Reporting of non-profit organizations: accounting, tax and other

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Any organization operating on the territory of the Russian Federation is obliged to submit reports to certain state bodies. This also applies to NGOs. However, the reporting of non-profit organizations is distinguished by a special composition of documents. Also, other deadlines are assigned for its delivery than for commercial companies.

What is this?

Next, we will analyze what kind of reporting commercial organizations submit. But first, let's define what specifically applies to them. An NPO is an institution whose purpose is not income. The profit received in the course of activity is not distributed among the founders.

At the same time, the NPO has all the features of legal entities:

• Having your own balance.
• The right to open bank accounts.
• Presence of stamps, seals with their own name.
• Operating by statute.
• Establishment for an indefinite period of activity.

As a rule, NGOs are engaged in the following activities:

• Social.
• Charity.
• Cultural.
• Political.
• Educational.

All NGOs have one thing in common: they function to provide citizens with various public goods. At the same time, Russian legislation does not prohibit NGOs from engaging in commerce. But only when the business activity is necessary to achieve the goals of the organization. And the income is not further distributed among its founders.

Composition of reporting of non-profit organizations

NCOs are required to submit a whole range of reporting documentation, like other legal entities. Specifically, this is the following:

• Accounting.
• Tax.
• Documents for off-budget funds.
• Report to the Department of Justice.
• Documentation for the Federal State Statistics Service.

What reporting do non-profit organizations specifically, we will consider in detail below.

Accounting documents

NCOs are required to submit such reports annually. The deadline is March 31 of the year following the reporting year. Here, non-profit institutions are required to submit two types of papers.

Account balance. The main difference between the form for NCOs and the standard for commercial companies is that the section "Reserves and capital" has been replaced with "Target financing".

The organization must indicate data on the sources of accumulation, the formation of its assets. The content of this section directly depends on the legal form of the NPO. Whereinthe institution determines on its own how detailed the data display in the balance sheet should be.

2. Report on the intended use of monetary resources. The document must include the following information:

• The amount of funds used for the activities of the NPO. This also includes payroll costs, targeted events and activities, charitable activities, costs of ensuring proper functioning.
• Balances at the start of the reporting year.
• Total income. Membership, targeted, voluntary and entrance fees are taken into account. It also lists business income.
• Financial balance at the end of the year.

Also, the financial statements of a non-profit organization can be supplemented with an explanatory note. This is a breakdown of the individual indicators mentioned. Compiled in free form.

Reporting is submitted to the addressee both in electronic and paper form.

Documents to the tax office: BASIC

NCOs are not exempted from submitting reporting documents to the tax service. The reporting forms of non-profit organizations depend on the tax regime chosen by the institution.

If the NPO is on the BASIC (general regime), then it needs to provide the following to the IFTS:

• VAT declaration. Documentation is handed over to the addressee in electronic form no later than the 25th day of the month following the reporting period.
• Declaration of property taxes. If the NCO has as part of its assets anytaxable property, it provides the relevant calculations and pays tax contributions every quarter of the year. Only those NPOs that do not own fixed assets are exempted from filling out a declaration and paying such a tax. The declaration-report on advance payments is submitted to the tax authorities within 30 days after the end of the tax period. A document with information on the final calculation must be sent to the Federal Tax Service no later than March 30 of the year following the reporting year.
• Declaration of income tax. An NPO will be recognized as a payer of this fee if it is engaged in commerce. Such a document is submitted at the end of each of the reporting periods - no later than 28 days before its completion. The report for the full tax period is submitted before March 28 of the year following the reporting one. If the NPO is not engaged in entrepreneurship, it submits a tax return to the department in a special simplified form. The critical deadline for its delivery is also March 28 of the year following the reporting one.
• Declaration of land tax. Accordingly, such reporting by non-profit organizations is needed only if they own a plot of land. The document is submitted to the IFTS no later than February 1 of the year following the reporting year.
• Declaration of the transport fee. Again, this form of reporting by non-profit organizations is only necessary if they own any taxable vehicles. The document must also be submitted before February 1 of the year following the reporting year.

Othertax papers

In addition to the above, the tax reporting of non-profit organizations on the OSNO is the following:

• Data on the average number of employees. The document is required if the NPO has more than 100 employees. For rent until January 20 of the year following the reporting year.
• Help 2-personal income tax. Russian law obliges each organization to report on the amount of income tax withheld from its employees. But only if there are more than 25 of them. A certificate according to the established standard is provided to the tax office until April 1 of the year following the expired reporting year.

