CHARITY ACCOUNTING AND TAXATION

Abstract

Due to the rapid increase in the number of charitable organizations and the involvement of Ukrainian companies in volunteer activities, the need for research into the regulatory framework governing charitable activities has grown. This study analyzes the existing body of scientific literature and recent advancements by other authors on the chosen topic. The dynamics of charitable activities during martial law in Ukraine are examined. The study reveals that business groups provided the largest amount of assistance among the respondents. The key principles of charitable activities are identified, and the participants in this process are classified. Practical recommendations for making donations are provided. Typical accounting correspondences for recording charitable activities are presented. Special attention is given to the specifics of recording charitable assistance in the accounts of both donors and beneficiaries. The legislative framework for the taxation of financial and material assistance is reviewed, and the key aspects of documenting charitable assistance from the donor’s perspective are outlined.
Object of Study: The system of financial accounting and taxation of charitable activities.
Subject of Study: Theoretical, methodological, and practical aspects of financial accounting and taxation of charitable activities.
Tasks: To examine the regulatory and legal aspects of corporate charitable activities, analyze the trends in the development of charity in Ukraine during the war, and develop recommendations for the financial accounting process for charitable activities.
Purpose: The purpose of this study is to investigate the current state of charity in Ukraine and to refine recommendations concerning the financial accounting and taxation specifics of charitable assistance provided by business entities.
Research Methods: The research methodology incorporates the fundamental principles of modern economic science, along with a set of general scientific and specialized methods pertinent to contemporary accounting practices. Specifically, the following methods were employed in this scientific research: a systematic approach for studying the challenges of accounting and taxation in charitable activities; economic and statistical analysis to examine the scope of aid provided by Ukrainian donors; and methods of analysis and synthesis for developing methodological recommendations concerning the accounting treatment of the operations under study.
Scientific Novelty: The scientific novelty of this work lies in its developed and systematized recommendations for the financial accounting process of charitable activities.