What kind of reporting do NPOs prepare? Non-profit does not mean unaccountable

General rules for reporting by NPOs to the Ministry of Justice

Almost all non-profit organizations must submit reports to the Ministry of Justice. An exception is consumer cooperatives, as well as partnerships of gardeners, gardeners and homeowners (clause 3 of Article 1 of Law No. 7-FZ of January 12, 1996).

Documents are sent by letter with a list of attachments, or by posting on information resources that can be accessed through the website (Order of the Ministry of Justice dated October 7, 2010 No. 252). If the report is sent in paper form, it is not necessary to duplicate it in electronic format, and the date of submission will be considered the date of sending.

NPO reporting “on paper” must be submitted to the territorial division of the Ministry of Justice. The report forms were approved by Order of the Ministry of Justice dated August 16, 2018 No. 170. Documents that do not comply with the forms will not be accepted.

You can also submit reports to the Ministry of Justice in electronic format if the director and chief accountant of the NPO have digital signatures.

Reporting methods

1. Personal delivery of the report.
2. Sending by mail.
3. Sending by email. Possible with an electronic digital signature of the head of the non-profit organization and the accountant.
4. Publication of reports and results of activities on the official website of the Ministry of Justice of Russia.
5. Publication of reports in the media or on your own website on the Internet (with the exception of personal information about participants and managers of NPOs).

Simplified reporting form for NPOs to the Ministry of Justice

A simplified procedure is provided for in clause 3.1 of Art. 32 of Law No. 7-FZ. It involves providing a statement and information about the continuation of activities instead of standard reports.

A simplified report can be submitted if the nonprofit simultaneously meets several conditions:

1. Among the founders, participants, and members of NPOs there are no citizens with citizenship of another state or stateless persons.
2. During the year there was no receipt of money from foreign sources.
3. The volume of revenues for the year does not exceed 3 million rubles.

The application is submitted annually before April 15 of the year following the reporting year. Confirmation of continuation of work is posted on the Ministry of Justice portal in any form.

As part of the implementation of the socially significant project “Legal protection of citizens and informational and methodological support for NPOs,” we continue to conduct legal education for leaders of public and non-profit organizations.

When helping people, do not forget that in accordance with paragraph 1 of Article 32 of the Federal Law “On Non-Profit Organizations”, a non-profit organization is obliged to maintain accounting records and statistical reporting in the manner established by the legislation of the Russian Federation.

Based on clauses 3, 3.1, 3.2. Article 32 of the Federal Law “On Non-Profit Organizations”, non-profit organizations, with the exception of those specified in paragraph 3.1 of this article, are required to submit to the authorized body documents containing a report on their activities, on the personnel of governing bodies, documents on the purposes of spending funds and using other property, including those received from foreign sources, and non-profit organizations performing the functions of a foreign agent, also an audit report. At the same time, documents submitted by non-profit organizations performing the functions of a foreign agent must contain information about the purposes of spending funds and using other property received from foreign sources, and about their actual expenditure and use. The forms for submitting these documents (with the exception of the audit report) and the deadlines for their submission are determined by the authorized federal executive body.

Non-profit organizations performing the functions of a foreign agent submit to the authorized body documents containing a report on their activities, on the personnel of the governing bodies, once every six months, documents on the purposes of spending funds and using other property, including those received from foreign sources, - quarterly, auditor's report - annually.

Non-profit organizations, the founders (participants, members) of which are not foreign citizens and (or) organizations or stateless persons, as well as those who did not have receipts of property and funds from foreign sources during the year, if the receipts of property and funds of such non-profit organizations during the year amounted to up to three million rubles, submit to the authorized body or its territorial body an application confirming their compliance with this paragraph, and information in free form about the continuation of their activities within the time frame determined by the authorized body.

In clause 3.2. Article 32 of the Federal Law “On Non-Profit Organizations”, non-profit organizations, with the exception of those specified in paragraph 3.1 of this article, are obliged annually, and non-profit organizations performing the functions of a foreign agent - once every six months to post on the Internet information and telecommunications network or provide to the media for publication of a report on its activities in the amount of information submitted to the authorized body or its territorial body.

