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All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. In this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. Printed on acid-free paper This Springer imprint is published by Springer Nature The registered company is Springer Science+Business Media Singapore Pte Ltd. Contents Part I 1 2 3 4 Halal Standard and Policy Does Performance and Transparency Matter to Individual Donors’ Giving in Malaysia?.
Abd Halim Mohd Noor, Nurul Amyra Mat Isa, Hamidah Muhd Irpan, Hasan Bahrom, Arifin Md Salleh and Abdul Rahim Ridzuan Donor’s Expectations Toward Transparency Features in Websites of Malaysia Charity Organizations. Abdul Rahim Ridzuan, Abd Halim Mohd Noor, Arifin Md Saleh, Hasan Bahrom and Hamidah Muhd Irpan Toward Implementing Islamic Values in Governmental Reforms: A Malaysian Experience. Amal Hayati Ishak, Muhamad Rahimi Osman, Ghafarullahhuddin Din and Siti Khadijah Ab. Manan The Implementation of Halal Cosmetic Standard in Malaysia: A Brief Overview. Aspiyati Jusoh, Liziana Kamarulzaman and Zalina Zakaria 3 13 27 37 5 Tanning (Dibagh) and Its Modern Application.
Mohd Mahyeddin Mohd Saleh, Irwan Mohd Subri, Mustafa ‘Afifi Abdul Halim and Nisar Mohammad Ahmad 47 6 Study on Muslim-Friendly Hospitality in Malaysia. Irwandi Jaswir and Noriah Ramli 59 7 Risk Analysis in the Halal Food Industry: An Exploratory Study. Mohammad Mahyuddin Khalid, Mohd Ashrof Zaki Yaakob, Mohd Dasuqkhi Mohd Sirajuddin, Azri Bhari and Mahbob Mahfot 67 v vi 8 9 Contents Application of the Delphi Technique in the Formation of Shariah-Compliant Gold Instrument (SCGI). Najahudin Lateh, Ghafarullahhuddin Din, Muhamad Rahimi Osman, Ezani Yaakob and Siti Noorbiah Rejab The Cadbury Controversy: Blessings in Disguise?. Nurhafilah Musa, Nazri Muslim, Mohd Fakaruddeen Che Omar and Asmak Husin 81 95 10 Reappraisal of Governance for Underage Marriage in Malaysia.
105 Rafeah Saidon, Mohamed Azam Mohamed Adil, Noorul Huda Sahari, Mardhiyyah Sahri and Baterah Alias 11 Shariah Compliance in Fair Distribution of Matrimonial Asset. 117 Noorul Huda Sahari, Najibah Mohd Zin, Siti Khadijah Ab. Manan and Rafeah Saidon 12 JAKIM: Governors of Halal Affairs. 131 Norazlina Abdul Aziz, Noriah Ramli and Nurazlina Abdul Raof 13 Halal Feed for Halal Food: An Exploratory Study of the Malaysian Legal and Regulatory Framework on Animal Feed. 141 Nurulaina Saidin and Fadilah Abd Rahman 14 A Halal Governance Structure: Towards a Halal Certification Market. 153 Nor Laila Md Noor and Nurulhuda Noordin 15 The Roles of JAKIM’s Halal Enforcement Officers in Carrying Out Halal Enforcement in Malaysia.
165 Zalina Zakaria, Nor Ain Abdul Hamid and Siti Zubaidah Ismail Part II Halal Research and Education 16 Biosensing Using Aligned-Gap Multiple Split Ring Resonator at Microwave Frequency for Possible Application in Halal Industry. 179 Izyani Mat Rusni, Alyani Ismail, Nor Azah Yusof, Mohd. Nizar Hamidon and Kamarul Nizal Idris 17 A New Creative Revolution of Dakwah Among Online Media Users: A Case Study of Islamic Online Comics and Cartoons.
