Abstract

Bali Province comprises of nine regencies/cities. According to BPS data, among the nine
districts / cities, there are three regencies that the poverty rate is still above 5 percent in 2019,
namely Karangasem Regency which is the highest, followed by Klungkung and Buleleng
Regencies. The high level of poverty shows the low level of social welfare in this region, making
it rampant. The involvement of different parties is required to resolve these problems, as the
government is unable to fully resolve all these problems. Therefore, the government provides
different parties the largest opportunities to engage in tackling these social welfare issues,
including foundations.
A foundation is a non-profit organization and is expected to be a government affiliate in
the management of social welfare issues. Having good governance, the foundation has a very
wide capacity to support the government to address social welfare issues. However, not every
foundation is in a position to establish and fulfill its vision and purpose of managing social
issues, and some of these are in abusive conditions and can no longer operate because of
operational cost difficulties.
This research was conducted to 1) examine and analyze the impact of social capital, good
corporate governance and social media on donor trust, 2) examine and analyze the impact of
donor trust on the handling of social welfare problems in Karangasem regency, Bali province, 3)
examine and analyze the impact of capital. Social, Good Corporate Governance and social media
on the handling of social welfare problems in Karangasem Regency, Bali Province, through the
trust of donors, 4) examine and analyze the impact of Social Capital, Good Corporate
Governance and social media on the handling of social welfare problems in Karangasem
Regency, Bali Province
This research employs primary data involving foundation donors in Karangasem as
respondents of 110 (One Hundred and Ten) individuals, as well as resources from foundation
administrators, village leaders, foundation support beneficiaries and foundation volunteers in
Karangeasem. Data research was conducted using quantitative methods, using the analysis of
pathways and the modeling of structural equations.
The results showed that foundation managers' social capital is quite dominant in building
support with donors. In addition, good corporate governance and social media also contribute
significantly to the building of donor trust. In Karangsem Regency, Bali Province, donor trust
has a major impact on the handling of social welfare issues.
Suggestions to foundation managers are, first, to establish trust from donors, foundation
managers should maximize their social capital, including norm compliances, showing attitudes
that can build up trust, and also fostering good networks in their activities. Second, foundation
managers should implement the principles of Good Corporate Governance in the management of
the foundation. As the foundation is a non-profit organization whose activities are mostly
influenced by the trust of related parties, especially donors. Third, foundation managers should
master the technical skills of using social media quite well, so that they can use it intensively as a
means of sharing information and communicating with donors and the public. With high social
capital, the application of the principles of Good Corporate Governance and the intensive use of
social media, the foundation will gain the trust of donors, so that it can play its role as a
government affiliate in dealing with social welfare issues.
Keywords: social capital, Good Corporate Governance, social media, foundations, donor trust,
social welfare.
 Summary
Bali Province comprises of nine regencies/cities. According to BPS data, among the nine
districts / cities, there are three regencies that the poverty rate is still above 5 percent in 2019,
namely Karangasem Regency which is the highest, followed by Klungkung and Buleleng
Regencies. The high level of poverty shows the low level of social welfare in this region, making
it rampant. The involvement of different parties is required to resolve these problems, as the
government is unable to fully resolve all these problems. Therefore, the government provides
different parties the largest opportunities, including foundations, to engage in tackling these
social welfare issues.
A foundation is a non-profit organization and is expected to be a government affiliate in
the management of social welfare issues. Having good governance, the foundation has a very
wide capacity to support the government to address social welfare issues. However, not every
foundation is in a position to establish and fulfill its vision and purpose of managing social
issues, and some of these are in abusive conditions and can no longer operate because of
operational cost difficulties.
In Karangasem Regency, there are 29 (twenty nine) registered foundations and have
become the government affliates in handling social welfare problems. However, only 6 out of the
29 (twenty nine) foundations, are still active in 2020, while the rest are no longer active. These
foundations that are no longer active, do not have operational funds, or receive funds from
donors to support their activities.
As for the district of Karangasem has extremely varied topography, such as plains, hills,
mountains (including Mount Agung), Karangasem has a beach with a length of 87 Km, some of
which are potential and have been designated as a tourist area. Administratively, Karangasem
Regency consists of 8 sub-districts, with 78 villages / urban villages (75 definitive villages, 3
urban villages), 532 official banjar, and 52 neighborhoods.
In terms of economic activity, the agricultural sector is the biggest source of contribution
to the Gross Regional Domestic Product (GRDP) of Karangasem Regency. As for the public
welfare conditions as seen in the Human Development Index and its components and also
poverty conditions in Karangasem regency is under the average district/city in the province of
Bali. The low welfare condition causes many social welfare problems in Karangasem Regency,
among which the most prominent are the poor, neglected elderly and children.
In spite of the gap between the expectation that the foundation would play a major role
for the government to deal with problems of social welfare in Karangasem Regency, and the fact
that of the 29 (twenty nine) foundations in Karangasem Regency, only 6 (six) are able to actively
carry out activities, it is necessary to investigate what factors cause a foundation to survive, and
receive support and trust from donors.
According to the accounts of foundation managers who are still active, the factors that
differentiate their foundation from other foundations that are no longer active are the social
capital for managing the foundation, the application of the principles of Good Corporate
Governance, and the use of social media. These three things are done to gain the trust of donors.
With the trust of donors, donors are willing to make donations. Moreover, the donation is used
by the foundation to carry out activities to address social welfare problems in Karangasem
Regency and other areas in Bali Province.
This research was conducted to 1) examine and analyze the impact of social capital, good
corporate governance and social media on donor trust, 2) examine and analyze the impact of
donor trust on the handling of social welfare problems in Karangasem regency, Bali province, 3)
examine and analyze the impact of capital. Social, Good Corporate Governance and social media
on the handling of social welfare problems in Karangasem Regency, Bali Province, through the
trust of donors, 4) examine and analyze the impact of Social Capital, Good Corporate
Governance and social media on the handling of social welfare problems in Karangasem
Regency, Bali Province.
This research employs primary data involving foundation donors in Karangasem as
respondents of 110 (One Hundred and Ten) individuals, as well as resources from foundation
administrators, village leaders, foundation support beneficiaries and foundation volunteers in
Karangasem. Data research was conducted using quantitative methods, using the analysis of
pathways and the modeling of structural equations.
The results showed that foundation managers' social capital is very dominant in building
support with donors. In addition, good corporate governance and social media also contribute
significantly to the building of donor trust. In Karangsem Regency, Bali Province, donor trust
has a major impact on the handling of social welfare issues.
Suggestions to foundation managers are, first, to establish trust from donors, foundation
managers must maximize their social capital, including complying with norms, showing attitudes
that can build up trust, and also fostering good networks in their activities. Second, foundation
managers should implement the principles of Good Corporate Governance in the management of
the foundation. As the foundation is a non-profit organization whose activities are mostly
influenced by the trust of related parties, especially donors. Third, foundation managers should
master the technical skills of using social media quite well, so that they can use it intensively as a
means of sharing information and communicating with donors and the public. By gaining high
social capital, the application of the principles of Good Corporate Governance and the intensive
use of social media, the foundation would gain the trust of donors, so that it can play its role as a
government affiliate in dealing with social welfare issues.