organizations is a complex issue, maybe even a more complex one than the financing of for-profit businesses, because they have to usually rely on generosity of its donors to get the funding needed for their calls. Their financing is an important part of their life and usually decides whether they can fulfil their stated mission or not. Therefore, in this article, we aim to provide an overview of the current aspects of non-profit financing in Slovakia with focus on the different sources of funding available for non-profit organizations.