Accounting for foundations, associations and NGOs – finances under control, mission first

Running a foundation, association or other NGO is not only the fulfilment of an important social mission, but also a huge responsibility. The NGOs must comply with strict legal requirements, keep compete books of account and often settle a variety of funding sources, such as grants, subsidies or donations. EFEKTA Accounting Office understands how important it is for you to be efficient and transparent in your financial management. That is why we offer comprehensive support, in line with our mission: “Complete Accounting, Complete Peace of Mind”.

Accounting challenges for NGOs

1. Complexity of legal requirements and reporting
   Foundations, associations and other NGOs must keep complete books of account in accordance with the Accounting Act, as well as prepare detailed financial statements. Requirements vary depending on the form of organisation and the type of activity.
2. Settlement of multiple sources of funding
   Grants, subsidies, donations or contributions from sponsors – each form of funding requires precise recording and settlement according to the requirements of donors and controlling institutions.
3. Financial transparency
   NGOs must be fully transparent in their management of funds in order to maintain the trust of donors, grant-makers and the community they support.
4. Frequent financial audits
   The NGOs are regularly audited by tax offices, grant institutions or other supervisory bodies. Lack of integrity in accounting can result in serious legal and financial problems.
5. Irregular revenue and budget challenges
   Many NGOs struggle with irregular revenue and the need to manage a limited budget. Professional accounting consultancy helps to allocate resources efficiently.

EFEKTA – Complete accounting, complete peace of mind for NGOs

Nasze biuro rachunkowe specjalizuje się w obsłudze organizacji pozarządowych. Rozumiemy Twoje potrzeby i oferujemy dedykowane rozwiązania księgowe, które pomogą Ci skutecznie realizować Twoją misję:

1. Keeping complete books of account
   We ensure compliance with the provisions of the Accounting Act and the requirements of controlling institutions. We record all revenue and expenses in accordance with the rules applicable to the NGOs.
2. Settlement of grants and subsidies
   We ensure that funds from grants, subsidies or donations are properly settled. Our experience allows to avoid errors that could affect future funding.
3. Preparation of financial statements
   We produce reliable and transparent financial statements that meet the requirements of both Polish and international standards.
4. Representation before authorities
   In the event of a fiscal audit, audits of the Social Insurance Institution or other authorities, we represent your organisation, saving you stress and time.
5. Tax and legal consultancy
   We offer support in the areas of tax optimisation, regulatory interpretation and compliance with the NGO regulations.
6. Financial planning
   We assist with budgeting and financial planning, allowing you to manage your funds effectively and avoid liquidity problems.
7. Modern online solutions
   We provide access to digital accounting tools that provide real-time insight into your organisation’s finances.

Why choose EFEKTA?

1. Dedicated accountant
   Each organisation that works with us receives a dedicated accountant who is familiar with its specifics and priorities. This ensures that your needs are always at the centre of our attention.
2. Transparency and reliability
   Our accounting meets the highest standards, which builds trust with donors, grant-makers and the community you support.
3. Individual approach
   We understand that every NGO is different. That is why we tailor our services to your mission, scale of operations and type of financing.
4. Complete accounting, complete peace of mind
   With us, you can focus on achieving your goals rather than the financial complexities. We ensure full compliance, eliminating the risk of errors and legal problems.

Your mission, our responsibility

Running a NGO requires full commitment. By entrusting your accounting to EFEKTA, you get a partner who will take care of your finances so that you can pursue your mission without unnecessary worries.

Contact us today and see how we can help your organisation. Make an appointment for a free consultation and find out that our mission: “Complete Accounting, Complete Peace of Mind”, is also your key to success.

EFEKTA – Your mission, our responsibility.

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Does every foundation have to keep accounting records?

Yes, foundations in Poland are required to maintain accounting records in accordance with the Accounting Act. The accounting for foundations and associations must be tailored to the type of activities conducted – statutory or economic (business).

How does foundation accounting differ from corporate accounting?

Accounting for a foundation takes into account the specifics of public benefit activities, rather than profit maximization. The main emphasis is placed on transparency, compliance with regulations, and donor trust, rather than just the profit and loss account.

Does a foundation conducting economic activity have different obligations?

Yes, foundations conducting economic activity are obliged to maintain full accounting records in accordance with the Accounting Act. Additionally, they are VAT and CIT taxpayers, and their settlements must cover both statutory and economic activities.

Can a foundation keep simplified accounting?

Switching to simplified accounting—specifically the simplified record of revenues and expenditures – is possible only in exceptional cases, e.g., for small organizations without economic activity. Each case must be assessed individually and in accordance with the provisions of the Act.

What documents must a foundation maintain as part of its accounting?

A foundation’s accounting includes, among others, account books, a profit and loss account, statements of funding sources, and annual financial statements. Tax office declarations and registration data, such as NIP and REGON numbers, are also required.

Does a foundation with PBO (OPP) status have different accounting obligations?

Yes, a foundation with Public Benefit Organization (PBO/OPP) status is subject to additional reporting and transparency obligations. It must ensure that its settlements comply with the Act and publish annual reports, which affects donor trust.

Can foundation accounting be entrusted to an external accounting office?

Yes, many organizations choose to entrust their foundation’s accounting to a professional accounting office. This ensures compliance with the Accounting Act and is a secure solution, especially for foundations without their own internal accounting department.

What is the importance of accounting for a foundation’s activities?

Foundation accounting requires precision and full compliance with regulations – on this depends, among other things, the possibility of obtaining grants and conducting legal activities. Accounting errors can have a serious impact on the foundation’s operations and its credibility with authorities and donors.