Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)


Sector Non-profit Organizations in the Management of Socio-Economic Systems

Author(s): Alexander N Khorin, Yulia M Potanina, Alexander V Brovkin

The aim of this work is that the most important actors of market relations in modern Russia are non-profit organizations, the basis for the so-called "third non-profit sector" of the country. Of particular importance to the activities of non-profit organizations cannot be overemphasized, because they are its activity replaces the passivity of the state and municipal structures that would have to carry out social programs. Social movement appears where the state has no resources to solve the real societal challenges and problems and the business is just not profitable. Like any organization, NGO needs funds to implement its activities. Often the main source of funds is grants, donations, but to count on this help continuously. The law allows NCOs to conduct entrepreneurial activities on the condition of expenditure of profits for statutory purposes. However, marketing, nonprofits are often not ready to compete with commercial organizations. This explains the relevance of the chosen topic in the modern economic realities. The subject of research is a commercial organization - the legal entity pursuing as the main goal of its activities deriving of profit. Such organizations may be created in the form of economic societies and partnerships, production cooperatives, state and municipal unitary enterprises. The result is that non-profit organizations this organization, created for the implementation of socially useful activities, through their institutions, natural persons or legal entities (both commercial and non-commercial), to achieve cultural, social, educational, scientific, charitable, managerial purposes, in order to implement fire and other safety of citizens, development of physical culture and sports, meet spiritual and other nonmaterial needs of citizens, legal aid, settlement of disputes and conflicts, protection of rights and legitimate interests of citizens and organizations. The purpose of the establishment may differ from the above stated; the main requirement is the focus of the organization on the achievement of public goods. The establishment of nonprofit organizations seems to be very promising, given the possibility of almost unlimited use of the profit received from such activities to the statutory purpose, to the same conditions of taxation of nonprofit organizations, even engaged in economic activity, is much more favorable than the order of payment of taxes prescribed for all types of commercial legal entities.

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