Ekonomika a managemen
120 2014, XVII, 2 DOI: 10.15240/ ul/001/2014-2-009
In oduc ion
The impulse o p ocessing he p esen ed
pape was a scien i ic esea ch o John
Hopkins Uni e si y in Bal imo e (USA) om
which he esul s a e s udies which compa e
he in e coun y non-p o i sec o , desc ibing
he size and powe o di e se indica o s. The
esea ch was ca ied ou in 1995, wen y- wo
coun ies pa icipa ed, among hem he Czech
Republic, Slo akia and Aus ia.
These coun ies we e pa o he Aus o-
Hunga ian Empi e be ween he yea s 1867–1918.
E en du ing his pe iod he e was a non-p o i
sec o , ep esen ed by cha i ies and a ious
olun a y associa ions and sel -help g oups o
ins i u ions p o iding social and heal h se ices
o he poo . A e he collapse o he mona chy,
he non-p o i sec o was de eloped in he successo
coun ies o Aus ia and Czechoslo akia and
la e on in coun ies o Czech Republic and Slo ak
Republic a e hey spli in 1993. Di e en poli ical
egimes ha e a ec ed he non-p o i sec o and
i s o ma ion in hese coun ies [10], [13].
Acco ding o a ailable in o ma ion such
as udy, based on p ima y esea ch and
ocused on bene i s and isks o sel - inancing
o NGOs in hese coun ies, has no ye been
published. All so- a published s udies emain
a a summa izing and desc ip i e le el.
Scope o non-go e nmen o ganiza ions
(NGOs) is so di e se ha i is impossible o ind
asingle e m o de ine hese o ganiza ions.
The e o e many au ho s (e.g. see Anheie and
Salomon, 1997; Bú o a, 2011, F iã, Goulli, 2001,
Haken, 2005, Hansmann, 1996; Hyánek, 2011;
Ku íko á, 2004; Ma ãek, 2004; Ond u‰ek,
1998; Pes o , 2006; Pe ijo á, Woleko á, 2006;
Rek ofiík, 2001, Rose-Acke man, 1996; Toeple ,
2003, Weisb od, 1988 and o he s) in a numbe
o publica ions p e e a b oade desc ip ion o
he cha ac e is ics o non-p o i o ganiza ions.
The s uc u al-ope a ional de ini ion by Anheie
and Salamon [7] can be used. Acco ding o his
de ini ion an NGO should mee i e
cha ac e is ics: ins i u ionaliza ion, independence,
non-dis ibu ion cons ain , sel -go e nmen ,
olun a y pa icipa ion.
The concep s o non-p o i and non-
go e nmen o ganiza ions ha e many names
and likewise he e a e also a numbe o names
o sel - inancing [2], [4], [6], [11]: gain ul
occupa ion, economic ac i i y, en e p ise o
NGOs, non-p o i business, income om
NGO’s own ac i i ies, communi y business.
NGOs ha e no ye eached such a le el o
economic and manage ial p o essionalism o
be able o exis solely on sou ces om sel -
inancing ac i i ies (membe ship ees, sale o
se ices and p oduc s, he use o in angible
and angible asse s, and he use o in es men
app ecia ion). I is no hei goal – i would be in
con adic ion o se e al p inciples o hei
inancing (mul i-sou cing, non-dis ibu ion cons ain ).
In he pape we wan o p o e ha sel -
inancing may be in compliance wi h he non-
dis ibu ion cons ain o NGOs [17], e.g. i is
asui able me hod o und aising o NGOs, wi h
espec o he bene i s and isks ha sel -
inancing en ails. We explo e whe he and o
wha ex en he sel - inancing has an e ec on
he non-dis ibu ion-cons ain o NGOs.
BENEFITS AND RISKS OF SELF-FINANCING
OF NGOS – EMPIRICAL EVIDENCE FROM
THE CZECH REPUBLIC, SLOVAKIA AND
AUSTRIA
Gab iela Vaceko á, Má ia S id oÀo á
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1. Resea ch Me hodology
The pape p o ides a new insigh in o he
s udied p oblem while gene a ing an empi ical
basis o u he scien i ic s udy and esea ch
wo k in his ield. The goal o he pape is o
iden i y pa icula bene i s and isks o sel -
inancing o NGOs based on ele an empi ical
indings om he Czech Republic, Slo akia and
Aus ia.
