Are NGOs and charities required to produce accounts by law?

Non-Governmental Organizations (NGOs) and charities are generally not mandated by law to produce accounts in the same way that for-profit businesses are. While many countries encourage transparency and accountability through regulations—requiring some level of financial reporting—there often isn't a universal legal obligation to produce detailed accounts. The requirements can vary widely based on the jurisdiction, type of organization, and the size of the charity or NGO.

In many cases, larger charities or NGOs might be required to undergo audits and submit accounts to regulators, but smaller organizations may not have such stringent requirements. Furthermore, NGOs and charities might choose to produce accounts voluntarily for reasons of transparency, trust-building with donors, or as part of good governance practices, but this is not universally mandated by law.

The distinction lies in the fact that while accountability is essential for public trust, and many jurisdictions implement regulatory frameworks that encourage or require it, there isn't always a strict legal requirement comparable to that of corporate entities.