Abstract
Growing social needs and changes in the governmental policy aimed at reducing social aid spending have put pressure on non-profits to develop strategies to gain financial support from diversified sources. Diversification of funding’ sources gives the chance not only to increase revenues, strengthening the stability and predictability of NGOs’ functioning but also to limiting the control of public and private donors, especially when any of them predominates in capital contributions. The access to many different sources of revenue may reduce changeability of organizations’ mission and lead to a larger organizational autonomy in their mission related work. The objective of the article is to examine which sources of NGOs’ funding, including public, private internal and external sources are significant factors for the changeability of mission of non-governmental organizations. Data for the analyses have been collected from the national survey of Polish non-governmental organizations. To achieve this aim factor analysis was carried out. This research find that public support or commercial activities are not significant factors regarding the volatility of the non-governmental mission. The only significant variable, from the point of view of decision-making on changing the mission of NGOs, is the external private financing. The obtained results may contribute to the ongoing discussion on the impact of particular types of sources of revenues in the structure of financing NGOs for the implementation of the social mission. The results may provide some indications for those responsible for organizational development strategies.
References
Carroll, D.A., Stater, K.J. (2009). Revenue diversification in non-profit organizations: does it lead to financial stability? “Journal of Public Administration Research and Theory”, No. 19(4). DOI: 10.1093/jopart/mun025.
Chang, C.F., Tuckman, H.P. (1994). Revenue diversification among non-profits. “Voluntas: International Journal of Voluntary and Non-profit Organizations”, No. 5(3). DOI: 10.1007/BF02354036.
Czopek, A. (2013). Analiza porównawcza efektywności metod redukcji zmiennych – analiza składowych głównych i analiza czynnikowa, „Studia Ekonomiczne”, No. 132 Zastosowania metod matematycznych w ekonomii i zarzadzaniu.
Eikenberry, A.M., Kluver, J.D. (2004). The marketization of the non-profit sector: civil society at risk? “Public administration review”, No. 64(2). DOI: 10.1111/j.1540-6210.2004.00355.
Enjolras, B. (2002). The commercialization of voluntary sport organizations in Norway. “Non-profit and Voluntary Sector Quarterly”, No. 31(3). DOI: 10.1177%2F0899764002313003.
Fischer, R.L., Wilsker, A., Young, D.R. (2011). Exploring the revenue mix of non-profit organizations: Does it relate to publicness? “Non-profit and Voluntary Sector Quarterly”, No. 40(4). DOI: 10.1177%2F0899764010363921.
Foster, W., Bradach, J. (2005). Should non-profits seek profits? “Harvard Business Review”, No. 83(2).
Frances, N. (2008). The End of Charity. Time for Social Enterprise, London: England, Allen and Unwin.
Froelich, K.A. (1999). Diversification of revenue strategies: Evolving resource dependence in non-profit organizations. “Non-profit and Voluntary Sector Quarterly”, No. 28(3). DOI: 10.1177/0899764099283002.
Hager, M. (2001). Financial vulnerability among arts organizations: A test of the Tuckman-Chang measures. Non-profit and Voluntary Sector Quarterly, No. 30(2). DOI: 10.1177/0899764005282482.
Han, J. (2017). Social Marketisation and Policy Influence of Third Sector Organisations: Evidence from the UK. Voluntas, International Journal of Voluntary and Non-profit Organizations”, No. 28. DOI: 10.1007/s11266-017-9853-1.
Hodgkinson, V. A., Weitzman, M. S., Toppe, C., & Noga, S. (1992). Non-profit almanac 1992–1993. San Francisco: Jossey Bass.
Larose, D. T. (2008). Metody i modele eksploracji danych. Warszawa: Wydawnictwo Naukowe PWN. DOI: 10.1002/0471756482.
Larner, W., Craig, D. (2005). After neoliberalism? Community activism and local partnerships in Aotearoa New Zealand. “Antipode”, No. 37(3). DOI: 10.1111/j.0066-4812.2005.00504.x.
Maier, F., Meyer, M., Steinbereithner, M. (2016). Non-profit Organizations Becoming Business-Like A Systematic Review. “Non-profit and Voluntary Sector Quarterly”, No. 45(1). DOI: 10.1177%2F0899764014561796.
Mayer, W.J., Wang, H., Egginton, J.F., Flin, H.S. (2014). The Impact of Revenue Diversification on Expected Revenue and Volatility for Non-profit Organizations. “Non-profit and Voluntary Sector Quarterly”, No. 42(2). DOI: 10.1177%2F0899764012464696.
Mikołajczak, P. (2017a). Źródła i instrumenty finansowego wsparcia przedsiębiorstw społecznych. Poznań: Wydawnictwo UEP.
—— (2017b). Importance of funding sources to the scale of activity of social enterprises. “Finanse, Rynki Finansowe, Ubezpieczenia”, No. 4(88). DOI: 10.18276/frfu.2017.88/2-14.
—— (2018). The impact of the diversification of revenues on NGOs’ commercialization: evidence from Poland. “Equilibrium. Quarterly Journal of Economics and Economic Policy”, No. 13(4). DOI: 10.24136/eq.2018.037.
Salamon, L.M., Hems, L.C., Chinnock, K. (2000). The non-profit sector: For what and for whom? (Working papers of the Johns Hopkins Comparative Non-profit Sector Project No. 37). Baltimore, MD: The Johns Hopkins Center for Civil Society Studies.
Sanders, M.L., McClellan. J.G. (2014). Being Business-Like While Pursuing a Social Mission: Acknowledging the Inherent Tensions in US Non-profit Organizing. “Organization”, No. 21(1). DOI: 10.1177/1350508412464894.
Tuckman, H.P. (1998). Competition, commercialization, and the evolution of non-profit organizational structures. “Journal of Policy Analysis and Management”, No. 17. DOI: 10.1002/(SICI)1520-6688(199821)17:2%3C175::AID-PAM4%3E3.0.CO;2-E.
Vaceková, G., Valentinov, V., & Nemec, J. (2016). Rethinking non-profit commercialization: the case of the Czech Republic. “International Journal of Voluntary and Non-profit Organizations Voluntas”. DOI: 10.1007/s11266-0169772-6.
Weisbrod, B.A. (2000). To profit or not to profit: The commercial transformation of the non-profit sector, Cambridge University Press.
—— (1998). The non-profit mission and its financing. “Journal of Policy Analysis and Management”, No. 17. DOI: 10.1002/(SICI)1520-6688(199821)17:2%3C165::AID-PAM3%3E3.0.CO;2-F.
Zimmerman, B., Dart, R. (1998). Charities doing commercial ventures: Societal and organizational implications, Toronto, Ontario, Canada, Trillium Foundation.
Young, D.R. (2003). New trends in the US non-profit sector: Towards market integration? In OECD (Ed.), The non-profit sector in a changing economy. Paris: OECD.