Financial And Operational Measures Of Waqf Performance: The Case Of State Islamic Religion Council Of Singapore And Malaysia
Knowing the factors which can improve performance is very crucial in every organization including Waqf institutions as charitable institutions. Waqf institutions have significant roles in a country to mobilize and distribute public funds. Examining its performance could be useful to assess Waqf’s...
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| Main Authors: | , , |
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| Format: | Conference Paper |
| Language: | en_US |
| Published: |
Universiti Sains Islam Malaysia
2016
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| Subjects: | |
| Online Access: | http://ddms.usim.edu.my/handle/123456789/9872 |
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| Summary: | Knowing the factors which can improve performance is very crucial in every organization
including Waqf institutions as charitable institutions. Waqf institutions have significant roles
in a country to mobilize and distribute public funds. Examining its performance could be
useful to assess Waqf’s perpetual existence. In the context of business organizations, financial
ratios which rely on the bottom line can be the tools to examine the performance. Financial
ratios somehow reflect the financial health and vulnerability of the organizations. Besides
that, the organizations frequently compare actual performance with standards or expectations
to enhance the organizations’ achievements. Several financial ratios might be applicable to
evaluate non-profit organizations although those ratios do not seem sufficient. Financial
ratios alone cannot serve as measures of success in non-profits organizations, these
organizations have to be assessed in more complex ways, generally dealing with efficiency
and effectiveness. Therefore, the purpose of this study is to examine the performance of Waqf
institutions using financial and operational approaches. Using content and ratio analysis, this
study examines five years (2008-2012) annual reports of Waqf institutions administered by
Majlis Ugama Islam Singapura (State Islamic Religion Council or Singapore) and one Majlis
Agama Islam Negeri in Malaysia (one State Islamic Religion Council in Malaysia). This
study found in terms of Waqf collections, both institutions have growing amount of Waqf
funds. This can be a hint of Waqf awareness among people. Both institutions are also able to
generate income from their core activities. However, it can be highlighted from program
expenses that both institutions might not have a number of projects and programs relating to
the role as Mutawalli. Since financial ratios cannot be the utmost measures of success in
Waqf institutions, these organizations have to develop the performance measures which can
better evaluate efficiency and effectiveness. |
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