Accountability In Nonprofit Organizations Research Articles

Enhancing accountability through web based disclosure practices of foundations in Malaysia

The accountability of non-profit organizations (NPOs) in managing public funding is at risk due to numerous cases reported on the misappropriation of funds and falsifying the reporting information of NPOs. Often, NPOs have been criticized as less efficient and transparent in managing public funds for targeted beneficiaries. As the public trust is deteriorating, alternative reporting could be pertinent to enhance transparency and accountability of NPOs towards stakeholders and the public at large. Therefore, this paper aims to analyse the extent of disclosure among 122 foundations in Selangor and Kuala Lumpur through web-based reporting. This paper used a content analysis approach to gather information in relation to web-based reporting adapted from the Web-based Accountability Index from Gandini et. al (2012) and Nair et. al (2022). The findings indicated the foundations in Malaysia show an average of accountability discharged through websites’ reporting. The foundations were also unlikely to publish financial information and social reporting as compared to other general information. The findings also suggested NPO communities the significant use of web-based technologies as a mechanism to gain and sustain stakeholders’ trust and confidence towards public funds’ accountability.

Determinants of Accountability for Financial Management of Non-Profit Organizations in Indonesia with the Internal Control and Supervision Environment as Moderation Variables

This study aims to examine the determinants of financial management accountability in non-profit organizations. Utilizing a quantitative methodology employing Partial Least Squares (PLS) analysis, the study assessed 14 hypotheses, relying on coefficient values and significance levels for hypothesis validation. While the choice of analysis model and rationale behind its selection were not explicitly elucidated, the study ensured rigor through pilot testing of the questionnaire to establish validity and reliability. From 140 distributed questionnaires, 87 were returned, and 79 met the inclusion criteria for analysis. The findings suggest a significant positive influence of transparency, fund type, financial statement presentation, and accessibility on financial management accountability. Additionally, internal control factors such as transparency, fund types, financial statement presentation, accessibility, and internal supervision underscore the importance of these elements in bolstering accountability. However, it is noteworthy that the direct impact of the control environment on financial management accountability was not observed within the study's context. While the identification and operationalization of the studied variables were not extensively detailed, it is acknowledged that the relatively small sample size and the focus solely on non-profit organizations in Indonesia may constrain the generalizability of the findings. Nonetheless, this research provides valuable insights into the factors influencing accountability practices in NGO financial management, potentially benefiting stakeholders and contributing to the existing literature on financial management, particularly within the realm of non-profit entities.

Public Accountability in Non-Profit Organizations in Kampung Tridi Malang

This writing aims to find out how public accountability is for non-profit organizations in Tridi Village, Malang City. This study uses qualitative methods with descriptive analysis. The results of the research show that Kampung Tridi has implemented the principle of accountability starting from the planning, implementation, and accountability processes quite well. Where, in the plan, Tridi village administrators hold regular meetings to discuss the work program to be held and also the budget. Meanwhile, in the process of implementing it, Tridi village administrators kept records regarding income and expenses in Tridi village and in the implementation of the work program all residents participated, this indicates residents' awareness of accountability and transparency in financial management in Tridi Malang village. Next, in the process of accountability the management of Tridi village reports regularly to the residents on the financial reports that have been recorded, this indicates that there is openness to the residents so that the community's trust in the management of Tridi village is getting higher. However, related to the financial reports that are made are still very simple, because they only record income and expenses, they are not guided by the standards that apply to non-profit organizations today, namely ISAK 35.

Accountability in French non-profit organizations: between paradox and complexity

PurposeThis article examines whether accountability can contribute to the analysis of effectiveness in grassroots voluntary organizations (GVOs) in France.Design/methodology/approachBased on recent studies and stakeholder theory, hypotheses are formulated about the negative link between accountability and financial effectiveness and a positive link between accountability and non-financial effectiveness.FindingsThe findings show that accountability practices are positive determinants of financial indicators (apart from return on assets [ROA]) and employment of people in difficulty. In contrast, the other non-financial indicators are not explained by accountability practices.Research limitations/implicationsThe study points out the complexity and paradoxes surrounding accountability and highlights the risk of insensitivity to it. It thus underlines a specific French situation, close to the risks of myopia linked to accountability. One possible explanation could be the coupling and decoupling mechanisms that allow non-profit organizations (NPOs) to regain power. Given the sometimes-random effects of accountability, producing nuanced theories is necessary, and governance should oscillate between equilibrium and adaptation in the face of stakeholders. Finally, this article introduces the risk of insensitivity of NPOs to accountability (i.e. they act as they wish, regardless of control mechanisms such as accountability).Practical implicationsThis study thus reveals governance dilemmas, which could be solved through less formal, more mission-oriented, more creative and therefore heterodox accountability.Originality/valueThe French context of mistrust of certain managerial approaches and the development of codes of governance based on a disciplinary vision are confronted with a growing and critical literature on accountability in NPOs.

