Accountability mechanisms in Malaysian charitable organizations: A disclosure-based analysis of transparency practices
DOI:
https://doi.org/10.24191/jas.v23i3.13781Keywords:
Accountability mechanisms, Charitable organizations, Legal compliance, Financial reporting, Non-non financial reportingAbstract
This study investigates the accountability mechanisms employed by Malaysian charitable organizations in discharging their responsibilities to stakeholders in managing public funds. It examines how these organizations ensure transparency, responsibility, and trustworthiness in donation management through disclosure practices, identifying two key accountability dimensions: legal compliance and reporting requirements encompassing both financial and non-financial aspects of the non-profit sector. A mixed-method approach was employed, incorporating observational surveys of organizational websites and content analysis of annual reports. Data were collected from 251 charitable organizations using a self-constructed index based on structured questionnaires, employing dichotomous questions and Likert scale measurements to assess the accessibility and quality of disclosed information across multiple platforms. Findings reveal significant variations in accountability practices among Malaysian charitable organizations, highlighting both strengths and deficiencies in current disclosure mechanisms. While reporting standards remain inconsistent across organizations, the study demonstrates that comprehensive accountability mechanisms across both dimensions significantly influence public trust and donor confidence, particularly amid increased scrutiny of charitable organizations. The study emphasizes that these mechanisms are not merely regulatory expectations but essential requirements for organizations seeking sustained credibility and public support, especially as digital transformation continues to reshape charitable giving practices.
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