CHARITY ACTIVITIES IN UKRAINE: REGULATORY PROVISION AND ACCOUNTING FEATURES

Abstract

The topicality of the topic is determined by the need of Ukrainian society for reliable information about the activities of charitable organizations as elements of civil society. The article examines the peculiarities of regulation and accounting ofcharitable activities in Ukraine. The concept of accounting in charitable organizations involves taking into account their organizational and legal features. For charitable organizations, the purpose of creation, the refusal to receive profit, as well as the payment of any reward or compensation, compliance with the ban on the distribution of property and income between participants, and ensuring the targeted nature of the financing of activities are important. At the same time, other characteristics (voluntariness of participation, the possibility of cooperation with international governmental and non-governmental organizations, the possibility of forming separate units, the right to financial support from the country’s budget, the targeted nature of the disposal of funds) also determine the accounting policy and affect the completeness and reliability of information about the activities of a charitable organization. The author analyzed the differences in the functioning of public and charitable organizations in Ukraine. The definition of nonprofit organizations in UN, World Bank, and EU documents, which are different from national legislation, is indicated.The current state and development trends of the accounting system of charitable activities in Ukraine are analyzed. The main accounting practices of charitable organizations are summarized. Possibilities of applying simplified accounting and reporting rules by charitable organizations: simplified Chart of accounts and reduced financial reporting by indicators. The importance of the choice of the accounting and reporting system by the charitable organization in the administrative documents on the accounting policy and accounting organization is emphasized.The author made an attempt at theoretical substantiation and provided practical recommendations for improving the accounting policy of charitable organizations: charitable societies, charitable institutions, and charitablefoundations. A list and content of accounting policy issues of a charitable organization is proposed, taking into account the requirements of the legislation and the specifics of its creation and activity.