Expenditures and income in tax returns of charities in Ukraine

Charitable organizations must conduct their financial documentation according to the requirements of the laws (the Order of the State Fiscal Service of Ukraine no. 233, the Order of the State Fiscal Service of Ukraine no. 355, the Decree of the Cabinets of Ministers of Ukraine no. 291).

All types of funds which charitable organization gets should be considered as profits and must be displayed in accounting documentation (the Plan of accounts no. 186). Funds which charitable organization gets are considered as program only if there is confirmation about their getting and fulfilling conditions of financing.

Only when organization spends funds according to its targets then these funds can be considered as program while reporting periods. If an organization sends money for charity before program financing then profits are included in that period when receivables were created. 

Reflection of program funds in an accounting of earnings


Clauses of the Instruction no. 291 define that program funds can be governed as subventions from the state budget or extrabudgetary funds or they can be received from individuals and organizations with the purposes to organize some events or deal with some charitable matters.

It can be donations from citizens and individuals, incomes from organizations (money or property), irrecoverable financial help, assets which are transferred by other charitable organizations during their liquidation and other types of financing.

These funds are considered as resources of program financing and reflected via credit account 48. Invoices, which are meant to be appointed for funding but were spent during current period, should be reflected in receivables.

Reflection of program funds exes

As it was said previously, exes must be related to profits during the period of time when charitable events were hold according to the Instruction. If exes can’t be related to the reporting period of getting profits then they are reflected in the period when they were spent. Exes are reflected in the account 8 (“exes by the elements”).

Controlling over spending program funds

Charitable organizations must provide the state control bodies with financial documentation if they ask during planned examinations. Except tax and financial reports which are submitted to the State Fiscal Service of Ukraine and to the State Statistics Service of Ukraine, organizations must keep systematic accounting of sources of forming funds and exes.

Every financial operation must be confirmed with primary documents (checks, receipts, power of attorney etc.) Exes can be recognized as non-program by the state control bodies if there won’t be these documents. It takes administrative and financial responsibility according to the law.

Publication date: 25/09/2014

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Name: Marina Losenko

Position: Associate

Education: National Aviation University

Knowledge of languages: Russian, Ukrainian

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