Financial Director and Quality Management in Nonprofit Organizations

Abstract

Introducing the concept of Total Quality Management (TQM) means that every part and area of work must be subject to a thorough review, redesign, and reorganization to eliminate all forms and causes of poor performance and poor quality. The use of TQM has become widespread in organizations over the past decade. Despite the varying objectives of implementing this system, the importance of customers has become a unified value and a constant principle within this system. Organizations today adopt the TQM approach, a relatively new management philosophy that emerged in the 1980s. Its effectiveness in improving productivity, supporting competitiveness, and continuously improving quality by focusing on beneficiary needs has been proven. TQM is also an urgent necessity in light of growing concerns about accounting accountability in nonprofit organizations, particularly regarding the inadequacy of financial reporting and oversight mechanisms following the numerous financial scandals that have plagued organizations in this sector.

The primary objectives of implementing a quality management program in civil society organizations in the non-profit sector are to reduce costs, reduce the time required to complete tasks for clients, achieve quality, shorten the time required to complete tasks, raise the level of organization staff, positively impact their performance, reduce useless tasks, and increase the organization's resources. Quality in program implementation eliminates waste, reduces costs, and contributes to attracting donors. Finally, it is important to achieve the organization's long-term goals of reducing poverty, raising the standard of living for beneficiaries, and gaining community support.

The main principles underlying Total Quality Management include the commitment and support of senior management, employee participation, team building, and training. This is achieved by instilling the concept of Total Quality within the organization's culture, through education and training, utilizing consultants, and enhancing motivation, supervision, and follow-up. To ensure the success of the Total Quality Strategy, it is necessary to activate the comprehensive participation of all organization staff, manage human resources effectively, obtain the support and endorsement of senior management for efforts to achieve Total Quality, create an organizational culture and work environment, provide training and continuing education, and adopt leadership styles appropriate to the Total Quality Management philosophy.

In the same context of working to achieve comprehensive quality, financial disclosure must include information covering the association's financial and operational results, including all information related to funding sources, guidelines for the association's salary policy and structures for senior employees, transactions with related parties, and anticipated risk factors. Board members and senior employees of the association are required to disclose to the board whether they have achieved, directly, indirectly, or on behalf of a third party, a material benefit from any transactions or matters that directly impact the association. An annual review must be conducted by an independent and competent auditor.