Long-Term Determinants of the Size of the Non-Profit Sector Serving Households in the Visegrad Countries

Non-profit sector plays essential role in economies despite its marginal share in GDP since it provides valuable services for needy social groups. The article investigates differences in socioeconomic determinants of the size of the non-profit sector serving households in the Visegrad Countries particularly as to the magnitude and direction of the effect that these determinants exert. Getting knowledge about significant determinants of non-profit sector is important both for policy makers and the founders of non-profit organizations in their strategic decision making. The results are based on panel data regression in the long-term period 2000-2014. The Visegrad Group was investigated because it is a cultural and political alliance of four Central European states. Selected indicators represent supply-and demand-side theory of non-profit sustainability. The results show that GDP per capita is the significant determinant of the non-profit sector in the country with no tax assignation. The different systems of care for the elderly have an impact on the determinants of the size of the non-profit sector serving households (old-age dependency ratio, life expectation index). The government failure theory was established only in the Czech Republic where obvious competition between non-profit sector and health care system exists. In most Visegrad countries non-profit organizations help governmental sector to cope with increasing number of refugees in need, which supports the interdependence theory.