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Impact of the EU Structural Funds on Financial Capacities of Non-profit Organizations

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Abstract

To fulfil their role, non-profit organizations (NPOs) need sufficient capacities. These include, first and foremost, financial capacity. EU Cohesion Policy commands financial resources of 351.8 bn. EUR. The EU is also willing to support NPOs from this source. With such considerable funding, the research questions arise: How much money have NPOs received? What are the effects of such assistance on the financial capacities of NPOs? On a sample of 2715 non-profit organizations in the Czech Republic, we have found that EU subsidies have a positive impact on financial capacities, measured as real assets. It is caused by using EU funds for investment. We have not proved an effect on short-term financial capacities measured on revenues. Moreover, the distribution of financial support among PBOs is unequal as 4% of NPOs collected 80% of subsidies due to differences in skills among NPOs’ managers.

Résumé

Pour remplir leur rôle, les organismes sans but lucratif doivent jouir de capacités suffisantes, parmi lesquelles la capacité financière est de premier rang. La politique de cohésion de l’Union européenne recommande l’accès à des ressources financières de l’ordre de 351,8 milliards d’euros. L’UE est aussi prête à soutenir financièrement les organismes sans but lucratif à cette fin. Un tel financement soulève les questions suivantes: quelle somme les organismes sans but lucratif ont-ils reçue? Quelles incidences une assistance de cet ordre a-t-elle sur les capacités financières des organismes sans but lucratif? En étudiant un échantillon de 2 715 organismes sans but lucratif de la République tchèque, nous avons découvert que les financements de l’UE ont des répercussions positives sur les capacités financières mesurées en capitaux réels. Les fonds de l’UE pour l’investissement en sont responsables. Nous n’avons pas pu démontrer d’effet sur les capacités financières à court terme mesurées en termes de revenus. Qui plus est, la distribution de l’aide financière parmi les organismes dédiés au bien public est inégale. En effet, 4% des organismes sans but lucratif ont récolté 80% des subventions en raison des différences qui existent parmi les compétences des directeurs de ces derniers.

Zusammenfassung

Non-Profit-Organisationen benötigen ausreichend Kapazitäten, um ihre Rolle erfüllen zu können. Darin eingeschlossen ist vor allem die finanzielle Kapazität. Die EU-Kohäsionspolitik umfasst finanzielle Ressourcen in Höhe von 351,8 Mrd. Euro, und die EU ist bereit, Non-Profit-Organisationen aus dieser Quelle zu unterstützen. Bei diesen beträchtlichen Finanzmitteln ergeben sich folgende Forschungsfragen: Wieviel Geld haben Non-Profit-Organisationen erhalten? Wie wirkt sich diese Unterstützung auf die finanziellen Kapazitäten der Non-Profit-Organisationen aus? Anhand einer Stichprobe von 2.715 Non-Profit-Organisationen in der Tschechischen Republik kamen wir zu dem Ergebnis, dass sich EU-Subventionen - gemessen als Sachgüter - positiv auf die finanziellen Kapazitäten auswirken. Dies ist auf die Nutzung der EU-Gelder für Investitionen zurückzuführen. Wir haben keinen Nachweis für den Effekt auf kurzfristige finanzielle Kapazitäten gemessen an Einkommen. Darüber hinaus verteilt sich die finanzielle Unterstützung ungleich zwischen den gemeinnützigen Organisationen; denn 4% der Non-Profit-Organisationen erhielten 80% der Subventionen, was auf die unterschiedlichen Fertigkeiten der Leiter dieser Organisationen zurückzuführen ist.

Resumen

Para cumplir su papel, las organizaciones sin ánimo de lucro (NPO, por sus siglas en inglés) necesitan las capacidades suficientes. Éstas incluyen, ante todo, capacidad financiera. La Política de Cohesión de la UE domina recursos financieros por 315 800 millones EUR. La UE está también dispuesta a apoyar a las NPO con esta fuente. Con una financiación tan considerable, surgen las preguntas de investigación: ¿Cuánto dinero han recibido las NPO? ¿Cuáles son los efectos de dicha asistencia sobre las capacidades financieras de las NPO? En una muestra de 2 715 organizaciones sin ánimo de lucro en la República Checa, hemos encontrado que los subsidios de la UE tienen un impacto positivo sobre las capacidades financieras, medidas como activos reales. Esto se produce mediante el uso de fondos de la UE para inversión. No hemos probado un efecto sobre las capacidades financieras a corto plazo medidas en ingresos. Asimismo, la distribución del apoyo financiero entre las organizaciones de interés públicos (PBO, por sus siglas en inglés) es desigual, ya que el 4% de las NPO cobraron el 80% de los subsidios debido a las diferencias en habilidades entre los responsables de las NPO.