191 Dzaa Imma Abdul Latiff, Zari Nezam Ruzali, Siti Nasarah Ismail, Siti Nur Farrah Faadiah Ab Ghani, Mohd Anwar Fahmi Abdullah, Aini Faezah Ramlan and Faridah Hanem Ab Rashid Contents vii 18 A Combined Rapid DNA Extraction and Multiplex PCR for the Detection of Porcine DNA in Raw and Processed Food. 201 Siti Aminah Ahmed, Lee Li Pin, Carsten A. Raabe, Timofey S. Rozhdestvensky and Tang Thean Hock 19 Integrating Awqaf and Zakat: A Case Study of Land Development for the Poor in State Islamic Religious Councils Terengganu, Malaysia. 209 Siti Nadiah Mohd Ali, Abd. Halim Mohd Noor, Nor Nazihah bt Chuweni, Nor Rashidah Paujah Ismail, Farhan Md Dahlan and Mohd Saifol Amri Shari 20 An Analysis of Religious Factor in Empowering Youth Volunteers.
219 Mardhiyyah Sahri, Mohd Dasuqkhi Mohd Sirajuddin, Khairudin Murad and Asmidar Alias 21 The Development of Islamic Geometric Pattern in Jewellery Product Design. 229 Mohd Idzham Che Rahim, Marzuki Ibrahim, Mohd Zamani Daud and Nur Syafinaz M. Anuar 22 Module Development of Halal Consumerism Education in Malaysia: A Proposal. 239 Mohd Akmal Sidik, Mohd Anuar Ramli and Mohammad Aizat Jamaludin 23 Knowledge and Attitude Towards Organ Donation Among the Staff of an Islamic Tertiary Education Centre in Malaysia.
Hairulhisyam Ngatiman, Rosliza Ghazali and Nooriah Mohamed Salleh 24 Istihlak in the Application of Catgut Surgical Sutures in Malaysia. 261 Nur Farhani Zarmani, Mohd Anuar Ramli and Shaikh Mohd Saifuddeen Shaikh Mohd Salleh 25 Pre-implantation Genetic Diagnosis (PGD): Halal Perspective. 271 Fadilah Abd. Rahman, Hanifah Musa Fathullah Harun, Zakiah Samori and Fathi Ramly 26 Ethical Aspect of Preimplantation Genetic Diagnosis: An Islamic Overview.
281 Hanifah Musa Fathullah Harun, Fadilah Abd. Rahman, Zakiah Samori and Fathi Ramly viii Contents 27 An Overview of the Current Analytical Methods for Halal Testing. 291 Irwandi Jaswir, Muhammad Elwathig S. Mirghani, Hamzah M.
Salleh, Noriah Ramli, Fitri Octavianti and Ridar Hendri 28 Analysis on Methods of Determining Halal or Haram of Animals to Be Eaten According to Syeikh Abdul Malik Bin Abdullah in His Kitab al-Kifayah. 301 Zurita Mohd Yusoff, Hasanulddin Mohd, Farah Amalina Md Nawi, Normadiah Daud and Rahimah Embong 29 Talaqqi Method in Teaching and Learning for the Preservation of Islamic Knowledge: Developing the Basic Criteria.
313 Syuhaida Idha Abd Rahim, Mohd Asmadi Yakob and Fadilah Abd. Rahman 30 Halal Financial Product: Reformation of Microtakaful to Suit the Lower Strata of Society in Malaysia. 321 Noor Ashikin Mohd Rom and Zuriah Abdul Rahman Part III Halal Business and Industry 31 eHalal4All Program—Promoting Halal Rural Products and Services Globally by Harnessing the Network-of-Mosques (NoM) Capabilities. 335 Abdul Rahman Ahmad Dahlan, Rahmah Ahmad H. Osman, Jamaludin Ibrahim and Mohd Zainudin Othman 32 The Significant Role of Halal Ports in Malaysia Logistics Industry.
