Navigation
Том 13 №1 (2025)

Article

STATE AND MUNICIPAL FINANCING OF NON-PROFIT ORGANIZATIONS IN THE AMATEUR SPORTS SPHERE: LESSONS FROM WESTERN EXPERIENCE (0.29 Mb, pdf) Read
Authors:
Yevstafyev Eduard Nikolayevich
Keywords:
non-profit organizations
amateur sports
grants
subsidies
state grants
municipal grants
social procurement financing
Annotation:

The purpose of the research is to analyze the experience of Western countries in organizing state and municipal financial support for non-profit organizations (NPOs) operating in the field of amateur sports. 

Methods and organization of the research. The study is based on the analysis of foreign scientific publications, as well as on the results of discussions of the problems considered in the article with Western experts during the author's business trips to Germany, Great Britain and the USA.

Research results and their discussion. In developing and implementing mechanisms to support non-profit sports organizations in Russia, it is important to take into account the relevant experience of economically developed countries, where the "third sector" consisting of NPOs is widely developed. The conducted analysis showed that public funding of sports NPOs in Western countries, in addition to the positive aspects widely covered in the scientific literature, is associated with serious problems that hinder the effective implementation of state policy to support amateur sports in these countries. These problems include: limited amounts of state and municipal support, which in most cases does not allow for a significant improvements in the financial situation of sports NPOs; the lack of a system of reliable indicators for assessing the real need of non-profit organizations for external assistance and their ability to effectively implement funds allocated by state and local authorities; shortcomings in mechanisms for monitoring compliance with the terms of use of financial resources provided to NPOs, etc. 

Conclusion. Russian state and municipal authorities should learn useful lessons from international experience in financial support for non-profit sports organizations in order to make maximum use of all the positive components of such experience, minimizing the possible manifestation of its negative aspects.

 

Bibliography:

  1. Federal Law of 04.12.2007 N 329-FZ (as amended on 24.07.2024) "On Physical Culture and Sports in the Russian Federation". https://legalacts.ru/doc/federalnyi-zakon-ot-04122007-n-329-fz-o/ (date of access: 20.11.2024).

  2. Federal Law "On State (Municipal) Social Order for the Provision of State (Municipal) Services in the Social Sphere" dated 13.07.2020 2 N 189. http://publication.pravo.gov.ru/Document/View/0001202007130053 (date of access: 20.11.2024).

  3. Federal Law "On Amendments to the Federal Law "On State (Municipal) Social Order for the Provision of State (Municipal) Services in the Social Sphere" dated June 22, 2024 No. 155-FZ. http://www.kremlin.ru/acts/bank/50774. (date of access: 20.11.2024).

  4. Benevolensky V.B., Shmulevich E.O. (2013) State support for socially oriented NPOs: foreign experience // Issues of public and municipal administration, 3, pp. 150-175 (in Russian).

  5. Ganin, A.A., Aigistov, A.A. Childhood disease of exceptionalism in NPOs: diagnostics and treatment / A. A. Anin, A. A. Aigistov. (in Russian). https://rosnko.ru/tpost/mj3duhb8v1-detskaya-bolezn-isklyuchitelnosti-v-nko (in Russian). (date of access: 20.10.2024).

  6. Mersiyanova, I.V., Benevolensky V.B. (2016). Advantages of NPOs as providers of social services: testing in Russian conditions // Issues of public and municipal management, 4, pp. 7-26 (in Russian).

  7. Mersiyanova, I.V., Benevolensky, V.B. (2017). NPOs as providers of social services: verification of weaknesses // Issues of public and municipal management, 2, pp. 83-104 (in Russian).

  8. Ministry of Sports of the Russian Federation holds a competition among non-profit organizations to receive grants in the form of a subsidy (in Russian). https://minsport.gov.ru/press-center/news/minsport-rossii-provodit-konkurs-sredi-nekommercheskih-organizaczij-na-poluchenie-grantov-v-forme-subsidii-1/ (in Russian). (date of access: 11.15.2024).

  9. Olkhovsky, R.M., Zhbannikova, A.V. (2017). Provision of services in the field of physical education and sports by socially oriented NPOs // Public Service. 9(6), рp. 52-56 (in Russian).

  10. Tarasova, L.V. (2022). Features of the activities of non-profit organizations in the field of physical education and sports // Mission of Confessions, 11(7), pp. 78-83 (in Russian).

  11. Allison, M. (2001). Sports clubs in Scotland Research Report 75. https:// www.sportscotland.org.uk. 

  12. Breuer, C., Feiler, S., Llopis-Gog, R., & Elmose-Østerlund, K. (2017). Characteristics of European sports clubs. Сomparison of the structure, management, voluntary work and social integration among sports clubs across ten European countries. https: //www.researchgate.net/publication/317381517. 

  13. Carroll, D. A., & Stater, K. J. (2009). Revenue diversification in nonprofit organizations: Does it lead to financial stability? Journal of Public Administration Research and Theory, 19(4), pp. 947-966. 

