CharityVillage NewsWeek: Audience Opinions

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This page is for audience opinions on topics of interest beyond the issues addressed in our monthly Speak Out! questions.

Interested individuals from Zakat House in Kuwait posed the following question to themselves. Replies follow.
When asked, members of the public indicate that they would like to see more disclosure of charities' financial operations, and there appears to be growing support for increased accountability on the part of charities and those who manage them. What's your opinion about the need for more disclosure and accountability, and who (Revenue Canada or the charities themselves) should handle the release of such information.
It is true that there is an important need for more disclosure on financial operations and responsibility.
I think Charities are responsible for releasing such information because this will lead to positive impact on public. In addition, disclosure will explore the hidden need in a vast sector some of who promoted to a level of education in the philanthropic field. We have not to forget the role of different mass media that should be abreast with such charities.
Accordingly, effective coordination and cooperation will arise between them so to enrich the public thinking at outdoors.
-- Mrs. Afaf Al-Huwaidi, EAD. Zakat House
Yes, I agree with the disclosure of the financial operations to be published publicly because this will increase donor's trust on what is going on in the financial operations and the charity itself. This will lead donor to donate constantly and continuously and might be one of the charity's media tools at work, home or with friends...etc.
As a result, this issue will enhance more donors to donate for this charity. In addition, such disclosure indicates the credibility of the charity. According to the responsible entity for disclosing such information, I think the charity itself is the main source for that.
I suggest that charities should form a coalition or issue a special magazine, one of its media resources, on a monthly or yearly or quarterly basis clarifying its operations in general. Furthermore, charities can cooperate with an advertising company to advertise the charity's work in an exciting manner.
-- Ahmed Al-Tameemi, EAD. Zakat House
It is true that the most important works of charities is to declare its disbursement items of incoming donations and their impact and credibility on its work. I think this required service could benefit charities through their marketing and fundraising operations.
On one hand, this kind of disclosure will motivate the existing donors in the same community as well as the operating charity. On the other hand, disclosure of such information will help other charities to exchange information and to know where each of them operates. Accordingly, some areas will be appeared without taking the advantage of donations and this will help other charities to support such areas. In this connection, we focus on re-disbursement of resources and incoming donations for other areas.
-- Mr.Waheed Al-Busairi, EAD. Zakat House
Charitable organizations are often considered to be nonprofit and should be more aware and responsible in order to answer the inquiries made by donors on financial operations including the following:

Mechanism of managerial work within the charity.
Charter of work executed in the charity.
Determining the disbursement items according to the types of charitable projects implemented by the charity and enlisted within its aims.
The information should be handled by the charity to strengthen the relationships between itself and donors.
Let's assume that all transactions can be handled accurately by direct principal specializing in releasing the financial operations of the charity regardless of being profit or nonprofit.
We can say that charities should adopt the following slogan: Our goal is PROFIT
We don't mean the financial profit only but the profit of donors' trust and the expansion of implementing more charitable projects that eliminate the sorrow and poverty of needy.
-- Khaled Hassen- Secretary at EAD.Zakat House
I think the charities should disclose all the financial operations because they are nonprofit entities not like other profit corporations that seek for profit purposes and competition. Therefore, disclosure increases donors' trust and the relations will be more strengthened. In addition, I think charities are responsible for every financial information released.
-- Yousif Azizi, EAD. Zakat House
1- Yes, I am with those who want more disclosure of charities' financial operations on condition donors' agreement. In this way the charities will be more accurate in its financial processes and show keenness in doing so.
2- The responsibility in releasing such information should be on part of Ministry of Finance to gain accurate and right information.
-- Nabeela Al-Kandari,EAD.Zakat House
The financial operations are considered to be one of the internal processes of the charity and its disclosure in details may affect other operations. In this connection, the charity is obliged to open the door of discussion. I think the better way is disclosing some figures and accomplishments.
-- Ahmed Askar, EAD.Zakat House
I think that the disclosure of financial operations is the major factors of success for every charity. In doing so, charities can obtain the absolute trust between them and donors that help increase their numbers and attract them to the philanthropic work. The charity is the one who should be responsible for releasing such information through certified audit office.
-- Sate' Al-Khashram, EAD.Zakat House
The need to disclose more financial information is very important issue. The purpose of doing so is to allow donors to be aware of every thing and to know how their money spent and to the ways of disbursing them. More questions arise including beneficiaries, amount of donations and whether there is a chance to increase it!!
I think the one who should be responsible of releasing information is the charity itself in cooperation with the media in different ways. The important person in the whole process is the donor who will gain a reputable image from the charity especially when he understands the noble course performed by the charity.
-- Mrs.Sameera Al-Kandari, EAD. Zakat House
There is an urgent need for disclosure of the financial operations made by the charities to gain the following results:

Disseminating trust and security to all donors.
Disseminating trust to those who about the way that money disbursed.
Internal control on employees who work in the humanitarian field so this will allow to think carefully on how to spend money.
Issuing numeral indicators on charitable work by decision-makers of
charity.
The best investment of money.
Sharing others the corrective procedures of charitable work if decline
appears to arise.
I think the one who should be responsible for issuing such information is an external specialized auditing office who deals with such processes in accredited ways.
Mr. Othman Al-Mehtab, EAD. Zakat House
I think charities are responsible for every process made in their fields. Their functions lie on releasing financial figures and information in order to show the public its disbursement on philanthropic aspects. Donors need to know how their donation spent and in which areas, and by which channels. Charities should declare and clarify all the areas donations spent e.g. donations may spend on sponsorship, water wells, construction of worships ...etc. As they represent the major channel of donations, charities should be responsible for every thing published or released in the media. To be trustworthy, charities should disclose all financial operations and make it clear to the public.
-- Mr. Talal Farhan Al-Khaldi, EAD. Zakat House
Disclosure of the financial operations is very attractive topic. Disclosure itself will increase the donors' confidence. I think donors need to know every thing in order to feel safety and to renew their relationships with charities. In this connection, charities would increase its responsibilities toward its projects and be more specific and accurate in selecting its staff. Donors have the right to ask about all financial details especially the grand figures that need more attention. Such figures will attract others who are still afraid and unsure of other charities.
-- Maisa'a Al-Fadhel, EAD. Zakat House
Disclosure of financial operations is an important issue discussed by charities. Such disclosure will add trust and credibility to all disbursement items made by charities and to answer all mysterious inquiries made by others who are still unsure of what charities do for them. I think there are three entities who should care about this issue:

1- Charities themselves
2- Accounting commission
3- Ministry of information
-- Khaleda Al-Saberi, EAD. Zakat House