Conversion Ratios, Efficiency and Obfuscation: A Study of the Impact of Changed UK Charity Accounting Requirements on External Stakeholders

Connolly, Ciarán; Hyndman, Noel; McConville, Danielle

doi:10.1007/s11266-013-9371-8

Cited by 30 publications

(39 citation statements)

References 24 publications

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“…By comparison, stewardship ‘assumes a long term relationship … based on trust, collective goals and … relational reciprocity’ between the accountee and the accountor (Kluvers & Tippett, , p. 277). This stewardship definition arguably better explains the accountability relationship between those who manage and govern NPOs with NPO stakeholders (Connolly et al., ; Kluvers & Tippett, ; Unerman & O'Dwyer, ; Table , panel B).…”

Section: Npo Accountabilitymentioning

confidence: 99%

“…NPOs comprise a heterogeneous mix of ‘mission‐oriented organisations’ (Ryan et al., , p. 384) which shape the nature of NPO‐stakeholder relationships and accountability responsibilities (Connolly et al., ; Dhanani & Connolly, ; Unerman & O'Dwyer, ) (see Table , panel A). Specifically, the NPO sector is distinguished from the other sectors by the source and nature of its transactions.…”

Section: The Npo Sector and Financial Reporting Practicementioning

confidence: 99%

“…The not‐for‐profit sector represents a broad mix of organisations having accountability relationships to diverse stakeholder groups for a range of social activities and objectives (Connolly, Hyndman, & McConville, ; Dhanani & Connolly, ; Unerman & O'Dwyer, ). However, although the academic literature has proposed accountability frameworks for the sector, the ability of these frameworks to explain existing financial reporting practice across the globe and inform contemporary financial reporting developments remains un‐explored.…”

Section: Introductionmentioning

confidence: 99%

“…). This stewardship definition arguably better explains the accountability relationship between those who manage and govern NPOs with NPO stakeholders(Connolly et al, 2013a;Kluvers & Tippett, 2011;Unerman & O'Dwyer, 2006a;Table 1, panel B) Dhanani and Connolly (2012),. drawing on their appreciation of O'Dwyer andUnerman's (2007) conceptualisation of NPO accountability, present two inter-related types of NPO activity for which an account should be given: functional…”

mentioning

confidence: 99%

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Accountability and not‐for‐profit organisations: Implications for developing international financial reporting standards

2017

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This paper provides empirical evidence which informs contemporary debates on developing international financial reporting standards for not‐for‐profit organisations (NPOs). Drawing on a global survey with respondents showing experience of NPO reporting in 179 countries, we explore: practice and beliefs about NPO financial reporting internationally; perceptions of accountability between NPOs and stakeholders; and implications for developing international financial reporting standards. Interpreting our research in the context of accountability, we find considerable support for developing international financial reporting standards for NPOs, recognising broad stewardship accountability to all stakeholders as important, but prioritising accountability upwards to external funders and regulators.

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Section: Npo Accountabilitymentioning

confidence: 99%

Section: The Npo Sector and Financial Reporting Practicementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

mentioning

confidence: 99%

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Accountability and not‐for‐profit organisations: Implications for developing international financial reporting standards

2017

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“…The finding that older charities are less likely to trigger accountability concerns while larger organizations are more likely, may be indicative of a tension in the development cycle of charities: age brings experience and learning but size engenders new and significant challenges with respect to financial reporting and performance. Finally, the descriptive and multivariate work combined offer an alternative perspective to the extant literature by focusing on involuntary, performance-related information disclosures rather than voluntary disclosure of (primarily) financial information (Connolly & Hyndman, 2013a;Connolly et al, 2013;Hyndman, 1990Hyndman, , 1991Gandia, 2011;Gordon, Fischer, Malone & Tower, 2002;Saxton & Guo, 2011;Saxton et al, 2012).…”

Section: Discussionmentioning

confidence: 99%

Improving Charity Accountability: Lessons From the Scottish Experience

McDonnell

2017

Nonprofit and Voluntary Sector Quarterly

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This paper examines the relevance and effectiveness of a charity accountability monitoring program in Scotland. The Scottish charity sector is vibrant and growing but the regulatory regime is in flux. Drawing upon a novel panel dataset of 21,322 observations on 5,124 organizations for the period 2007-2013, this study examines charity accountability from the perspective of the regulator and analyzes its attempts to encourage acceptable norms and practices in the sector. The results reveal that a majority of these charities trigger accountability concerns and a minority do so persistently; however, this study finds no link between these concerns and negative organizational outcomes such as public complaints, regulatory intervention or charity dissolution. The paper suggests that Scotland's regulatory body should collaborate with the charity sector to reconsider the program's intended impact and priorities, and reflects on alternative indicators of accountability.

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Restricted Funding: Restricting Development?

Clerkin

Quinn

2018

Voluntas

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This paper examines, from a management accounting perspective, the efficacy of the dominant 'restricted' funding structure in the international development NGO sector in terms of overall sector effectiveness, and whether it is the most appropriate means of funding NGOs. The objective is to encourage theoretical debate around the tensions highlighted between external accountability for funding and overall value-for-money delivered by individual development NGOs and the wider international development sector. From unique access to three internationally-recognised major NGOs, our case studies reveal management accounting as broadly homogenous, with some nuanced distinctions both within and between the cases; but the scope of management accounting emerges as relatively limited. This is despite the NGOs utilising complex accounting software, employing qualified accounting staff, and having a large annual income. Using the broad principles of systems theory to frame our approach, this paper suggests that due to the 'restricted' nature of funding awarded to NGOs by institutional donors, accounting is dominated by external accountability reporting to the detriment of management accounting. This relatively novel data on management accounting practices at international development NGOs helps illustrate how, potentially, NGOs are missing opportunities to utilise, or even improve, value-for-money in terms of how various program themes, geographic areas or time periods are delivering better or worse discernible impact for the money spent.

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Conversion Ratios, Efficiency and Obfuscation: A Study of the Impact of Changed UK Charity Accounting Requirements on External Stakeholders

Cited by 30 publications

References 24 publications

Accountability and not‐for‐profit organisations: Implications for developing international financial reporting standards

Accountability and not‐for‐profit organisations: Implications for developing international financial reporting standards

Improving Charity Accountability: Lessons From the Scottish Experience

Restricted Funding: Restricting Development?

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