Yayasan Khazanah, TFM Foundation, Yayasan Sime Darby and WWF Malaysia are among the foundations with a high transparency score.
Kuala Lumpur, 2 August 2024 – In an era where transparency is paramount across all sectors, non-profits face heightened scrutiny to maintain trust and credibility with their stakeholders. Wiki Impact is proud to present the second edition of the ‘Transparency Score of Malaysia’s Foundations’, which highlights the exemplary communication practices of Malaysian foundations, setting a new standard for the industry.
This comprehensive report evaluates 1,710 registered foundations on their transparency, frequency, and credibility of public communications. Through meticulous analysis of publicly available data and reports, Wiki Impact has assigned scores using a robust communication transparency rating system.
While current laws do not mandate foundations to disclose annual, financial, and impact reports, board of directors, financial statements, or disbursed amounts, some choose to keep their operations private. Nevertheless, this report celebrates foundations that go above and beyond in their communication efforts, fostering a shared public narrative.
By shining a light on these foundations, Wiki Impact aims to inspire others to communicate their good work more openly, ensuring that the generosity of Malaysians receives the recognition it deserves.
Why Is This Report Necessary?
As public expectations for trust and transparency in non-profits grow, many organisations are increasingly evaluated based on publicly available information.
Terence Ooi, Co-founder of Wiki Impact, emphasises the importance of transparency, “By providing open and honest communication about their operations, financials, and impact, non-profits can assure their donors, beneficiaries, and the public that they are accountable and committed to achieving their mission.”
Transparency not only prevents the misuse of funds but also promotes ethical practices and ensures that non-profits fulfil their social responsibility. This strengthens their credibility and reputation, leading to increased support and a positive impact on the community.
“Our report provides clarity for donors to make informed decisions about the foundations they support or consider supporting. Accurate information fosters generosity,” Ooi added.
Ooi further highlighted a critical aspect of the current landscape: “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.”
Report Findings
In the first edition of this report, 1,567 foundations were analysed. In this second edition, 1,710 foundations were evaluated, including a reassessment of those previously scored. 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%), with 12 foundations earning a perfect 100% rating.
These foundations are; 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.
These foundations set a high standard for transparency and accountability, fostering trust with stakeholders and promoting community support through ethical practices and open communication.
However, there remains significant room for improvement, as 65.03% of foundations analysed had insufficient information and received zero ratings.
Key statistics reveal varying levels of transparency and engagement among the 1,710 foundations scored in Malaysia. Here are some interesting findings:
- Nearly half of these foundations are situated in the Klang Valley, with 65.61% having fully functioning websites and 39.30% maintaining a social media presence.
- Only 27.13% posted on social media within the last three months.
- Only 2.11% released financial reports within the past five years, and 3.27% published impact reports in the same timeframe.
- Foundations focused on educational causes comprised the largest category, with 252 foundations. In contrast, those supporting animal causes had the fewest, with only three.
Wiki Impact aims for the ‘Transparency Score of Malaysia’s Foundations’ report to inspire foundations to prioritise open communication. Transparency is now essential, not optional, for non-profits to thrive. See the full report and transparency scores of all 1,710 foundations here: https://www.wikiimpact.com/foundations-in-malaysia-2024/