Non-profit organizations specified in paragraph 3.1 of this article are obliged to annually post on the Internet information and telecommunications network or provide the media for publication with a message about the continuation of their activities.

The procedure and timing for posting these reports and messages are determined by the authorized federal executive body.

Report forms are approved by Order of the Ministry of Justice of the Russian Federation dated March 29, 2010 No. 72 “On approval of reporting forms for non-profit organizations” (Registered with the Ministry of Justice of the Russian Federation on April 9, 2010 N 16857). It is this order that contains forms of reports on the activities of a non-profit organization, the personnel of its governing bodies, as well as on the expenditure of funds and the use of other property, including those received from international and foreign organizations, foreign citizens and stateless persons.

Regulation of issues of posting on the Internet reports of non-profit organizations about their activities in the amount of information submitted to the Ministry of Justice of Russia or its territorial body, and messages from non-profit organizations about the continuation of their activities, is carried out in accordance with Order of the Ministry of Justice of the Russian Federation dated October 7, 2010 No. 252 “On Procedure posting on the Internet reports on the activities and messages about the continuation of the activities of non-profit organizations" (Registered with the Ministry of Justice of the Russian Federation on October 15, 2010 No. 18742).

In accordance with the above Procedure for posting reports on the Internet, a non-profit organization must annually, no later than April 15 of the year following the reporting year, post a report and a message about the continuation of its activities on the Internet (clause 2 of the Procedure).

Reports and messages are posted on the information resources of the Ministry of Justice of Russia on the Internet, intended for posting reports and messages, access to which is provided through the official website of the Ministry of Justice of Russia (www.minjust.ru) and the official websites of its territorial bodies on the Internet. Reports and messages can additionally be posted on the Internet on the website of a non-profit organization and on other sites on the Internet. The period for posting reports and messages on the Internet cannot be less than 1 year (clause 3 of the Procedure).

The head of a non-profit organization should remember that the law provides for administrative liability for failure to provide information. Thus, in accordance with Part 1 of Article 19.7 of the Code of Administrative Offenses of the Russian Federation, failure to submit or untimely submission to a state body (official), body (official) exercising (carrying out) state control (supervision), municipal control, information (information), submission which are provided for by law and are necessary for this body (official) to carry out its legal activities, or submit to the state body (official), body (official) exercising (carrying out) state control (supervision), municipal control, such information (information ) in incomplete or distorted form, except for the cases provided for in Article 6.16, Part 2 of Article 6.31, Part 4 of Article 14.28, Articles 19.7.1, 19.7.2, 19.7.2-1, 19.7.3, 19.7.5, 19.7.5-1, 19.7.5-2, 19.7.7, 19.7.8, 19.7.9, 19.8, 19.8.3 of this Code, entails a warning or the imposition of an administrative fine on citizens in the amount of one hundred to three hundred rubles; for officials - from three hundred to five hundred rubles; for legal entities - from three thousand to five thousand rubles.

Place an annual report on the activities of a non-profit organization on the information portal of the Ministry of Justice of the Russian Federation on the activities of non-profit organizations (official website on the Internet https://unro.minjust.ru/ ) and additionally on your website. Making your report publicly available ensures compliance with the law, ensures transparency in your nonprofit's operations, and increases its credibility.

The information was prepared as part of the implementation of the socially significant project “Legal protection of citizens and information, methodological support for NPOs” (legal, consulting and information assistance and support for socially vulnerable categories of citizens and a system of interaction with state authorities, local governments and socially oriented non-profit organizations whose activities aimed at providing assistance to representatives of the target group), within the framework of grant agreement No. 9/2015/1 dated August 3, 2015, concluded between the Sverdlovsk regional socially oriented public organization “Right to Protection and Assistance” and the ALL-RUSSIAN PUBLIC MOVEMENT “CIVIC DIGNITY” .

Standard reporting of NPOs to the Ministry of Justice

Any NPOs that have received property or money from Russian sources must submit standard reports:

1. Form No. ОН0001: report on the activities of the NPO and the composition of its governing bodies.
2. Form No. ОН0002: report on the purposes of the NPO’s expenditure of property and finances, including those received from foreign sources.

If the NPO received money or property from a foreign source, you must additionally submit Form No. ОН0003.

