BPO AUDIT TAX

Non-profit organizations

Non-profit organizations are important players inthe Hungarian society. Their services are not for profit, their sources are typically different forms of grants.

Non-profit organizations
Based on modifications of the economic law, public companies have been replaced by non-profit organizations. These companies often work for an aim of public interest and charitable tasks and the various forms of support have an important role in their revenues. These supports can be donations from private individuals or companies, norms from government institutions, or domestic or direct EU grants. With regard to supports, extremely transaprent operation is expected from non-pofit organizations as a bad financial decision or a settlement error may cause a loss of confidence in the supporters questioning if their money was used for the intended purpose.

Foundations
To achieve their goals, many foundations have to maintain massive apparatus. The board members and those carrying out the various tasks are not necessarily econimic specialists, so they are in great need of skilled apparatus, which do all the administrative duties. Money spent on administration only indirectly supports the goals, so they are often negelcted. The importance of financial-accounting administration is to be required primarily by the board management and the Supervisory Board, as the proper functioning of the foundation is their responsibility, which can be reduced only under properly controlled operation.

Associations
Beside the members' contributions, revenues of the associations come from donations, subsidies, domestic and direct EU grants. The main control is exercised by the members, so the appropriate supervision of finance and accounting gives a picture of the quality of operationto themembers. In the regular operation of associations, the Board and the Supervisory Board has special responsibility.


With the Civil Law entering into force, the legal conditions for the operation of non-profit organizations have been modified.
Non-profit organizations are in a difficult situation, since it is difficult to establish the right balance to ensure a normal operation beside a succifient and acceptable level of administrative expenditure. Few professionals are specialized in this area of special expertise in Hungary, so it is not easy to find a provider that has this knowledge.
Several of our colleagues have appropriate knowledge in this special accounting area. Our unique references prove to our clients that we are able to provide excellent professional service to the smallest as well as the largest non-profit organizations.

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