scholarly journals Non-profit organization’s endowment as a source of financing to improve its sustainability

2021 ◽  
Vol 91 ◽  
pp. 01027
Author(s):  
Filip Rebetak ◽  
Viera Bartosova
Keyword(s):  
Slovak Republic ◽  
Financial Statements ◽  
Financial Assets ◽  
It Use ◽  
Financial Situation ◽  
Non Profit ◽  
For Profit ◽  
Velvet Revolution ◽  
Non Profit Organizations

Non-profit organizations are an important part of the economy and are needed to fulfill many beneficiary roles that neither market, nor state would fill. Non-profit organizations in Slovakia became important after the 1989 Velvet revolution, the dissolution of the Czechoslovakia and creation of the free and democratic Slovak Republic. Ever since them, non-profit played a role in everyday life of people in Slovakia. Non-profit organizations exist with the aim of providing generally beneficiary services without the aim of making profit for their founders – which is what makes them distinct from for profit businesses. However, non-profit organizations need funding for their operations in the same way as any other organizations. They need to pay their bills, salaries, purchase materials, services, etc. Because of their non-profit nature, the sources of financing for these costs are different. The aim of this paper was to look at the endowment of non-profit organizations and its investment as a source of non-profit financing and the current situation in Slovakia regarding it use. We analysed financial statements of foundations available through Finstat.sk database. We found that the use of investing the endowment for self-financing of non-profit organizations is almost non-existent in conditions of Slovak non-profit sector, with only 13,7% of organizations having any long-term financial assets and only 3,9% having any substantial gains from them. Further, we proposed a framework for possible use of the endowment as a source of funding for more non-profit organizations in order to improve the financial situation and sustainability of the non-profit sector.

scholarly journals PENERAPAN PSAK NO. 45 TENTANG PELAPORAN KEUANGAN ORGANISASI NIRLABA PADA SANGGAR SENI BUDAYA LOGOS MA’KANTAR

2014 ◽  
Vol 9 (3) ◽  
Author(s):  
Claudia W.M. Korompis
Keyword(s):  
Human Resources ◽  
Financial Reporting ◽  
Qualitative Method ◽  
Financial Statements ◽  
Studio Art ◽  
Financial Situation ◽  
Non Profit ◽  
Cultural Arts ◽  
Non Profit Organizations

Global economic development could not be separated from the role of an organization of profit and non-profit organizations. Non-profit organizations (non-profit) into a container made of human resources as the most valuable asset. Although it is not concentrated on profits, but the financial reporting presented by this organization must have a standard as a basis for the preparation and reporting to interested parties. SFAS No. 45 states that non-profit organizations to obtain resources from the donations of members and other contributors do not expect any compensation from the organization. The objective of financial statements for internal parties is to know the financial situation that exists in the organization, while external parties aimed to determine whether the available funds have been used properly and in the attached financial statements of the organization. The study was conducted at the Cultural Arts Studio Logos Ma'kantar. This study aims to look at how the financial statements Cultural Arts Studio Logos Makantar whether in accordance with SFAS No. 45.Metode analysis used is descriptive qualitative method outlines the nature, describing, comparing a data.Hasil and conclusions of this study are the financial statements of Studio Art culture Logos Makantar not prepare financial statements in accordance with the format of the financial statements of a non-profit that exists in SFAS No. 45, and this makes the board are encouraged to immediately apply the financial statements in accordance with SFAS No. 45 for the benefit of the organization in the future.

scholarly journals Proposals of changes in the financial statements of non-profit organizations

2013 ◽  
Vol 61 (2) ◽  
pp. 417-425 ◽  
Author(s):  
Milena Otavová
Keyword(s):  
Financial Analysis ◽  
Explanatory Power ◽  
Balance Sheet ◽  
Financial Statements ◽  
Formal Structure ◽  
Financial Statement ◽  
Non Profit ◽  
For Profit ◽  
Accounting Rules ◽  
Non Profit Organizations

Financial statements (balance sheet, profit and loss statement) intended for profit and non-profit organizations have large number of differences in terms of content of individual items and also with regard to their formal structure. This is due to the existence of different types of accounting entities for which there are created sets of accounting rules. Need for separate set of accounting rules results from their objectives, management rules, performed activities and certain specific of costs, revenues, assets and liabilities. The differences found on the basis of comparative analysis in this paper are evaluated and subsequently there are recommended changes of the statements so that they would be more useful for the purposes of economic analysis. The paper also identified problems that arise in connection with the evaluation of the efficiency of this type of organizations and subsequently there are recommended tools of financial analysis suitable for evaluation of non-profit organizations and the specifics of non-profit sector are pointed out. The paper presents also the proposal to change the Decree 504/2002 Coll. so as to avoid distortion of financial statement closing of non-profit organizations, and also with regard to their higher explanatory power.

