Financial Management in Non-Profit Organisations: An Exploratory Study

Strydom, Barry; Stephen, Tim

doi:10.5901/mjss.2014.v5n15p55

Cited by 4 publications

(7 citation statements)

References 11 publications

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“…Although we do not have specific information about the types of qualifications they possess, the training and experiences they have gained through their academic pursuits are valuable. These qualifications help them make decisions and build networks, particularly in financial matters, which are crucial for the operation and management of institutions (Strydom & Stephen, 2014).…”

Section: Descriptive Analysismentioning

confidence: 99%

“…These scenarios should be avoided to ensure a good segregation of duties and encourage specialisation among staffs. It is recommended for the TIs to have their own finance sub-committee in order to maintain a great focus and make better decisions for their survivability especially during a financial crisis (Strydom & Stephen, 2014).…”

Section: Descriptive Analysismentioning

confidence: 99%

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Insights into Financial Management Practices of Tahfiz Institutions (TI): A Selangor Perspective

Yusop,

Mahmud,

Sabli

et al. 2023

AFR

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This study investigates the financial management practices of TI, which include processes such as planning and budgeting, collection, payment, recording, and reporting. The research was conducted on 58 TI located in Selangor. The participants involved in the study were personnel responsible for the financial matters of the TI, including management and administrative staff. In general, among the five criteria evaluated, the payment status of TI which included payment records with proper supporting documents and details, on time and segregation of duties throughout the payment process. demonstrated an excellent performance with an overall mean score exceeding 4.0 (on a scale of 1 to 5, with 5 being the highest). Following payment, the performance rankings were collection, recording, reporting, planning, and budgeting. The weak performance in reporting, planning, and budgeting mirrors the situation observed and proven empitically in other non-profit organizations (NPOs) and small and medium enterprises (SMEs) literatures. These entities often lack expertise in these areas due to insufficient staff, the absence of guidelines, and lack of awareness regarding the importance of financial management components. While payment, collection, and recording represent the core operations of TI, deficiencies in these areas can adversely impact its day-to-day functioning. Nevertheless, all aspects of financial management (FM) are crucial for TI's sustainability and survival. By establishing sound FM practices, these TI can enhance their chances of maintaining quality standards and avoiding future financial shortfalls. TI as part of the NPO which resources depending on the donation from others really need a good FM to ensure their sustainability and their uninterrupted operation.

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Section: Descriptive Analysismentioning

confidence: 99%

Section: Descriptive Analysismentioning

confidence: 99%

Insights into Financial Management Practices of Tahfiz Institutions (TI): A Selangor Perspective

Yusop,

Mahmud,

Sabli

et al. 2023

AFR

View full text Add to dashboard Cite

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“…Both the population and the economy were expanding quickly. The financial system was not centralized, and the selling of land on credit often went unregulated (Strydom & Stephen, 2014). Financial institutions shut by the summer of 1837, thousands of businesses had shut their doors and declared bankruptcy.…”

Section: Background Of the Studymentioning

confidence: 99%

Analyzing the Effects of Credit Management Practices on Loan Repayment Performance of Microfinance Institutions in Makamba, Burundi

