Financial Reporting Factors Affecting Donations to Charitable Organizations

Trussel, John M.; Parsons, Linda M.

doi:10.1016/s0882-6110(07)23010-x

Cited by 175 publications

(210 citation statements)

References 18 publications

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“…According to Trussel & Parsons (2008), provision of financial support from the donors and grantors could be highly depending on the information disclosed by NPOs. There is no exception for NPOs in Malaysia having reduction in the traditional sources of funding which lead to increasing competition among NPOs for these limited resources during the current economic environment.…”

Section: Introductionmentioning

confidence: 99%

Accountability and Governance Reporting by Non-Profit Organizations

2017

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Many non-profit organizations (NPOs) are facing funding cuts and reduction in voluntary donations during the current economic environment. In ensuring the sustainability of these organizations, the Malaysian government is currently promoting collaborative efforts between the government, social organisations and the private sector in providing social services. The potential advantages of such collaborations include, the risks of providing social services are shared between the government, social organizations and the private sector, build positive perceptions of government as enabler for social organizations, capitalise on social organizations' collective skills, enthusiasm and innovation in providing social services. However, the current reporting requirement for NPOs in Malaysia may give rise to information asymmetry that can hinder such efforts. Hence, this study aims to examine the current reporting practices of NPOs in Malaysia. Based on content analysis of annual reports of 205 NPOs registered with Registry of Societies for the financial year 2011, this study finds that the overall information reported by the NPOs is relatively weak. NPOs also disclosed relatively high non-financial information as compared to the financial information. Hence, there is a need for more comprehensive reporting guidelines for the NPOs that can facilitate the decision-making needs of the relevant stakeholders.

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Section: Introductionmentioning

confidence: 99%

Accountability and Governance Reporting by Non-Profit Organizations

2017

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“…Private revenue concentration ratio (% of private financing) (max); [6], [7] (individual donations + fundraising + legacies)/total revenue (1% of PIT + incomes from private sources including individual and institutional donations)/total revenue f7 Administrative costs ratio (% of administrative costs) (value of 6.5%); [6], [7], [9], [31] governance cost/total cost administrative cost/total cost f8 Activity scope (value of 36); [6], [7] number of beneficiaries/number of people involved in organization's activities f9…”

Section: Criterionmentioning

confidence: 99%

“…Alternative labor costs (max); [6], [7] (number of volunteers*gross salaries)/employees f10 Organization's age (max); [31] the number of days an organization has been active the number of days an organization has PBO status f11 Statutory goals and activities or projects (max); [7] Do annual statements of an organization or its promotion materials define precisely statutory goals and activities or projects undertaken to achieve those objectives? (appraisal of the DM on scale 0-3) f12 Effects of activities (max) [7] Do annual statements of an organization or its promotion materials disclose accurately effects of activities undertaken by the organization in the recent period?…”

Section: Criterionmentioning

confidence: 99%

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Organizations of public benefit: performance evaluation using MCDA approach

Górecka

Chojnacka

2017

Croat. Oper. Res. Rev.

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Abstract. In many countries, organizations of public benefit play an important role in the economy and are established only for charitable purposes. Serving the public interest is often connected with certain benefits, such as additional source of revenue, tax advantages or state grants, but also certain obligations, such as guaranteeing trustworthiness and transparency of operations. Taking the role of charities and voluntary organizations into consideration there is a great need to assess properly such entities whereas tools indicated for corporate finance are not appropriate since these units are established for purposes other than profit-making. Moreover, their range of activities is very different. Hence, new assessment methods are needed in order to evaluate them properly. For this reason the main aim of this paper is to propose and apply multi-criteria decision aiding (MCDA) approach to the problem of assessment of organizations of public benefit. The proposed procedure using EVAMIX method for mixed evaluations (deterministic and stochastic) has been employed in the process of appraising and ranking nine Public Benefit Organizations (PBOs) from one of Polish voivodships operating in the field of 'Ecology, animals and heritage protection', and eight charities from two neighboring English metropolitan boroughs, operating in the field of 'Animals'. Rankings of these entities have been obtained so that, e.g., a potential donator would have a better base to make his or her decision regarding financial support.

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“…However, this category of organization is very difficult to evaluate with respect to the quality of their "final product". Studies assume therefore that the quality and prestige of a PBO can be measured by its age (Trussel & Parsons 2007), the value of assets held (Tinkelman 1998), or the amount of subsidies and grants it can raise (Tinkelman 1998). Andreoni and Payne (2003) have demonstrated though that public benefit organizations raising more grants tend to lose interest in pursuing other sources of funding, and as a consequently 'other donors' account for a smaller proportion of their incomes.…”

mentioning

confidence: 99%

Financial And Non-financial Factors Motivating Individual Donors To Support Public Benefit Organizations

Waniak-Michalak

Zarzycka

2015

CER

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This study is aimed at determining how the financial data of public benefit organizations (PBOs) affects donations received by them and if the donors use financial and non-financial information in order to donate. In order to achieve our aim we used different methods of research: quantitative research (econometric model and survey) and qualitative research (laboratory test). The research allowed us to draw the conclusion that Polish donors make very limited use of PBOs’ financial statements in the donation process and that non-financial information plays greater role for donors in making decisions to give charitable donations. The most important information is the organization's goals and descriptions of its projects. At the same time, many donors stated that they donated under the influence of people they knew. This article fits into the scope of world research on PBOs and uses the concept of civil society.

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Financial Reporting Factors Affecting Donations to Charitable Organizations

Cited by 175 publications

References 18 publications

Accountability and Governance Reporting by Non-Profit Organizations

Accountability and Governance Reporting by Non-Profit Organizations

Organizations of public benefit: performance evaluation using MCDA approach

Financial And Non-financial Factors Motivating Individual Donors To Support Public Benefit Organizations

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