347 Arash Asiaei, Azmin Azliza Aziz and Suhaiza Zailani 33 Issues and Challenges in Introducing Islamic Insurance (Takaful) into the Algerian Financial Market: Lessons from Malaysia. 359 Kamaruzaman Noordin and Djafri Fares 34 Syariah Compliant Homestay in Malaysia: Formulating Legal Framework. 371 Mashita Abu Hasan, Noor Salwati Sabtu and Noorul Huda Sahari 35 The Effect of Islamic Work Ethics (Akhlaq) to Innovation Capability. 381 Abdullah Mahfoudh, Mohd Salleh Hj Din and Muhammad Shahar Jusoh zakiah Contents ix 36 Application of Hiyal (Legal Stratagems) on Al-Ijarah-Based Contract in Islamic Financial Institution in Malaysia. 391 Mohd Ashrof Zaki Bin Yaakob, Mohamad Mahyuddin Khalid, Mohd Dasuqkhi Mohd Sirajuddin, Muhamad Rahimi Osman, Mohd Asmadi Yakob, Azri Bhari, Nurulaina Saidin, Mohd Solahuddin Shahruddin and Ishak Suliaman 37 Evaluation of Price Determination Methods for Malaysian Islamic Real Estate Investment Trusts. 401 Nor Nazihah Chuweni, Wan Intan Mastura Wan Azri and Ting Kien Hwa 38 Islamic Home Financing: Factors Considered by Home Buyers in Mukim of Ijok, Selangor, Malaysia. 411 Nor Nazihah Chuweni, Haszana Sakisan, Siti Nadiah Mohd Ali, Nurul Sahida Fauzi, Faza Fayza Mohd Fawzy and Lizi Wiriana Nawi 39 Performance Analysis of Shariah-Compliant Real Estate Investment Trusts.
421 Nor Nazihah Chuweni, Saidah Hamizah Ahmad and Mohd Musyawwir Chuweni 40 Exploring Challenges and Business Strategies of Muslim Women Entrepreneurs in Halal Hospitality Industry: The Malaysian Experience. 433 Norlin Nor, Norlida Mohd Noor, Azmi Mohd Nor and Noor Junenita Mohd Nor 41 Policy and Compliance Issues of Tax System for Shariah Equities, Islamic Finance and Zakat Reporting in Malaysia. 445 Rohaya Md Noor, Nawal Kasim, Mohamad Ridhuan Mat Dangi and Zaidatulnahar Abdul Kadir 42 Halal Supply Chain Deployment: Principles Versus Practices. 457 Sariwati Mohd Shariff, Harlina Suzanna Jaafar and Azlina Muhammad 43 Shari’ah Compliant International Sale of Goods—Mere Possibility or Impending Reality?. 471 Sharifah Saeedah Syed Mohamed Part IV Halal Food and Safety 44 Ethics of Food Handlers Throughout the Supply Chain in the Halal Food Industry: Halal Perspective.
483 Fadilah Abd. Rahman, Harlina Suzana Jaafar, Syuhaida Idha and Azlina Muhammad x Contents 45 Knowledge of Prophetic Food Consumption in Malaysia: Halal, Health Benefits and Practices.
499 Mohd Dzulkhairi Mohd Rani, Nur Syazana Umar, Shalinawati Ramli, Zairina A. Rahman, Mohd Yunus Abdullah and Nooriah Mohamed Salleh 46 The Development of Milk Bank According to Islamic Law for Preserving the Progeny of Baby. 509 Normadiah Daud, Nadhirah Nordin, Zurita Mohd Yusoff and Rahimah Embong 47 Identification of Aldolase C, Actin-Related Protein 2 Homolog, and Enolase 1 as Potential Biomarkers for Electrically Stunned Chickens. 519 Norshahida A. Samah, Azura Amid and Faridah Yusof 48 Tapping into the Halal Pharmaceutical Market: Issues and Challenges. 531 Suhana Mohezar, Suhaiza Zailani and Marco Tieman 49 Influencing Factors on Halal Fourth-Party Logistics (4PL) in Malaysia.
