Abstract

The aim of the article. The aim of the article is to analyze social and economic conditions of development of non-profit organizations (NPOs). Among them are shifting responsibility for social problems from governmental bodies on not-for-profit subjects, low quality of social product, declining of volume of financing from governmental bodies, business and international organizations, reducing of skilled labour potential, radical changes in composition of clients which are served by non-profit organizations. The research objectives are: to find out economic and social conditions of activity of domestic nonprofits; to ground expedience of domestic non-profit sphere marketization. The results of the analysis. The research makes possible to state the following: – permanent shifting responsibility for social problems from governmental bodies on not-for-profit subjects is the imperative of development, that stimulates marketization of not-for-profit sector in particular; – social services are delivered by governmental bodies and NPOs and characterized by low level of quality. That why it is necessary to search the ways of solving the problem through organizational development and strengthening of financial potential of NPOs, and by control of accordance of social services delivered by the governmental bodies to the minimum standards of ones; – the main reasons of diminishing of financial possibility of the majority of NPOs are: growth of amount of non-profit organizations, ineffective use of grants caused by the failed mechanisms of verification of recipients activity, corruption and problem of estimation of effectiveness of the non-profit programs and services, a recent financial crisis which compelled to cut down expenses for such programs; – client market of non-profit organizations is constantly transformed in results of change of demographic structure, change of old and appearance of new behaviour models, appearance of new target markets and segments of non-profit markets, appearance of other subjects, such as investors, public agencies, and mass-media; – competition is the important factor of forming and development of non-profit sector in Ukraine. The research allows finding major factors of competition, among which are increase of amount of NPOs, reduction of funds, reinforcement of competition for labour resources. Foreign researchers specify on strengthening of competition at the international non-profit market and growth of demand for civil society services, intensifying of competition for contracts with business enterprises, declining of volunteers support, diminishing of sponsorship from the governments. Conclusions and directions of further researches. Unfortunately, the economic aspect of activity of non-profit enterprises of Ukraine in compare with subjects of non-profit sector of developed countries is unrealized. Important reserves of growth of economic effect from activity of NPOs are an improvement of legal environment and introduction of progressive methods of management. The imperatives of development create conditions for marketization of non-profit sector as a powerful source of social effect. It will allow to support the level of satisfaction of target markets due to the best adaptation of supply to clients needs, to find out directions of improvement of services quality, to increase the efficiency of attracted resources and public funds, to use marketing facilities of organizations more optimal through growth and synchronization of resources flows, to produce a positive image of organization, to stimulate growth of social capital and introduction of innovations. 

Keywords: non-profit marketing, non-profit organization, non-profit sphere, marketization

JEL Classification: I38, L31, M31.

Cite as: Borysova, T. (2014). Economic and social pre-conditions for marketization of domestic non-profit sphere. Marketing and Management of Innovations, 1, 213-222. https://doi.org/10.21272/mmi.2014.1-21

This work is licensed under a Creative Commons Attribution 4.0 International License

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