What Can Waqf Organisations Learn from Non-profit Organisations on Accountability? A Proposal for Social Impact Measurement

Abstract

AbstractWaqf organisations are not only known as a religious organisation, but also as a non-profit organisation (NPO) that are responsible and accountable to manage endowment funds and properties of the donors (waqif) to address socio-economy issues. Despite their growing prominence, they have not yet achieved their fullest potential in exerting their accountability to stakeholders. This could be attributed to the limited disclosure on how they measure and report their social impact and values. Disclosing appropriate information on the impact of waqf can garner support and increase confidence from the public to continue to invest in waqf. This paper attempts to investigate how waqf organisations can learn from NPO’s experience in the adoption of performance measurement systems (PMSs) that address the issue of accountability to their stakeholders. On the back of these issues, this study attempts to propose the need for social impact measurement (SIM) to measure performance to enhance organisations’ accountability towards their stakeholders. The study adopts an integrative or critical review of the literature in areas of accountability, PMS for NPOs and waqf organisations, and analysing the missing link that waqf organisations can learn from the practice of NPOs, particularly in the introduction of SIM. It is hoped that this paper is able to provide significant insight on the importance of SIM to be introduced in waqf organisations in efforts to discharge accountability to all stakeholders.KeywordsNon-profit organisation (NPO)Third-sector organisation (TSO)Waqf organisationPerformance measurement system (PMS)Social impact measurement (SIM)