General Administration and Financial Management are vital pillars for the healthy existence and efficient functioning of any organization. Here, we shall take up these twin themes in the context of registered charitable Societies/Trusts/Companies. Though each one is different in nature and way of functioning, here, we shall use the word “Trust” and it is applicable to a “Society” or “Company” as well, unless we refer to the latter two specifically. We shall try to understand what these twin themes mean through a series of articles that would appear in the coming issues of MAGNET. To begin with, we take up the theme of General Administration first.
The word “administer” comes from Latin administrare, meaning to “manage as a steward,” to “regulate or execute on behalf of others.” This means it is not an action flowing out of an individual’s decision. Rather it is the execution of the decision of others—in this case, the members of a registered Society/Trust/Company. For example, a nurse administers medicine to the patients, the president administers the Oath of Office to the ministers, a priest administers the Sacraments to the faithful. All these examples imply that the person (nurse, president, priest) is acting on behalf of someone else (doctor, Constitution, Church). Hence, administration in any registered charitable entity would mean “managing the affairs on behalf of the members of an organization.” Thus, a Trustee manages the affairs of the Trust on behalf of its members.
What does a Trustee manage in a Trust? As Trustees, we manage the resources of the Trust entrusted to us. Hence, the need to be accountable. The Code of Canon Law reiterates this point in no. 1284: All administrators are to perform their duties with the diligence of a good householder; they must be vigilant that no goods placed in their care in any way perish or suffer damage; they must ensure that the ownership of ecclesiastical goods is safeguarded in ways which are valid in civil law.
Because the Trustee deals with the resources entrusted to him/her, he/she does not act as per his/her own will or desire. He/she acts on behalf of others, for the well-being of the Trust. A Trustee always acts on behalf of others (Body of Trustees, Governing Body or Board). In other words, he/she just executes the decision made by the members. Hence, a Trustee acts on behalf of the Members and reports to them. This is a great responsibility taken up with its inherent need for accountability.
Wherever accountability is there, transparency automatically comes in. Both concepts are inherently relational: Transparency creates accountability and accountability creates transparency. Transparency and Accountability are key to good governance. To the extent transparency is clear, accountability becomes in-built in the system. Without transparency there couldn’t be any accountability. Unless there is accountability, transparency would be of no value. The existence of both conditions contributes to an effective and efficient functioning of an institution. Some of the evils like corruption, ego fights, jealousy, competition, etc. come in when there is no transparency and accountability. Presence of this duo makes everyone realize his/her role in making the Trust achieve its goal.
Who are the Administrators? Anyone, whether a Trustee or not, in charge of the smooth functioning of a Trust or one of its units is an administrator. In our context, all those who hold the office of the Bishop, Parish Priest, Provincial, Superior, Minister, Treasurer, Principal, Director, President, Secretary, Administrator, Co-ordinator, etc. are administrators. They manage the resources of the Trust, be it personnel, property or financial, in such a way that it achieves the purpose for which the Trust has been created.
In the next issue, we shall see what a Trust is.
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