in category Charities

Are accounts provided by charities reliable?

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1 Answer
(82.8k points):

Masters in Education from Nottingham University in the UK. Also studied Masters in Islamic Studies and Islamic Banking & Finance. Political activist with interests in Geopolitics, History and Phil ...
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One of the problems I often see in charity accounts I look at is the lack of analysis of funds sent abroad. Without this it is unclear what expenditure is additionally embedded in those funds over and beyond those declared in the main accounts.

The transparency of such costs are important otherwise it opens activities of most charities to doubt whether expenditure is being taken off the published revenue/expenditure account and concealed elsewhere - the expenditure being reported to us potentially being grossly understated.

As Muslims from a noble civilisation, we need to go beyond the minimal stipulations of the FRC's Financial Reporting Standards or Charities Commission's requirements and provide full transparency so we leave no room for doubts or critique when donors' hard earned monies are taken to help the most destitute and unfortunate on the planet.

Already there is critique that charities in general (and no, that does not mean each and every single charity on the planet!) are little more than agents of the system. They help to maintain the status quo by apply sticky plasters to the chaos caused by capitalism refusing to address causes of systemic failures that result in global poverty, insecurity and ignorance.

All should be done to ensure we remain inline with revelation otherwise we simply add to and magnify the problems out there.

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