ANAF intensifies controls on NGOs: Fiscal risks and stricter rules for the use of funds

ANAF and the Ministry of Finance have intensified checks on NGOs, focusing on how they spend money from sponsorships and from the redirection of income tax.

Lawyer Luisiana Dobrinescu emphasizes that, following ANAF's controls, sponsors can be penalized by the cancellation of tax benefits, which imposes additional profit tax payments.

Dobrinescu identifies three main issues in the authorities' approach:

Unclear use of funds – NGOs cannot sufficiently justify how they spent money from sponsorships or tax redirections.

Reclassification of income – some activities (e.g., after-school) may be considered by ANAF as economic activities, leading to additional taxes.

Relationship with sponsors – there is a risk that certain sponsorships may be interpreted as disguised commercial transactions, not donations.

NGOs must be prepared with supporting documents for each expense, including financial support contracts and proof of payment.