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## Meet the editor

Dr. Tatjana Horvat is an expert in auditing, accounting, financing, taxes, and public budgets for companies and public institutions, being engaged as an expert in several countries. She is also a Certified State Internal Auditor (licensed by Ministry of Finance RS) and a Certified Internal Auditor for Business Sector and Certified Accountant (licensed by Slovenian Institute of Auditors). At the Ministry of Justice of Slovenia, she is a

member of examination boards for court expert candidates and judicial appraisers in the following areas: economy/finance, valuation of companies, and forensic investigation of economic operations/forensic accounting. She also works as an associate professor for accounting and auditing. For many years, she has served as the president of jury for the best annual (financial) report of big companies and financial institutions as well as the best CFO. At the most important daily business newspaper Finance in Slovenia (Swedish ownership), she is the editor and head of area for business, finance, and tax related articles as well as educational programs. She is the standard-setter for transparent financial reporting of big companies, financial institutions, and educational institutions. She has written more than 300 papers, articles, books, and manuals and she has been a guest of many international scientific and business conferences. At the National School of Leadership in Education she is involved as a professional in European projects for effective financial leadership in educational institutions.

Contents

**Section 1**

**Section 2**

Framework

**Section 3**

**Section 4**

**Section 5**

*by Mohammed Aboramadan*

*by Mária Murray Svidroňová*

*by Tatjana Horvat and Vito Bobek*

*by Bernadene Erasmus and Peter J. Morey*

Nonprofit Organizations

*by Tatjana Horvat*

**Preface III**

Introduction **1**

**Chapter 1 3**

Theoretical Framework of Non-Profit Organisations **9**

**Chapter 2 11**

Governments and Non-Profit Organisations **25**

**Chapter 3 27**

Financial Aspects of Non-Profit Organisations **41**

**Chapter 4 43**

Recruitment in Non-Profit Organisations **63**

**Chapter 5 65** Connect-Active: An Innovative Recruitment Model for Potential Volunteers in

Factors that Drive Volunteerism in Nonprofit Organizations: A Theoretical

On Relations between Government and Non-profits: The Case of Slovakia

Planning the Audit of Financial Resources in a Non-Profit Organization

Introductory Chapter: Selected Aspects of Non-Profit Organisations

### Contents


Preface

Not-for-profit organisations (non-profits) are increasing their influence and are becoming an increasingly important partner both to governments and international organisations. Many governments around the world want to maintain and strengthen partnerships with non-profits or the so-called 'third sector', which is why they pay particular attention to it, not just at the declarative level. Taking all the changes that have taken place in the last decade into account means that

non-profits have to adapt to those changes, that is, they have to organise themselves properly, they have to adapt their programs, and obtain adequate resources – or in

The first section deals with the **theoretical framework of non-profit organisations**, examining and reviewing the factors that drive volunteering in non-profits. It follows a multidisciplinary approach in defining and examining the factors that drive individuals to volunteer in non-profits. The section provides a theoretical framework on how different factors are associated with volunteerism in non-profits. It also provides analysis of the volunteerism concept by looking at factors that drive volunteerism from diverse standpoints, e.g. an economic, sociological, psychological, and managerial standpoint. Most notably, empathy and extraversion proved to be highly correlated with volunteerism. Mediating factors could be also unveiled, such as "principle of care" for the case of empathy. Agreeableness is also linked to volunteer work but is not typical of all volunteers. Other variables such as openness to experience, solidarity, and personal identity were given equal importance. We also looked at the economic theory of volunteerism that speculates that individuals are self-interested when they decide to volunteer. Moreover, we considered religion and its impact on individuals' willingness to volunteer. Then, we turned our focus to demographical factors such

other words, they have to adapt their strategies to the new situation.

This book is organised into four sections, in addition to the Introduction.

as gender, race, age, and education to provide a fuller and more solid answer.

and the firms' profits.

**The second section focuses on the relationships between governments and non-profit organisations** by dealing with the question: does privatisation of state-owned enterprise allow for efficiency improvement of the firm, and provides the impetus for indirect entry regulation of private entrants? When privatisation occurs, three major interacting effects determine the optimal privatisation level in a mixed market: *welfare-reducing effect*, *output substitution effect*, and *efficiencyenhancing effect*. Given these effects, this section examines in depth that, under certain conditions, partial privatisation in a mixed duopoly is a win-win-win policy for the social welfare, state-owned, and private firms. It implies that the partially privatised firm concerns not only firm's profitability, but social responsibility. The efficiency-enhancing effect, if weak, will impel the state-owned firm to release more stock shares at the optimum amount, and then bring about a welfareimproving, profit-increasing situation. The study further demonstrates the effects of the magnitude of the efficiency-enhancing effect on the level of social welfare
