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MANAGEMENT CONTROL SYSTEM IN NON-PROFIT ORGANIZATIONS

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The non-profit sector is part of the economy, and has experienced considerable development in recent years. This also happened in Indonesia. However, studies on management control systems discuss more about business enterprises in general. Non-profit organizations have different characteristics with business companies so that the management control system applied should also be different from the existing system in business companies. This paper tries to take an approach to find out the management control system that can be applied to non-profit organizations. This paper is made by identifying the characteristics of nonprofit organizations that distinguish them from business companies, and then discussing the appropriate management control system to be applied to nonprofit organizations.

The economy is composed of three major forces, namely the public (government) sector, the business sector, and what is often forgotten is the non-profit sector. non-profit) . The three of them together will build the economy of a country. In general, in the world, the third sector or what is known as the non-profit sector grows quite high and plays a role in the economy of a country. Not only in terms of the amount of funds managed, the non-profit sector also contributes in various industrial fields in an economy, ranging from the arts, health, education, natural environment, social environment, agriculture, and many other things. This also shows the important role of the non-profit sector for the economy, not only in developed countries but also in developing and underdeveloped countries. Giddens (1998) and Dilulio (1998) point out that as a form of doubt about the government in fulfilling its obligations to society in terms of welfare, growth, and the environment, non-profit organizations often emerge as strategic solutions to mediate between those who emphasize the importance of the market system, and those who emphasize the importance of the market system. those who are still dependent on the government. Often in developing countries, governments fail to fulfill their promises or obligations to their people, especially small communities who do not have sufficient factors of production. This will certainly be a factor that does not support economic growth and prosperity in the country. This is the basis for the importance of the non-profit sector in an economy. This non-profit sector appears as a party that fulfills the shortcomings of the government so that those who are weak can continue to exist and in the end can contribute. This can be through various channels such as education, social assistance, health and many more. This also happened in Indonesia. Indonesia is one of the countries that is experiencing rapid economic growth. Together with China and India, Indonesia became a country that experienced positive economic growth during the 2008 crisis. This will certainly provide an increase in welfare in Indonesia. However, the increase in welfare is not without problems.

social inequality that causes the increase in welfare is not evenly distributed. Some enjoy it, but the little people don’t really enjoy it. This is certainly a problem. Starting from a difficult economic factor, this will continue to spread to problems of low education, poor health, inadequate food needs and other problems. The non-profit sector is trying to fulfill these things that have not been able to be fulfilled, such as by providing food assistance, education assistance, health assistance and many more. In addition, environmental problems are also quite crucial in Indonesia. Indonesia is one of the countries that are the lungs of the world. However, the problem of illegal logging is still common in Indonesia. Of course this will have a bad impact not only for Indonesia but also for the world. This is what makes Indonesia often supported by the non-profit sector engaged in the environment. In addition, Indonesia is also a disaster-prone country. And often the non-profit sector helps the victims of the disaster and provides rehabilitation assistance for the areas affected by the disaster. This clearly illustrates the importance of the non-profit sector for the economy of a country, especially in Indonesia. However, despite its significant role in the economy, the non-profit sector has not received as much attention as it should have. Greater attention is still directed to the public sector and the business sector, namely the sector that regulates the economy and the sector that aims to make a profit. The non-profit sector can be said to have not been given much attention. In fact, given the significance of the contributions made, the non-profit sector should also receive attention. Lack of limited attention

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