In Colombia, non-profit organizations (NPOs) are required to publish their opening balance on their websites as part of legal transparency and accountability obligations. This requirement is grounded in laws and regulations that govern non-profit entities, such as Decree 2150 of 1995, and aims to promote trust and responsible management of public or donor resources. Here's why:
Transparency and Accountability:
Publishing the opening balance ensures the organization demonstrates how it starts its operations financially. This transparency allows donors, stakeholders, and authorities to track the flow of resources.
Compliance with Public Interest Laws:
Non-profits in Colombia often handle public or private donations. Disclosing financial statements, including the opening balance, helps assure the public and authorities that funds are managed ethically and in alignment with the organization's mission.
Prevent Misuse of Funds:
By making financial details public, the law reduces the risk of corruption or misuse of funds. It ensures that resources are used strictly for the stated objectives of the foundation.
Encourages Donor Confidence:
Transparency about financial standing reassures donors and supporters that their contributions are being responsibly managed and allocated.
Legal and Tax Requirements:
As non-profits are often exempt from certain taxes, public disclosure of their financials, including the opening balance, is a way to ensure compliance with tax benefits and to prevent abuse of their status.
