Practical Challenges in Managing Non-Profit Organizations (NPO): Tales from Two Neighbouring Countries
International Bulletin of Business Administration, ISSN: 1451-243X, Issue 13 (2012)
18 Pages Posted: 16 Oct 2012
Date Written: October 15, 2012
Abstract
Non-profit organizations (NPO) are not excluded from cases of fraud, embezzlement and abuse perpetrated by their own managers and employees. Problems such as lack of resources and accountability have been cited as the main contributors to these cases in NPOs. Research in more-developed countries has provided evidence and suggestions to improve the situation but the problems still persist. This paper explores the internal functioning problems in 17 NPOs in Malaysia through face-to-face interviews and focus-group discussions with 33 individuals directly and indirectly involved with managing NPOs. Problems concerning personnel, governance, accounting and financial practices, funding and regulatory systems were not uncommon in the literature. However, these problems were not evident in the neighboring country, Singapore, and that has prompted researchers to find out how Singapore’s Charity Commission has tackled these same issues. The biggest lesson was that having the NPOs design and formulate their own Code of Governance had significantly improved their operation. The Singaporean government’s initiatives in facilitating rather than punishing NPOs have paid off. This paper provides valuable information and lessons learnt from this visit, not only for Malaysia but also for other NPOs in other developing countries.
Keywords: nonprofit, organization, managing, challenges
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