Accounting for NGOs and Foundations in the Netherlands: complete guide

Bijgewerkt op 14-08-2025
Leestijd: 5 min

Non-Governmental Organizations (NGOs) and foundations play an essential role in addressing social, environmental, and humanitarian challenges worldwide. It doesn’t matter if you run a small charity or an international non-profit, NGO bookkeeping is crucial for compliance, transparency, and building trust with donors.

In this guide, you’ll learn the definition of NGOs and foundations, how they are funded, the accounting principles that are applicable to them, and why outsourcing your accounting in the Netherlands could be the best decision you made.

On this page:

What does NGO mean? (and examples)

An NGO (Non-Governmental Organization) is a non-profit entity that operates independently from government control. NGOs aim to promote social good, advocate for policy change, or provide direct services to communities in need.

Globally, NGOs vary widely in size and focus. Examples include:

  • The largest NGO in the world: BRAC (Bangladesh Rural Advancement Committee), operating in multiple countries with programs in education, healthcare, and development.

  • In the Netherlands: Well-known NGOs include Artsen zonder Grenzen and Oxfam Novib.

For anyone managing an NGO in the Netherlands, accounting and compliance are essential to secure grants and maintain credibility.

Accounting for NGOs and Foundations in the Netherlands

What is a Foundation in the Netherlands?

A foundation ('stichting' in Dutch) is a legal entity created to manage funds for charitable, educational, cultural, or other socially beneficial purposes. Unlike NGOs that may be membership-based, foundations often rely on an endowment or specific funding sources.

Key characteristics:

  • No shareholders or members with voting rights

  • Profits cannot be distributed to individuals

  • Surplus funds must be reinvested to achieve the foundation’s objectives

In the Netherlands, foundations are subject to specific bookkeeping and reporting obligations, making it important to have a knowledgeable foundation bookkeeper or accountant.

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Where do NGOs and Foundations get their funding?

Funding sources may include:

  • Grants from governments, the EU, or international agencies

  • Donations from individuals, corporations, or philanthropists

  • Membership fees (for NGOs with a membership structure)

  • Fundraising events and campaigns

  • Revenue from services related to the mission

Maintaining accurate financial tracking of each funding stream is crucial to comply with donor restrictions and Dutch legal requirements.

How to do accounting for NGOs and Foundations

Unlike for-profit businesses, nonprofit accounting focuses on accountability and transparency rather than profit.

Key considerations include:

  • Choosing the right accounting method: Many NGOs use fund accounting to track income and expenses by project or donor, ensuring funds are spent as intended.

  • Preparing financial statements: Essential reports include the statement of financial position, statement of activities, and notes on fund usage.

  • Meeting Dutch legal obligations:

- Maintain accurate financial records

- Prepare annual financial statements (jaarrekening)

- File with the Kamer van Koophandel (Chamber of Commerce)

- Larger NGOs may require an independent audit

Specialized NGO bookkeeping services can ensure compliance while providing insights for better financial planning.

Accounting standards for NGOs and nonprofits (IFR4NPO, IFRS, GAAP)

There is no single global accounting standard for nonprofits, but most NGOs and foundations follow either IFRS (International Financial Reporting Standards) or GAAP (Generally Accepted Accounting Principles).

  • IFR4NPO: A new framework designed specifically for non-profits, currently under development.

  • IFRS Adaptation: In many countries, IFRS principles are adapted for NGO reporting.

  • FASB GAAP: In the US, the Financial Accounting Standards Board provides GAAP guidance for non-profits.

Accounting software for nonprofits, such as QuickBooks for Nonprofits, Xero Nonprofit, or sector-specific platforms, helps with fund accounting and donor management.

The role of an accountant or bookkeeper in an NGO or Foundation

An NGO or foundation accountant does far more than record transactions. Their duties often include:

  • Ensuring compliance with Dutch and international reporting standards

  • Preparing accurate financial statements and donor reports

  • Managing restricted and unrestricted funds

  • Advising on VAT rules, grants, and tax exemptions

  • Coordinating with external auditors

  • Supporting strategic financial planning

In short, an accountant helps protect your organization’s credibility and ensures funds are used efficiently. At Boekhouders.nl, we have a large network of English-speaking accountants and bookkeepers ready to support your NGO or foundation.

english speaking bookkeeper

Note:
Note:

In the Netherlands, hiring a certified accountant is not mandatory for an NGO (stichting) or foundation. In many cases, a skilled bookkeeper (boekhouder) is more than sufficient, especially for smaller organizations. Contact us to find the right match.

Outsource your NGO or Foundation bookkeeping in the Netherlands

Managing an NGO or foundation means balancing program delivery, fundraising, and stakeholder relationships, while also meeting strict compliance rules. Outsourcing your accounting to a professional can save time, reduce errors, and ensure full compliance.

At Boekhouders.nl, we connect you with experienced NGO and foundation accountants in the Netherlands. Our network of over 900 professionals ensures we can match you with someone who understands both Dutch regulations and the international nonprofit sector. Get started today and ensure your NGO’s finances are in expert hands. 

Fill in the contact form below, and we will contact you by phone within one working day to discuss your request without obligation. Get in touch with various parties, compare prices, and decide for yourself whether there is a match.

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