Conference on Philanthropy for Humanitarian Aid (CONPHA) 2017 385 Conference on Philanthropy for Humanitarian Aid (CONPHA) 2017. (eISBN: 978-967-2122-01-2) 23rd & 24th May 2017, Sultan Sharif Ali Islamic University (UNISSA), Brunei. Governance Framework for Philanthropic Organisations Directed Towards Taqyid al-Mutlaq ROSHAYANI ARSHAD, NAWAL KASIM, RUHAINI MUDA AND CHAKIR AHMED Accounting Research Institute, UiTM and Ibn Zohr University, Morocco ABSTRACT Philanthropic organisations (POs) have grown substantially in numbers and size, indicating significant role towards the advancement of society. Concurrently, there are also increasing adverse publicity surrounding a number of high profile scandals of fund misappropriation and organisational inefficiency in these organisations. In mitigating these issues or to achieve taqyid al-mutlaq, there is a need to strengthen the governance of these organisations. Good governance allows POs to manage their risks more effectively, build public trusts, legitimacy and long term survivability. Hence, this study aims to examine the types and extent of governance practices of POs in Malaysia. In achieving these objectives, this study developed a governance framework system that allows regulators, POs or other relevant stakeholders to assess the types and extent of governance practices. The governance practices are based on four themes: strategic, procedural, fiduciary and financial. The data used in this system is based on POs registered with Companies Commission of Malaysia. The system contributes the following benefits to the regulators: profiling of the POs based on the extent of their governance practices, systematic monitoring based on the profiles and capability building in enhancing their good governance practices. Concurrently, the individual PO can also focuses on areas of governance framework that could be developed further to achieve best practice. Overall, this study fills the gap in the literature on the governance of POs and in practice, the proposed good governance framework system can facilitate practical implementation of taqyid al-mutlaq in enhancing the philanthropy sector. Future research may extend the framework to disclosures of good governance practices for the POs. More transparent good governance practices encourage trusts within, and of, an organisation. Keywords: Governance, Taqyid al-Mutlaq, Philanthropic Organisations 1. INTRODUCTION Solving social issues such as homelessness, youth unemployment, reoffending prisoners and drug abuse are crucial in enhancing the socio-economic development of any countries. Resolving these issues has traditionally been the responsibility of the government and consumed a large amount of public expenditures. Despite various initiatives by the government, some sections of society remain vulnerable. The single handed approach by the government, coupled with the current challenging economic environment, reduces the availability of funds and sustainable provision of social services. In this context, the philanthropic organisations (POs) have always been facilitating the government in resolving various social issues. POs are generally referred to as charitable and voluntary organisations established to carry out social mission for the betterment of the society. Their substantial growth in numbers and size indicate significant role towards the advancement of society. They are funded through donations, grants and other resources from various contributors. In this paper, the terms philanthropic organisations, social organisations, non-profit organisations and charitable organisations will be used interchangeably. A growing number of literatures on charitable organisations highlighted the issues surrounding the widely accepted assumptions that these organisations pursue their missions selflessly, effectively and efficiently (e.g Connolly and Hyndman, 2013, Dellaportas et al, 2011). There are increasing