L31 - Nonprofit Institutions; NGOs; Social EntrepreneurshipReturn

Nonprofit nongovernmental organizations are important areas of the economy. Fundraising is closely related to the activities of NGOs in providing the financial resources for its functioning. The aim of this paper is an overview of possible ways to create a fundraising tool that organizations use, or may use to obtain funds from various donors. The list is processed through the analysis of literary sources, websites and other information sources, and includes two dozen different ways to reach donors from a personal letter, through public subscription, to the lottery. The second sub-objective was to evaluate the use of fundraising methods of three Czech NGOs by analysis of their websites and annual reports. SOS Children's Villages and Civil Society Development Foundation is used primarily by the different instruments in public collections to fundraising, while The Magdaléna, p. b. o. is an organization primarily using grant applications.

Fundraising of non-profit organization has many options. The most common ways of funding are from private donors and received grants or subsidies from the municipalities or the European Union. As a non-profit organization does not have profit, it has more total fund resources. Its business is carried on the mission for which it was founded, which is not creating profitability. A very important role in the financing of voluntary work takes enthusiasts who saves the cost of the organization because for the work do not receive financial rewards. That is why the non-profit organization does not have high labor costs. In order to enable non-profit organization to effectively carry out its business purpose is a necessary condition for the proper functioning of the financial management of the entire organization. The basic tool for financial management is its budget. Properly construct the budget shows the organization that has sufficient funds for their upcoming activities (projects). The budget also reveals the shortcomings of the current financial management and deviations thanks to measurement can fully control the organization and to present the outcomes to internal and external users.