Foundation & Nonprofit Accounting
Foundations and nonprofit organizations have unique accounting characteristics: no owner equity, but net assets divided into restricted funds and unrestricted funds. Financial reports must be transparent for donors, government, and society. Arunika Consulting helps foundations prepare financial statements according to ISAK 35 and SAK EP so accountability is maintained.
Important Note
This industry needs careful tax compliance monitoring. Make sure all obligations are fulfilled on time.
Common Challenges
Restricted vs Unrestricted Funds Classification
Donor funds often have usage restrictions (restricted) that must be recorded separately from general operational funds.
Non-Cash Donation Recognition
Donations in the form of goods, voluntary services, or assets need fair value assessment for recording in financial statements.
Multi-Stakeholder Reporting
Foundations must prepare reports for donors, regulators (Ministry of Law), and internal with different information needs.
Activity Surplus vs Profit
The term 'profit' is not relevant for nonprofit. Understanding that surplus is the difference between revenue and expenses that increases net assets.
Our Solutions
ISAK 35 Compliant Account Structure
Preparing chart of accounts separating funds without restrictions, with temporary restrictions, and with permanent restrictions.
- Fund transparency
- Audit ready
- Standard-compliant reports
Activity & Cash Flow Statements
Preparation of activity statement and cash flow statement according to nonprofit format.
- Donor accountability
- Clear fund oversight
- Regulatory compliance
In-Kind Donation Valuation
Assisting fair value assessment for donations in the form of goods, property, or pro-bono professional services.
- Complete asset recording
- Comprehensive reports
- Historical data basis
Related Tax Regulations
SAK EP
Private Entity Financial Accounting Standards
Financial reporting framework for private entities without public accountability, effective January 1, 2025.
ISAK 35
Financial Statement Presentation for Non-Profit Oriented Entities
Financial reporting guide specifically for nonprofit entities including foundations and social organizations.
PSAK 112
Wakaf Accounting
Standard for recording wakaf assets for foundations managing wakaf assets.
Need Help with Foundation & Nonprofit Accounting?
Consult your bookkeeping and tax needs with our professional team. Free initial consultation.
Free Consultation via WhatsAppFoundation & Nonprofit Accounting Consulting Services Across Indonesia
We support clients in major Indonesian cities. Find a location-specific service page for your area.
Bali
Banten
Daerah Istimewa Yogyakarta
Jawa Tengah
Jawa Timur
Kalimantan Barat
Kalimantan Selatan
Kalimantan Timur
Kepulauan Riau
Riau
Sulawesi Selatan
Sulawesi Tengah
Sulawesi Tenggara
Sulawesi Utara
Sumatera Utara
Sumatra Selatan
Frequently Asked Questions
What is the difference between foundation and company financial statements?
Foundations use activity statements (not profit/loss), statement of financial position (not balance sheet with owner equity), and separate net assets based on fund restrictions.
Are foundations required to be audited?
Foundations with assets ≥ IDR 20 Billion or turnover ≥ IDR 500 million/year must be audited by public accountants according to Foundation Law No. 16/2001.
How to record volunteers working without pay?
Voluntary services with special expertise (professional) can be recorded as donation service revenue with fair value estimation, and also recognized as operational expenses.
How do accounting services improve operating cost efficiency?
Accurate, timely financial reports help you spot cost leakage, monitor margins by product or service, and make data-based decisions.
Can financial reports be accessed in real time?
Yes. We use cloud accounting systems so you can monitor cash flow, profit and loss, and business performance from anywhere.
How do you ensure reports are ready for external audits or banks?
Reports are prepared by qualified accounting professionals with clear documentation and traceable transaction data.
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