ACCOUNTING FOR A CHARITY FOUNDATION

For every organization, bookkeeping is a mandatory part of the work. But some organizations believe that in case of non-receipt of profit, it is not necessary to keep accounting records. But it’s not. Even charitable organizations must keep records and accounts. It is clear that when the main activity is helping others, then there is no time left for maintaining accounting records. Then you can use specialized companies that will help you correctly and accurately conduct the financial activities of the charitable foundation.

Features of accounting for a charitable foundation

• The funds received to the accounts of the charitable foundation are donations that must be used exclusively for their intended purpose.
• When registering a charitable foundation, there must be an application for its inclusion in a non-profit organization. This will allow such a charitable foundation not to pay income tax.

Ways to receive funds to the accounts of a charitable foundation

• Non-cash transfers of funds to the bank details of the BF
• Receipt of cash in the BF cash desk. If the charitable foundation accepts cash, the work of the cash desk and the cashier must be organized.
• Receipt of charitable assistance through goods, equipment, services, etc.

Types of income of the charitable foundation

• Target income used for its intended purpose, that is, in accordance with the purpose of creating a BF.
• Non-targeted income, that is, income used to maintain the BF.

It is important to correctly contribute the income of a charitable foundation in order not to lose the status of non-profitability.

Is it possible to provide services or sell goods to achieve the goals of the BF?

The legislation does not prohibit doing this, but one should take into account the fact that such activities should not be profitable. That is, again, you need to properly document such financial activities.

What services can be obtained by contacting a company specializing in accounting support for a charitable foundation?

1. Consultation on the main aspects of the activities of the BF, the taxation system and other issues that may arise in the course of the activities of the fund. It is worth noting that often, in addition to accounting advice, legal advice is also required, which specialized companies can provide.
2. Assistance in registration of the Charitable Foundation, as well as filing an application for obtaining the status of a “non-profit organization”.
3. Complete accounting of charitable foundations
4. Assistance in cooperation and proper financial accounting of the assistance of volunteers and other sponsors, including foreign ones.
5. Providing full information on the taxation of philanthropists and beneficiaries of the Charitable Foundation in Ukraine.

Price

The cost of providing full accounting support services for a CF is individual and depends on many factors. You can find out directly when contacting the company for a consultation.

Benefits of outsourced charitable foundation accounting services

• No need to rack your brains about the correctness and timeliness of reporting
• Work with charitable foundation accounts will be in the hands of a professional
• If necessary, you can get full and comprehensive legal and accounting advice
• All financial documents will be drawn up in accordance with the requirements of the law, which will allow you not to worry during inspections.

Accounting services and accounting of a charitable foundation is a set of actions aimed at assisting in the implementation of the projects of the Charitable Foundation and achieving the goal of its activities.

Therefore, in order for the charitable foundation to work within the legal framework and be able to achieve the goal of its activities, it is necessary to delegate accounting and reporting to specialists who can take on all the accounting work of the enterprise. And the BF will only have to perform its functions in accordance with the objectives of the activity. After all, accounting is necessary for all business entities without exception.