Financial resources management and assessment of the non-profit sector’s social efficiency

• Published in: Journal of New Economy
• Main Author: Anna S. Artamonova
• Format: Article in Journal/Newspaper
• Language: English; Russian
• Published: Ural State University of Economics 2022
• Subjects: social efficiency; non-profit sector; socially oriented non-profit organisation; weisbrod publicness index; Commerce; HF1-6182; Economics as a science; HB71-74; Arkhangelsk; nenets; Nenets Autonomous Okrug; Republic of Karelia
• Online Access: https://doi.org/10.29141/2658-5081-2021-22-4-6; https://doaj.org/article/cb954ea209284d1ca492c24c21328576

During the pandemic, the non-profit sector has seen both a significant increase in the volunteer movement and the exacerbation of existing problems due to the imposed restrictions, most notably related to the financing of non-profit organisations’ activities and fundraising. The paper aims to assess the social efficiency of the non-profit sector with respect to the management of financial resources. Methodologically, the research relies on the resource dependence theory. The assessment uses the calculation of the Weisbrod publicness index. Traditionally, this index employs data from individual organisations, as there are no comparable data for the entire sector. The study, for the first time, attempts to conduct a comprehensive assessment based on data on socially oriented non-profit organisations (SONPOs) collected by Rosstat. To test the approach, the author considers the results of the financial activities of SONPOs located in the regions of the Northwestern Federal District for 2017–2019. The findings indicate that in Pskov oblast, Nenets Autonomous Okrug, and the Komi Republic, the SONPOs’ sector relies almost solely on self-financing; in the Republic of Karelia, Arkhangelsk and Vologda oblasts donor funding prevails; other regions enjoy a balance between revenues from the production of public and private goods. Keeping such a balance appears to be the optimal model for the sector’s functioning, since it testifies SONPOs’ ability to manage their resources.