Skip to main content
SpringerLink
Log in

Web disclosure of institutional information in nonprofit organizations: an approach in Portuguese charities

  • Original Article
  • Published:
International Review on Public and Nonprofit Marketing Aims and scope Submit manuscript

Abstract

Given the specificity and importance of nonprofit organizations, there is a growing demand for financial and non-financial information. In this way, this paper will address the question of institutional disclosure through the web, of these specific organizations, particularly the Portuguese charities. Our central goal ascertains what type of information and what factors influence Portuguese charities in the information disclosure via Internet, bearing in mind that there are some variables that might influence the disclosure of information such as size, age and certification of financial reports. The main disclosure indicators will be listed so that we can identify the most visible types of information, as well as, the most important factors that influence information disclosure. So, a checklist will be proposed, which will be the starting point for the analysis of disclosure information published by the charities, besides a significant element to evaluate the degree of compliance with this specific index. To reach this goal we will do a quantitative content analysis to the web information published by the Portuguese charities. The main conclusions mention that most of the organizations under study disclose different types of information (financial and non-financial), in which financial information play a more relevant role, with the annual accounts disclosure index having the highest level of disclosure. Regarding the influencing elements of the disclosed information, the certification of accounts (external auditing) and organization size were identified as the most important ones.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Ahmed, A. (2012). Disclosure of financial reporting and firm structure as a determinant: A study on the listed companies of DSE. 6(1).

  • Andrade, A. M., & Franco, R. C. (2007). Economia do Conhecimento e Organizações sem Fins Lucrativos (S. P. I. – S. P. de Inovação, ed.). Porto: Princípia Editora.

  • Angonese, R., Grzybovski, D., & Mozzato, A. R. (2014). Determinantes do Nível de Evidenciação de Informações Voluntárias : estudo em empresas com ações negociadas na BM&FBOVESPA. Revista de Gestão Unisalle, 3(2), 93–110.

    Google Scholar 

  • Atan, R., Zainon, S., & Wah, Y. B. (2012). The extent of charitable organisations’ disclosures of information and its relationship with donations. Malaysian Accounting Review, 11(2), 15–39.

    Google Scholar 

  • Bakar, N., Arshad, R., Azman, N., & Omar, N. (2013). Organisational characteristics and accountability in protecting risk exposures in non-profit organisations. Journal of Energy Technologies and Policy, 3(11), 479–488.

  • Basuony, M. A. K., & Mohamed, E. K. A. (2014). Board composition, ownership concentration, and voluntary internet disclosure by MSM-listed companies. Corporate Board: Role, Duties and Composition, 10(1), 60–70. https://doi.org/10.22495/cbv10i1art5.

    Article  Google Scholar 

  • Behn, B. K., DeVries, D. D., & Lin, J. (2010). The determinants of transparency in nonprofit organizations: An exploratory study. Advances in Accounting, 26(1), 6–12.

    Article  Google Scholar 

  • Bennett, J. T., & DiLorenzo, T. J. (1994). Unhealthy charities: Hazardous to your health and wealth. BasicBooks.

  • Carvalho, A. O., Rodrigues, L. L., & Branco, M. C. (2017). Factors influencing voluntary disclosure in the annual reports of Portuguese foundations. Voluntas, 28, 2278–2311. https://doi.org/10.1007/s11266-017-9883-8.

    Article  Google Scholar 

  • Christensen, R. A., & Ebrahim, A. (2006). How does accountability affect mission? The case of a nonprofit serving immigrants and refugees. Nonprofit Management & Leadership, 17(2), 195–209. https://doi.org/10.1002/nml.143.

    Article  Google Scholar 

  • Connolly, C., & Hyndman, N. (2004). Performance reporting: A comparative study of British and Irish charities. The British Accounting Review, 36, 127–154. https://doi.org/10.1016/j.bar.2003.10.004.

    Article  Google Scholar 

  • DiMaggio, P. J., & Powell, W. W. (1983). The Iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147. https://doi.org/10.2307/2095101.

    Article  Google Scholar 

  • Dyczkowski, T. (2017). Strategies toward internet disclosures in public benefit Organisations. Prace Naukowe Uniwersytetu Ekonomicznego We Wrocławiu, 1(474), 133–149. https://doi.org/10.15611/pn.2017.474.12.

