Central European Management Journal

Funding of Public Benefit Activity with 1% of Personal Income Tax Scheme: Empirical Research

Mamcarczyk, Mariola Zieniuk, Paweł

Cracow University of Economics

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Abstract

Purpose: This article seeks to assess the scale of using the funds from Poland’s 1% of personal income tax scheme in the funding of public benefit activity conducted by public benefit organizations in the area of promotion of sports and physical culture. Moreover, it attempts to establish the determinants of revenues from this source earned by individual organizations.
Design/Methodology/Approach: The article presents the results of own research based on a sample of 100 random public benefit organizations. Research conclusions are formulated based on the literature and legislation review, data from the financial statements and technical reports of selected organizations, and statistical methods selected to verify the formulated hypotheses.
Findings: The revenues earned by the organizations from the 1% scheme do not depend on conventional factors, such as organization coverage, the number of beneficiaries, and the persons involved in the activity of the organization or duration of public benefit activity.
Research limitations/Implications: The model developed for research purposes considers no immeasurable factors that may affect the amount of earned revenues, such as recognizability of organization in the society or taxpayer loyalty.
Originality/Value: Our research pioneers the issue of determinants of funds acquired by the organizations from the 1% scheme. Research conclusions can be regarded as a voice in the discussion on the sources of funding the operation of foundations and associations.

Metadata

Journal Central European Management Journal 
Volume 28 
Issue 4 
Issue date 12/2020 
Type Article 
Language en
Pagination 86-106
DOI 10.7206/cemj.2658-0845.36
ISSN 2658-0845
eISSN 2658-2430