AKUNTANSI DAN AKUNTABILITAS NGO: IMPLEMENTASI GLOBAL FUND, BUDAYA MENOLONG, DAN PENGETAHUAN AKADEMISI

Research Purposes. This study aims to produce research on the development of new products of NGO accountability. This study describes the implementation and accounting treatment of foreign grants The Global Fund AIDS Tuberculosis and Malaria (GFATM) in Sub Recipient TB Care ‘Aisyiyah Jatim (SR). Research Methods. This study uses qualitative methods with data triangulation instruments. Research Result and Findings. The results showed that GFATM grant accounting process and accountability is very systematic, structured, complete and strict. Accountability can be realized from a helping behavior and providing NGO accounting education from the academic level. The implementation of foreign grant accounting and NGO accountability in this study is very important both empirically and theoretically as a reference for NGO managers, foreign grant activists and new knowledge from academics. Beneficiaries can prepare accounting and accountability of non-profit organizations properly and correctly.

Konsep Desain Sistem Informasi Manajemen Berkas Terpusat di Lembaga Amil Zakat Menggunakan Perspektif Nirlaba

The Amil Zakat Institution (LAZ) is a private non-profit organization that assists the Government of Indonesia in managing zakat. LAZ will produce performance reports and financial reports every year to ensure the accountability of the institution. The report is crucial, because it is the result of the performance of all LAZ partners and branch offices, so it must be stored and controlled properly. This performance reporting will be done centrally, so that in the process of making it, some authentic evidence that can be used as proof that it has been accepted and happened, or as a reference and complement, must be managed and distributed efficiently. The file management information system is a solution that can be applied for the management of report materials and the storage of valid reports. This research has resulted in business process flow design, system activity design, and file management information system interface design on LAZ. The theory of accountability of non-profit organizations is used as an analytical study along with the PIECES parameters, to ensure that the resulting design is in accordance with the supposed accountability. The design in this study has been presented systematically, so that it can be understood by LAZ managers or executives who are not from the information technology field.

Transparency as a Key Element in Accountability in Non-Profit Organizations: A Systematic Literature Review

The purpose of this article is to present a framework to understand transparency in the third sector and then to explore the main research streams regarding the disclosure of information and accountability by conducting a systematic literature review on the antecedents and dimensions of the transparency of information disclosed by non-profit organizations (NPOs). The essential questions of this work are addressed from an international perspective. In particular, we explore three research questions: (1) why should NPOs disclose transparent information to stakeholders? (2) Why do not all NPOs disclose transparent information? (3) What means do NPOs use to disclose transparent information? Our results highlight the lack of transparency legislation in the third sector, leading NPOs to adopt the voluntary disclosure of information policies to improve the perceived credibility of these entities by their stakeholders. In conclusion, our study highlights the importance of developing a systematic body of knowledge regarding the situation of transparent, voluntary information disclosure in the sector. Moreover, the Sustainable Development Goals promulgated by the United Nations place a high value on transparency for the accountability of institutions. To achieve sustainable development, both peace and the governance of institutions are needed. Reducing corruption and promoting transparency are among the goals which should be reached to achieve social sustainability.

Views on the Issue of Accountability in Non-Profit Organizations

Over the past few decades, concerns have been raised about the accountability of non-profit organizations, especially on the adequacy of the current reporting and oversight mechanisms. Non-profit organizations are now increasingly demanded to become more accountable and demonstrate that they are making a difference and delivering results. However, the issues of non-profit accountability are problematic and more complex as compared to business organisations. As such, in this paper, pertinent issues of accountability in NPO are discussed. This is done by discussing the unique nature of non-profit organisations and their conflicting demands for accountability. The paper also elaborates the complex relationship of trust and its consequences and influences on the informal and also formal forms of accountability, specifically on the use of financial reporting.

