FACTORS AFFECTING THE EFFICIENCY OF FINANCIAL RESOURCE USE IN NON-PROFIT ORGANIZATIONS

The efficiency of financial resource use in non-profit organizations cannot be evaluated  only by the amount of funds spent or by the absence of budget deviations. A financially  efficient organization must convert attracted resources into mission-related activities  while  controlling  the  additional  costs  of  fundraising,  administration,  reporting  and  monitoring. Therefore, the  assessment  of efficiency  should  distinguish  between  the  nominal amount of financing and the amount that remains available for substanti ve  activity  after  necessary  transaction  and  support  costs  are  taken  into  account.