Institution Capacity of Non-Governmental Organizations of Ukraine: Financial Aspect

Abstract

The article investigates the existing practices of financing NGOs through the prism of their relations with the state, as the main indicator of the institutional capacity of the non-governmental sector. According to the results of the research, the multivariability of ensuring the financial sustainability of civil society organizations was registered and a model of effective financial interaction between the state and the non-governmental sector was established. In the article, the funding levels of the non-governmental sector are considered in terms of sources of funding, which allows to expand the category of "charity proceeds" used by civil society organizations for reporting to public authorities. This distribution forms a holistic picture of the process of financing the non-governmental sector and provides a basis for drawing conclusions on the financial capacity of NGOs and their growth prospects. At the same time, the material provides statistics on the attraction of funding by different procedures and recipients, which makes it possible to refute the claim that the largest non-governmental sector is the largest recipient. State and communal property are the recipients of 75% of the funds received as international technical assistance to Ukraine. Most of this material focused on research on grants as the largest source of funding for non-governmental organizations. At the same time, a return financial assistance mechanism, including credits and loans, is also available to NGOs. This question remains an area of research, but in the context of the financial aspect of institutional capacity, it is not important because of its infrequent use and small volume.