Nonprofit Ethics and Accountability: Synthesizing Research on Nonprofit Regulation Programs

The growth in size, assets and influence of nonprofit organizations (NPOs) in recent years has brought scrutiny from the public, donors, government officials, the media and funders. The many dimensions of ethical behavior and accountability in NPOs have been examined by numerous scholars. This study synthesizes the research and provides a substantive review of key concepts related to advancing nonprofit ethics and accountability through NPO regulations and other methods. In addition, gaps in the research are identified in order to inform future work. This summary will prove useful for NPO staff, stakeholders, regulators and others interested in improved governance.

The decision to advertise nonprofit accreditation status

ABSTRACTNonprofits seek accreditation to bolster their reputation and signal their worthiness to funders. The Better Business Bureau accredits nonprofits who pass 20 standards of accountability. Accredited organizations have the option to pay for the right to advertise their accredited status. At issue is why some organizations pay to advertise and other organizations do not. Utilizing a sample of 495 nonprofit organizations accredited by the Better Business Bureau, we find that nonprofits that pay to advertise the seal are larger, more profitable, have higher visibility, and are more likely to hire professional fundraisers. The results should be of interest to stakeholders and fundraisers interested in the adoption of methods to signal the accountability of nonprofit organizations.

ANALISIS PERTANGGUNGJAWABAN KEUANGAN ORGANISASI NIRLABA DAN PENYUSUNAN LAPORAN KEUANGAN SESUAI DENGAN PSAK 45 DI MASJID AL-MUTTAQIN BEKASI

This research raises the issue of financial accountability for non-profit organizations. The object of the research was conducted at Al Muttaqin Mosque Jatibening Bekasi for the 2016-2017 reporting year. Data obtained from cash in and out cash recap, observation and interview. The results of the study were that the Al Muttaqin Mosque had not made a Financial Report in accordance with PSAK 45 so that the preparation of the Financial Statements in accordance with PSAK 45 was tried to be compiled in the study.

Practices of corporate integrity and accountability of non-profit organizations in Malaysia

PurposeThe purpose of this paper is to examine the five dimensions of corporate integrity systems (CISs) and their effects on accountability outcomes of non-profit organizations (NPOs).Design/methodology/approachData were collected from 550 surveys conducted among NPOs in Malaysia registered under Registrar of Society. Regression analysis was conducted to examine the relationships between five dimensions of CISs and accountability outcomes.FindingsThe findings revealed that all five dimensions of CISs (compliance, policies and rules, organizational culture, leadership, ethics training and education, and whistle blowing) significantly contribute to positive accountability outcomes of NPOs.Practical implicationsIn order for NPOs to deliver greater accountability outcomes to their stakeholders, serious emphasis on CISs is vital.Originality/valueTo the best of the authors’ knowledge, this study is among the first empirical study to examine the role of CIS dimensions and accountability outcomes in the case of NPOs in Malaysia.

Do Funding Resources Affect the Accountability Disclosure of Non-Profit Organizations?

Accountability is important in Non-profit Organizations (NPOs) since their key revenue resources are donations and contributions from the public and various parties. This implies that NPOs are accountable to various stakeholders. In Malaysia, the growing number of NPOs shows how important NPOs are in contributing to society in terms of social work. By championing the need of the people through their activities, NPOs enjoy public trust since their goal is to help the people, and not for profit motivation. However, many NPOs are generally reluctant to share more comprehensive information and may not recognize the need for accountability by the NPOs. These problems could be solved if the enforcement and monitoring mechanisms are efficiently practiced. Using content analysis of annual reports and the Financial Information Forms/Borang Maklumat Kewangan (BMK) of 219 societies registered with the Companies Commission of Malaysia (CCM), this study examines the relationship between organizational characteristics and accountability in NPOs. The characteristics of organizational characteristics examined are grants and donations. The resource dependency theory is used to explain the organizational characteristics. The results of this study provide evidence that organizational characteristics are not significantly related to the accountability of NPOs. In relation to the insignificant results for organizational characteristics, it may indicate that non-profit managers are not using their disclosure effectively to manage inter-organizational relationships to ensure the continuous flow of financial and other resources to their organizations. Overall, the findings provide useful information that gives more input to the various regulatory authorities and other relevant stakeholders concerning the accountability disclosure of NPOs in Malaysia.

