All NGOs must examine the way in which they manage their finances and internal security systems.
ISLAMABAD: The widespread concept of individual and organisational philanthropy in Pakistan has a historical and religious basis. Islam provides a universal context for giving, in the form of zakat and sadqa, but the concept also expands to other religions and their followers, e.g., Christians, Parsis, Hindus, Sikhs, etc. In addition, human compassion and civic responsibility are the other motives for giving by individuals. Since 1980, the Pakistan government is collecting zakat as a compulsory levy on bank accounts to provide financial assistance to the needy and poor. However, the State Bank of Pakistan’s data has shown a reduction in the collection of zakat from bank accounts over the past few years, citing the reservation of people and lack of trust over the strategies and disbursement systems of zakat by the government as the possible reasons. The existence and sustenance of a large number of civil society and non-governmental organisations in Pakistan is proof of the philanthropic mindset of the people. Excellent examples of the services being provided by the Edhi Foundation, Shaukat Khanum Memorial Trust Hospital, Al Khidmat Foundation, etc. show that people have confidence in these organisations and that is why, they continue to deliver and thrive.
A lot has been written about the reasons and implications of the recent robbery at the office of the Edhi Foundation in Karachi. An important question that has been raised is why such a large amount was being kept in the office in today’s age of robberies and thefts. Being a very trustworthy organisation, raising questions about the integrity of the Edhi Foundation will be seen as inappropriate; however, financial management and security systems in our charity organisations need to be reviewed and improved. All NGOs must examine the way in which they manage their finances and internal security systems. Organisations which collect funds from the public must be accountable to the public and must establish strict financial management systems, rules and procedures for accounting, audit and organisational sustainability.
Dr Sareer Ara
Published in The Express Tribune, October 26th, 2014.
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