SPECIFIC ACCOUNTING AND TAXATION OF NON-PROFIT ORGANISATIONS

Abstract

The article examines the organisational aspects of accounting and taxation of non-profit organisations that play an important role in the social, cultural, educational and charitable spheres. The primary sources of funding for such organisations are identified, including charitable contributions, grants, sponsorship and government support. The authors emphasise the necessity of a systematic approach to accounting and tax regulation in order to ensure financial transparency and efficient use of resources. The article provides an analysis of the accounting mechanisms employed for targeted funding, encompassing charitable receipts, grants, humanitarian aid, and other forms of support. The procedure for recognising income and expenses, the methodology for documenting financial transactions, and the need to keep separate records of income from different sources of funding are considered. In the context of non-profit organisations, the distribution of income among founders or members is not a viable option. It is therefore imperative to ensure that such income is utilised exclusively in accordance with the objectives stipulated in the organisation's statutory documentation. It is important to note that particular emphasis is placed on the legal regulation of non-profit organisations in Ukraine. The author examines the legislative acts that determine the tax status of the company, as well as the accounting and financial reporting procedures. In particular, the authors examines the provisions of the Tax Code of Ukraine, the Law of Ukraine “On Public Associations”, the Law of Ukraine “On Charity Work and Charitable Organisations” and other legal acts. The author conducts an analysis of the criteria for the grant of tax exemptions to non-profit organisations, as well as the consequences of the revocation of such exemptions in the event of a violation of the law. The importance of financial transparency, effective resource control, and accounting policies adapted to the particularities of the non-profit sector is emphasised. The authors emphasise the necessity to enhance the prevailing accounting standards for such organisations, particularly with regard to accounting for grants, humanitarian aid, volunteer work, and reporting to donors. Practical recommendations for enhancing the financial management of non-profit organisations are proposed, with the aim of increasing the efficiency of their operations, attracting additional resources and strengthening public trust. The resolution of the aforementioned issues, in conjunction with the integration of contemporary accounting and taxation methodologies, will empower non-profit organisations to accomplish their mission with greater efficacy, foster the advancement of the social sphere, and facilitate the attainment of sustainable socio-economic development for the populace.