MECHANISMS FOR IMPROVING THE EFFICIENCY OF FINANCIAL RESOURCE MOBILIZATION AND ALLOCATION IN NON-PROFIT ORGANIZATIONS

Authors

  • Toshpulatov Farrukhbek Asronbek ugli Independent Researcher at the Research Center “Scientific Foundations and Problems of the Development of the Economy of Uzbekistan” under TSUE

Keywords:

Non-profit organizations; financial resources; resource mobilization; allocation efficiency; transaction costs; revenue concentration; public grants; operating reserves.

Abstract

This study examines how non-profit organizations can improve the efficiency of financial resource mobilization and allocation when funding is fragmented across public grants, private donations, sponsorship, membership-related receipts and own-source income. The article combines an international literature review with an institutional-financial analysis of Uzbekistan’s current civil-society funding architecture and administrative data from eight completed public grant competitions in 2026. The selected calls had a combined announced budget of UZS 7.065 billion, attracted 517 applications and supported 46 applications, producing an aggregate support rate of 8.9%. The dispersion across calls was substantial: support rates ranged from 4.6% in the national competition to 35.7% in Surkhandarya, while applications per UZS 1 billion of announced budget ranged from 19.3 to 172.5. These differences indicate that access to financial resources is shaped not only by the nominal volume of funding, but also by competition intensity, transaction costs, restrictions on use, and the organization’s capacity to combine different sources. To address this problem, the study proposes an integrated four-stage mechanism consisting of source screening, concentration control, transaction-cost adjustment, and allocation balance. A Net Resource Efficiency coefficient is introduced to distinguish nominal financing from the amount effectively available after resource-mobilization and compliance costs. Revenue concentration is monitored separately through the Herfindahl–Hirschman Index rather than treated as automatically harmful, reflecting recent evidence that diversification does not always increase financial capacity. The proposed mechanism is designed as a practical decision framework for non-profit managers and public funders and does not rely on forecasting assumptions.

Downloads

Published

2026-05-31

Issue

Section

Articles

How to Cite

MECHANISMS FOR IMPROVING THE EFFICIENCY OF FINANCIAL RESOURCE MOBILIZATION AND ALLOCATION IN NON-PROFIT ORGANIZATIONS. (2026). American Journal of Business Management, Economics and Banking, 48, 331-341. https://americanjournal.org/index.php/ajbmeb/article/view/3798