Time Management

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THE IMPACT OF TIME MANAGEMENT ON FINANCE OF SLOVAK

NON-PROFIT ORGANIZATIONS

Emilia Gresakova

University of Zilina, Slovakia

[email protected]

ABSTRACT

Non-profit organizations are not non-profit primarily because they are not making a profit, but

because they offer products and services to target groups who cannot buy them themselves.

This is why an important part and specificity of non-profit organizations is their multi-source

financing, consisting of public, private and individual forms of support. The budget is an

essential part of a non-profit organization. Multi-source funding of the organization's stability

and sustainability provider. The main objective of budgets is to prevent the consumption, in the

worst case of theft, of financial resources for unauthorized purposes. It is also important for

non-profit organizations to support and monitor innovations that allow for a more rational

distribution and use of finance, and thus improve service quality. Under the conditions of non-

profit organizations, but also businesses, the organization is mainly about trying to analyze,

plan finances and control costs. The manager is responsible for the optimal division of tasks

between individual financial units and within management levels. Individual departments are

responsible for efficient use of financial resources. The financial and accounting departments

of the organization should be transparent to each other. The task of management is to avoid

duplication of requirements, by permanent communication, either on horizontal or vertical

level, it is necessary to clarify and logically justify the expressed requirements. The task of the

financial analysis is to characterize how the financial objectives that are specific to the NPO

have been met, to identify the causes of deviations from the planned quantified goals, to assess

the adequacy of the financial goals set in the NPO and the adequacy of the instruments and

measures to ensure them. and characterize the state of financial health of the organization, its

expected future development as well as the overall market position.

Keywords: Non-profit organizations, Sources of funding, Financial analysis

1. INTRODUCTION

The importance of using time management is exceptional for the non-profit sector in that it

helps executives to demonstrate a better ability to dispose of resources, which will also be

reflected in the reallocation of resources. Time management is a discipline that deals with the

organization of time. In this type of management, it is very important to set clear objectives for

its work and set priorities, define what is important to us in terms of work or personal activity

and how much time and resources we are willing to devote to this activity and, last but not least,

to eliminate unnecessary activities. So we will discuss individual strategies with a view to

improving organizational skills (Gresakova, & Chlebikova, 2018). When planning, it is

necessary to think about your own performance, which is different for each person and during

the day is subject to certain fluctuations, but if the curve of distraction. We should plan specific,

measurable, accepted, realistic, time-bound and positive terms. The objectives should be

encouraging. Effective implementation of individual goals requires managers to constantly

rationalize them, look for approaches and ways to make them the best and in the shortest

possible time Chlebikova, et al. (2015). Prioritizing means that managers have to decide what

they want every day or do it before everyone else to achieve their goals Diener, et al. (2009).

The ABC method is based on the philosophy of percentages of important and less important

tasks. This division is based on analogies of inventory management.

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The Eisenhower principle represents a technique named after former US President Dwight

David Eisenhower. Its essence highlights the argument that importance should always take

precedence over urgency. Delegation in the context of techniques is a planned management

technique or principle necessary to streamline the work of managers. The helicopter perspective

focuses on structuring tasks and the time to perform them into six levels that help managers see

tasks from a “perspective” and decide priorities accordingly. In defining the tasks to be

performed, the S.O.R.U.S method, whose name is derived from the initial letters of the sub-

steps it consists of, is also a very effective tool for managers. Partial steps of the method are:

summary of tasks, estimation of time for individual activities, reserve time, prioritization and

back-checking Francis-Smythe, & Robertson, (1999a). The elephant technique is mainly used

in solving large complex tasks. These tasks that department managers face are complex. As part

of time management, the authors recommend dividing the tasks into smaller manageable

projects, which will be solved in a chronological sequence of activities. before all other tasks

and always proceed from the most difficult and most important task (Andjarwati, et al. 2019).

In order for managers to analyze the time spent effectively setting time, they must first

determine what they are spending their time on, then they can reduce the tasks that hold them

and focus on those that move the business forward. This may in the future result in raising funds

for non-profit organizations (Francis-Smythe, & Robertson, 1999b).

2. SOURCES OF FUNDING FOR NON - PROFIT ORGANIZATIONS

Non-profit organizations are heavily dependent on donations, subsidies from government or

business entities and corporations, institutions or individuals, who benefit from raising

awareness of their company and reputation through community service. The purchase of long-

term tangible and intangible assets, operation and routine activities of non-profit organizations

are directly supported from public and private sources (Dobesova, & Fabian, 2013).

