Sufficiency of Donation Received Among Private Islamic School in Malaysia: Does Reputation Matters?

Abstract

Sufficient financial resources are important to ensure non-profit organisations can achieve the defined goals and objectives as well as to ensure that the organization remains competitive and relevant. Private Islamic schools are non-profit organizations founded by individuals, non-governmental organizations or Islamic organizations to meet the Muslim society’s need for a balanced academic and religious education. However, most private Islamic schools in Malaysia are facing with financial difficulties that prevent them from carrying out activities and development as planned. The main financial resource for these private Islamic religious schools is student fees, but the fees alone are insufficient to cover the overall cost of planned operations and development. As such, private Islamic religious schools in Malaysia rely heavily on donation from individuals and corporate bodies. Using a cross sectional survey design, this study intended to explore the relationship of reputation to the sufficiency of donation received by private Islamic schools in Malaysia. The Smartpls (v. 3.2.9) software was used to run the Structural Equation Modelling (SEM) technique and the findings showed that the sufficiency of donation received by private Islamic schools in Malaysia is influenced by a good reputation. It is hoped that future studies focus on separate studies involving pondok institution, tahfiz schools as well as SRI and SMI to obtain more comprehensive results.