Transparency Reporting Framework for Islamic Non-profit Organisations

Abstract

Abstract:

Islamic Non-Profit Organizations (INOs) play a crucial role in Muslim communities, evolving from spiritual guidance providers to impactful social entities. As they seek funding from diverse sources including governmental bodies, businesses, and private donors, transparency in information disclosure becomes paramount to establish credibility. This paper introduces "TRS 4 INOs," a novel system designed to facilitate transparent reporting practices tailored to meet stakeholder expectations. The system development is part of an ongoing project aimed at achieving specific research objectives: (i) assessing the transparency of reporting practices among Malaysian INOs, and (ii) exploring web-based impression management strategies utilized by these organizations to engage stakeholders and attract donors.

The study is informed by research on impression management and web-disclosure practices, particularly relevant in light of challenges faced by Muslim faith-based organizations post-9/11, exacerbated by narratives linking them to terrorism financing. The research methodology involves two phases aligned with the stated objectives. Firstly, Malaysian INOs are identified through databases maintained by regulatory bodies such as the Registrar of Societies Malaysia (ROS) and the Companies Commission of Malaysia (CCM). Secondly, web-disclosure strategies are examined through interviews with stakeholders of Muslim faith-based organizations.

The findings from this research are expected to contribute to the advancement of transparent reporting systems tailored for INOs, fostering trust and credibility among stakeholders. Moreover, insights into web-based impression management strategies will assist INOs in effectively communicating their missions and activities, thereby enhancing their ability to secure essential funding for impactful community initiatives.