Economic activity in non-profit organizations

Sa？etak The activity of a non-profit organization is based on the principle of non-profit, which means that it is not established for the purpose of gaining profit but can also carry out economic activity. Non-profit organizations make the most of their incomes through tenders and donations from the state budget, local and regional self-government units and EU funds, and donations and membership fees. Some of these organizations also generate income through the pursuit of economic activity because regular activity income is insufficient to achieve the fundamental goals set by the statutes of the organization. Non-profit organizations, in addition to the activities that achieve its objectives set by the statutes, may carry out economic activities if it is determined by the statutes and in accordance with special regulations regulating the conditions for performing such activity. Given that non-profit organizations carry out an economic activity with the goal of increasing total revenues, in the end, this leaves no room for loss-making business. The aim of this paper is to prove that the necessary condition of economic activity as a business activity of non-profit organizations is sustainability. This paper presents the results of research conducted among non-profit organizations performing an economic activity