JAKARTA — Non-governmental organisations (NGOs) exist as collaborators and supporters of a country’s development. Therefore, NGOs need to be managed professionally, accountably, and humanitarian-oriented. If there is any misuse in the management of funds in NGOs, then it will lead to the loss of public trust. For this reason, every NGO needs to improve its understanding of financial management issues. Starting from the aspect of collection to programme distribution.
Dompet Dhuafa together with the Indonesian NGO Information Portal (Pingo.id) invited branch offices and Zakat Management Partners (MPZ) to attend the hybrid ‘Risk Mitigation for NGO Financial Management’ event. The agenda titled ‘Recommendation 8’ of the Financial Action Task Force (FATF) is designed as a provision for NGOs to identify, assess, and mitigate the risk of terrorism financing in financial management.
The event was attended by Dompet Dhuafa Republika Foundation Board Treasurer, Tri Estriani, Dompet Dhuafa SDI and Organisation Development Manager, Widodo, Dompet Dhuafa MPZ Manager, Sulis Tiqomah, Pingo.id NGO Activist, Ira Novita, as well as Branch and MPZ representatives.
Ira Novita explained that there are several ways used by terrorist organisations in abusing NGOs.
‘Unauthorised collection of money (fraud) and embezzlement and infiltration into the board and activities of NGOs by terrorists (without the knowledge of staff or donors),’ Ira explained, Thursday (27/6/2024), at the Dompet Dhuafa Philanthropy Building.
To mitigate this, Ira explained, ‘FATF Recommendation 8 reads ’countries should identify organisations that fall within the FATF definition of a non-profit organisation (NPO) and assess their terrorist financing risk. Countries should implement focused, proportionate and risk-based measures, without unduly interfering with or impeding the legitimate activities of NPOs, in line with a risk-based approach. The purpose of these measures is to protect such NPOs from terrorist financing abuse’.
From FATH Recommendation 8, Ira elaborated it into a guide for risk mitigation of NGO financial management.
‘At least, we need to have a tick guide from three aspects. Firstly, the implementation of governance standards. Second, building awareness of risks. Third, the breakdown and review of the checklist,’ she said. (Dompet Dhuafa)
Text and Photo: Hafiz MPZ
Editor: Ronna