How to apply for charity

Charitable activity, in accordance with Article 1 of the Federal Law No. 135 of 08/11/1995, is a voluntary activity of legal entities and citizens in disinterested transfer of property and funds to other legal entities or citizens, gratuitous performance of work, provision of services and other support. How to legalize a charity?

Instruction manual

1

If you purchased equipment or other goods for any organization, then use account No. 41 (“Goods”) in accounting to display information about the movement of these inventory items. However, regardless of whether you transfer equipment or money, the expenses of the organization related to charity are other expenses and are recorded on the corresponding account No. 91.

2

According to the accounting rules, expenses associated with the organization's charitable activities are reflected in form No. 2 (“Profit and loss statement”). The transfer of any equipment and things is carried out on an invoice drawn up in duplicate and signed by the parties. The assistance organization takes one copy of the invoice to itself.

3

When taxing, the value of the transferred property and the amount of cash in expenses are not taken into account when determining the tax base. Therefore, the costs associated with charity, and reflected in the form No. 2 should not be indicated in the tax return.

4

Submit the following documents to the tax inspectorate to prove expenses related to charity: - your organization’s contract with the recipient of assistance for the free transfer of goods (provision of services, work, etc.) or cash; - certified copies of documents confirming acceptance registered by the recipient of assistance of gratuitously received goods (works, services) or cash; - certified copies of acts and other documents confirming the intended use of the received material resources within lagotvoritelnosti.

5

Evidence that tangible assets have been transferred as part of charitable activities are usually: - a letter from the recipient of charitable assistance asking for material, technical or financial assistance for specific purposes; - payment order for the transfer of funds by a philanthropic organization.