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The challenge of equity funding access to ensure financial sustainability and diversification of non-profit organisations
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Resumo(s)
The current economy is impacted by many twists and turns. This includes the inflation which
followed the Covid-19 pandemic. Faced with this changing environment, non-profit
organisations are confronting a slowdown in their funding as the demand for their services
continues increasing.
This situation obligated non-profits to diversify their funding sources by alternating between
debt and grant financing. However, this ever-increasing funding shortfall and non-profits’
inability by law to provide ownership, is pushing these organisations into a starvation cycle.
This paper will focus on the access to equity financing for non-profits to diversify their funding
sources and overcome the starvation cycle while ensuring financing sustainability.
Descrição
Palavras-chave
Non-profit organisations Equity funding Hybrid organisations Starvation cycle CEMS MIM