In most cases, charity foundations are run by people who aspire to do good for the community, in causes that they believe in.

I commend their intention, and the hard work it goes in setting up the charity and to keep it running.

However, I am aware that most of them are not accountants in their vocation. So it means that they are not able to produce financial reports to show how the funds were obtained, and how it is being expensed out.

Come to think of it, most of the charity organisations do not even keep track on the whereabouts of the money (in and out).

And basically they are working on a cash basis. So whatever is in the bank account is considered as income, and when the monel falls short, the activities grind to a halt.

Just wondering; are charity foundations obliged to prepare financial reports?

Are they really?

I know that some NGOs to provide financial reports, e.g Mercy Malaysia.
But I think it is voluntary, and not obliged.

I have not seen any small NGOs divulging their financial records.
Nor do I think the people helming such organizations have the capacity to prepare such records.

I stand corrected, though.