FINANCIAL REPORTING CHALLENGES IN THE NONPROFIT SECTOR
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Abstract:
This study examines the financial reporting challenges faced by nonprofit organizations in Lagos State, Nigeria. The objectives are to: (1) identify key challenges in nonprofit financial reporting, (2) assess the impact of these challenges on financial transparency, and (3) evaluate strategies to overcome these challenges. A survey design was chosen to gather data from nonprofit financial managers and auditors. The sample size, derived using Taro Yamane's formula, ensures statistical validity. ActionAid Nigeria was chosen as the case study due to its extensive experience in nonprofit financial reporting. The reliability coefficient score of the survey was 0.87. Findings reveal significant challenges in nonprofit financial reporting, including resource constraints and regulatory compliance issues. It is recommended that nonprofit organizations in Lagos State adopt robust financial reporting frameworks and seek capacity-building opportunities to address these challenges effectively.
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