Evidence of the need for strong accounting practices in nonprofit organizations, such as showing the sources of revenue and the purpose of spending, is found early on in 1990 Bulgaria. After tax-exempt status was granted in Bulgaria, many nonprofit foundations used that status to import and sell commercial items such cigarettes and alcohol on the open market (Higuera, 1993). Charities, membership or advocacy nonprofit entities cannot faithfully carry out their public service missions without an accounting system that provides sufficient information to the Board, the public, donors and to the State.
