The financial sustainability of Portuguese Private Institutions of Social Solidarity: are the critical regions preserved from the fade?

Abstract

The objective of this work was to financially analyze the balance sheets and financial reports from a sample of Portuguese non-profit organizations. These organizations were observed in a certain region (Braganca) of the inner area of Portugal in the austerity period between 2011 and 2014. We detected that most of these institutions followed a convergent path for their major financial variables. We particularly studied the sales’ volume, the ratio of dependence on public support, the employees’ expenses and the earnings before taxes, interests and depreciations. Our estimations, by System of Generalized Method of Moments, also evidenced that the size of each institution interfered with the sales’ profile and with the level of employees’ expenses.