Accounting services for non-profit organizations
Accounting, outsourcing and bookkeeping support for NGOs, charitable foundations and non-profit organizations in Ukraine. Charitable foundations, public organizations, NGOs – are required to maintain full accounting in accordance with Law No. 996-XIV and clause 133.4 of the Tax Code of Ukraine, be included in the Register of Non-Profit Institutions and Organizations and annually submit the Report on the Use of Income (Profits) according to the form approved by the Order of the Ministry of Finance No. 553. The accounting specifics of NPOs are determined by the nature of targeted financing – grants, donations, membership fees – which are reflected under account 48 and recognized as income in accordance with NAS 15 or IAS 20 as the funds are utilized. Accounting outsourcing allows delegating the entire cycle of accounting and reporting to specialized professionals – and maintaining the organization’s non-profit status without risks.
Consultation with an accountant for NGOs and charitable foundations
We will help organize accounting for NGOs in Ukraine and ensure proper accounting support for a public organization in Ukraine.
Specific features of accounting in non-profit organizations and foundations
Who accounting outsourcing is suitable for in non-profit organizations
Charitable foundations
- accounting services for non-profit organizations are required by charitable foundations that receive funding from donors, international programs and private donations;
- accounting outsourcing for a charitable foundation includes accounting for grants, donations, humanitarian aid and targeted programs;
- accounting for targeted financing of NPO grants through account 48, control of the use of funds in accordance with donor conditions;
- preparation of donor reporting by an NGO accountant for international foundations, grant providers and partner organizations;
- maintaining financial and tax reporting in accordance with the requirements of Ukrainian legislation.
Public organizations
- accounting support for a public organization in Ukraine includes accounting of membership fees, donations and program activities;
- maintaining NPO accounting in the Register of Non-Profit Organizations in compliance with the requirements of the Tax Code of Ukraine;
- budget formation and accounting of the estimate of a non-profit organization, control of the use of funds according to statutory areas;
- preparation of the report on the use of income of a non-profit organization and financial statements;
- support of payments to employees and contractors – calculation of PIT, military tax and SSC.
International foundations and donor programs
- an accountant for an international foundation in Ukraine ensures proper accounting of international grants and donor programs;
- accounting for NGOs in Ukraine takes into account foreign currency inflows, exchange rate differences and specifics of international contracts;
- preparation of donor financial reporting in accordance with the requirements of international organizations;
- grant accounting under NAS 15 and IAS 20 – proper recognition of income as funds are used;
- support of audits and inspections by international donors.
New non-profit organizations and startup foundations
- accounting services for public associations in Ukraine help properly organize accounting from the moment of registration;
- setting up accounting for NGOs in Ukraine in accordance with Law No. 996-XIV;
- preparation of documents for inclusion in the Register of Non-Profit Organizations;
- creation of a financial model and accounting of donations and membership fees of NPOs;
- outsourcing accounting for a charitable organization allows avoiding mistakes in reporting and maintaining non-profit status.
In the non-profit sector the situation is similar. Accounting services for non-profit organizations help foundations and public associations properly organize accounting for NGOs in Ukraine, control accounting of targeted financing for NPO grants, preparation of financial and donor reporting and compliance with legislative requirements. Professional accounting support for a public organization in Ukraine or accounting outsourcing for a charitable foundation allows an organization to maintain non-profit status, work transparently with donors and effectively direct resources to the implementation of social and humanitarian projects.
Accounting support for a public organization in Ukraine – what is included in the services
Setting up accounting for NPOs
Specialists analyze the structure of the foundation or public organization, sources of funding and the format of activities. Accounting for NGOs in Ukraine is set up, including a system for accounting of grants, donations and membership fees in accordance with legal requirements.
Optimization of the organization’s financial model
An optimal structure of financial accounting and cost control is selected. Accounting services for non-profit organizations help properly form the budget, control the use of funds and comply with conditions for maintaining non-profit status.
Maintaining accounting and tax records
Full accounting for NPOs in Ukraine is ensured – processing of primary documents, accounting of donations and contributions, preparation of financial statements and the report on the use of income of a non-profit organization.
Accounting of grants and donor programs
Professional accounting support for a public organization in Ukraine includes accounting of targeted financing for NPO grants, control of the use of funds, foreign currency inflows and preparation of donor reporting for international foundations.
Preparation and submission of NPO reporting
Specialists prepare and submit the report on the use of income of a non-profit organization, financial statements as well as reports on PIT, military tax and SSC. Accounting for NGOs in Ukraine is maintained in accordance with the requirements of Law on Accounting and Financial Reporting No. 996-XIV which regulates accounting rules, preparation of financial statements and responsibility for their reliability.
Support of non-profit status
Monitoring compliance of the organization with the requirements of clause 133.4 of the Tax Code. Accounting support for a public organization in Ukraine helps maintain status in the Register of Non-Profit Organizations and avoid the risk of its loss.
Donor and grant reporting
Preparation of financial reports for international foundations and grant providers. Accounting of targeted financing for NPO grants is maintained taking into account donor requirements, international standards and internal financial policies of the foundation.
Accounting of salaries and payments in NGOs
Calculation of salaries for employees, payments to volunteers and contractors. Accounting services for non-profit organizations include calculation of PIT, military tax, SSC and preparation of HR documents.