P ima y da a was ob ained by he sociological
me hod o a s uc u ed ques ionnai e. The da a
gained in he Czech Republic in 2013 a e a pa
o he indings o he Masa yk Uni e si y p ojec
„CZ.1.07/2.3.00/30.0009 Employmen o Newly
G adua ed Doc o s o Science o Scien i ic
Excellence“. Fo Slo akia he da a a e he
indings o p ima y esea ch conduc ed in 2012
wi hin he disse a ion "Sel - inancing and
sus ainabili y s a egy o non-p o i o ganiza ion"
ha was pa o he p ojec “VEGA 1/1001/09
2009–2010: The s a us o he non-p o i , non-
go e nmen al sec o in building a amewo k o
he p o ision o public se ices (Eu opean
Pe spec i es)” sol ed by a eam o au ho s
om he Facul y o Economics, Ma ej Bel
Uni e si y in Banská Bys ica. Sou ce da a o
Aus ia a e he indings o he p ojec "Di e en
sou ces o unding o non-p o i o ganiza ions"
[9] conduc ed in 2010 by he Resea ch Cen e
NPO-Kompe enzzen um WU Wien.
In o de o achie e compa able indings he
same esea ch s eps in he coun ies we e
chosen [1]:
Selec ion o ele an NGOs in he da abase
o on he In e ne .
Es ablishing pe sonal con ac wi h selec ed
NGOs a managemen le el.
Sending an e-mail wi h a link o an online-
ques ionnai e o con ac s ha ha e been
iden i ied in he p e ious s ep.
Sending a eminde a e wo weeks om
he s a o ques ioning.
Based on a selec ed sample o NGOs in he
Czech Republic (CZ), Slo akia (SVK) and Aus ia
(AT) we can ocus on he sel - inancing o NGOs
in he con ex o i s bene i s and isks. Fo u he
in o ma ion abou sel - inancing and sus aina-
bili y s a egy also he bes p ac ices o selec ed
Czech and Slo ak NGOs can be aken in o
aconside a ion (see S id oÀo á, 2013 – [15]).
Non-p o i o ganiza ions can be classi ied in
e ms o he ounde o p op ie o o he go e n-
men (non-p o i s a e) and non-go e nmen
(non-p o i p i a e) o ganiza ions, i.e. NGOs.
We ocus on NGOs ha a e ep esen ed in he
Czech Republic as ollows:
Ci ic associa ions (46% o esponden s);
Founda ions (6% o esponden s);
Founda ion unds (2% o esponden s);
Public bene i o ganiza ions (21% o
esponden s);
Chu ch o eligious associa ions (25% o
esponden s).
Due o he ac ha in he Czech Republic
we s a ed he su ey in 2013 and we ha e jus
pas ed he phase o a p e- esea ch (including
he pilo es ing) we ha e answe s om 67
esponden s (o he su eyed 250 NGOs).
In Slo akia he ou main ypes o
o ganiza ional-legal o m a e e y simila :
Ci ic associa ions;
Founda ions;
Non-in es men unds;
O ganiza ions p o iding public bene i se ices.
O he 670 su eyed NGOs we ob ained
da a om 182 esponden s, he sample s uc u e
is shown in Table 1. I is a inal numbe o esponden s,
Chi-squa e es p o ed he ep esen a i eness
o ou sample a he signi icance le el alpha o
0.05 (p- alue o 0.129 > alpha):
Tab. 1: Sample size in Slo akia
Legal o m Absolu e numbe Rela i e numbe
Ci ic associa ion 152 83.52%
Founda ions 6 3.30%
Non-in es men und 3 1.65%
O ganiza ions p o iding public bene i se ices 17 9.34%
O he s (Chu ch associa ions, Red C oss, e c.) 4 2.20%
To al 182 100.00%
Sou ce: own esea ch, 2012
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122 2014, XVII, 2
In Aus ia (266 esponden s) he e a e he
ollowing legal o ms o NGOs:
"Ve ein" (associa ion),
"S i ung" ( ounda ion),
"gemeinnü zige Kapi algesellscha " (public
bene i o ganiza ion),
"Genossenscha " (coope a i e).
Likewise, in he Czech Republic and Slo akia
he s onges ep esen ed and he e o e he
dominan legal o m is he associa ion [8].
