Financing principles of non-profit organisations: A case of Slovakia

Abstract

A non-profit organisation is an organisation that uses its surplus of the revenues to achieve its ultimate objective, rather than distributing its income to the organisation's shareholders, leaders or members. Thus, the man aim of this paper is to analyse and assess the system and structure of financing of non-profit organisation considering the economic, social and legislative conditions of the Slovak Republic. The results reveal that the basic principle of financing the non-profit sector in Slovakia is its multi-sourcing. Its essence is to use multiple sources of income in the non-profit organisations, in order to reach their own independence on one financial source, as well as to avoid negative consequences of its unexpected failure.

Keywords: Financing, non-profit organisation, public sources, self-financing.