543 Suzari Abdul Rahim, Bahtiar Mohammad and Nor Aida Abdul Rahman 50 Application of Fourier Transform Infrared Spectroscopy on Edible Bird Nest Authenticity. 557 Zainab Hamzah, Sarojini Jeyaraman, Othman Hashim and Kamarudin Hussin Part V Halal Services 51 Lean Management in Halal Logistics Operations. 569 Azlina Muhammad, Harlina Suzana Jaafar and Shahrin Nasir 52 Halal Logistics Versus Halal Supply Chain: A Preliminary Insight. 579 Harlina Suzana Jaafar, Nasruddin Faisol, Fadilah Abdul Rahman and Azlina Muhammad 53 Assessing Innovation in Halal Service: An Islamic-Based View Approach.
589 Noorliza Karia and Muhammad Hasmi Abu Hassan Asaari Part I Halal Standard and Policy Chapter 1 Does Performance and Transparency Matter to Individual Donors’ Giving in Malaysia? Abd Halim Mohd Noor, Nurul Amyra Mat Isa, Hamidah Muhd Irpan, Hasan Bahrom, Arifin Md Salleh and Abdul Rahim Ridzuan Abstract The recently released World Giving Index (org/PDF/WorldGivingIndex20131374AWEB.pdf, 2013) reports that despite the fall in the growth rate of the global economy, the average percentage of people donating continue to increase. However, nonprofit organizations (NPO) were urged to be more transparent and inform the public about their work. This concurs with concern over NPO’s impact and its subsequent effects on donor’s behaviors. With indices of donor performance abound that lead to ranking of donor allocative performance, this may influence donor behavior. As such, this paper seeks to investigate the influence of performance on charitable giving decisions by donors.
Performance in NPO is complex and difficult to measure. This paper focuses on the influence of NPO’s performance on charitable decisions of individual donors in Malaysia. Individual donors were chosen since various studies identify them as one of the main contributors to charities. Online survey was conducted requesting information on respondents’ demography and psychographic. The survey also A.H.M. Noor (&) Accounting Research Institute and Institut Kajian Zakat Malaysia, Universiti Teknologi MARA, 78000 Alor Gajah, Malaysia e-mail: N.A.M. Bahrom A.M.
Salleh A.R. Ridzuan Institut Kajian Zakat Malaysia, Universiti Teknologi MARA, 78000 Alor Gajah, Malaysia e-mail: H.M. Irpan e-mail: H.
Requested information from respondents on various criteria of NPO when deciding to donate. Based on the survey, performance though important is not the major consideration for individual donors when donating to NPOs. Keywords Individual donors Not-for-profit organizations zations performance Performance measurement 1.1 Nonprofit organi- Introduction The recently released World Giving Index 2013 reports that despite the fall in the growth rate of the global economy, the average percentage of people donating continue to increase. This is evident in Malaysia, when individual donors fulfill their charitable obligations and show their caring for others regardless of difference in culture, ethnicity, and religions. Not only limited to festive seasons, Malaysian individual donors are now more generous in giving donations to the disadvantage, the poor and for other cause (Cogswell 2002). These developments augur well for the concern organizations, i.e., nonprofit organizations (NPO). Increase in charitable giving leads to similar increase in growth and influence of NPO; thus, the need for the sector to be accountable, transparent, and performance meets the expectations of the donors and other stakeholders (Hyndman 2013; Chung Ming Wong 1998).
NPO had attracted a multiplicity of stakeholders with different expectations of what organizations should achieve (Knapp 2000). NPOs depend on donors’ contribution to their survival and growth. As such, it is imperative for NPOs to be in communication with their donors; however, Hyndman (2013) argue that donor often must rely on formal communication from NPOs’ representative for information on performance of organizations, for example.