  14. Feiler, S., Wicker, P., & Breuer, C. (2019). Public subsidies for sports clubs in Germany: funding regulations vs. empirical evidence. European Sport Management Quarterly, 19 (5), pp. 562-582.

  15. Feiler, S., Coates, D., Wicker, P., & Breuer, C. (2023). The perceived financial situation of nonprofit sports clubs explained by objective financial measures. Sport Management Review, 26 (4), pp. 607-627. 

  16. Gillespie, N., Anesa, M., Lizzio-Wilson, M., Chapman, C., et al (2024) How do sector level factors influence trust violations in not-for-profit organizations? A multilevel model, Journal of Business Ethics. Journal of Business Ethics, 191, pp. 373-398. 

  17. Haring, M. (2010). Sport funding in Germany. A comparative analysis of the states. Wiesbaden: VS Verlag für Sozialwissenschaften. 289 р. (in German).

  18. Haski, S., & Stegemann, L.K. (2024). The house of sport entrepreneurship – a conceptual framework for understanding the interplay of sport and entrepreneurship. International Journal of Entrepreneurial Venturing, 16(1), pp. 90-115. 

  19. Ibsen, B., & Seippel, Ø. (2010). Voluntary organized sport in Denmark and Norway. Sport in Society, 13(4), pp. 593-608.

  20. Ibsen, B., Østerlund, K., & Laub, T. (2015). Sport clubs in Denmark. In C. Breuer, R. Hoekman, S. Nagel, & H. Van der Werff (Eds.), Sport clubs in Europe. A cross-national comparative perspective, pp. 85-109.

  21. Jones, G. J., Edwards, M.B., Bocarro, J.N., Bunds, K.S., & Smith, J.W. (2018). A structural perspective of cross-sector partnerships involving youth sport nonprofit organizations. European Sport Management Quarterly, 18(2), pp. 133-155.

  22. Jones, G. J., Misener, K., Svensson, P. G., Taylor, E. & Hyun, M. (2020). Analyzing Collaborations Involving Nonprofit Youth Sport Organizations: A Resource-Dependency Perspective. Journal of Sport Management, 34, pp. 270-281.  

  23. Kappler, M., Schomaker R, & Bauer M. W. (2024). Public-private partnerships caught in a trust-trap and the potential role of information: the burden of divergent rationales. European Journal of Government and Economics, 13(1), pp. 5-28.

  24. Lamprecht, M., Bürgi, R., Gebert, A., & Stamm, H. (2017). Sports clubs in Switzerland. Developments, challenges and perspectives. Federal Office of Sport (in German). 

  25. Langer, M. (2006). Public sport funding: a regulative examination. Wirtschaftsdienst, 86(2), pp. 120-124 (in German).

  26. Lefebvre, A., Zeimers, G., Rihoux, B., & Zintz, T. (2022). Organizational resources and collaboration between sport clubs: a qualitative comparative analysis. International Journal of Sport Management, 73, pp. 179-190. 

  27. Millar, P., & Doherty, A. (2016). Capacity building in nonprofit sport organizations: Development of a process model. Sport Management Review, 19(4), pp. 365-377. 

  28. Persson, J.P., Pries-Heje, L. & Mathiassen, L. (2022). Outsourcing Agile Projects with Time-and-Material Contracts: A Trust-Control Duality Perspective, Int. J. Business Information Systems, 1(1), pp. 1-26. 

  29. Porter, J. (2024). Youth Sports Grants: Federal Grants, Foundation Grants & More [2024].  https://eventpipe.com/blog/youth-sports-grants. 

  30. Prentice, C. R. (2016b). Why so many measures of nonprofit financial performance? Analyzing and improving the use of financial measures in nonprofit research. Nonprofit and Voluntary Sector Quarterly, 45(4), pp. 715-740. 

  31. Sigloch, J. (2005). Rechnungslegung [Accounting]. In C. Breuer & A. Thiel (Eds.), Handbuch Sportmanagement, pp. 195-215. 

  32. Skille, E. Å. (2011). Sport for all in Scandinavia: Sport policy and participation in Norway, Sweden and Denmark. International Journal of Sport Policy and Politics, 3(3), 327-339.

  33. SRA. (2018). Sports Club Survey Report 2017/18. Sport and Recreation Alliance. https:// www.uksport.gov.uk. 

  34. Trachlser, T., Degaris, L. & Dodds, M. (2015). Sport commercialism and its impact on sponsorship strategy. Choregia, 11(2), pp. 77-92.

  35. Wicker, P., & Breuer, C. (2011). Scarcity of resources in German non-profit sport clubs. Sport Management Review, 14(2), pp. 188-201. 

  36. Wicker, P., & Breuer, C. (2013). Understanding the Importance of Organizational Resources to Explain Organizational Problems: Evidence from Nonprofit Sport Clubs in Germany. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 24(2), pp. 461-484. 

See also