The p esen ed esul s a e e y de ailed in
Slo akia, in he case o he Czech Republic and
Aus ia he esul s a e no so comple e and
de ailed. I is due o a di e en scope o he
su eys and di e en sample sizes in he
selec ed coun ies. The su eys hemsel es
we e conduc ed unde each coun y speci ic
ci cums ances, so he NGOs samples a e no
compa able in e ms o ime and size; i was no
he aim o ou su ey. We do no wan o make
any compliance es s among he coun ies; we
analyse and in e p e ob ained p ima y da a in
o de o acqui e an empi ical knowledge which
allows us o o mula e se e al solu ions and
ecommenda ions o heo y and p ac ice in he
ield o sel - inancing o NGOs. We ha e da e
om wo comple ed su eys (AT and SVK) and
one p elimina y su ey in Czech Republic.
The e o e we do no p o ide he analysis o he
same dep hs in all h ee selec ed coun ies and
do no y o in e p e he causali ies and esul s
o s a is ical es , which would compa e he
h ee di e en esea ch samples. I is no he
scien i ic goal o he pape , and i would be
i ele an o he su eyed opic.
2. Resul s and Discussion
The ou pu o he pape is de ining bene i s and
isks o sel - inancing o NGOs wi h ocus on an
empi ical app oach. We poin ou he di e ence
be ween sel - inancing and comme cial/
/business ac i i y o NGOs, and on he basis o
ele an ou comes o p ima y (p e-) esea ch in
CZ, SVK and AT we p o e ha sel - inancing is
no only a business ac i i y in he common
ma ke concep ion. We also wan o show ha
sel - inancing may no be inconsis en wi h he
non-dis ibu ion cons ain o NGOs.
2.1 Sou ces o Funding NGOs
The main di ision o sou ces ollows he
mic oeconomic di ision on equi y and bo owed
capi al. The concep o equi y is p oblema ic in
many NGOs as hey do no ha e any equi y in
he business o economic meaning. Gene ally,
he e is a lack o in es o s who would p o ide
capi al in an icipa ion o ea nings. Classic
ea u es o equi y a e o en unde aken by
dono s, p o ide s o subsidies o membe s o
he o ganiza ion. To ake in o accoun his
aspec we use he e m "quasi-equi y"[9].
The "quasi-equi y" can be di ided in o ypical
non-p o i incomes and s anda d comme cial
incomes. Unde ypical non-p o i incomes [12]
we unde s and incomes p ima ily ela ed o he
main co e wo k and mission o an NGO; hese
incomes may come om a a ie y o unde s.
Comme cial incomes a e, on he con a y,
incomes om ac i i ies non- ela ed o he
mission o an NGO. In pa icula i is income
om in es men ac i i y o yield o capi al (e.g.
income om en ing i s asse s). Comme cial
income also applies o es uc u ing o asse s
and includes sale o asse s and he associa ed
e ec s o inancing, such as he sale o
buildings and eal es a e. O he comme cial
income is a esidual ca ego y ha includes all
he comme cial ac i i ies ca ied ou by NGOs
ha a e no ela ed o hei mission and a he
same ime canno be assigned o any o he
o he comme cial income ca ego ies.
The bo owed capi al can be di ided in o
common bank loans and o he subsidized
bo owed capi al, i.e. loans ha a e p o ided by
go e nmen au ho i ies and designed speci ically
o NGOs. Go e nmen suppo s NGOs and
hus p o ides his capi al also by assump ion o
gua an ees o emission o deb s and axes.
The ollowing able ep esen s he main
sou ces used in NGO unding, he ou come is
om p ima y esea ch in he Slo ak Republic
(182 esponden s) and in Aus ia (266
esponden s) and om p e- esea ch in he
Czech epublic (67 esponden s).
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1232, XVII, 2014
Fig. 1: Quasi-equi y
Sou ce: own p ocessing based on [9]
Tab. 2: Sou ces o unding o NGOs in Slo akia and Aus ia
Type o unding Sou ce o unding CZ SVK AT
S a e, s a e subsidies, municipal budge s 67% 42% 91%
S a e/public con ac s * 4% n/a
Indi idual dono s/companies 66% 60% 56%
G an s (p i a e ounda ions) 48% 45% 34%
Assigna ions o 2% o ax income n/a 92% n/a
Membe ships ees 24% 62% 51%
Sale o own p oduc s and se ices 69% 58% 63%
Sponso ship 1% n/a 53%
Fo eign sou ces, including EU g an and subsidies 22% 13% 41%
Quasi-equi y: Asse s en al 28% 15% 19%
comme cial In es men app ecia ion 3% 8% 21%
income Clea ing o ese es 0% 0% 22%
Bo owed Bank loans * 0% 22%
capi al P e- inancing ag eemen s 0% 0% 6%
O he O he sou ces 1% 8% n/a
Sou ce: SVK – own esea ch, 2012; CZ – own esea ch, 2013; AT – [9]
* Due o he ac in CZ i was a p e- esea ch we do no ha e comple ed da a o Czech Republic.
