Financing of Nonprofit Organizations

The provision of required capital is important for organizations and enterprises in the nonprofit sector, too. Therefore, the present paper deals with various financial instruments in this economic branch and collects the current state of knowledge on this topic. First, it gives priority to traditional forms of nonprofit financing, i. e. private donations, grants from the government, and income from fees and commercial activities. Second, the approach to this issue is complemented by adding some innovative forms of nonprofit financing, e. g. social investment (stock) exchanges and financial concepts which are based on the idea of venture capital. In the third and final part the article discusses the interdependences between different methods of raising capital in the nonprofit sector and their mutual interferences.