Social Potential of Non-Profi t Organizations

Abstract

There is a steady trend in the wide range of literature on the study of institutions: the definition of theoretical judgments often does not coincide and is not combined with the definition of general connections and patterns, which leads to ignoring the principle of systematic analysis of socio-economic processes. Indirectly, this means the priority of the random (individual) over the whole and general. Meanwhile, the concept of an institution correlates with the specific content of a phenomenon or process and is supplemented by a generalized and systematic approach. The study of such an urgent problem of the market economy as institutional choice through non-profit organizations requires the extension of the analysis not only to governmental but also to non-governmental structures, which are an element of the whole. In this regard, the article provides a historical overview of the development of nonprofit organizations and charitable activities as a large-scale social phenomenon, which made it possible to draw attention to the possibility of using the experience of past years for the purposeful organization of non-state institutions of charity, including by improving social partnerships. Analysis of the current state of non-profit organizations in Ukraine, despite the growth in their number, shows a decrease in the volume of charitable activities. In recent years, the country has taken certain steps to improve charity. However, this is not enough. The institutional environment for philanthropy needs to be improved. The solution to this problem is possible with the active influence of the state on the management of non-commercial activities. Improving the tools of functioning, financing, as well as increasing attention to the development of statistics in this area of activity is considered relevant. In this regard, the purpose of the article is to identify pressing issues and ways to improve charitable organizations. The solution to this problem is possible with the active influence of the state on the management of non-profit activities. The development of the institutional framework of the nonprofit sector of the economy means the improvement of financial reporting, greater openness of charitable organizations, streamlining of their legal relations, liberalized taxation and strengthened control over the activities of non-profit organizations. The article pays special attention to the problem of accumulation and distribution of charitable funds. The potential of charitable organizations can be expanded by shifting the focus of their regulation away from predominantly corporate to regional administration, which increases the importance of the institution of partnership in the development of charity. The article uses historical and logical methods, which allowed to study the formation and development of non-profit organizations in the evolutionary aspect.