Quasi-equi y: non-p o i income
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124 2014, XVII, 2
In he Czech Republic public unding is
widely-sp ead, closely ollowed by unding om
indi idual dono s and companies. Howe e , o
he highes signi icance is unding om he sale
o hei own p oduc s and se ices. As o he
sou ces, one esponden s a ed a collec ion
( und- aising campaign) which could be
appoin ed o a special way o aising unds om
indi iduals and companies o speci ic pu pose.
In Slo akia o he sou ces o unding we e
no u he speci ied, he e o e we canno
assign his poin o non-p o i o comme cial
income. The s uc u e o unding is domina ed
by p i a e and indi idual sou ces; also o
signi icance is sel - inancing and public unding.
Fo eign sou ces a e ep esen ed by o eign
ounda ions ha suppo Slo ak NGOs and as
such hey can be assigned o non-p o i
income. None o he esponden s s a ed bank
loans o o eign capi al which suppo s he ac
ha in Slo akia loans o NGOs ha e ye no
been es ablished as a common sou ce.
The unding sou ces in he Aus ian NGOs
co espond o he p esumed model, i.e. public
inance is clea ly he mos used sou ce. O he
equen ly used sou ces a e ees o se ices
and p oduc s, dona ions om indi iduals,
sponso ship and membe ship ees.
In all h ee coun ies non-p o i income as
apa o quasi equi y p e ails. Fo he pu pose
o achie ing he goal o he pape he quasi-
equi y is essen ial o us. As he able shows,
he non-p o i income can be gene a ed om
sel - inancing ac i i ies ha a e no necessa ily
o a comme cial cha ac e , e.g. sale o own
p oduc s and se ices ha a e in compliance
wi h co e wo k. We will y o poin ou he
di e ences esul ing om he b eakdown o
incomes o non-p o i and comme cial, especially
in he con ex o main aining he non-
dis ibu ion cons ain p inciple o NGOs in he
implemen a ion o sel - inancing ac i i ies.
2.2 Sel -Financing o NGOs
As al eady men ioned, sel - inancing o NGOs
is no a clea ly de ined e m. In a b oade meaning
i is de ined as any di e si ica ion o he unding
sou ces o NGOs. F om he na owe poin o
iew sel - inancing can be unde s ood as
abusiness o any o he economic ac i i ies o
he NGOs ha gene a e hei own income, i.e.
sel - inancing as a me hod o ob aining in e nal
sou ces [3].
Sel - inancing ac i i ies b ing inancial
income and po en ial p o i bu he p inciple o
non-dis ibu ion cons ain s ill applies and
compa ed o any comme cial company i is
gi en in ad ance how NGOs use his p o i .
P o i able ac i i ies o NGOs (e.g. e enue om
sale o en o asse s, e enue om ad e ising)
a e subjec o income ax. When axing his
ype o income i is necessa y o ake in o
conside a ion se e al condi ions ha di e om
coun y o coun y. Usually he main ac i i y, he
so-called co e wo k o he NGO, is ei he no
subjec o axa ion a all (SVK), o , up o a gi en
amoun o p o i om he co e wo k i is exemp
om ax and abo e his amoun he p o i is
subjec o axa ion (CZ). In Aus ia he law is
e en mo e complica ed and he condi ions o
ax exemp ion a y om egion o egion.
Gene ally we can say ha ax exemp ion is
aso o compensa ion o non-dis ibu ion
cons ain . Weisb od [17] poin ed ou ha when
NGOs canno decide abou he use o hei
p o i , hey ha e ax exemp ion ins ead.
I he ac i i y is no a co e wo k ac i i y o i
complies wi h he de ini ion o business as
s a ed by EU egula ion, hen we a e alking
abou ano he o m o sel - inancing called
acomme cial ac i i y. To dis inc : he e m sel -
inancing ac i i ies is conside ed o be hose
ha a e associa ed wi h he en y o NGOs on
he ma ke and ha equi e hinking o he
business sec o , bu hese a e no
business/economic ac i i ies in he ue sense
o he wo d [12].
