DIVERSIFICATION OF SOURCES OF FINANCING AS A FINANCIAL MANAGEMENT TOOL OF NON-GOVERNMENTAL ORGANIZATIONS

Abstract

Objective. The article is devoted to the study of mechanisms for diversifying funding sources as a tool for financial management of non-governmental organizations, which helps reduce dependence on individual sources and ensure the stability of their activities, especially in conditions of economic instability. It has been established that the main sources of funding for non-governmental organizations in Ukraine are support from international donors (grants, technical assistance, humanitarian support) and membership fees. At the same time, there is a risk of reducing donor funding, and the limited membership fees do not always allow covering the operational needs of organizations. The possibilities of providing NGOs with paid services and the peculiarities of tax regulation of their activities are analyzed. Results. Promising alternative sources of funding for NGOs are identified, in particular: social entrepreneurship, which combines commercial activity with a social mission, providing for the reinvestment of profits in the development of the organization; crowdfunding as a mechanism for raising funds through online platforms, which provides direct communication with the audience; impact investments, focused not only on financial profit, but also on social effect; fiscal sponsorship, which allows NGOs with an official status and financial structure to provide legal and financial support to other initiatives. Practical significance. It has been proven that diversification of funding sources as a tool for financial management of NGOs performs a risk management function, reducing dependence on a single source of funding, which is critically important for the stability of the functioning of NGOs. In addition, diversification helps ensure financial sustainability, allowing NGOs to plan long-term initiatives regardless of changes in funding and increases flexibility and adaptability, which allows them to respond quickly to changes in the economic environment. The impact of diversification on the optimization of financial flows, which ensures the balanced use of different types of resources, is separately noted.