Blog, Comptabilité & Fiscalité: 17.02.26Preparing and Reviewing Your 2025 Annual Accounts with Confidence: A Practical Guide for Swiss NGOs

Swiss GAAP FER 21, Zewo standards, restricted funds, gross presentation, consolidation… Closing the annual accounts of a public benefit organisation is anything but routine. For leaders of Swiss NGOs, each financial year is an opportunity to strengthen the transparency and rigour their stakeholders expect. This guide walks you step by step through the preparation and review of your 2025 accounts.

Public benefit organisations operate within a specific accounting framework. In Switzerland, Swiss GAAP FER 21 has applied to non profit public benefit organisations since 1 January 2016. Any NGO may choose to prepare its accounts under this standard, regardless of certification status. Organisations certified by the Zewo Foundation commit, under the label conditions, to prepare their accounts in accordance with Swiss GAAP FER and to comply with the 21 Zewo standards, revised edition 2024.

In practical terms, your annual closing must meet a dual requirement: compliance with the Swiss Code of Obligations and with the Swiss GAAP FER framework. Smaller organisations need only apply the conceptual framework, Swiss GAAP FER 21 and the core standards 1 to 6. Larger organisations must additionally apply Swiss GAAP FER 10 to 28, and Swiss GAAP FER 30 in the case of consolidation.

This overlap of frameworks may seem complex. It is also a powerful credibility lever with donors, partners and supervisory authorities. Well prepared accounts are the clearest proof that every franc is used in accordance with its intended purpose.

Correct classification of funds lies at the heart of NGO accounting.

Unrestricted funds: usable within the statutory purpose

A fund is considered unrestricted when the donor has not expressed any specific intention regarding its use, or when the fundraising appeal clearly indicates that the funds may be used freely. These funds are recognised within the organisation’s capital, which includes base capital such as foundation capital, earmarked capital defined by the organisation itself, and free capital such as retained earnings.

Restricted funds: an obligation towards the donor

A fund is restricted when the donor has specified a particular purpose, either explicitly through an agreement, will or payment instruction, or implicitly where the fundraising appeal relates exclusively to a specific project or area of activity. These funds are recorded as fund capital, a specific balance sheet item that does not form part of equity under Swiss GAAP FER 21. It is presented separately on the liabilities side.

The overall impression: the decisive criterion

Swiss GAAP FER 21 states that a restricted fund arises either from the donor’s explicit designation or from the circumstances of the donation. Zewo Standard 18 goes further, emphasising that the overall impression created by a fundraising appeal determines whether funds are restricted or unrestricted. A small footnote indicating free use will not override a campaign clearly centred on a specific project.

Common pitfalls include vague wording such as “and elsewhere” or “where the need is greatest” without sufficient context, unclear examples of projects, or references to free use in small print or hidden text blocks.

Swiss GAAP FER 21 requires gross presentation for restricted funds. Allocations and uses must be shown separately in the statement of changes in capital, even where funds are received and spent within the same year.

The same principle applies to fundraising activities. Fundraising costs are a key performance indicator. All fundraising expenses must be presented in gross terms within operating expenses. Offsetting campaign costs against the related income is not permitted, including where external service providers, charity galas or merchandising activities are involved.

A key control point: restricted income recognised in the income statement must correspond exactly to allocations shown in the statement of changes in capital. This reconciliation is reviewed by the auditor.

Swiss GAAP FER 21 requires a multi level presentation of results. At a minimum, your income statement must show operating result, financial result, non operating result, extraordinary result, result before changes in fund capital, changes in fund capital, and finally the annual result before allocations to organisational capital.

The net change in fund capital may be presented as a single figure in the income statement, but the gross breakdown must appear in the statement of changes in capital.

Zewo certified organisations must also allocate all operating expenses across three categories: project or service expenses, fundraising and general advertising expenses, and administrative expenses. This allocation follows Zewo Standard 13, including the appropriate allocation of personnel costs, and must be disclosed accordingly.

It is generally possible to produce a single set of accounts that meets both CO and Swiss GAAP FER requirements, provided the options under Swiss GAAP FER 21 are exercised consistently with CO provisions.

The most sensitive issue concerns the presentation of fund capital in the balance sheet. Swiss GAAP FER 21 presents it separately, neither within equity nor liabilities. The CO requires a strict distinction between the two. In dual accounts, fund capital may be presented within liabilities or as a separate category between equity and liabilities.

However, in cases of capital protection and over indebtedness, fund capital must be treated as liabilities because it is tied to a specific purpose and cannot be used for general restructuring.

Since the revision of company law effective 1 January 2023, retained earnings and current year result must be presented separately within equity. Dual accounts must reflect this requirement.

The type of audit depends on size and legal form. Associations and foundations subject to statutory audit must undergo either a limited or ordinary audit under the Civil Code.

For organisations not subject to statutory audit, Zewo Standard 14 requires at least a review under Swiss Auditing Standard 910 by an independent auditor. Where statutes or governing bodies require a higher level of assurance, that requirement prevails.

Even if only a limited audit or review is required, a voluntary audit under Swiss Auditing Standards may be commissioned, resulting in a positive audit opinion. This sends a strong signal of confidence to stakeholders.

Under Swiss GAAP FER 21, the performance report must not contradict the financial statements, although it is not audited. Auditors are nonetheless required to read it to ensure consistency.

Transparency extends to governance. The notes must disclose the total remuneration paid to the supreme governing body and to executive management. Zewo Standard 8 requires additional disclosures, including separate disclosure of the chair’s remuneration.

Total remuneration includes expense allowances, lump sum fees and attendance fees. Only documented reimbursements are excluded. Foundations must also report annually to the supervisory authority.

Transactions with related parties must also be disclosed, including governing body members, organisations they control, founders or patrons with significant influence, and related support organisations. For each significant transaction, nature, volume and key terms must be described.

Consolidation is required when a public benefit organisation controls another entity. Control does not necessarily require ownership. The ability to appoint the majority of the governing body or exercise decisive influence through contractual or statutory rights is sufficient.

What matters is the ability to exercise control, not whether it is exercised in practice. Swiss GAAP FER 30 governs consolidation. Once control exists, consolidation is required regardless of size.

Smaller organisations may limit themselves to the conceptual framework, Swiss GAAP FER 21, core standards 1 to 6 and Swiss GAAP FER 30.

1. Classify donations upon receipt. Do not leave fund classification until year end.
2. Ensure fundraising and accounting teams align before launching campaigns. Reconcile restricted income and fund allocations throughout the year.
3. Document the use of each restricted fund with clear supporting evidence.
4. Anticipate transfers between funds and document justifications carefully.
5. Prepare detailed notes covering remuneration, related parties and allocation methodologies.
6. Engage with your auditor early to address sensitive issues before closing.
7. Digitalise accounting processes with tools that integrate restricted fund management and Zewo methodology.

Preparing annual accounts in line with Swiss GAAP FER is not merely a technical exercise. It is a statement of transparency that strengthens donor trust, facilitates institutional funding and reinforces long term credibility. For Zewo certified organisations, it is also essential for maintaining the label.

The 2025 closing is also the right time to assess your tools. Does your accounting system easily manage restricted versus unrestricted funds? Can it automatically generate the statement of changes in capital?

At Synergix, our IODD platform offers precisely these capabilities, with real time access to your financial data and fiduciary support tailored to the specific needs of NGOs.

Have a question about your 2025 closing? Our team is here to help.