The Importance of Non-Profit Organization in Globalized World: International Comparison of American and European Continent

University of Zilina, Faculty of Operation and Economics of Transport and Communications, Department of Economics, Univerzitna 1, 010 26 Zilina, Slovakia

^* Corresponding author: ivana.podhorska@fpedas.uniza.sk

Abstract

Research background: In developed countries, we see a significant increase in the importance of non-profit organizations thank to public initiative. The primary objective is to improve the quality of life in society. Cooperation between private, public and non-profit sectors creates synergy effects. The primary problems of non-profit organizations include legislation that does not sufficiently motivate entrepreneurs to support non-profit subjects, but also a shortage of employees and volunteer.

Purpose of the article: Despite the fact that, under the conditions of globalization, there is a greater interconnection of the economies of individual countries, also in the area of non-profit sector, there is still exist important differences between the operation and importance of non-profit organization in an American and European continent.

Methods: Firstly, theoretical part of the paper provides historical development of non-profit sector based on primary theoretical approaches. Secondly, practical part of the paper describes non-profit sector on American and European continent. In other words, the paper summarises theoretical and empirical knowledge on importance of non-profit sector in various countries around all the world. Paper main aim is the highlighted the importance of non-profit sector under the conditions of globalization with the emphasis on the international comparison of American and European point of view.

Findings & Value added: The results show that non-profit sector plays significant role in building national economies. This paper is the one part of the project outputs focused on non-profit sector. In developed countries, we see a significant increase in the importance of non-profit organizations thank to public initiative.