The Challenges of Accountability and Operational Controls Nonprofit Organizations

• In Event: Hospital Performance and Nonprofit Accountability

Abstract

Nonprofit Organizations (NPO’s) face a numerous challenges in creating and maintaining accountability. Small NPOs face additional challenges due to a lack of necessary resources. The lack of financial accountability creates a risk in achieving short and long-term goals. An environment of accountability positively contributes to effectiveness and efficiency of operations and helps the organization improve the public trust. The purpose of this qualitative phenomenological study was to explore how NPOs cope with meeting the challenge of accountability. We interviewed 22 participants from 6 NPOs in the State of Delaware. Guided by the transformational leadership and service management theories, we identified four thematic labels defining accountability and control mechanisms. In the areas that create the greatest challenge for NPOs, three distinct themes emerged namely, (1) developing purposive NPOs expenditure management controls, (2) establishing transparency mechanism, and (3) ensuring the effective implementation of controls over financial reporting. The results suggest that while most managers have a high awareness of controls and accountability, smaller organizations struggle to implement effective controls.

Authors

• Fabian Baapogmah, Walden University

• Roger William Mayer, Walden University

• Wen-Wen Chien, SUNY-Old Westbury