"Money follows the person" mechanism in the context of changing approaches to state funding of non-governmental organizations in Ukraine
Authors: Tkachuk Iryna 
Published: January 2023

Introduction. This article summarizes the arguments and counter-arguments within the scientific discussion on the mechanisms of formation and distribution of state funding of non-governmental organizations in Ukraine.
The main aim of the study is to justify the need to introduce the "money follows the person" mechanism in the context of changing approaches to state funding of non-governmental organizations in Ukraine.
Systematizing information from various sources and approaches to solving the problem of distribution of state funding of non-governmental organizations in world practice has shown that this problem needs further thorough research, especially in the context of developing new approaches to increase the efficiency of the State Budget funds and promote such funding.
The topicality of solving this scientific problem is that the effectiveness of the distribution of state funding of non-governmental organizations influences not only the budget of non-governmental organizations but also the solution of important social and economic problems that the state delegates to these organizations.
© Iryna Tkachuk, 2022
Received: 06.08.2022 р. Accepted 30.09.2022 р. Published: 14.10.2022 р.
This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 license, which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited.

Cite as : Tkachuk, I . (2022). "Money follows the person" mechanism in the context of changing approaches to state funding of non-governmental organizations in Ukraine. Economic analysis, 32 (3), 148-159. DOI: 10.35774/econa2022.03.148

In the article, the study of the introduction of the "Money follows the person" mechanism was carried out in the following logical sequence: the disclosure of the peculiarities of state funding of non-governmental organizations in Ukraine at the expense of the State budget; highlighting the main models of interaction between the state and civil sectors that exist in the world; generalization of the basic principles of state funding of non-governmental organizations and substantiation on their basis of the need to introduce the "Money follows the person" mechanism for this type of funding; substantiation of the choice of organizations dealing with physical culture and sports as the most suitable for the pilot introduction of the mechanism among Ukrainian non-governmental organizations; coverage of the peculiarities of the introduction of this mechanism.
Methodology. The methodological tools of the study were economic and statistical methods (system, comparative, grouping), graphical, abstract and logical method, including analogy and comparison, induction and deduction, scientific abstraction, etc., the time from 2006 to 2019 was chosen as the study period. The object of the study is the processes of formation and distribution of state funding between non-governmental organizations of Ukraine, namely sports organizations, because they are the most suitable for the pilot implementation of the "Money follows the person" mechanism for the distribution of state funding between non-governmental organizations that are eligible for it.
Results. The article presents the results of an empirical analysis of the formation of budgets of non-governmental organizations of Ukraine in general and in particular public organizations dealing with physical culture and sports at the expense of the State Budget of Ukraine, which showed insufficiency, unevenness, subjectivity and discrimination in the process of distribution of state funding between non-governmental organizations eligible for such funding. The study empirically confirms and theoretically proves the need to change approaches to this process and justifies, in this context, the need for the introduction of the "Money follows the person" mechanism.
The results of the study can be useful for non-governmental organizations in Ukraine, state and local authorities, as well as directly for consumers of services provided by non-governmental organizations.