ALTERNATIVE APPROACHES TO ENSURING FINANCIAL SUSTAINABILITY OF NON-PROFIT ORGANIZATIONS IN CONDITIONS OF ECONOMIC INSTABILITY

Abstract

The article investigates the issue of financial sustainability of non-profit organizations (NPOs) under conditions of economic instability. It synthesizes approaches to understanding various aspects of financial sustainability within the context of organizational activities. The article highlights that financial sustainability of an enterprise is defined by its capacity to adapt to changes in both external and internal environments without losing operational effectiveness. Key factors influencing financial sustainability are examined, including internal factors (cost structure, capital volume, resources) and external factors (economic and political environment, competition, financial market). The importance of strategic financial planning and risk management is emphasized, particularly in conditions of economic uncertainty. A review of contemporary approaches to NPO financial management is presented, delineating the distinctions between financial models of commercial and non-profit entities. The article underscores the fundamental differences in financial sustainability between NPOs and commercial enterprises, particularly due to differing organizational objectives, funding sources, and levels of financial autonomy. Vulnerabilities in the financial model of NPOs are highlighted, stemming from dependence on external funding, stringent donor reporting requirements, and the necessity for flexible financial management. Special attention is given to alternative instruments for enhancing NPO financial autonomy, notably social entrepreneurship, crowdfunding, and endowment funds. The advantages and risks of each instrument are identified, alongside their potential for income diversification, enhancement of organizational trust, and reduction of donor dependency. It is substantiated that the implementation of these instruments contributes to improved financial sustainability, transparency, and trust in the non-profit sector, which is critical for ensuring the sustainable development of organizations amid instability. The article concludes that effective adoption of these approaches is feasible only through strategic financial planning, strengthening institutional capacity of NPOs, and the establishment of a supportive legal framework.