Documents to the tax office: special regimes

Founders of NCOs are also en titled to choose a special regime of taxation. The composition of the reporting of non-profit organizations for the IFTS in this case will be presented as follows:

• Taxes on unified imputed income. Declaration on UTII. The document must be submitted to the tax office every quarter - strictly before the 20th day of the month following the reporting period.
• Simplified mode. Declaration on USN. The document must be submitted every year. Until March 31 of the year following the reporting year.

Like commercial firms, they are solely responsible for the disclosures in the financial statements of non-profit organizations.

Documents for off-budget funds

In this area, the company reports on contributions paid for its employees during the year. Necessaryprovide two documents:

• Form 4-FSS. Accordingly, it is provided to the Social Insurance Fund. Mandatory for those NPOs with more than 25 employees. If the report is in electronic form, it must be submitted before January 25 of the year following the reporting one. If in traditional paper - until January 20.
• Form RSV-1. Her NGOs hand over to the FIU. A report to the Pension Fund is obligatory only for those organizations in which the average number of employees is more than 25. If the document is paper, it must be submitted before February 15 of the year following the expired reporting year. If electronic - until February 22.

Documents for the statistical service

Here it is not possible to submit zero reporting of non-profit organizations. Documents are provided only by those NGOs that were included in the sample. For the territorial office of Rosstat, you need to prepare the following:

• Form No. 1-NPO. This information on the activities of the institution is submitted before April 1 of the year following the reporting one.
• Form No. 11 (short version). It displays data on the movement of fixed assets. Also available until April 1 of the year following the reporting year.

Documents for Ministries of Justice

Now let's talk about the reporting of NGOs to the Ministry of Justice, the deadlines for submitting the necessary documentation. Here it is necessary to provide three mandatory reports:

• According to the form No. OH0001. Displays information about the leaders, as well as the nature of the activityinstitutions.
• According to the form No. OH0002. This form should reflect information on the expenditure of targeted funds, the organization's use of its property.
• According to the form No. OH0003. This report is filled out on the official website of the Ministry.

It is important to note that in some cases, non-profit institutions are exempt from such reporting. The following exceptions apply:

• NPO assets were not replenished by international organizations or foreign citizens.
• There are no foreign citizens among the participants, founders of the NPO.
• The total annual amount of receipts to the organization does not exceed 3 million rubles.

What reporting do non-profit organizations do here? Instead of the first two types of documents, such an NPO submits an application on its compliance with legal requirements. The document can be drawn up in free form. Submission of electronic report No. OH0003 remains mandatory.

All of the above must be submitted to the territorial office of the Ministry of Justice before April 15 of the year following the reporting one.

Society oriented group

First of all, let's figure out which NGOs are socially oriented non-profit organizations. These are institutions dealing with the following public issues:

• Social security.
• Assistance to the population affected by man-made disasters and natural disasters.
• Animal protection.
• Protection of various structures andbuildings of historical significance.
• Providing free or preferential legal assistance to citizens.
• Charity.
• Solving environmental problems, protecting the environment.
• Preventive measures to prevent socially dangerous behavior of citizens.
• Development of activities in the fields of culture, he alth, science, education.

For the most part, SO NPOs are represented by the following institutions:

• Public, civil associations.
• Religious organizations.
• Autonomous NGOs.
• Political parties.
• Individual government agencies.

Documents for SO NPOs

Socially oriented non-profit organizations, instead of all of the above, submit the following forms of reporting papers:

• Balance balance.
• Report on earmarked use of funds.

This must be submitted strictly by March 31 of the year following the reporting year.

Last changes

In conclusion of the article, we list the changes in legislation by 2019 regarding NPO reporting:

• The third section of the balance sheet now has the name "Target financing" (previously - "Capital and reserves").
• Important information on certain reporting indicators can be opened in explanatory notes compiled in addition to the balance sheet.
• Small forms NCOs can submit simplified reports. This also applies to the document on the targetusing finance.

It is becoming clear that the reporting of NPOs is not much different from the reporting of commercial firms and enterprises. The legislation makes small exceptions for this group of organizations. They mainly concern the socially oriented group of NGOs.