KUALA LUMPUR, Aug 2 — Only 2.11 per cent of non-profit organisations here have released financial reports in the last five years, according to an analysis by Wiki Impact.
The latest report, which expanded its scope from 1,567 last year to 1,710 foundations, showed a mixed picture of progress in some areas and ongoing challenges in others.
“Among the 1,567 foundations re-evaluated, 115 showed a rating change: 83 improved their ratings, while 29 saw a decline.
“The second edition also revealed that among the 1,710 foundations in Malaysia, only 42 achieved an A-rating (scoring more than 75 per cent), with 12 foundations earning a perfect 100 per cent rating,” it said.
The standout organisations include Arba International WAQF (L) Foundation, Pintar Foundation, TFM Foundation, WWF (Malaysia), Yayasan Amal Maaedicare, Yayasan Bank Rakyat, Yayasan Basmi Kemiskinan (Selangor Darul Ehsan), Yayasan Generasi Gemilang, Yayasan Johor Corporation, Yayasan Khazanah, Yayasan Selangor, and Yayasan Sime Darby.
Their performance exemplified the positive impact that transparency can have in fostering trust and encouraging community support, Wiki Malaysia said.
However, the report revealed that a staggering 65.03 per cent of foundations received a zero rating due to inadequate information, highlighting a critical need for improvement.
Key findings in the report:
1.Nearly half of these foundations are situated in the Klang Valley, with 65.61 per cent having fully functioning websites and 39.30 per cent maintaining a social media presence.
2. Only 27.13 per cent posted on social media within the last three months.
3. Only 2.11 per cent released financial reports within the past five years, and 3.27 cent published impact reports in the same timeframe.
4.Foundations focused on educational were the largest category, with 252 foundations. In contrast, those supporting animal causes had the fewest, with only three.
Wiki Impact co-founder Terence Ooi said that the report provides clarity for donors to make informed decisions about the foundations they support or consider supporting.
“By providing open and honest communication about their operations, financials, and impact, nonprofits can assure their donors, beneficiaries, and the public that they are accountable and committed to achieving their mission,” he said.
“Under existing laws, foundations are not required to disclose their annual, financial, and impact reports, nor their board of directors, financial statements, or amounts disbursed. In contrast, this report seeks to recognise foundations that over-communicate and develop a shared public narrative. By doing so, we hope foundations will be more inclined to communicate the good work they do,” he added.