LEGAL FRAMEWORK FOR NON-PROFIT ORGANISATIONS IN MALAYSIA AND THE NEED FOR A STANDARD REGULATORY & COMPLIANCE FRAMEWORK IN CHARITY GOVERNANCE
DOI:
https://doi.org/10.53840/ijiefer152Keywords:
Non-Profit Organisation, Regulatory, Compliance, Charity Organisation, GovernanceAbstract
Non-Profit Organisations (NPO), also known as Non-Governmental Organisations or Charitable Organisations in Malaysia are governed by multiple laws and regulatory bodies, each with distinct compliance requirements. This study examines the available legal frameworks for NPOs in Malaysia and its compliance requirements, conducted through doctrinal and non-doctrinal analysis of the current legal framework and incorporating survey with key stakeholders to explore governance challenges. The existence of multiple laws creates confusion amongst the public regarding standard terms like "Foundations" as each type of NPO has unique registration and compliance criteria. While these multiple legal spheres offer flexibility in choosing suitable model for registration, they also highlight the need for standardisation and uniformity to enhance governance practices. With the current demand for the third sector and Social Finance, this study underscores the urgency of streamlining regulatory frameworks to foster better charity governance practices, drawing insights from well-presented Islamic Economic models throughout history.
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Copyright (c) 2024 Ahmad Mu'az Mohd Nawawi, Nurul Atiqah Anuar, Nuramalina Samar
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