Accounting outsourcing for a charitable organization – when it is beneficial
Analysis of activities of a non-profit organization
Before starting work specialists analyze the structure of the organization, funding sources and the format of activities of the foundation or public association. This allows properly organizing accounting for NGOs in Ukraine and determining the specifics of accounting for targeted financing of NPO grants.
Setting up accounting for NPOs
After analyzing the activities of the organization a system for accounting of grants, donations and membership fees is formed. Accounting for a non-profit organization is set up, account 48 for targeted financing and internal financial documentation.
Current accounting management
The accounting team performs full accounting for NGOs in Ukraine – processing primary documents, accounting of donations, grants and membership fees, preparation of financial documents and control of organizational expenses.
Accounting of grants and donor programs
Proper accounting of targeted financing for NPO grants allows controlling the use of funds according to donor conditions. The accountant also maintains records of foreign currency inflows, exchange rate differences and expenses related to program activities.
Preparation of financial and tax reporting
Specialists prepare the report on the use of income of a non-profit organization, financial statements and reports on PIT, military tax and SSC. Accounting services for non-profit organizations help comply with all legislative requirements.
Donor reporting and financial control
The accountant prepares donor reporting for international foundations and grant providers. This ensures financial transparency and compliance with donor program requirements.
Control of non-profit status
Continuous monitoring of the organization’s compliance with the requirements of the Tax Code of Ukraine. Accounting support for a public organization in Ukraine helps maintain status in the Register of Non-Profit Organizations.
Consultations and financial planning
Experts help the organization properly plan the budget and accounting estimate of a non-profit organization, optimize expenses and organize the financial model of the foundation’s activities.
Benefits of working with an accountant for NGOs and charitable foundations
Non-profit organizations
Charitable foundations
International grants
Scaling activities
Frequently asked questions about accounting support for NGOs and charitable foundations
What do accounting services for non-profit organizations in Ukraine include?
Professional accounting services for non-profit organizations cover the full cycle of financial support for NGOs. This includes accounting for NGOs in Ukraine, maintaining primary documentation, accounting for targeted financing of NPO grants, preparation of financial and tax reporting, as well as control over the use of donations and membership fees in accordance with legislation.
How is accounting for NGOs maintained in Ukraine?
Accounting for NGOs in Ukraine has specific features related to the non-profit status of the organization. Income from grants, donations and membership fees is recorded as targeted financing of NPO grants, and expenses must correspond to the statutory activities of the organization. It is also important to properly account for donations and membership fees and control the organization’s budget.
What is accounting for targeted financing of NPO grants?
Accounting for targeted financing of NPO grants – is a system for recording grant funds, donations and donor assistance in the accounting of a non-profit organization. Such funds are recorded separately and recognized as income as they are used in accordance with NAS 15 or international standards. This ensures financial transparency and proper preparation of reporting.
What reports does a non-profit organization submit?
Non-profit organizations are required to submit a report on the use of income of a non-profit organization, financial statements and reports on taxes and contributions. When working with international grants, donor reporting prepared by an NGO accountant is also required, confirming the correct use of grant funds.
When is accounting outsourcing for a charitable foundation beneficial?
Accounting outsourcing for a charitable foundation is beneficial for organizations working with grants or having several activity programs. By outsourcing accounting to professional accountants, the foundation receives systematic financial control, proper accounting for NGOs and timely preparation of reports in accordance with the requirements of the Law on Charitable Activities and Charitable Organizations No. 5073-VI.
How is accounting for NGOs in Ukraine conducted when receiving grants and donations?
When a non-profit organization receives funding from donors or benefactors, it is important to properly organize accounting for NGOs in Ukraine. In such cases accounting for targeted financing of NPO grants is maintained, where grant funds, donations and donor contributions are recorded separately and used exclusively for the statutory activities of the organization.
What reports must a non-profit organization submit in Ukraine?
Non-profit organizations must submit a report on the use of income of a non-profit organization, financial statements and reports on taxes and contributions. If the organization works with international grants, donor reporting prepared by an NGO accountant is additionally required to confirm the use of grant funds in accordance with donor conditions.
When should you order accounting outsourcing for a charitable foundation?
Accounting outsourcing for a charitable foundation is advisable when the organization works with grants, donations or has several activity programs. By outsourcing accounting to professional accountants, the foundation receives proper accounting for NGOs, control of financial flows and timely preparation of reports without the risk of losing non-profit status.
How to check if an organization has non-profit status?
You can check the status of an organization in the Register of Non-Profit Institutions and Organizations – State Tax Service of Ukraine. If the organization is not listed in the register, it cannot use tax benefits for NGOs.
Where to get official explanations from the State Tax Service regarding taxation of individual entrepreneurs in the service sector?
Entrepreneurs can receive up-to-date consultations and news regarding taxation on the official website of the tax service. In particular, the State Tax Service of Ukraine regularly publishes explanations regarding taxation of individual entrepreneurs in the service sector, changes in tax legislation and practical issues of doing business. You can view current materials on the page State Tax Service of Ukraine – explanations regarding taxation of individual entrepreneurs in the service sector, where official comments of tax authorities and explanations for entrepreneurs are published.
Accounting outsourcing for charitable foundations and NGOs
We will provide accounting for NGOs in Ukraine, financing control, preparation of reporting and support for working with donors.