Published date: Nov 30 2021

Journal Title: KnE Social Sciences

Issue title: Economies of the Balkan and Eastern European Countries – Volume 2021

Pages: 228–241

DOI: 10.18502/kss.v5i9.9896

Lorena Dadić Fruklorenad@fthm.hrUniversity of Rijeka, Faculty of Tourism and Hospitality Management, Primorska 46, p.p. 97, 51410 Opatija, Croatia

Jelena Đurkin BadurinaUniversity of Rijeka, Faculty of Tourism and Hospitality Management, Primorska 46, p.p. 97, 51410 Opatija, Croatia

The lack of funds needed to carry out activities is often a limiting factor to the development of non-profit organizations (NPOs) and a threat to their survival. To be financially sustainable, NPOs must seek to increase the share of their own earned income while reducing the share of public funding (donations) in their income structure. By operating in developed tourist regions and undertaking activities in tourism, NPOs can take advantage of an array of opportunities to generate their own income. The aim of this paper was to determine whether there are any differences in financial sustainability between NPOs operating in the most developed coastal tourist destinations of Croatia and NPOs operating in the country’s most developed continental tourist destinations. The paper also aimed to identify which NPOs show a higher level of financial sustainability, that is, which NPOs have a higher share of own earned income relative to the share of donations and grants. To this end, an online survey was conducted of NPO Assembly members in the most developed coastal and continental tourist destinations (based on tourist traffic in the past 10 years) in Croatia. The results indicated that there are statistically significant differences between NPOs operating in coastal tourist destinations and NPOs operating in continental tourist destinations with regard to the amount of income generated by active self-funding (selling products and providing services) and the amount of income from other self-funding (income from membership fees and assets).

Keywords: non-profit organizations, financial sustainability, tourism, self-funding

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