The Theories of Non-profits: A Reality Check from Slovakia
The goal of the paper is to analyze the economic determinants of the non-profit sector in Slovakia. In contrast to the neoclassical market failure approach, we build on the institutionalist and systems-theoretic framework that draws attention to the shortcomings of the dominant institutional structures of the private for-profit and public sectors. Utilizing a representative survey of 60 nonprofits, we identify their key characteristics and single out the “supply-side” and “interdependence” theories as their most useful explanations. These results accentuate the role of nonprofits in realizing societal values, while taking account of institutional complementarities, regional variations, and legal peculiarities.
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