scholarly journals Prediction Model as Sustainability Tool for Assessing Financial Status of Non-Profit Organizations in the Slovak Republic

2021 ◽  
Vol 13 (17) ◽  
pp. 9721
Author(s):  
Jaroslav Mazanec ◽  
Viera Bartosova
Keyword(s):  
Prediction Model ◽  
Financial Stability ◽  
Slovak Republic ◽  
Training Sample ◽  
Non Profit ◽  
Financial Status ◽  
Testing Sample ◽  
For Profit ◽  
Non Profit Organizations ◽  
Corporate Social

Non-profit organizations (NPOs) play an important role in society. Nowadays, many companies apply the phenomenon—corporate social responsibility (CSR) which supports sustainable development and cooperation between the for-profit and non-profit sector. These companies are careful to cooperate with organizations and make decisions based on many factors, such as financial stability and independence of non-profit organizations. These attributes are assessed by predictive models. The models are a common tool in the for-profit sector compared to the non-profit sector. In our case, the main aim of the research is to propose a prediction model to estimate financial status of Slovak non-profit organizations using discriminant analysis. The overall sample consists of 351 NPOs dividing into training and testing sub-samples. We find that model classifies correctly almost 91% of NPOs in the training sample, respectively less than 80% in the testing sample. However, the results show that all vulnerable NPOs are correctly classified based on the testing sample.

scholarly journals The Transnationalization of Labor Mobility: Development Trends and Selected Challenges Involved in Its Regulation

2017 ◽  
Vol 9 (2) ◽  
pp. 115
Author(s):  
Ludger Pries ◽  
Martina Maletzky
Keyword(s):  
Labor Mobility ◽  
Ideal Types ◽  
Non Profit ◽  
Labor Conditions ◽  
For Profit ◽  
Cross Border ◽  
Mass Migration ◽  
Different Types ◽  
Term Labor

Internationalization of value chains and of for-profit as well as non-profit organizations, and as a result of cheaper and safer mass migration, transnational labor mobility is of increasing importance. The article presents the development of the different types of cross-border labor mobility (from long-term labor migration over expatriats/inpatriats up to business traveling); it analyses crucial aspects of labor conditions and how the collective regulation of working, employment and participation conditions in general is affected: could local or national forms of labor regulation cope with these new conditions? What are the main challenges when it comes to collective bargaining and the monitoring of labor conditions? The article is based on a three year international and comparative research in Germany and Mexico. First, different ideal types of transnational labor mobility are distinguished that have emerged as a result of increasing cross-border labor mobility. Then potential sources of labor related social inequality and challenges in the regulation of the working, employment and participation conditions for transnational workers are discussed. Finally, some conclusions are drawn for further research.

scholarly journals Helping Yourself or Others? Motivation Dynamics for High-Performing Volunteers in GLAM Crowdsourcing

2020 ◽  
Vol 24 ◽  
Author(s):  
Sultana Lubna Alam ◽  
Ruonan Sun ◽  
John Campbell
Keyword(s):  
Financial Incentives ◽  
Incentive Structure ◽  
Open Communication ◽  
Non Profit ◽  
High Performing ◽  
For Profit ◽  
Not For Profit ◽  
Over Time

While most crowdsourcing (CS) cases in the literature focus on commercial organisations, little is known about volunteers’ motivation of initial and continued participation in not-for-profit CS projects and importantly, about how the motivations may change over time. It is vital to understand motivation and motivational dynamics in a not-for-profit context because a fundamental challenge for not-for-profit CS initiations is to recruit and keep volunteers motivated without any formal contract or financial incentives. To tackle this challenge, we explore high performing volunteers’ initial motivation for joining and sustaining with a GLAM (galleries, libraries, archives and museums) CS project. We situated our interpretive exploration in a case study of the Australian Newspapers CS project initiated by the National Library of Australia. Based on the case study, we found that high-performing volunteers were motivated by a combination of personal, collective, and external factors classified into intrinsic, extrinsic, and internalised extrinsic motivations. Further, we found that these motivations changed over time. Specifically, many volunteers presented substantial personal (i.e., personal interest and fun) and community-centric motivations (i.e. altruism and non-profit cause) when they initially joined the project, whereas external motivations (i.e., recognition and rewards) had a greater impact on long-term participation. Our findings offer implications for CS system design (e.g., user profiles, tagging and commenting), incentive structure (e.g., reputation-based ranking, leader boards), and relational mechanisms (e.g., open communication channels) to stimulate sustainable contributions for not-for-profit CS initiatives.

