- What is the Rationality of financing in NPOs – WHY FINANCING
- 4 Stages of Financing
· Stage I- INCOME – Money capital Raised from OUTSIDE
· Stage II – EXPENDITURE – Money raised from outside in Stage I
· Stage III –INCOME - flow back) - income from Stage II
· Stage IV- EXPENDITURE - outflow- investing Profit from Stage III
- The Social Law of Triangular Relationship
Sources of External financing (GRANTS) & how it functions
1. Proportional financing
2. Demand/deficit financing –
3. Fixed-term financing –
Project-related grants financing