Accounting & Bookkeeping · KBLI 94910

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.

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What usually goes wrong

  • 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.

What we do

  1. 01

    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
  2. 02

    Activity & Cash Flow Statements

    Preparation of activity statement and cash flow statement according to nonprofit format.

    • Donor accountability
    • Clear fund oversight
    • Regulatory compliance
  3. 03

    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 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.

If the tax office starts asking questions

The team that keeps your books and files your taxes also stays with you through an SP2DK, an audit, an objection and an appeal.

How we handle tax disputes

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 with clear documentation and traceable transaction data.

Related Industries

Tell us about your business

Send your line of business, rough annual turnover, and what is going wrong. We reply on WhatsApp.

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