From Consultation to Participation

Empirical research in the literature on accountability of nonprofit organizations (NPOs) toward their beneficiaries is scarce, and the available studies have a number of limitations. Our study attempts to overcome some of them and focuses on one specific component of accountability toward beneficiaries: beneficiary impact on organizational decision making and output. Data were collected by surveying general managers of 790 Belgian NPOs in fourteen industries. Results show that most NPOs implement some mechanisms to involve beneficiaries and their representatives in organizational policy making, mechanisms that vary between and within industries. Despite the existence of such mechanisms, their perceived association with impact on policy making and associated potential organizational effects is weak, though positive.

Ethical Climate and Accountability in Nonprofit Organizations

In a study aimed at shedding new light on the relationship between accountability and ethical climate in the nonprofit sector, a survey was carried out on executive directors in two groups of social services nonprofits in the UK and Japan. A close relationship was found between the way in which they perceived statutory accountability demands and their ability to identify downward accountability mechanisms and ethical climate in relation to ‘independence’ and ‘law and codes’. These findings provide a preliminary insight into the differences in the relationship between nonprofit organizations and government in the two countries.

University of Massachusetts Medical School

University of Massachusetts Medical School

E-learning for accountability in nonprofit organizations A networked collaborative learning experience for managers of Blood Donors’ organizations

This paper would like to investigate how nonprofit organizations interpret and use tools of accountability to benefit management. We would like to propose a specific model of financial and social reporting. This model was tested in a Networked Collaborative Learning “experiment” conducted on blood donors’ organizations in the Abruzzo Region (Italy). The managers of these organizations have interacted in a virtual learning environment using the digital format of Social Report created with Adobe LiveCycle Designer and they have cooperated in network through the use of different e-learning tools.

The Nature Conservancy, the Press, and Accountability

This article explores the May 2003 Washington Post investigative stories concerning The Nature Conservancy (TNC) for their implications for understanding the dynamics of accountability for nonprofit organizations. The authors argue that the series framed the conservancy's activities in accord with a metanarrative or story that may be reduced to the fable of The Prince and the Pauper. Because The Post depicted TNC's actions in this light in its front-page stories, the conservation organization had little strategic choice but to accept that characterization and to plead that it would do better in the future. Reality, however, was much more complex than this reductionist accounting suggested. The authors explore the social and political impact of The Post articles and their assumptions concerning organizational and democratic accountability as well as their implications for the potential for organizational learning and for public policy agenda-setting dynamics.

The single audit act: how compliant are nonprofit organizations?

Over the past decade, the accountability of nonprofit organizations has been a concern. Our paper reports one form of accountability, the "A-133" or "single" audit, which is required for nonprofits receiving substantial federal funding. We report on 11,841 audits from 1997 to 1999. Overall, compliance appears to be quite high. Our study indicates that smaller nonprofits, those that are new to government grants, and those with prior audit findings have a significantly higher rate of adverse audit findings. One policy implication of our work might be to provide federal funding specifically for Single Audit Act compliance to these nonprofits.

Negotiating Accountability: Managerial Lessons from Identity-Based Nonprofit Organizations

This article explores the emerging conceptualization of accountability in nonprofit organizations. This definition broadens traditional concerns with finances, internal controls, and regulatory compliance. The authors explore how the top-level managers of 4 identitybased nonprofit organizations (IBNPs) faced accountability and responsiveness challenges to accomplish their mission. The organization-community link was the core relationship in their accountability environment, helping the IBNP managers achieve what the literature calls “negotiated accountability.” The managers favored organizational mechanisms to sustain this relationship in the midst of the accountability demands they experienced daily. Communication with the primary constituency tended to drive the organization’s priorities and programs, helped managers find legitimate negotiation tools with other stakeholders, and helped develop a broader notion of accountability. The authors discuss the implications of these findings for other nonprofit organizations and propose questions to further clarify the concepts of broad accountability, negotiated accountability, and the link between accountability and responsiveness in nonprofits.