The influence of the main financial resources of non-profit sport organisations on their strategy

Abstract

Non-profit organisations play a critical role in many societies because they fulfill the needs in areas that are not covered by the public or private sector. The primary purpose of all non-profit organisations is not generating income and, in most cases, the income from their own activities is not enough to survive. Therefore, they are forced to look for additional ways of funding and are dependent on them. These types of financial resources can be divided into two main groups – internal and external resources. Income from own activities and member-ship fees can be an example of internal resources. Subsidies from the state or municipalities, sponsorship money, and donations are part of organisations’ external resources. The main aim of this paper is to reveal the influence of different types of financial resources of non-profit sport organisations on their strategy. The article applies general findings for non-profit organ-isations from the paper of Stone, Bigelov, and Crittenden (1999) on “Research on strategic management in non-profit organisations” on the organisations from the sport area. Funding and financial resources may influence the components of a strategic process: formulation, content, and implementation. This paper focuses on the extent in which funding and financial resources affect the organisation’s strategic management and describes the influence of different types of financial resources on non-profit sport organisations’ strategy by reviewing a range of studies on the strategic process and funding of non-profit organizations that are applicable in sports. The article summarizes different findings and issues that have been de-scribed and published in the pre-reviewed academic journals with no restriction on the date of the issue.