    Article  Google Scholar 

  • Ebrahim, A., & Rangan, V. K. (2014). What impact? A framework for measuring the Scale & Scope of social performance. California Management Review, 56(3), 118–141.

    Article  Google Scholar 

  • Gandia, J. L. (2011). Internet disclosure by nonprofit organizations: Empirical evidence of nongovernmental organizations for development in Spain. Nonprofit and Voluntary Sector Quarterly, 40(1), 57–78. https://doi.org/10.1177/0899764009343782.

    Article  Google Scholar 

  • Gordon, T., Fischer, M., Malone, D., & Tower, G. (2002). A comparative empirical examination of extent of disclosure by private and public colleges and universities in the United States. Journal of Accounting and Public Policy (Vol. 21). https://doi.org/10.1016/S0278-4254(02)00051-0.

    Article  Google Scholar 

  • Hambrick, D. C., & Finkelstein, S. (1987). Managerial discretion: A bridge between polar views of organizational outcomes. Research in Organizational Behavior, 9, 369–406.

    Google Scholar 

  • Lee, R. L., & Joseph, R. C. (2013). An examination of web disclosure and organizational transparency. Computers in Human Behavior, 29(6), 2218–2224. https://doi.org/10.1016/j.chb.2013.05.017.

    Article  Google Scholar 

  • Liao-Troth, M. A., & Dunn, C. P. (1999). Social constructs and human service: Managerial Sensemaking of volunteer motivation. Voluntas: International Journal of Voluntary and Nonprofit Organizations, 10(4), 345–361.

    Article  Google Scholar 

  • Lightstone, K., & Driscoll, C. (2008). Disclosing elements of disclosure: A test of legitimacy theory and company ethics. Canadian Journal of Administrative Sciences / Revue Canadienne Des Sciences de l’Administration, 25(1), 7–21. https://doi.org/10.1002/cjas.50.

    Article  Google Scholar 

  • Ling Wei, T., Davey, H., & Coy, D. (2008). A disclosure index to measure the quality of annual reporting by museums in New Zealand and the UK. Journal of Applied Accounting Research, 9. https://doi.org/10.1108/09675420810886114.

    Article  Google Scholar 

  • Lovejoy, K., & Saxton, G. D. (2012). Information, community, and action: How nonprofit organizations use social media. Journal of Computer-Mediated Communication, 17(3), 337–353. https://doi.org/10.1111/j.1083-6101.2012.01576.x.

    Article  Google Scholar 

  • MacIndoe, H., & Barman, E. (2013). How organizational stakeholders shape performance measurement in nonprofits: Exploring a multidimensional measure. Nonprofit and Voluntary Sector Quarterly, 42(4), 716–738. https://doi.org/10.1177/0899764012444351.

    Article  Google Scholar 

  • Ministério dos Assuntos Sociais. (1979). Decreto-lei 519-G2/79, de 29 de Dezembro.

  • Ministério dos Assuntos Sociais. (1986). Decreto-Lei no119/83, de 25 de Fevereiro.

  • Monzón-Campos, & Chaves-Ávila, R. (2012). The social economy in the European Union. https://doi.org/10.1787/9789264039889-en

    Google Scholar 

  • Neto, A. A., de Araújo, A. M. P., & Fregonesi, M. S. F. d. A. (2006). Gestão baseada em valor aplicada ao terceiro setor. Revista de Contabilidade e Finanças - USP, 17(Special issue), 105–118. https://doi.org/10.1590/S1519-70772006000400009.

    Article  Google Scholar 

  • Parsons, E., & Broadbridge, A. (2007). Charity, retail or care? Gender and managerialism in the charity retail sector. Women in Management Review, 22(7), 552–567.

    Article  Google Scholar 

  • Reheul, A. M., Van Caneghem, T., & Verbruggen, S. (2013). Auditor performance, client satisfaction and client loyalty: Evidence from Belgian non-profits. International Journal of Auditing, 17(1), 19–37. https://doi.org/10.1111/j.1099-1123.2012.00455.x.

    Article  Google Scholar 

  • Saxton, G. D., & Guo, C. (2011). Accountability online: Understanding the web-based accountability practices of nonprofit organizations. Nonprofit and Voluntary Sector Quarterly, 40(2), 270–295.

