Npos

International Bulletin of Business Administration
ISSN: 1451-243X Issue 13 (2012)
© EuroJournals, Inc. 2012 http://www.eurojournals.com/IBBA.htm Practical Challenges in Managing Non-Profit Organizations
(NPO): Tales from Two Neighboring Countries
Radiah Othman
Accounting Research Institute & Faculty of Accountancy
Universiti Teknologi Mara, Malaysia
E-mail:[e-mail]
Te: [phone]; Fax: [phone]
Norli Ali
Accounting Research Institute & Faculty of Accountancy
Universiti Teknologi Mara, Malaysia
Normah Omar
Accounting Research Institute & Faculty of Accountancy
Universiti Teknologi Mara, Malaysia
Rashidah Abdul Rahman
Accounting Research Institute & Faculty of Accountancy
Universiti Teknologi Mara, Malaysia
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

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