2.1. Public sources of funding

Public-non-profit sector relations focus almost exclusively on financial resources. The public

sector has the advantage of a large number of employees with a more stable position compared

to the non-profit sector. At the same time, the government has the power to tax and control

funds providing subsidies and grants to non-profit organizations (Holubkova, 2012). We

recognize the direct financial support of the state, where we talk about support from the budget

revenues of the state budget. The state provides subsidies to the non-profit organization 35 and

also concludes contracts and contracts with it, mainly due to lower financial demands and

higher efficiency in comparison with state institutions. Subsidies can be from the state budget,

from the budget of self-governments and HTUs or from European funds. Legislatively, the

subject of the state budget is dealt with in Act no. 523/2004 Coll. on budgetary rules of public

administration and on amendments to certain acts. This law regulates the budget of public

administration, especially the state budget, the budget process, the rules of budget management,

the establishment and management of budgetary and contributory organizations and others.

Another amending law is Act no. 583/2004 Coll. on budgetary rules of territorial self-

government and on amendments to certain acts Green, & Skinner, (2005). The subject of this

Act are the budgets of territorial self-government and higher territorial units, mutual financial

relations between the state budget and budgets of higher territorial units, as well as the relations

of budgets of higher territorial units to legal and natural persons and others. In addition to the

aforementioned laws, the obligations of non-profit organizations, as entities using public funds

for their financial management, also deal with the Act no. 112/2018 Coll. on the social economy

and social enterprises and on the amendment of certain laws. By indirect financial support of

the state we mean exemption of non-profit organizations from taxes and duties, when the state

waives part of its income, 2% personal income tax, assignment of 2% corporate income tax,

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when a legal entity can decide to transfer part of the tax to another organization, respectively to

the recipient whom he determines, and finally the deduction of the gift from the tax base

(Trettin, 2019).

2.2. Private sources of funding

The business sector can also be a partner of non-profit organizations. The strengths of this

cooperation are the financial resources available to entrepreneurs, even if they are not limited,

as well as organizational skills and opportunities, which the business sector often has more than

a non-profit and stable institutional base that can serve in the case of cooperation. The business

sector has better access to state bodies that can help generate, not only financial, resources

needed for sector cooperation, but also has better technological equipment (Holubkova, 2012).

The foundation, established by a private person, serves as a provider of monetary and non-

monetary funds to third parties, while we recognize three foundation sources. Foreign, forming

the strongest financial base for financing non-profit organizations in Slovakia, domestic and

community, which provide grants for raising the standard of living within their community.

Another private source of financing is corporate donation, where a company provides some

value without the right to consideration, and finally various strategic partnerships operating on

the basis of charitable marketing or traditional sponsorship, where provided funds, products,

services or rental of premises receive value from nonprofit organizations, such as advertising.

The concept of sponsorship is not defined in the legal system of the Slovak Republic Kaasa,

(2019). A relatively new source of funding is the income from advertising for charitable

purposes. Contributions and gifts Gifts and the donation contract are regulated by law no.

40/1964 Coll. The Civil Code regulates inheritance within the framework of § 628 to § 630 and

§§ 460 and 487. With the donation contract, the donor leaves something or promises to the

other party, the recipient, free of charge, and the donor accepts this gift or promise. Contracts

can be donation or grant, or financial contribution contracts. Donations can be made to a non-

profit organization from their private sources by entrepreneurs as well as other independent

entities. According to the form, donations are divided into material and financial, which include

contributions. They are not subject to tax, do not require consideration and may be tied to a

specific activity (Kmecova, 2018).

2.3. Individual sources of funding

By individual sources for non-profit organizations we mean funds obtained from individuals,

specific people or individual donors in the form of deductions from wages, public charitable

events aimed at collecting financial contributions from individual donors, direct contact with

people, membership fees within the organization Belas, et al. (2018). Public Collections Public

collections are dealt with in the Slovak Republic by Act No. 162/2004 Coll. on public

collections and on amendments and supplements to certain acts, valid from 1.7.2014 and Act

no. 71/1967 Coll. on administrative proceedings as amended. The public collection is

characterized as the acquisition and accumulation of voluntary financial contributions. The

range of contributors is not predetermined, the collection is carried out for a predetermined

public benefit purpose or for individually designated humanitarian aid to a natural person or a

group of persons who have found themselves in a difficult life situation such as an emergency,

life threat or disaster. Only legal entities authorized to do so may make public collections. These

include a civic association, a non-profit organization providing services of general interest, a

non-investment fund, a foundation, the Slovak Red Cross, a special purpose facility of a church,

a special purpose facility of a religious society, an organization with an international element,

an interest association of legal entities and an association of municipalities. This legal entity

must be entered in the register of public collections, which may be done by: the district office,

if it is a public collection in the territory of municipalities belonging to its district, the Ministry

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of the Interior for public collections held in the territory exceeding Office of the Ministry of the

Interior with the prior consent of the Ministry of Foreign Affairs and European Affairs of the

Slovak Republic for public collections from which the proceeds or part thereof will be used

abroad Carvalho, et al. (2019). The collection costs are the costs incurred by the organization

to carry out the collection and are therefore related to its material, technical and organizational

support, management and detection of the use of the net revenue of the collection. We recognize

the revenue from the public collection gross and net. Gross income is the sum of all

contributions received by the collection, taking into account interest on contributions of

contributions to a special account maintained at the bank, which is also used to collect

contributions to the collection. We obtain the net income by subtracting the costs of the

collection from the gross income of the collection. We call fundraising a strategically oriented

activity through which a non-profit organization obtains funds and resources for its activities.