2.3 Iden i ica ion o Bene i s and
Risks o Sel -Financing o NGOs
Based on Empi ical Findings
I is s a egically ad an ageous o NGOs o
ocus on sel - inancing ac i i ies in acco dance
wi h he co e wo k o NGOs and hei missions.
The e o e, we can say ha om he na owe
poin o iew, sel - inancing is aising unds
om sou ces which we de ined in he "quasi-
equi y" as non-p o i income. The bene i s and
isks o sel - inancing in his concep can be
desc ibed as ollows (Table 3):
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1252, XVII, 2014
Tab. 3: Bene i s and isks o sel - inancing
Bene i s Risks
Inc ease o income (sel - inancing as a an addi ional Di e gence o o ganiza ional sou ces
sou ce o unding)
Inc ease in di e si ica ion o unding (inc ease o NGO’s Risk o ocusing on business and no on he mission
sus ainabili y) o NGO
Inc ease in lexibili y (income aised by sel - inancing Rein es men o p o i in o p o i able ac i i y, no in o co e
is no limi ed by dono s’ condi ions) wo k
Imp o emen o s a egic and long- e m planning Risk o loss o deb
Imp o emen o inancial managemen and discipline Loss o damage o NGO’s epu a ion
Posi i e imp ession on dono s (NGO is able o co- inance Changes in mo i a ions o employees and in demands on
ap ojec wi h i s own unds) s a
Empowe men o boa d o ad iso s by using hei business Compe i i e en i onmen o he comme cial sec o
and manage ial skills o sel - inancing (wi h sel - inancing NGO en e s he comme cial ma ke )
B oadening a po olio o p oduc s and/o se ices and hus Dis ibu ion o p oduc s and se ices (SNO ha e limi ed
b oadening he clien base capaci y o se icing he ma ke )
Inc ease o NGO’s sel -con idence in case o success ul P oblem wi h se icing la ge a ge g oup
use o sel - inancing ac i i ies (in case o g ow h)
Sou ce: own elabo a ion, 2013
The goal o he pape is o iden i y pa icula
bene i s and isks o sel - inancing o NGOs
based on ele an empi ical indings om he
Czech Republic, Slo akia and Aus ia. The
Table 3 ep esen s a heo e ical app oach o
he opic wi hou a need o s a is ical e i ica ion.
The s a is ical e i ica ions o p ima y da a a e
included in he pa o he pape , which is
de o ed o he empi ical app oach.
We conclude ha despi e he compa able
size o he coun ies, as well as hei sha ed
pas in he Aus o-Hunga ian mona chy, he
in luence o economic and non-economic
ac o s leads o di e en de elopmen o NGOs
and hei unding, including he sel - inancing.
2.3.1. The Case o he Czech Republic
The da a mapping he sel - inancing ac i i ies in
he condi ions o he Czech Republic we e
ob ained in some p e- esea ch conduc ed
du ing he sp ing o 2013. I gene ally shows
ha sel - inancing is no only a end o ecen
yea s. The mos esponden s (75–90% in he
dependence o he age o he o ganiza ion)
chose some o ms o sel - inancing in he ea ly
yea s o hei exis ence. In gene al we can
conclude ha 79% o NGOs ha ook pa in
ou p e- esea ch aise unds h ough sel -
inancing.
We asked he esponden s o iden i y he
p oblems ( isks) connec ed o he sel - inancing
o NGOs. They named e.g. business isk; isk
o con lic wi h he o ganiza ion's mission; he
isk o o ganiza ional and p o essional
unp epa edness o he NGO o sel - inancing
and he isk o excessi e dependence on only
one inancial sou ce.
Fu he mo e, we we e in e es ed in he
iews o esponden s on he issue o sel -
inancing as a comme cial ac i i y. In gene al,
mos o he NGOs (ca 75%) exp essed hei
opinion in he sense ha i is no an ac i i y
dis ac ing om he main mission – his
con i ms ou assump ion exp essed in he pa
de o ed o he de ini ion o “quasi-equi y” (i.e.
non-p o i incomes s. comme cial incomes).
To con i m he impo ance and bene i s o
sel - inancing o NGOs we p o ed he endency
o esponden s o use sel - inancing in he
u u e (98% o esponden s answe ed in
aposi i e way). The esul s o he p e- esea ch
con i med ha e en i he o al olume o o he
inancial sou ces is in he majo i y o NGOs
g ea e – especially public and p i a e sou ces
– he sel - inancing ac i i ies a e o he majo i y
o NGOs an absolu ely essen ial pa o
und aising.
