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