Changing Approaches to State Financing of Non-Governmental Organizations in Ukraine

Abstract

Introduction. The functioning of the civil society institutions is beneficial for the state, as it delegates part of its powers to them. Accordingly, it is important for the state that the activities of these institutions be effective and efficient, which significantly depends on the financial resources at their disposal. The state cannot influence the financial position of all civil society institutions, the financial literacy of their representatives, the activity of individuals and legal entities in their support, and so on. Therefore, in order to increase the level of financial capacity of civil society organizations, it should use those tools that are directly available to the state. However, in our opinion, one of such tools is public funding, which still needs to be completely reset and revised. The purpose of the article is to investigate the current state and features of the distribution of public funding between those non-governmental organizations that have the right to it, and to suggest ways to improve it. Results. The current state of the state funding of non-governmental organizations of Ukraine, which, in accordance with current legislation, are entitled to it, is studied. Indicators of general financing of public organizations of Ukraine from the State budget, as well as such indicators as the share of revenues from state funding in the general structure of revenues of non-governmental organizations of Ukraine and the share of expenditures to support non-governmental organizations in the State Budget of Ukraine are analyzed. The presence of elements of discrimination and subjectivity in the distribution of public funding in favor of non-governmental organizations of Ukraine was revealed. It is proposed to use the method of "money follows the client" to eliminate these shortcomings and improve the process of distribution of public funding between non-governmental organizations that have a legal right to it. The possibility of pilot introduction of the above-mentioned method for the distribution of state funding between non-governmental organizations of physical culture and sports and the legislative changes that need to be adopted for this purpose are substantiated. A mechanism for determining the amount of funding for a particular organization is proposed.

Schumpeter's theory of economic development and modern civil society: points of interaction

“…However, we believe that these functions are almost the most important of those that are characteristic of civil society organizations. That is why, in our opinion, they should be distinguished not as separate functions, but as a separate block, which, together with the social element, serves as the socio-economic base for the implementation of the rest of the functions of civil society (Tkachuk, 2015).…”