Title:
Why Should Non-profit Organisations in Zambia Strive for Transparency, Accountability and Relationship Practices?

Authors:
Denny Mangisha Mangisha, Agape Kapasa, Zambia

Abstract:

Zambia’s Non-profit Organisations (NPOs) depend much on donor funding for their sustenance. In turn, the donors expect NPOs to practice corporate governance which has brought about much debate and change in the governance of business corporations of both public and private sectors. However, little is known about the likely impact of transparency, accountability and relationships in NPOs. This article fills this gap in understanding their role as drivers of donor confidence. The question,“Why Should NPOs in Zambia strive for the three practices?” triggers an inquiry. This question suggests an existence of a problem requiring a solution among some NPOs in Zambia. Reviewed empirical literature reveals issues of mismanagement of donated funds among NPOs. This article aims to assess whether the application of the three practices help address financial misdemeanors. These values are believed to be crucial for building donor confidence, securing funding, and maintaining the public trust. They also support ethical stewardship of the resources entrusted to the organization and the ability to fulfill the organization’s mission. To achieve the objective, an empirical study was conducted on the NPO practitioners. A mixed research design was used: an econometric model called multiple linear regression and confirmed through interviews triangulation. The result of the study revealed that transparency, accountability and relationships are statistically significant in explaining the influence of donor confidence at 95% confidence level. The study implication is that organizational commitment to three practices lead to enhanced donors’ confidence in the third sector, while the opposite has negative implication.

DOI: https://doi.org/10.51505/IJEBMR.2024.8614