According to Kinnunen (2008), the performance of NPO can influence donor behavior. Similarly, Andy Neely (1997) in her study of designing performance measurement postulates that human will modify their behavior in an attempt to ensure positive output or outcome. (Iwaarden et al. 2009), for example, found that donors were not happy with the performance by the NPO although there are larger amounts of charitable giving made by them. Though there are studies that had analyzed donor decisions, however, few have examined relationship between donors’ decision and organization’s performance; fewer still were conducted in the Asian region. This paper focuses on the influence of NPO’s performance on charitable decisions of individual donors in Malaysia. Individual donors were chosen since various studies identify them as one of the main contributors to charities.
The paper is organized as follows. The following section discusses concerns transparency and performance of NPO. This is then followed by sections on data collection and research findings. A conclusion ends the paper. 1 Does Performance and Transparency Matter to Individual Donors’ 1.2 5 Demographic Profile Marriage allows two adults to share in several marriage-specific public goods, including charitable giving.
Married couples usually make joint earning in making decisions. According to Andreoni et al. (2011), when married couples make decisions, 68% is on men preference and another 26% is female preference. Marriage may also require that persons with distinct preferences devote resources to negotiating expenditure patterns, and this too extends to charitable donations. Note that couples can differ in three ways: whether they give, how much they give, and to what types of organizations they give (Andreoni et al.
To know the differences within the marriage for all three dimensions of giving. Thus, the gender differences will explain it further. Pharoah and Tanner (2006) stated that there is no significant impact on the number of household toward the level of donations. The decline in charity giving is due to the increasing of income and changes in the role of charitable organizations (Pharoah and Tanner 2006).
According to Dvorak and Toubman (2013), gender is an important variable when trying to measure the characteristic of charitable donations. Women are more likely to donate to charitable causes, but men are more generous in terms of the amount given (Piper and Schnepf 2008). Single women tend to give more donations than single men. Victoria (2013) had argued this, she had mentioned that men are likely to donate more than women; this is because women feel more pressured to give money when they want to. According to Piper and Schnepf (2008), men will give more donations than female for religious organizations. He also stated that there are small differences in gender toward the environment, religious organizations, and mental health causes.
This had been supported by Kasri (2013) through his study; he states that there are no differences in giving behavior between men and women. Through previous research, Kasri (2013) state that there are positive effects of income on an individual’s level of charitable giving. People who donate the greatest percentage of their income mostly come from the people that who least affords to give (Stern 2013). In addition to, it is not necessary that individual with higher income will donate more to charities (Kasri 2013).
Most of the wealthy individual will prefer to donate more on and support for universities, arts organizations, and museums, while the poor tend to donate to religious organization and social service charities (Stern 2013). There was also a significant relationship between the higher level of individual education and the intention to donate to the charities (Kasri 2013).
Bekkers and Wiepking (2011) also state in his study that there is positive relationship between education level and level of charitable giving. According to Turcotte (2012), those whose highest level of education was degree will make more charitable donations compared to those who in high school diploma level of educations.
In Austria, donation to animal protection, development aid, and human rights is positively related with education level (Bekkers and Wiepking 2011). However, Bekkers and Wiepking (2011) also mention that there is negative relationship between education and charitable giving in Taiwan and Korea. Transparency and Performance of Not-For-Profit Organizations NPO were urged to be more transparent and inform the public about their work.
This concurs with concern over NPO’s impact and its subsequent effects on donor’s behaviors. With indices of donor performance abound that lead to ranking of donor allocative performance, this may influence donor behavior. According to Iwaarden et al. (2009), donors are now more concern about what is happening to their contributions. The primary purpose of nonprofit organization financial statement is to provide information to satisfy the external stakeholders to show them an organization’s ability to effectively and efficiently and how the organizations discharge their responsibilities (Bruce 2010). It is clear that there are many people who have come to regard the measurement of charity effectiveness and transparency as far more important over the past decade (Iwaarden et al.
