Accounting for Non-Profits and NGOs

Most non-profits and NGOs in Switzerland require support with day-to-day bookkeeping, payroll processing, preparation of annual financial statements, and reporting for grants or donors. Associations may also need help with VAT registration or maintaining their tax-exempt status. Nexova offers all these services with a digital, structured approach tailored to your organization’s funding model and reporting obligations.

Yes. We help ensure your financial processes and reporting align with the criteria for tax exemption at both the cantonal and federal levels. This includes structuring your chart of accounts appropriately, documenting eligible activities, and preparing financial reports that clearly demonstrate your organization’s public benefit purpose. We also support you through audits or reviews where proof of continued eligibility is required.

An NPO becomes subject to VAT as soon as it generates more than CHF 100,000 in taxable revenue per year. However, for charitable institutions as well as non-profit, volunteer-run sports and cultural associations, a higher revenue threshold of CHF 250,000 has applied since January 1, 2023. Taxable revenue generally includes services, product sales, or income from events, but not donations or most membership fees.

We help you review your sources of income, assess VAT liability, and, if necessary, file your registration as well as ensure the correct VAT treatment in cases of mixed income.

Absolutely. We support organizations in preparing clear, project-specific financial reports that meet donor or grantor requirements. This includes budget-to-actual comparisons, fund usage summaries, allocation of shared costs, and documentation of in-kind contributions. Our tools make it easy to generate the right reports on time, whether for institutional funders, government agencies, or your board of trustees.

FER 21 is a Swiss GAAP accounting standard specifically designed for charitable non-profit organizations that serve the public good and rely on donations or grants. It facilitates greater structure in terms of donor transparency, fund accounting, and public accountability. OR (Obligationenrecht) is the Swiss Code of Obligations, which is the standard for-profit accounting framework in Switzerland.

Swiss GAAP FER 21 recognizes the unique features of charitable NPOs and NGOs: they don't pursue profit, often raise money from the public or receive government support, and deliver services to beneficiaries who are not the same people providing the funding. It addresses these issues by requiring a statement of changes in equity and a performance report that describes your mission, activities, and impact (how funds have been used). The goal is to make your financial reporting more meaningful, comparable, and aligned with your public-benefit purpose.

This differs from member-serving organizations like professional associations or trade groups, which typically follow standard OR accounting since they primarily serve their own membership rather than the broader public.

While FER 21 is not legally required for all charitable non-profits, it is mandatory in certain sectors or cantons. For example, in the Canton of Bern, nursing homes, disability care homes, and home care organizations are required by law to report under FER, and in most cases, that means FER 21 applies. These obligations are usually tied to public funding or sector-specific regulation.

FER 21 is generally recommended or required when:

• You receive significant public or donor funding
• You want to enhance transparency and comparability
• Your board or funders expect FER-compliant reporting

Nexova supports both OR and FER 21 frameworks and helps you determine which applies to your organization, whether it's by choice or legal requirement. If you're planning to apply for public funds or work with institutional donors, FER 21 is often the preferred standard.