Foundation management: standardised accounting for the tax office and state supervisory authority

Foundations are subject to special documentation requirements. With standardised accounting, you can meet the various requirements of the tax office and state supervisory authority in a cost-saving manner.

Foundations serve good causes. To promote this, the state grants tax benefits. In return, however, it also imposes special conditions. Violations can lead to anything from cancellation of the charitable status to personal liability of the foundation's board of directors.

Foundations are monitored by two authorities at once. On the one hand, the tax office checks whether the rules of charitable law are being adhered to and whether the funds are being used in a timely manner. On the other hand, the state supervisory authority checks that the founder's intentions are being upheld and that the capital is being preserved.

However, the two authorities have different accounting requirements, which means that two different sets of documentation are necessary, requiring a large number of subsidiary calculations and reconciliations.

KPMG's standardised accounting offers an efficient solution for meeting the complex requirements for tax documentation and accounting of the various authorities. This special form of accounting has been recognised by all authorities.

Standardised accounting is based on double-entry bookkeeping and documents both the maintenance of capital and the proper use of funds, as well as the statutory creation of reserves. This eliminates the need for additional auxiliary calculations. At the same time, it provides the basis for preparing the necessary tax returns.

Double-entry bookkeeping reduces sources of error. Standardised accounting is also used for internal control, documentation and as a comparison and management tool.

Specially adapted to the requirements of charitable foundations, standardised accounting creates more time for the foundation's essential work. More than 300 foundations are already utilising this advantage.