Web-disclosure practices for transparency and the sustainability of non-profit organisations

Abstract

In times of economic uncertainty, non-profit organisations (NPOs) are struggling to stay afloat as funds diminish and partners prioritise their own survival. This study is anchored to the premise that the sustainability of NPOs is highly dependent on their ability to gain stakeholder trust, and that strategic communication is central to achieving this. We focused on the practices of Malaysian NPOs in measuring and reporting the impact of their programmes. Through an analysis of their official websites, we sought evidence of how programme outcomes were reported and the extent to which NPOs engaged in dialogic communication using readily available multimedia tools. Finally, we devised and tested a programme evaluation instrument for use by Malaysian NPOs when planning for outcome-driven activities. The findings revealed that a significant number of Malaysian NPOs were operating without an official website. Those which had websites generally appeared to provide opportunities for dialogic communication with stakeholders and the wider community. A survey of NPOs suggested that they took dialogic communication seriously and responded to communication in a timely manner. However, the NPOs were less successful in reporting their initiatives in a way that would help them gain stakeholder trust. As such, opportunities to convince potential funders for future activities appear limited, threatening the sustainability of the NPOs. The second phase of the study suggests that the use of the programme evaluation instrument helps in sensitising NPOs about planning for and reporting impactful programmes.