Many micro investments don't have a way in which they account for the money they receive from donors, for the donors to trust them there should be transparency in the work they are doing and the money they receive. there are various reasons that leads to lack of transparency which includes;
-conflict of interest.
- compensation in-terms of salaries.
- lack of financial integrity.
- lack of communication and decision making.
There should be systems in place to account for the funds which include;
Accountability and strategic management. This will promote ethical decision making.
Promote effective financial management- if resources are used in socially responsible way it will promote public trust of the institution to the donor.
- Ethical culture- leaders with integrity
- Effective code of conduct- institutions should ensure there are rules that clarify the expectations and standards of the project. Codes will reinforce core values, promote trust and reduce organization risks on conflict of interest and fraud.
- The solution allow investors outside our city to trust that the funding received by the intended individual by;
-Acknowledge each donation received.
- send the receipts ( bank statement) to the donors once the funding is received.
The solution will prove the ongoing accountability by the institution doing the following;
-making sure most of the money received goes into the project.
-Communicating on regular basis, by writing monthly report.
-establish and keep up accounts on social media channels.
- Performance visibility -share the images, videos and posts showing the impact of the donations.
-financial report - there should be systems in place to enter in any money that is spend on every activity.
There should be financial systems which track expenses, which includes; payment and cash voucher, transport reimbursement and receipted expenses and fund accountability statement.
Items cost in USD
installing financial systems- 110
Accountant to install systems - 100
Financial materials ( cash books
Vouchers and cash box) 120
total 350
Transparency
Many micro investments don't have a way in which they account for the money they receive from donors, for the donors to trust them there should be transparency in the work they are doing and the money they receive. there are various reasons that leads to lack of transparency which includes;
-conflict of interest.
- compensation in-terms of salaries.
- lack of financial integrity.
- lack of communication and decision making.
There should be systems in place to account for the funds which include;
Accountability and strategic management. This will promote ethical decision making.
Promote effective financial management- if resources are used in socially responsible way it will promote public trust of the institution to the donor.
- Ethical culture- leaders with integrity.
- Effective code of conduct- institutions should ensure there are rules that clarify the expectations and standards of the project. Codes will reinforce core values, promote trust and reduce organization risks on conflict of interest and fraud.