In addition, NPOs must annually provide a report on their activities to the media in the amount of information submitted to the Ministry of Justice. All information must be posted on the department’s portal by April 15.

II. Check whether the charter complies with current legislation

The most common violations in the NPO charter:

• the provisions of the charter are outdated and do not correspond (contradict) the current law and the requirements of the Ministry of Justice (we recall that since September 1, 2014, the legislation in the field of non-profit organizations has undergone significant changes);
• the name does not reflect the nature of the organization’s activities;
• based on the current legislation in the field of non-commercial organizations, issues that fall within the exclusive competence of the highest management body are not specified, plus the voting procedure on such issues;
• the goals of the NPO do not correspond to their name, and an open list of areas of activity is indicated;
• discrepancies with the Unified State Register of Legal Entities in information about the address or job title of the manager;
• the foundation's charter contains provisions on reorganization, while the law prohibits the reorganization of funds;
• the charter provides for maintaining a register of members (for corporate non-profit organizations), while in fact this register is not maintained at all or is maintained with violations.

Reporting to the Ministry of Justice for various types of NPOs

The composition and deadlines for submitting reporting documents depend on what the organization does. Let's look at the features for different NPOs:

We will separately consider the reporting of NPOs performing the functions of foreign agents. Foreign agents include NPOs that simultaneously meet the following conditions (Clause 6, Article 2 of Law No. 7-FZ):

1. They receive funding from abroad, both directly and through intermediaries.
2. Engaged in political activities.

Foreign agents must report to the Ministry of Justice, taking into account the following features (order No. 50 dated April 16, 2013):

1. Reports on the activities and composition of governing bodies must be submitted every six months, no later than January 15 and July 15.
2. A report on the purposes of spending money and property must be submitted quarterly no later than January 15, April 15, July 15, October 15.
3. The audit report must be submitted annually by April 15.
4. Foreign agent NGOs are required to post information about their activities for the media on the Ministry of Justice portal every six months.

Financial statements

Non-profit organizations are required to submit to the tax authorities a balance sheet, a statement of financial results, and a report on the intended use of funds no later than March 30 of the year following the reporting year.
NPOs performing the functions of a foreign agent are not entitled to use simplified accounting statements. Foundations; NPOs that own large endowment capital; NPOs performing the functions of a foreign agent and structural divisions of foreign non-profit organizations are required to submit an audit report to regional statistical bodies no later than 10 working days from the day following the day of conclusion, but no later than December 31, 2021.

Also, starting from 2021, organizations are required to place information on the audit results in the Unified Federal Register of Information on the Facts of the Activities of Legal Entities within three working days from the date of receipt of the audit report.

Responsibility for violation of the procedure for submitting reports of NPOs to the Ministry of Justice

An NPO that violated the procedure for submitting reports to the Ministry of Justice will be held accountable under Art. 19.7 Code of Administrative Offenses of the Russian Federation. The fine for officials will be from 300 to 500 rubles, for legal entities - from 3,000 to 5,000 rubles. But for the first violation, the court may issue a warning.

NPOs for systematic violation of reporting deadlines can be liquidated through the court on the initiative of the Ministry of Justice (Clause 10, Article 32 of Law No. 7-FZ). This measure does not apply to state and budget institutions.

Before going to court, the Ministry of Justice will send the organization a written demand to eliminate violations, indicating a time frame.

The specific duration and frequency of delay are not established by law. The court will decide on liquidation if it considers that the organization has actually committed serious violations, after which it is impossible to continue working. If the violations are minor or their consequences have been eliminated, the court will most likely refuse to close the NPO.

Zero VAT declarations of NPOs

NPOs are VAT payers (with the exception of NPOs that use special regimes). The objects of taxation are transactions involving the sale of goods, products, works and services (Article 146 of the Tax Code of the Russian Federation). At the same time, targeted funds received by NPOs (entrance and membership fees, donations and other funds) are not subject to VAT if their receipt is not related to the sale of goods, works, services (clause 1, clause 1, article 146 of the Tax Code of the Russian Federation).

Zero VAT reporting involves submitting a declaration electronically (through an electronic reporting operator).