摘要

为履行其职责,非盈利组织 (NPO) 需要足够的能力,包括首要的是财务能力。欧盟凝聚政策管理着3518亿欧元的财务资源。欧盟也愿意通过这一来源来支持NPO。在拥有如此可观的资金的情况下,出现的研究问题是:NPO收到了多少资金?此类帮助对NPO财务能力的影响是什么? 通过捷克共和国的2,715份非盈利组织样本,我们发现,以实际资产来测量,欧盟补助会对财务能力带来积极的影响。原因在于,这会将欧盟资金用于投资。我们未证明以收入测量的短期财务能力的影响。此外,PBO之间的财务支持分布不均衡,4%的NPO获得了80%的补助,原因是NPO管理人员的技能差别。

ملخص

لإتمام دورهم ، المنظمات الغير ربحية (NPOs) تحتاج قدرات كافية. هذا يشمل ، أولا” وقبل كل شيء، قدرة مالية. هيمنة الموارد المالية لسياسة تماسك الإتحاد الأوروبي (EU) ل 351.8ملياريورو. الإتحاد الأوروبي مستعد أيضا” لدعم المنظمات الغير ربحية (NPOs) من هذا المصدر. مع هذا التمويل الكبير، نتجت الأسئلة البحثية: كم من المال قد تلقت المنظمات الغير ربحية (NPOs) ؟ ما هي الآثار المترتبة على هذه المساعدة على القدرات المالية للمنظمات الغير ربحية (NPOs)؟ على عينة من 2715 من المنظمات الغير ربحية في جمهورية التشيك، وجدنا أن دعم الإتحاد الأوروبي(EU) له تأثير إيجابي على القدرات المالية ، يقاس كأصول حقيقية. ناتجة عن إستخدام أموال الإتحاد الأوروبي (EU) للإستثمار. نحن لم نثبت أن له تأثير على قدرات مالية قصيرة الأجل تم قياسها على الإيرادات. علاوة على ذلك، فإن توزيع الدعم المالي بين منظمات النفع العام (PBOs) غير متكافئ لأن 4٪ من المنظمات الغير ربحية (NPOs) جمعت 80٪ من الدعم بسبب إختلافات في المهارات بين مديري المنظمات الغير ربحية (NPOs).

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Fig. 1

Source: USAID (2012, 2014), calculations of the authors. The USAID sustainability index is composed of seven dimensions: legal environment, financial viability, advocacy, service provision, infrastructure, organizational capacity and public image. The index value of 1–2 means “Enhanced Sustainability”, the value of 3–5 means “Evolving Sustainability”, and the value of 6–7 means “Sustainability Impeded”

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Notes

  1. We use NPOs for organizations with the following legal status: foundations, endowment funds, civic associations, religious organizations and public benefit corporations. The abbreviation PBCs is used solely for public benefit corporations. These corporations provide the public with generally beneficial services which are identical for all beneficiaries. Moreover, their profits must be used for the purpose for which the public benefit corporation had been established.

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  1. CEPS, University of Basel, Steinengraben 22, 4051, Basel, Switzerland

    Oto Potluka & Georg von Schnurbein

  2. SPECTRA Centre of Excellence EU, Slovak University of Technology in Bratislava, Vazovova 5, 812 43, Bratislava, Slovakia

    Martin Spacek

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Fig. 2
figure 2

Source: Own calculations based on data from Albertina, Monit7+, Commercial Register and CEDR III

Comparison of revenues development (whole sample and a group based on propensity score matching).

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Potluka, O., Spacek, M. & von Schnurbein, G. Impact of the EU Structural Funds on Financial Capacities of Non-profit Organizations. Voluntas 28, 2200–2223 (2017). https://doi.org/10.1007/s11266-017-9845-1

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