Wiki Impact: 64pct of foundations score poorly on transparency

A study by research group Wiki Impact has found that the majority of non-profit foundations make insufficient information available to the public and score a low transparency rating.

The 'Transparency Score of Malaysia's Foundations' report rated 1,567 foundations in Malaysia based on their transparency scorecard, with only 32 foundations receiving a minimum A rating.

Among the foundations with high transparency scores are WWF Malaysia, TFM Foundation, Yayasan Hasanah, Yayasan Sejahtera, Arba International Waqf (L) Foundation, MyKasih Foundation, Yayasan Selangor, and YTL Foundation.

However, over 1,000 (64 percent) of those rated by Wiki Impact had insufficient information and scored poorly.

“The comprehensive rating system evaluates the transparency, frequency, and credibility of communications made by 1,567 registered foundations to the public.

“Based on the rating system, Wiki Impact reviewed publicly-available data, information, and reports to assess the transparency of the foundations based on four key main criteria," said Wiki Impact in announcing its findings.

The criteria are publicly-available financial reports, publicly-available impact reports, a current and active website, and an updated social media presence.

It said that the expectation of trust from the public in non-profits is growing and many are evaluating them based on publicly available information.

Wiki Impact describes itself as a research and communications hub focused on Malaysia's impact-driven work and social issues.

It says its intention is to create social impact through data and evidence-based stories that invite participation and conversation.

Education the most focused cause

Among the interesting findings of the report include:

• Almost half the number of foundations were located in the Klang Valley area, with 25.27 percent in Kuala Lumpur and 20.17 percent in Selangor.

• Education is the most focused cause, with 251 foundations working to improve education in Malaysia. Animal welfare was the least focused area, with only three foundations.

• In terms of digital presence, 37 percent of foundations do not have a published website. Only 28 percent of foundations posted an update on their social media within the past three months since Feb 2023, while 131 foundations have not posted an update for over a year.

The report also highlights that only 2.94 percent of 1,567 foundations released an Impact Report within the past five years (since 2017), and only 31 (2.3 percent) foundations have ever published a financial report publicly.

Terrence Ooi

“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,” said Wiki Impact co-founder Terrence Ooi.

“Our report provides clarity for donors to be more informed about foundations that they are supporting or may potentially support. When you are informed accurately, generosity grows,” Ooi added.

Shared public narrative

He said it is important to note that under current laws, foundations are not required to disclose their annual, financial, and impact reports publicly.

“Also, they are not required to publicly disclose 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,” said Ooi. - Mkini