Financial, accounting and legal services for non-profit organisations in Panama

Keeping your mission sustainable takes transparent stewardship of assets, strict control over where funds come from and where they go, and flawless legal compliance. Outsourcing financial, accounting and legal services lets NGOs professionalise their structure, meet international audit standards and focus their resources on making a positive impact in the community.

Specialised legal services for non-profit organisations

The legal framework for non-profit entities in Panama requires specific incorporation procedures, internal governance and ongoing reporting to the regulators.

• Full legal advice on drafting the articles of association and the deed of incorporation, and on obtaining legal personality from the Ministry of Government (MINGOB) or the relevant regulatory bodies.
• Filing and representation before the DGI to obtain the resolution that authorises the organisation to issue income tax (ISR) deductible receipts to its donors, a key incentive for raising private and institutional funds.
• Implementation of manuals for the prevention of money laundering, terrorist financing and the proliferation of weapons of mass destruction, in line with Panamanian requirements for non-financial reporting entities.
• Drafting of internal regulations, volunteer agreements and donation agreements, and advice to the Board of Directors on legal liability and dispute resolution.

Financial services and accountability for NGOs and foundations

Financial management in the non-profit sector does not aim to distribute profits, but to maximise social impact through the efficient and transparent use of donations and grants.

Restricted fund and project accounting

We set up accounting systems built for fund accounting, so that general operating expenses are separated precisely from the resources allocated to specific projects with funds restricted by national or international donors.

Budgeting and donor audits

We develop detailed budget models and prepare analytical financial reports designed to pass the external audits required by multilateral organisations, embassies and international foundations.

Accounting services and tax compliance with the DGI

Despite their tax benefits, non-profit organisations in Panama must keep formal accounting records and file tax reports periodically.

• Accounting records and tax returns: preparation and timely filing of the annual informative income tax return with the DGI, ensuring exempt income and operating costs are classified correctly.
• Electronic invoicing and donation receipts: implementation of the Electronic Invoicing system or formal issuance of authorised donation receipts, ensuring every contribution received complies with tax rules.
• Accounting records compliance (Law 254): keeping and safeguarding the accounting records and supporting documentation as required of legal entities in the Republic of Panama.

Payroll and staff management for the non-profit sector

NGOs usually have a mixed team of permanent administrative staff, project consultants, field technicians and volunteers. Managing this workforce in strict accordance with Panamanian law is essential to avoid contingencies.

Payroll processing and professional services

We calculate the fortnightly or monthly payroll of permanent staff under the Panamanian Labour Code, including the 13th month, holidays and severance. We also handle the proper engagement of external consultants on a professional fee basis.

Social Security Fund filings (SIPE)

We prepare and file the monthly payroll through the CSS Income and Economic Benefits System (SIPE), securing the employer's certificate of good standing (Paz y Salvo) needed to sign agreements with the State or receive public funds.

Why non-profit organisations choose EYSH Financial

Having a firm that specialises in the accounting and legal management of NGOs and foundations in Panama behind you brings key benefits for the sustainability of your cause:

• At EYSH Financial we produce financial reports to international standards that build trust with international organisations, corporate donors and external auditors.
• We bring regulatory legal advice, tax planning for authorised donee status and accounting together in a single firm, so your legal and financial advisers are never out of step.
• We protect your foundation from losing its authorised donee status, DGI fines or MINGOB sanctions by closely monitoring its calendar of administrative obligations.
• Let your executive team spend 100% of its time running social programmes and raising funds, while EYSH Financial manages accounting and regulatory compliance as cost-efficiently as possible.