Case study Name Course Date Case study Non-Governmental Organizations refer to those organizations that are legally constituted through a legal or natural process to operate as an independent entity from government. In Singapore, the organizations are set under the Charities Act. This act is meant to support improvement of administration through monitoring of charities and prevent embezzlement of funds.
It also encourages the provision of vital information. This act also upholds the efficient use of charitable resources through the legal framework. However, the story of the National Kidney Foundation presents a violation of the law under the management of T.
T Durai. His management presents a case study for management of funds in charitable organizations. T.
T. Durai initially joined the National Kidney Foundation as a volunteer. He later rose in ranks to become the CEO. His leadership marked major advancements towards making the organization meet its target.
He made great strides to maintain the name and image of the organization. Therefore, mere allegations of his management style and the organization were settled in court where his organization won most of the cases. For instance, Archie Ong was sued by the CEO in 1997 for defamation. These were efforts to maintain the image of the organization. Durai was a hands-on leader ensuring everything ran smoothly in the organization. He also came up with innovative ideas to increase the money contributed towards the organization. He initiated effective programs towards patients with kidney problems. NKF grew and developed to a reputable organization among other states.
Countries like China, Bangladesh, Pakistan and Malaysia made continuous consultations with NKF. They used the expertise of NKF to create their dialysis programs. The organization also diversified to reach out to children and young people. The NKF Children’s Medical Fund was therefore established to assist them treat severe illnesses (Rowe, 2012).
However, over time the level of credibility and transparency of Mr. Durai became questionable. Allegations that he spent most of the charity’s money on affluent expenses were on the rise. The final revelation was established from a court case where he was suing the local newspaper the Straits Times and the writer Susan Long.
However, the court case made significant revelations towards the lack of integrity on Durai’s part. His was a highlight of the misuse and lack of transparency in charitable organizations. Apparently, the public donations were not completely reaching their primary goal to help people in need of kidney treatment. The audit undertaken by KPMG exposed the level of financial embezzlement and corruption at NKF. The funds for the charity were used to cater for the expensive needs of the CEO. He traveled first class and spent hefty amounts of money in affluent establishments.
In 7.5 years, he had spent over $2 million on his travel overseas. This indicates the level of discrepancy in charitable organizations. One of the major causes of misuse of donation funds can be attributed to the lack of a proper monitoring, auditing system. In NKF, a committee was established to check on funds, however, it proved to be a rubber stamp and ineffective. Therefore, they had no authority to highlight any financial alterations. Some organizations give ultimate control power to the CEO. This can prove to be detrimental towards maintaining transparency and ethical principles.
Durai had ultimate control and power. The committees that were mandated had little impact on his activities. The lack of a proper system of assessing the CEO led Durai to misuse the organizations finances. Lack of a proper auditing system also led to unorthodox accounting methods. In conclusion, charitable organizations play a fundamental role is supplementing government services. However, there should be a proper system to assess the ethical principles and level of transparency in these organizations.
It is therefore a principle requirement that organizations maintain public confidence through transparent and reliable methods in the use of funds. The government should also take bold steps to effect the laws regulating charitable organizations. References Rowe, W. G. (2012).
Introduction to nonprofit management: Text and cases. Thousand Oaks: SAGE.