Accounting for NGOs and Foundations — Obligations 2026

Associations and foundations (NGOs) have distinct accounting and tax obligations compared to commercial companies. The specific legal framework is provided by GO no. 26/2000 on associations and foundations, corroborated with the Accounting Law no. 82/1991 and OMFP no. 3103/2017 on accounting regulations for non-profit entities.

The Geseidl Accounting team offers specialized services for the non-profit sector, with full understanding of the accounting specificities of these entities.

Accounting particularities for associations and foundations

The main difference is that NGOs do not pursue profit but the fulfillment of their statutory purpose. Revenue primarily comes from membership fees, donations, sponsorships, grants, and optionally from ancillary economic activities. Accounting must clearly reflect the separation between non-profit and economic activities.

The chart of accounts differs from that of commercial companies. Specific accounts are used for funding sources (class 1), and instead of the profit and loss statement, the result account is prepared, structured as surplus or deficit.

Mandatory registers and NGO-specific chart of accounts

• Journal register — chronological record of all financial operations
• Inventory register — annual inventory of all assets and liabilities
• General ledger — account-level synthesis, if double-entry bookkeeping is used
• Cash register — for cash transactions
• Separate project/program records — mandatory for grants

NGOs with annual revenue below RON 220,000 may opt for single-entry bookkeeping (OMFP no. 2634/2015). Those exceeding this threshold or receiving public funding are required to maintain double-entry bookkeeping.

Annual reporting — balance sheet, activity report, ANAF

Associations and foundations file simplified annual financial statements (form S1040) with ANAF by May 29 of the following year. In addition to the balance sheet, an activity report must be prepared (mandatory under GO 26/2000), which is published on the entity's website or made available to members.

1. Simplified financial statements (S1040) — filed with ANAF by May 29
2. Annual activity report — approved by the General Assembly
3. Declaration 101 — if they have taxable economic activities
4. Declaration 300 (VAT) — if registered for VAT purposes
5. Funder-specific reports — for grants and funded projects

When audit becomes mandatory for NGOs

Under Law no. 162/2017, statutory audit is not mandatory for NGOs by default. However, it becomes required in the following situations: if the NGO receives public funding above certain thresholds (set by the funder), if the organization's statute requires it, or if total revenues exceed the equivalent of EUR 500,000. A voluntary audit increases credibility and transparency, essential for attracting donors.

Sponsorships and donations — accounting and tax treatment

Sponsorships are regulated by Law no. 32/1994 and offer donors a tax credit (deduction from profit tax of up to 0.75% of turnover). Donations are not tax-deductible for the donor, but are tax-exempt for the beneficiary NGO if used for the statutory purpose.

From an accounting perspective, sponsorships and donations received are recorded as revenue from attracted sources (account 7381/7382). The NGO must issue sponsorship contracts and donation certificates — documents also needed by the donor for their tax deduction.

Need accounting for associations and foundations? The Geseidl Consulting Group team, CECCAR Prahova leader for 18 consecutive years, is ready to help. Discover our services or contact us for a free consultation.