The following sheets are included in the zero VAT return (paragraph 2, clause 3 of the Procedure, approved by order of the Federal Tax Service of the Russian Federation dated October 29, 2014 No. ММВ-7-3/558):

• title page;
• Section 1 “The amount of tax subject to payment to the budget (reimbursement from the budget), according to the taxpayer.”

In the lines that require filling in the digital indicators of the NPO's zero declaration, dashes are inserted.

The deadline for submitting zero VAT reporting is no later than the 25th day of the month following the expired quarter (clause 5 of Article 174 of the Tax Code of the Russian Federation).

Conclusion

Almost all NPOs, except for consumer cooperatives and associations related to the management of residential buildings and gardening, must report to the Ministry of Justice.

The composition of reporting and the procedure for its submission depends on the type of organization, as well as the volume and sources of financing. NPOs recognized as foreign agents must report most frequently and in detail.

For violation of the procedure for submitting reports to the Ministry of Justice, administrative fines are provided. In case of systematic violation, forced liquidation of the NPO through the courts is possible.

Statistical reporting

The composition of statistical forms to be submitted to state statistics bodies depends on:

• types of economic activities of NPOs;
• information about the category of organization from the unified register of small and medium-sized businesses of the Federal Tax Service of Russia;
• other selection criteria established by instructions for filling out specific forms.

You can create a list of forms for a specific non-profit organization with deadlines for their submission on the website of the Federal State Statistics Service.
You just need to enter the TIN, OGRN or OKPO of this non-profit organization in the appropriate fields of the form. NPOs are the most humane economic entities in the Russian economy.

III. Get your internal documentation in order

Typically, the Ministry of Justice requests contracts, acts, reports, staffing, protocols, orders, and company accounting policies.

In practice, we are more often faced with a situation where NPOs do not hold mandatory annual meetings of their governing bodies at all, and do not re-elect (elect) their governing bodies within the time limits established by the charter. If the protocol is drawn up, then most often with gross violations, namely:

• there is no indication of the time or place of the meeting;
• The chairman, secretary of the meeting and the person counting votes (counting commission) have not been elected;
• Voting was not carried out or was carried out with violations on each item on the agenda;
• there is no signature of the chairman, secretary of the meeting and (or) company seal;
• the total number of founders (or members) of the NPO and the number of those present at the meeting are not indicated;
• there is no required quorum;
• The governing body considers issues on the agenda that are not authorized to consider under the charter.

Forms of non-profit organizations

The Civil Code of the Russian Federation specifies several organizational and legal forms of enterprises that are created on a non-profit basis:

1. Consumer cooperatives (unions, societies). It is generally accepted that such enterprises are formed only for commercial purposes. However, in the non-profit sphere, they can be organized with the purpose of bringing together individuals and legal entities to meet the needs of their members and solve common problems. For example, housing cooperatives, credit societies of citizens, gardening and dacha associations, agricultural unions, etc. Financing of such organizations is carried out at the expense of the participants by making shares.
2. Funds. They exist through voluntary contributions from citizens and legal entities. Foundations pursue goals that are beneficial to the whole society: educational, social, cultural. Charitable organizations often operate in the form of foundations.
3. Public and religious organizations. These are voluntary unions and associations of citizens with common interests and intangible (for example, spiritual) needs. Such associations can also function in the form of an institution, a social movement, or a foundation. The founders can be individuals, legal entities, or their associations.
4. Associations of legal entities (associations, unions). They are created to coordinate commercial enterprises and protect them, as well as common interests. The constituent documentation is the constituent agreement, signed by all participants of the association, and the charter. Upon joining such an association, the independence of each member is preserved.
5. Institutions. These include organizations created by the founder(s) to carry out educational, social, cultural and managerial functions. In this case, institutions can be either fully funded by the founders or partially. To conduct their activities, institutions can attract charitable contributions from legal entities and individuals.

What is an NPO

NPOs, or non-profit organizations that carry out their activities without pursuing the goal of material gain. In Russian practice, non-profit organizations most often have altruistic motives: material and psychological assistance to citizens who find themselves in difficult life situations. NPOs can also conduct scientific, political or educational work.

Both domestic and foreign representatives of business and government can sponsor the activities of non-profit events, which calls into question the continued existence of NPOs under the conditions of the brutal totalitarian regime of the Russian Federation.