NON-GOVERNMENTAL ORGANIZATIONS IN THE FACE OF A DILEMMA: ACCOUNTING BOOKS VERSUS SIMPLIFIED RECORD OF REVENUES AND COSTS

According to the latest report of the Central Statistical Office[1], about 91.8 thousand non-governmental organizations operate actively in Poland. It is estimated that more than half of them are faced with the dilemma of applying simplified record of revenues and costs as an alternative to accounting books. Therefore, the purpose of this paper is a benefit and cost analysis of both these forms of accounting records, with particular regard to objective premises determining the purposefulness of their application. To achieve this goal the following hypothesis was adopted: internal determinants of the NGO determine the choice of the form of accounting records. The analysis shows that the greatest benefits resulting from the application of simplified records of revenues and costs will be related to small non-governmental organizations, focused primarily on the implementation of local social initiatives and whose main source of funding are membership fees and donations. In turn, those entities, whose aspirations extend beyond local markets, characterized by a large diversification of financing sources and high growth potential, should decide on maintaining accounting books.

The author applied the following research methods: literature studies, the analysis of legal acts as well as induction and synthesis methods used in the formulation of conclusions.

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