Nonprofit Organizations have special characteristics.
Nonprofits have very different characteristics compared to business organizations. Specific characteristics that underlie these differences in according with PSAK No 45 on Financial Reporting on the Non-profits Organization mainly lies in how non-profit organizations obtain the resources needed to carry out various operations activities. Non-profit organizations attain the resources from donations of donors who do not expect repayment or a return of the economic benefits that are comparable to the amount of resources given.
The need for special financial reporting standards for the non-profit organization has been accommodated by the Indonesian Institute of Accountants issued Statement of Financial Accounting Standards ((PSAK – Pernyataan Standar Akuntansi Keuangan)) No. 45 on Financial Reporting of Non-Profit Organization that have ratified on December 23, 1997 and became effective on January 1, 2000. With the issuance of SFAS No. 45, the financial statements of non-profit organizations are expected to be more easily understood, has high relevance and comparability. Issuance of PSAK No. 45 also has consequences for its application in the financial statements for all non-profit organizations in Indonesia.
Special characteristics of non-profit organizations above. lead to a particular model of financial management as well. Financial accountability of non-profit organizations will rely on the strength of internal control systems and organizational performance on the financial management, which should be specifically developed in accordance with the specific characteristics of the non-profit organization. Risk assessment and determination of control activities will be key to the development of an internal control system. In addition, the financial accountability of non-profit organizations will also be determined by other several factors to support performance management, ie human resources, infrastructure and financial management tools. Elements of financial accountability throughout the non-profit organization must be understood and developed systematically, as an effort to maintain organization sustainability and in the end, as part of efforts to strengthen the position and role of civil society in Indonesia.
We present to assist you heading there, to develop transparency and accountability in financial management of nonprofit organizations in Indonesia, and at the same time assist your organization to grow, thrive and sustainable.
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Fulcra (fulcreum) = the balancing point, the point or support on which a lever turns. The position of the fulcrum, relative to the positions of the load and effort, determines the type of lever.