The basis is a well-developed project. Crowdfunding has become a phenomenon in recent years,

which, like fundraising, raises funds for the implementation of a certain project, but the whole

process takes place on the Internet. Investors are individuals from the public who contribute a

certain amount and within a specified period. Thanks to these funds, the organization can then

carry out its project. The presentation of the project to the public as well as a wide range of

potential contributors Kundelis, & Legenzova, (2019) are a great advantage for the creator. The

Crowdfunding portal for non-profit organizations in the conditions of the Czech Republic and

Slovakia is, for example, the Philanthros project. It is aimed at supporting charitable,

humanitarian and environmentally friendly non-profit organizations. Individual organizations

can apply, publish their project and convince the public of the usefulness and benefits of their

project. Anyone can contribute financially from as little as CZK 1 (Major et al., 2002).

3. METHODOLOGY

The present study looked at finding a relationship between the time managers of executives and

the financing of their business. We evaluated the individual items of the questionnaire by

creating contingency tables and testing with Pearson's chi square test of character independence.

In case of finding dependence, we measured the intensity of dependence by Cramer coefficient.

The reliability of the items in the questionnaire was assessed with a Cronbach's alpha of 0.81,

which indicates the optimal value and therefore the items were relevant. This tool has 10

statements on a 5-point scale Janoskova, & Kral, (2019). The current study examined 108 non-

profit organizations, with 384 valid cases. The collected data were analyzed using the Statistical

Package (SPSS) software.

4. CONCLUSION

We averaged the answers to the questionnaire, and used the average of the resulting

questionnaires to create one 2 x 4 (l x c) pivot table. Created pivot table represents empirical

and theoretical abundance. The first categorical variable was the completion of a course in the

field of time management and the second concerned questions focused on the connection

between the choice of financing and the use of time management as we an see in table 1.

Table following on the next page

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Time management

course

Financing non-profit organizations

Together B C D E

Yes Oij 3 22 93 27 145

Yes Eij 3,8 27,6 92,9 20,8 145,0

No Oij 7 51 153 28 239

No Eij 6,2 45,4 153,1 34,2 239,0

Together

10 73 246 55,0 384

10,0 73,0 246,0 55,0 384,0

Table 1: Contingency table of actual and theoretical frequencies of variables

(Source: Author)

I fulfilled the testing conditions by combining the averaged answers "A" and "B" to get the

following table, which meets both conditions for the evaluation of Pearson's χ testu - test of

character independence Durana, et al. (2020). At the level of significance alpha 0.05, I test

hypothesis H0 whether there is a significant dependence between completing a course in time

management and financing a non-profit organization. H0: There is no correlation between

taking a time management course and financing a non-profit organization. Based on the

comparison of the p-value from the table, we do not reject the values of alpha, p > α, H0. I

consider the characters independent.

Pearson's χ² - character independence test

Test criterion value Df p-value

5,089 3 0,172

Table 2: Pearson χ² - character independence test

(Source: Author)

On the significance level of alpha 0.05 we accept the hypothesis that there is no dependence

between attending a time management course and setting goals and priorities. Thus, it can be

stated that time management has a significant impact, according to studies, on labor-induced

stress, somatic symptoms, job satisfaction and self-assessment Gresakova, & Chlebikova,

(2019), but not on the financing of non-profit organizations. Non - profit organizations long -

term tangible and intangible assets used for their main activity, they are largely financed from

the public or private resources obtained for its activities, respectively. they obtain it by physical

donation, inheritance. They are unable to generate sufficient financial resources from their own

activities to invested in fixed assets. According to the contribution, whether they receive

funding does not depend on the time management ability of managers in non-profit

organizations. In order to be able to raise financial resources, they must assess their financial

health. The assessment of the financial health of a non-profit organization can be assessed by

liquidity, debt ratios, debt ratios and equity and EBITDA and interest expense under the criteria

of the Company's Financial Situation Index (Holubkova, 2012).

ACKNOWLEDGEMENT: This is paper is an outcome of project VEGA: 1/0544/19 Formation

of the methodological platform to measure and assess the effectiveness and financial status of

non-profit organizations in the Slovak Republic.

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