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Ekonomika a managemen
126 2014, XVII, 2
2.3.2. The Case o Slo akia
The esul s we e ob ained in he esea ch
abou he unding o NGOs in SVK [14]. The
sel - inancing is used by 87.4% o NGOs in
Slo akia. I we look a he dis ibu ion o sou ces
wi hin one o ganiza ion hen he leas used
sou ces a e s a e/public con ac s (only 2.20%).
This sugges s ha in SVK sui able condi ions o
p o ide public se ices by NGOs a e s ill
missing. They ha e o sea ch o o he sou ces
and he e o e p i a e unding ep esen ed by
g an s is a a highe a e, as well as membe -
ship ees. On he o he hand, sel - inancing
wi hin one o ganiza ion is ep esen ed by
25.4% [14] which is highe han he es ima ion
epo ed in "ideal" di e si ica ion o unding
sou ces [16]. Al hough he le el o his ype o
inancing is a qua e o he o al sou ces o an
NGO, he alue o 25.4% is s ill lowe han he
Eu opean a e age o 36.9% [5].
Fo he Slo ak case we b ing he e idence
ha e en young NGOs use sel - inancing ( able 4):
Tab. 4: Use o sel - inancing by he age o NGOs in Slo akia
Leng h o exis ence up o 5–10 10–20 mo e han
5 yea s yea s yea s 20 yea s
Leng h o use he sel - inancing
we do no use sel - inancing 7 2 12 2
1 yea 13 2 1 1
2–5 yea s 32 11 9 1
mo e han 5 yea s - 26 37 26
Sou ce: own esea ch, 2012
As able 4 shows also o ganiza ions less
han 5 yea s old use sel - inancing. Fo example,
13 o ganiza ions younge han 5 yea s use he
sel - inancing o one yea and 32 such
o ganiza ions apply sel - inancing ac i i ies o
2–5 yea s. We can he e o e conclude ha also
young o ganiza ions ecognize he need o
di e si y sou ces and hey y o apply sel -
inancing in o de o gain inancial s abili y.
Due o he e alua ion o he impac o sel -
inancing on he non-dis ibu ion cons ain o
NGOs we explo ed whe he esponden s consi-
de ed sel - inancing ac i i ies o comme cial
de lec a en ion om he mission and co e
wo k o he o ganiza ion. 68% o NGOs epo ed
no, sel - inancing is no such an ac i i y. Mo e
han 21% o hem said no, bu had some
objec ions o sel - inancing (e.g. NGOs should
no de elop business ac i i ies) o he espon-
den s we e no able o decide because hey
said i depends on o he ac o s e.g. he legal
o m o an NGO. Less han 11% o o ganiza-
ions belie e ha sel - inancing is a comme cial
ac i i y ha dis ac s om he mission and co e
wo k o NGOs. We conclude ha NGOs mus
be able o dis inguish be ween wha is
acomme cial ac i i y and wha is an ac i i y
ha equi es a business way o hinking and
ocus on sel - inancing in compliance wi h he
mission and co e wo k.
2.3.3. The Case o Aus ia
Aus ian NGOs ha e e y s ong s a e suppo
and he use o public unding is e y signi ican .
The mos used sou ce o unding in Aus ian
NGOs is public sou ces, used by 91% o
esponden s pa icipa ing in he esea ch [9].
This in ol es long- e m con ac ual ela ion-
ships which g ea ly in luence he acquisi ion o
new sou ces o unding. The ques ion how
much e o NGOs ha e o pu in o keep hese
sou ces whils ob aining new inancial sou ces
and ul illing hei missions comes o he o e.
The need o ul il he mission and keep he non-
dis ibu ion cons ain mus be a p io i y when
doing any ac i i y b inging money in o unning
NGOs.
Apa ial aspec o his issue also includes
a ixed pu pose o sou ces and he accoun abili y
o he sou ce p o ide . Compa ed wi h o he
sou ces o unding i can be s a ed ha he
highes e o mus be made by NGOs when
applying o EU unds, s a e unds and con ibu-
ions and dona ions om companies and
indi iduals. This explains he esea ch esul s
which showed a clea desi e o NGOs o gain
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1272, XVII, 2014
ala ge pa o he unds h ough hei own
ac i i ies [9]. I also con i ms he impo ance o
sel - inancing as i can o e he highes le el o
independence and eedom in he decision-
making p ocess.