Nininahazwe,

Mutembei

2023

IJCAFA

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The ability to obtain funding is crucial to the success of microfinance institutions. To give credit to micro entrepreneurs, an individual’s credit history and worthiness is pivotal. However, loan payback performance is a barrier. Burundi's financial institutions have collapsed as a result of poor credit management. The purpose of this study was analyzing the effects of credit management practices on loan performance in Microfinance institutions. The study was based on the subsequent goals: to ascertain the impact of client evaluation on loan repayment performance benchmark; to assess how credit risk management control affect MFI loan payback performance; to determine how credit terms affects MFI’ ability to collect loan; and to ascertain how credit collection practices affect MFI loan repayment performance. Ten microfinance Institutions registered in the Makamba province of Burundi were used. Purposive sampling was employed as the sample method in this investigation. Target population of study was 134 and sample size was 100 from using Yamane’s formula. Mean, frequency and standard deviation were also the main descriptive statics employed. Primary data from credit officers, managers’ officers, finance and accounting officers, cashiers, control officers and recovery officers of all microfinance Makamba, Burundi were used. To be utilized to gather main information on credit management techniques, structured questionnaires were used to gather primary data on existing microfinance loan records. The secondary data about the documentation reports related to the loan performance of microfinance institutions for the period 2018-2021 was verified to ensure whether those MFIs recorded loan repayment performance or not. Findings revealed that the Pearson Chi-Square value is 85.226, and the Likelihood Ratio value is 85.656. These values represent the chi-square test statistics for the association between the variables of interest (credit collection policy and loan repayment performance). In both cases, the p-value is 0.000, indicating a statistically significant association between the variables. Multiple linear regressions indicated that client evaluation had the highest positive correlation of 0.141 proves that there existed a positive significant relationship between client evaluation and loan repayment performance while credit risk control had a negative correlation of -0.014, credit terms had no correlation since its beta value was found to be 0.00 and credit collection policy had a negative correlation of -0.014. Evaluating clients' characteristics, such as moral character and creditworthiness, before granting loans is important for microfinance institutions. Microfinance institutions should focus on implementing robust credit risk control mechanisms to mitigate default risk and improve overall repayment rates. There is need for investigate the long-term effects of credit management practices on loan repayment performance by conducting longitudinal studies that track borrowers and analyze their repayment behavior over an extended period.

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“…Untuk organisasi nirlaba secara umum dapat diketahui bahwa pimpinan atau bendahara organisasi atau lembaga yang berpengalaman mempengaruhi aktivitas pengelolaan keuangan sebuah lembaga nirlaba (Raudhiah, Bakar, & Tajuddin, 2014;Strydom & Stephen, 2014). Selain itu, besar kecilnya ukuran organisasi juga Besar kecilnya organisasi lembaga nirlaba berpengaruh pada pengungkapan laporan keuangan.…”

Section: Kajian Pustakaunclassified

“…Baik tidaknya sebuah manajemen keuangan masjid sangat ditentukan oleh kepemimpinan (Uddin & Rehman, 2014) dan juga pengalaman pengurus (Raudhiah et al, 2014;Strydom & Stephen, 2014). Baik tidaknya performa sebuah lembaga nirlaba dapat dilihat dari rasio serapan anggaran, efisiensi penghimpunan dana, serta dukungan publik (Su, 2014).…”

Section: Jawaban Jml Persenunclassified

Manajemen Keuangan Masjid di Kota Yogyakarta

Fahmi

2018

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This study aims to describe the financial management practice in Yogyakarta City, Special Region of Yogyakarta. The data in this study were gathered by using questionnaires and analyzed by a simple qualitative descriptive approach. The study was conducted in 180 mosques by using area sampling because Yogyakarta City divided into 14 districts. Three main issues are focused: budget planning, fund management, and internal control. The result shows only 37,8% mosques have budget planning. The source of fund is dominated by Friday prayer infaq, while physical maintenance is the most expenditure. More than 90% of the mosques have a simple bookkeeping and financial report, although most of the mosques have not evaluated the budget regularly. This study reveals the average of the surplus balance is Rp 45,8 million idle and saved most in the conventional bank. It could be estimated the total amount of the mosque surplus balance in Yogyakarta City approximately Rp 22 billion. The study also found that 27 of 180 mosques have an economic empowerment program for the congregation.

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Financial Management in Non-Profit Organisations: An Exploratory Study

Abstract: The recent financial crisis resulted in a sharp decline in donor funding that caused severe financial difficulties for many nonprofit organisations (NPO)

Cited by 4 publications

References 11 publications

Insights into Financial Management Practices of Tahfiz Institutions (TI): A Selangor Perspective

Insights into Financial Management Practices of Tahfiz Institutions (TI): A Selangor Perspective

Analyzing the Effects of Credit Management Practices on Loan Repayment Performance of Microfinance Institutions in Makamba, Burundi

Manajemen Keuangan Masjid di Kota Yogyakarta

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