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An exploratory study of financial priorities, financial planning and control practices in voluntary organisations Perceptions of treasurers in a developing country

An exploratory study of financial priorities, financial planning and control practices in... Purpose – This study seeks to explore the financial priorities, financial planning and control practices in locally‐established voluntary organisations (LVOs) in a developing country context. Design/methodology/approach – Two data collection methods are used to gather views from the LVO treasurers: a questionnaire survey and face‐to‐face interviews. Findings – Treasurers are less focused on priorities involving internal planning and control and are found to be using financial planning and control practices to a limited and seemingly unsophisticated extent. In consideration of the theoretical implications of organizational legitimacy, overall findings suggest that internal practices are: extensively used to convey a symbolic message of rationality, in the pursuit of a pragmatic or a moral form of legitimacy towards a defined funding body or towards a perceived internal target audience, respectively; used in a limited and informal way due to their perceived inappropriateness in legitimating organizations, in “deference” to the voluntary organizations' (VO) primary social objectives; or are virtually inexistent, due to the strong influence of trust embedded in an “emotional‐led” context, thereby explaining the irrelevance of financial/control practices – even for symbolic reasons. Research limitations/implications – The questionnaire response rate has been relatively low but the findings are enhanced by the diversity of organizations which participated in the questionnaire and interview stages. Originality/value – This study focuses on locally established organizations in a developing country context, which are typically less subjected to VO regulation and are “managed” by (unpaid) volunteers. The interviews involved a cross‐section of LVOs, which has been instrumental in contemplating the potential relevance of the legitimacy perspective. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Accounting & Organizational Change Emerald Publishing

An exploratory study of financial priorities, financial planning and control practices in voluntary organisations Perceptions of treasurers in a developing country

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Publisher
Emerald Publishing
Copyright
Copyright © 2007 Emerald Group Publishing Limited. All rights reserved.
ISSN
1832-5912
DOI
10.1108/18325910710820300
Publisher site
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Abstract

Purpose – This study seeks to explore the financial priorities, financial planning and control practices in locally‐established voluntary organisations (LVOs) in a developing country context. Design/methodology/approach – Two data collection methods are used to gather views from the LVO treasurers: a questionnaire survey and face‐to‐face interviews. Findings – Treasurers are less focused on priorities involving internal planning and control and are found to be using financial planning and control practices to a limited and seemingly unsophisticated extent. In consideration of the theoretical implications of organizational legitimacy, overall findings suggest that internal practices are: extensively used to convey a symbolic message of rationality, in the pursuit of a pragmatic or a moral form of legitimacy towards a defined funding body or towards a perceived internal target audience, respectively; used in a limited and informal way due to their perceived inappropriateness in legitimating organizations, in “deference” to the voluntary organizations' (VO) primary social objectives; or are virtually inexistent, due to the strong influence of trust embedded in an “emotional‐led” context, thereby explaining the irrelevance of financial/control practices – even for symbolic reasons. Research limitations/implications – The questionnaire response rate has been relatively low but the findings are enhanced by the diversity of organizations which participated in the questionnaire and interview stages. Originality/value – This study focuses on locally established organizations in a developing country context, which are typically less subjected to VO regulation and are “managed” by (unpaid) volunteers. The interviews involved a cross‐section of LVOs, which has been instrumental in contemplating the potential relevance of the legitimacy perspective.

Journal

Journal of Accounting & Organizational Change – Emerald Publishing

Published: Sep 25, 2007

Keywords: Voluntary organizations; Financial management; Financial control; Laws and legislation; Mauritius

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