Addressing tent cities: an example of police/non-profit collaboration

2019 ◽  
Vol 42 (5) ◽  
pp. 931-943
Author(s):  
Brittany Solensten ◽  
Dale Willits
Keyword(s):  
Law Enforcement ◽  
Police Officers ◽  
Qualitative Interviews ◽  
Police Department ◽  
Small Sample ◽  
Content Type ◽  
Non Profit ◽  
Non Profit Organizations ◽  
The City

Purpose The purpose of this paper is to examine a collaborative relationship between non-profit organizations and a Midwest police department to address issues of poverty and homelessness. Design/methodology/approach Qualitative interviews were conducted with five non-profit organization workers along with three police officers about social problems in the city between September and December of 2017. Findings The collaboration between non-profit organizations and law enforcement was largely helpful and successful in integrating residents of tent city into existing housing programs within the city, limiting future law enforcement calls addressing latent homelessness issues. Research limitations/implications This qualitative study was exploratory in nature and data were drawn from a single city. Although key stakeholders were interviewed, results are based on a small sample of police and non-profit social service workers. Also, individuals who lived in the tent city were not interviewed. Practical implications This study demonstrates how an approach in addressing tent cities through non-profit organizations and law enforcement collaboration are arguably effective in humanely moving residents of tent cities into housing for a long-term solution to homelessness. Originality/value There is limited research about tent cities especially the long-term effectiveness of dismantling them with various methods. This paper demonstrates one city’s approach to combat homelessness by dismantling a tent city, with a follow-up a few years later showing the effectiveness of a more humane approach, which can set an example for future cities also combating homelessness.

The impact of accounting regulation on non-profit revenue recognition

2019 ◽  
Vol 20 (2) ◽  
pp. 190-206 ◽  
Author(s):  
Charles A. Barragato
Keyword(s):  
Information Content ◽  
Balance Sheet ◽  
Accounting Standards ◽  
Financial Accounting ◽  
Future Research ◽  
Content Type ◽  
Non Profit ◽  
Non Profit Organizations ◽  
The Impact

Purpose The purpose of this paper is to examine the requirement that non-profit organizations recognize unconditional promises to give as assets and revenues in the year promises are received as mandated by Statement of Financial Accounting Standards (SFAS) No. 116. Design/methodology/approach Using the adoption of SFAS No. 116 and financial information reported on Internal Revenue Service Form 990, the study examines the requirement that non-profit organizations recognize unconditional promises to give as assets and revenues in the year promises are received. Combining insights derived from a model developed by Dechow, Kothari and Watts (1998) with the rationale applied by the Financial Accounting Standards Board (FASB) in mandating recognition treatment, it adopts the view that information about promises to give is relevant if it useful in assessing probable future cash inflows. The study also employs relative tests of predictive ability to assess competing specifications. Findings The study finds that recognizing unconditional promises to give as assets and as revenues in the year received improves predictions of next period’s cash inflows. It also finds that accrual-based contribution revenue consistently provides information content that is incremental to cash-based contribution revenue. Research limitations/implications This paper has implications for several other lines of research as well. First, an ancillary concern expressed by many organizations in the non-profit sector was that the recognition of multi-year promises to give would adversely affect trends in long-term giving. In this regard, another promising line of inquiry would be to empirically test the Standard’s impact on the time-series properties of contributions and short- and long-term giving trends. Second, future research might consider conducting tests after partitioning by NTEE/NAICS classification, as well as substituting or supplementing the SOI data with financial statement data. Third, future research might consider applying the approach used in this study to other industries or groups for which market prices are not readily ascertainable. Data constraints, including the calculation of cash flow information indirectly from the balance sheet, impose limitations on this study. Practical implications This study documents that by recognizing unconditional promises to give as assets and revenues in the period received, donors, creditors and other users gain useful information about probable future cash inflows – a fundamental element of the accrual process and one of several important factors used to evaluate an organization’s ability to sustain future operations. This information is valuable to stakeholders and practitioners who rely on this information to make informed decisions. It is also helpful to standard setters in establishing guidelines that improve the usefulness of financial reporting for non-profits. Originality/value The paper contributes to existing literature by operationalizing, in a non-profit setting, a model that describes the relationship among revenues, accruals and cash flows. It fills a gap in the accrual literature regarding the relevance of non-profit revenue accruals. The study is the first to employ a relative information content approach to assess non-profit standards, which provides useful input to policy makers and end users. It affirms that many of the key conventions and elements embodied in the FASB Concepts Statements apply to non-profits as well, which heretofore has not been studied extensively. The results are also consistent with Accounting Standards Update 958, Not-for-Profit Entities, which requires that non-profits provide users with information about liquidity, including how they manage liquid resources needed to meet cash requirements for general expenditures within one year of the date of the statement of financial position.

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