Вестник Российского экономического университета имени Г. В. Плеханова (Jul 2023)
Methodology of Estimating Efficiency of Non-Profit-Making Organization
Abstract
The article focuses on the growing trend of developing the third sector of economy, i.e. non-profit-making organizations (NPMO). State makes a serious contribution to it, as it made a strategic decision concerning the priority of developing non-profit-making organizations, which was included in the constitutional reform of 2020. However, apart from state support it is necessary to mention a growing activity of civil society that participates in the life of our country more and more vigorously, including through help to NPMO. State support both in ideological and financial aspects (through grants), attention on the part of people place a considerable share of responsibility on NPMO, therefore these organizations need maximum transparency and efficiency in their work. In view of this an important task is to estimate efficiency of NPMO functioning. The author demonstrates three approaches to estimating efficiency of NPMO and provides formulas of calculations and examples of use. These approaches can help evaluate efficiency on the level of one organization and at the same time give information for making comparisons in a certain territory, for instance, area or region. It should be underlined that estimating work efficiency is an important factor of competitiveness in the struggle for resources, for example for state financing. Besides, information about work efficiency could raise the level of confidence of society, which in its turn acts as a source of reserves for NPMO. Another important reason in favor of the necessity to estimate efficiency is employees’ and volunteers’ motivation. It is essential for NPMO employees to get emotional satisfaction from their work as very often material reward can be relative, thus the role of moral and emotional satisfaction is very high. Realizing the efficiency of the work is a source of inspiration and motivation for people of helping occupation. The formal appraisal of organization grant-providers’ work fixed in the form of accounting by results of using grants is insufficient both for employees of non-profit-making organizations and for the public because it is only the approval of legally correct ground for using money. Special attention in the article is paid to concrete lines in everyday work of NPMO in order to raise efficiency of their work and to establish the level of confidence on the part of people involved in NPMO work.
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