Quality Information by Charity Organizations and its Relationship with Donations

摘要

This study examines the extent of disclosures of quality information by charity organizations that is measured based on the institutional donors' needs for information and relates it to the financial performance (as measured by total donations). Data were obtained from annual returns for the year 2009 of 101 charity organizations. A self-developed instrument, named as Charity Organizations Reporting Index (ChORI) was used to measure the extent of disclosure of quality information in this study. The disclosure score was calculated based on the ratio of total disclosure score to its total possible disclosure score. The overall total disclosure was found to be very low. Statistical tests of relationship indicate that total donation received is significantly related to the extent of disclosure. The findings of this study can be used as a general guideline by the management of charity organizations in preparing their reports in accordance with the institutional donors' needs for information. Thus, it provides evidence to the management of the charity organizations to improve their disclosure of information in their reporting, convincing the stakeholders that the resources are used efficiently in the provision of charity services.