Charitable Foundations
Overview
CBM Consultants assists charitable foundations in Pakistan with compliance, regulatory, and financial reporting, ensuring they meet the requirements of regulatory bodies and tax authorities. Our firm manages tax obligations for non-profits, including income tax exemptions and withholding tax compliance, while upholding FBR guidelines. Our services include support during audits and financial governance through accurate bookkeeping and strong internal controls, ultimately enhancing donor trust and ensuring readiness for audits and regulatory evaluations.
Toestablish a charitable foundation in Pakistan, an organization must follow a sequence of registrations. First, register with the SECP as a non-profit company, granting legal entity status (2-4 weeks). Next, obtain a National Tax Number and apply for tax-exempt status from the FBR under the Income Tax Ordinance, 2001. Securing certification from the PCP is recommended to enhance credibility and expedite FBR approval for donor tax credits. If receiving foreign donations, registration with the EAD is necessary. This process typically takes 3 to 8 months, resulting in a compliant, tax-exempt organization capable of receiving both local and international funding.
What’sa Charitable Foundation in Pakistan?
A charitable foundation in Pakistan is a legally registered non-profit organization created to support public welfare instead of earning profit. These foundations focus on causes like education, healthcare, poverty relief, community development, disaster support, and other humanitarian services.
They can be registered under laws such as the Trust Act, Societies Act, Voluntary Social Welfare Ordinance, or as a Section 42 not-for-profit company. Charitable foundations must maintain transparent financial records, undergo audits, and comply with FBR and regulatory requirements. All funds, whether donations or grants, must be used strictly for charitable purposes.
Services offered for CharitableFoundations
Accounting andBookkeeping:
CBM Consultants offers specialized accounting, financial reporting, and compliance services tailored for charitable foundations in Pakistan. We ensure accurate bookkeeping, prepare structured financial statements, and manage timely filing of tax returns and reports to meet regulatory requirements. Our expertise in non-profit regulations and tax laws aids foundations in achieving full compliance, enhancing donor trust, and improving financial governance, thus supporting their long-term sustainability and mission.
Taxation:
CBM Consultants offers comprehensive tax and compliance services tailored for charitable foundations, overseeing tax registration, record-keeping, and return filing to ensure adherence to FBR regulations while minimizing errors and penalties. Our team also advises on tax exemptions and compliance benefits, promoting improved tax efficiency and financial transparency through meticulous transaction management.
Audit and Assurance:
Charitable foundations in Pakistan must maintain accurate and compliant financial records for regulatory adherence and donor confidence. CBM Consultants offers audit and review services to ensure reliability of financial statements according to FBR requirements and non-profit regulations. Our experienced team reviews internal controls, compliance with tax obligations, and provides recommendations to enhance financial governance, supporting donor reporting, grant requirements, and overall organizational transparency.
Outsourcing:
Outsourcing financial and compliance functions is a strategic approach for charitable foundations to enhance accuracy and governance. CBM Consultants provides comprehensive services including bookkeeping, tax filings, donor reporting, and compliance with regulatory requirements. Our team ensures precise financial records that meet tax standards, while also reviewing internal processes to strengthen financial controls. This support allows foundations to save time, reduce errors, and concentrate on achieving their social impact goals.
Business Compliances:
Staying compliant with regulatory requirements is crucial for the credibility and effectiveness of charitable foundations in Pakistan. CBM Consultants aids in meeting all statutory obligations from authorities like the FBR, including tax registration, maintaining non-profit status, and timely filing of returns. We offer strategic advice on tax exemptions, statutory documentation, governance practices, and aligning operations with regulatory frameworks, enabling foundations to operate confidently, mitigate compliance risks, and foster sustainable growth.
Tax Exemptions:
To establish a charitable foundation in Pakistan, an entity must register with the SECP as a nonprofit company under Section 42 of the Companies Act, 2017, and then register with the FBR for an NTN and non-profit organization approval for tax exemptions. Certification from the Pakistan Centre for Philanthropy (PCP) enhances credibility and tax-deductible donation eligibility. Foundations receiving foreign funding must also register with the Economic Affairs Division (EAD). These steps ensure legal compliance, tax benefits, and donor confidence for both local and international funding.