    Article  Google Scholar 

  • Saxton, G. D., Kuo, J.-S., & Ho, Y.-C. (2011). The determinants of voluntary financial disclosure by nonprofit organizations. Nonprofit and Voluntary Sector Quarterly, 41(6), 1051–1071.

    Article  Google Scholar 

  • Saxton, Neely, D., & Guo, C. (2014). Web disclosure and the market for charitable contributions. Journal of Accounting and Public Policy, 33(2), 127–144. https://doi.org/10.1016/j.jaccpubpol.2013.12.003.

    Article  Google Scholar 

  • Scandelius, C., & Cohen, G. (2016). Achieving collaboration with diverse stakeholders-the role of strategic ambiguity in CSR communication. Journal of Business Research, 69(9), 3487–3499. https://doi.org/10.1016/j.jbusres.2016.01.037.

    Article  Google Scholar 

  • Trabelsi, S., Labelle, R., & Dumontier, P. (2008). Incremental voluntary disclosure on corporate websites, determinants and consequences. Journal of Contemporary Accounting and Economics, 4(2), 120–155. https://doi.org/10.1016/S1815-5669(10)70032-1.

    Article  Google Scholar 

  • Tremblay-Boire, J., & Prakash, A. (2015). Accountability.org: Online disclosures by U.S. nonprofits. Voluntas: International Journal of Voluntary and Nonprofit Organizations, 26(2), 693–719.

    Article  Google Scholar 

  • Umoren, A. O., & Asogwa, I. E. (2013). Internet Financial Reporting and Company Characteristics: a Case of Quoted Companies in Nigeria. Research Journal of Finance and Accounting, 4(12), 2222–2847.

  • Urquiza, F. B., Navarro, M. C. A., Trombetta, M., & Lara, J. M. G. (2010). Disclosure theories and disclosure measures. Spanish Journal of Finance and Accounting/Revista Española de Financiación y Contabilidad, 39(147), 393–420. https://doi.org/10.1080/02102412.2010.10779686.

    Article  Google Scholar 

  • Verbruggen, S., Christiaens, J., & Milis, K. (2011). Can Resource Dependence and Coercive Isomorphism Explain Nonprofit Organizations’ Compliance With Reporting Standards? Nonprofit and Voluntary Sector Quarterly, 40(1), 5–32.

  • Waters, R. D., & Feneley, K. L. (2013). Virtual stewardship in the age of new media: Have nonprofit organizations’ moved beyond web 1.0 strategies? International Journal of Nonprofit and Voluntary Sector Marketing, 18(3), 216–230. https://doi.org/10.1002/nvsm.1469.

    Article  Google Scholar 

  • Whittaker, L. (2013). Disclosure of performance measures in the annual reports of non-profit organizations*.

  • Wieczynski, M. M. (2003). Marineide Maria Wieczynski O Significado Da Ocupação Pós-Aposentadoria Nas Organizações Sociais : Uma Questão Em Debate. 1–235.

  • Yetman, R. J., & Yetman, M. (2011). The effects of governance on the accuracy of charitable expenses reported by nonprofit organizations. Contemporary Accounting Research, 29. https://doi.org/10.2139/ssrn.590961.

  • Zainon, S., Atan, R., & Wah, Y. B. (2012). Applying stakeholder approach in developing charity disclosure index. Archives des Sciences, 65(5), 204–229.

    Google Scholar 

  • Zucker, L. G. (1987). Institutional theories of organization. Annual Review of Sociology, 13(1), 443–464. https://doi.org/10.1146/annurev.so.13.080187.002303.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. School of Management and Technology, CIICESI, Porto Polytechnic Institute, Porto, Portugal

    Amélia Carvalho, Marisa R. Ferreira & Sandra Lima

Authors
  1. Amélia Carvalho
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Marisa R. Ferreira
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Sandra Lima
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Marisa R. Ferreira.

Additional information

Publisher’s note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Carvalho, A., Ferreira, M.R. & Lima, S. Web disclosure of institutional information in nonprofit organizations: an approach in Portuguese charities. Int Rev Public Nonprofit Mark 17, 41–58 (2020). https://doi.org/10.1007/s12208-019-00235-1

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s12208-019-00235-1

Keywords

Search

Navigation