Full accounting of non-governmental organizations (ngo)

What is full accounting by foundations and associations?

 Pursuant to the Accounting Act, non-governmental organizations are required to keep documentation and accounting books (financial books) and fulfill numerous reporting obligations to the tax office and the Social Insurance Institution. Additionally, each year they have to prepare a financial report on their activities, the so-called balance.

Accounting policy – what is it and what does it contain?

Foundations and associations are required to develop an accounting policy. It is a document specifying the financial rules according to which the books of accounts are kept, e.g. a chart of accounts, rules for storing and archiving financial documentation, method of depreciation of fixed assets, or information on the method of accounting for costs.

The accounting policy also describes the circulation of documents in the foundation and association, i.e. who is entitled to issue bills, sign contracts, confirm the correctness of incurred costs and assignments, as well as the method of keeping records of fixed assets. The document must be adopted by a resolution by an appropriate body (management board or general meeting).

UEPiK simplified accounting for ngo

NGOs also have the option of keeping a simplified form of accounting, the so-called simplified revenue and cost records (UEPiK). It is regulated by the Act on Beneficial Activity and the Regulation of the Minister of Finance.

Financial report – deadlines and scope

By July 10 at the latest, associations and foundations that do not conduct business activities and those that conduct business activities are required to prepare and send to the tax office a financial statement consisting of a balance sheet, income statement (profit and loss account) and additional information. This obligation does not apply to organizations that will select UEPIK.

If the organization conducts business activity, it must additionally send to the National Court Register an electronic financial report. It has until July 15th.

By the same date, organizations with the PBO status must submit a report in the PBO report database maintained by the National Institute of Freedom (NIW).

If the financial year in the foundation or association coincides with the calendar year, the following deadlines for submitting the financial statements apply:

  • end of March – the date of the report,
  • July 10 – deadline for submitting financial statements approved by the relevant authorities to the tax office
  • July 15 – deadline for sending the report to the National Court Register and NIW.

Substantive reports

Foundations are required to prepare and send an annual substantive report on their activities to the competent minister by the end of the next year for the previous year.

This obligation does not apply to associations, except for those with the status of OPP. In this case, both foundations and associations with the status of OPP (public benefit organization) must submit them to the ministerial internet database by July 15.

Reports to the Central Statistical Office

Associations and foundations have one more reporting obligation. Every two years, they must complete the report received from the Central Statistical Office and return it to the Central Statistical Office.

Audit of the financial statements by a certified auditor

In non-governmental organizations that conduct business activity, the financial statements must be examined by a statutory auditor (the so-called audit), who issues an opinion on it. The audit is carried out when two of the following three conditions are additionally met:

  • employment in the organization is at least 50 full-time employees,
  • total assets in the balance sheet at the end of the year is at least EUR 2.5 million,
  • Net revenues from sales of goods, products and financial operations at the end of the year were at least EUR 5 million.

The organization must attach the audit opinion to the reports submitted to the tax office and the National Court Register.

The audit is required to be performed by organizations with a public benefit status (OPP), when all three conditions are met:

  • carry out entrusted public tasks commissioned,
  • received an annual subsidy for the implementation of these tasks in the amount of at least PLN 50,000,
  • achieved annual revenues of at least PLN 3 million.

Also in this case, the audit opinion should be attached to the reports submitted to the tax office and the National Court Register.

Accounting ngo – Price list

Books of account of Foundations and Associations fee starting from PLN 250*

*The price is an indicative net price.

The final price depends on the fact if the NGO has the OPP status and is involved in free or paid public benefit activities.

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