Measurement of the transparency and good governance in nonprofit organizationspropose of an improved spanish battery of indicators

Abstract

We are currently witnessing the development of the nonprofit organizations (NPOs) that have been entrusted with meeting the very diverse needs. NPOs receive funds, in order to ensure they are managed appropriately. The transparency of the information disclosed and the good governance mechanisms have become key issues in order to be accountable as we previously stated in our systematic literature reviews. However, very few studies empirically measure the extent of this concepts in NPOs. To solve it, this research empirically validates the weighting of indicators proposed by the alliance between the Platform for Social Action NGO and the Spanish Coordinator for Development NGO (CONGDE) with the expert’s opinions. We use the Best-Worst Method to optimally assign weights to multi-criteria decision making situations. Our results show interesting differences in the level of importance given to the indicators by CONGDE and experts, suggesting the need for a revision of the importance proposed.