We can suppo he impo ance and
bene i s o sel - inancing wi h he indings o he
pa o he Aus ian esea ch on unding o
NGOs ha is ocused on he eedom o use o
inancial sou ces. This shows ha he highes
pu pose- ixed sou ces p o ide he lowes
eedom o decide abou he use o hese
sou ces in ul illing he mission [9]. The highes
in luence o sou ce p o ide was obse ed in
con ac ual suppo om he s a e and he EU
( he sou ce p o ide s ic ly con ols he use o
p o ided money). The lowes in luence and
con ol was in he case o income om inancial
in es men s and en ing asse s which a e sel -
inancing ac i i ies. We can conclude ha sel -
inancing has a posi i e e ec on achie ing
gene ally bene icial pu poses o which NGOs
we e ounded and can be in compliance wi h
non-dis ibu ion cons ain .
2.4 Discussion
The expe ience o NGOs in all h ee coun ies
clea ly indica es he need o use o ms o sel -
inancing in he in e es o hei s abili y,
al hough in no case his shall be he only way
o sole sou ce o income. When aising unds
by he shown o ms o sel - inancing, NGOs
mus eckon wi h ce ain isks. These a e mo e
nume ous, la ge and mo e challenging han
hose o which p o i able companies a e
exposed (see Table 3).
Fo each o m o sel - inancing he e is a ule
ha he mo e he o ganiza ion di e ges om i s
mission, he g ea e isk i akes in he case o
unsuccess ul ealiza ion o a business plan.
The en y o NGOs on he s anda d ma ke
(wi h p o i able businesses) b ings some
p oblems ha a e shown oge he wi h he calcu-
la ion o s a is ical a iables e lec ing hei impo -
ance in Tab. 5 below (scalabili y assessmen :
1 = e y se ious p oblem, 2 = se ious p oblem,
3 = mino p oblem, 4 = sligh p oblem,
5 = I canno judge), and symbols a) o e) e e ing
o p oblems. The desc ip ion o he p oblems is
in he ex below he able:
Tab. 5: P oblems connec ed wi h unding he NGOs by sel - inancing
Indica o / P oblem a) b) c) d) e)
Mean 1.81 2.11 2.34 2.44 0.21
Median 2.00 2.00 2.00 2.00 0.00
S anda d de ia ion 1.143 1.229 1.187 1.168 0.577
Minimum 0 0 0 0 0
Maximum 4 4 4 4 3
Sou ce: [16]
a) " ulne abili y” o he NGOs, i he
o ganiza ion elies on one-sided unding
depending on he success o i s ma ke
ac i i ies o o he o ms o sel - inancing
(a e age impo ance 1.81 ±1.143),
b) he po en ial isk ha he o ganiza ion
" o ge s" i s mission and ha making a p o i
becomes a p io i y (a e age impo ance
2.11 ±1.229),
c) s ong compe i ion om he p i a e sec o
(a e age impo ance 2.34 ±1.187),
d) he o ganiza ion may o e es ima e hei
abili y and capaci y o implemen and de elop
sel - inancing ac i i ies (a e age impo ance
2.44 ±1.168),
e) among o he issues he esponden s
named limi ed legal op ions o sel -
inancing; high isk o abusing he sel -
inancing possibili ies; legisla i e ba ie s
ha do no allow any (o e y ew) business
ac i i ies o ce ain ypes o non-p o i
o ganiza ions (e.g. ounda ions), unclea
explana ion o he ules on he unding o
NGOs, lack o capi al and knowledge, lack
o "a cul u e o suppo o he hi d sec o "
in he o m o pu chasing i s p oduc s and
se ices." [16].
We es ed hese p oblems (especially he
p oblem in poin b) dis ac ing om he
mission), which occu ed in 2009 in he Slo ak
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Ekonomika a managemen
128 2014, XVII, 2
NGOs, on he case o he Czech NGOs in 2013
and he Slo ak NGOs in 2012. Al hough we
canno p o ide he same s a is ical calcula ion
as in Tab. 5 due o a change in esponse scale
(in 2009 a scale 1–5 was used, in la e su ey
esponden s answe ed yes/no/o he op ion),
we can conclude ha while he p oblem o he
po en ial isk ha he o ganiza ion " o ge s" i s
mission and ha making a p o i akes i s
place was conside ed se ious (impo ance 2.11)
in esea ch in 2009 i has now has los
impo ance. The as majo i y o esponden s
now hink ha sel - inancing does no dis ac
om he co e wo k and mission ul illmen : in
Slo akia i was 86% o esponden s ha hinks
sel - inancing does no dis ac om he
mission and co e wo k, only 11% o NGOs
hinks i does, 3% o esponden s (4 NGOs)
s a ed ha i depends on o he ac o s, e.g.
alegal ype o a NGO using he sel - inancing.