Thus, the performance of charities is becoming more important; however, measuring performance of charities seems to be more difficult than measuring performance of profit organizations. Measuring performance differs according to the perspective of the stakeholders, society, donors, and staff of the organizations. Donors, for example, may prefer outreach to the targeted recipients, the number of recipients, and quality program will indicate organizations are efficient in delivering their services. While staff might consider, the intuitions have performed well if it achieved financial sufficiency. Measurement of charity organizations is difficult, and many are skeptic on the attempt.
Traditionally, performance measures have been seen as means of quantifying the efficiency and effectiveness of actions (Andy Neely 1997). Neely (2002) in studies of a framework of the factors affecting the evolution of performance measurement system also stated that although it has long been recognized that performance measurement has an important role to play in the efficient and effective management of organizations, it remains a critical and debated issues. In order to examine the complexity associated with measuring the performance of charities, measures of internal efficiency and external effectiveness are now considered.
Internal efficiencies measure the ratio of fund raising administrative cost compare to expenditure on programs. Efficient organizations are expected to have low ratios. In addition, internal efficiency is the internal operation of an organization relating to avoidance of wastages through the use of resources that are available to the organization at a given time (Abdulkareem, n.d.). In other words, internal efficiency is a measurement of the use of resources to achieve the desired results. According to Sudzina (2012) and Henri (2006), the internal measurements of organization include the organizations’ strategy, structure, size, organizational politics, management commitments, resistance to change. In addition, according to Iwaarden et al.
(2009) and Steinberg (1990), there are two performance indices that are the program service ratio and fundraising ratio. Bowman (2006) in his study stated that these ratios are not easy to make it as a solution to the problem of 1 Does Performance and Transparency Matter to Individual Donors’ 7 measuring the NPO. There is another popular ratio used across sectors that focus on their efficiency in raising funds. This ratio compares the expenditure on fundraising with the amount of the contribution that is realized.
On the other hand, external effectiveness measures how successful are the organizations at achieving its mission. This, however, could also pose problems since effectiveness of programs by organizations will not necessarily be the same as effectiveness of the organization as a whole. According to Renz (1998), the theory of organizational effectiveness has a complex history.
In brief, it may be summarized as the development of alternatives to or modifications of what has been called the goal model of effectiveness. It is very important for funders to know how successful an organization is in accomplishing the goals (Niksa Alfirevic 2014).
According to Renz (1998) and Niksa Alfirevic (2014), through the project or program evaluation, the performance measurement in the nonprofit sector is complex. Some charities refuse to undertake research to find out how effective their expenditure of funds might have been since they argue that such research would cost too much money (Iwaarden et al. Lastly, according to Iwaarden et al.
(2009), the advantage, of attempting to measure charity effectiveness, is that it measures the whole reason they exist. The disadvantages are of course that it is very difficult and that few of these measures will be comparable. But for the thinking donor, there is no substitution for at least examining how the charity attempts to measure its effectiveness. 1.4 Data Collection A questionnaire was constructed for the purpose of the study and posted online. There are three sections in the structured questionnaire.
The first section is the respondent profile that consists of respondent gender, age, marital status, income per month, level of education, and number of household. While the second section asked about the respondent behavior toward charity. Third section solicits respondent psychographic profile such as respondent satisfaction, transparency, and accountability of not-for-profit organizations. The target respondents are Malaysian individual donors. 1.5 Findings and Discussion In total, 556 useable questionnaires were obtained from the direct questionnaire and online survey. Table 1.1 outlines the demographic profiles of respondents who participated in the study. 55% of the respondents are female, and half of respondents are single.
In terms of household income, 51.6% of the respondent’s monthly income is between MYR2000 and MYR4000 while 53.4% are having four to six numbers of household. Majority of the respondents have a tertiary education.