In he Czech Republic he p e- esea ch
showed simila esul s. 81% o esponden s
claimed ha sel - inancing does no dis ac
om he mission and co e wo k; on he
con a y, he mission and co e wo k o NPOs
we e suppo ed by sel - inancing. Only 13% o
NGOs hough ha sel - inancing was a pu e
comme cial ac i i y and 6% o esponden s
could no decide. These esul s we e gained in
ap e- esea ch; hey will be p o ed in an
upcoming p ima y esea ch ha will be conduc ed
in 2014. Despi e he p oblems associa ed wi h
sel - inancing, his me hod o unding is
cu en ly iewed as one o he possible ways o
he inancial s abili y and independence o
NGOs. Conce ning independence, i is
unde s ood no only om he poin o iew o i s
inancial aspec s. I is also independence om
he en i onmen whe e he NGO is and when
he o ganiza ion needs o decide he di ec ion
o i s ac i i ies. This independence is di ec ly
connec ed wi h inancial independence [13].
Conclusion
By explo ing he sel - inancing ac i i ies o
NGOs in h ee di e en coun ies we ied o
b ing some empi ical e idence showing ha he
comme cial ac i i ies o non-p o i o ganiza ions
mus be unde s ood in a b oade con ex han
a"business" and ha he comme cializa ion o
non-go e nmen o ganiza ions can be in
compliance wi h he non-dis ibu ion cons ain .
The e o e he goal o he pape was o
iden i y pa icula bene i s and isks o sel -
inancing o NGOs based on ele an empi ical
indings om he Czech Republic, Slo akia and
Aus ia. We ul illed his goal by p esen ing he
pa ial esul s o p ima y esea ch and u he mo e
we managed o con i m ha sel - inancing is
asui able me hod used o aising unds and
also one o he possible ways o gain inancial
s abili y, independence and, in he end, also he
long- e m sus ainabili y o NGOs.
In he submi ed pape we ha e shown ha
sel - inancing o NGOs can be connec ed o
hei co e wo k and does no ha e o be in
con lic wi h he non-dis ibu ion cons ain . The
ul illmen o he mission o NGOs suppo ed by
comme cial ac i i ies in acco dance wi h
es ablished co e wo k can be conside ed as an
app op ia e way which should be unde aken
by NGOs in o de o achie e hei inancial
independence and s abili y. We can conclude
ha he bene i s o sel - inancing p e ail o e i s
isks.
The scope o ou su ey, which we
in oduced in he p esen ed pape , could be
asui able basis and a s a ing poin o u he
scien i ic ac i i ies in he ield o he
comme cializa ion o NGOs. The empi ical
indings will be s eng hened by a heo e ical
app oach o he explo ed issue in ou
o hcoming esea ch.
This wo k was suppo ed by he p ojec
„Employmen o Newly G adua ed Doc o s o
Science o Scien i ic Excellence“
(CZ.1.07/2.3.00/30.0009) co- inanced om
Eu opean Social Fund and he s a e budge o
he Czech Republic.
Re e ences
[1] BENâO, J., VACEKOVÁ, G. Theo e ical-
me hodological p oblems o he scien i ic
esea ch. Ac a Mo a ia. Scien i ic jou nal o
economics, managemen and in o ma ics. 2012,
Vol. 3, No. 5, pp. 31-40. ISSN 1803-7607.
[2] HYÁNEK, V. Czech social economy and social
en e p ises: Cu en de elopmen s and
challenges. Ci il Szemle. 2012, Vol. 9, Iss. 4, pp.
5-23. ISSN 1786-3341.
[3] KUVÍKOVÁ, H., SVIDRO≈OVÁ, M.
K an i a í ny as a akcep ácia súk omn˘ch
nezisko ˘ch o ganizácií Slo enskej epublike. In
Bílá mís a eo ie a ãe né dí y e o em e efiejném
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