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What is INPAS?
The International Non Profit Accounting Standard is the first internationally applicable accounting standard for the sector, developed to streamline the preparation of annual audited accounts and grant reports.
INPAS is a single standard designed to cover all NPO activities. It has been developed to enhance transparency, accountability and trust in non-profit finances globally.
Who should use INPAS?
INPAS is designed primarily for small and medium sized Non-Profit Organisations (NPOs) that need to prepare accrual-based financial reports;
- because they have complex transactions.
- to track assets and liabilities as well as cash balances.
- to satisfy the needs and expectations of stakeholders.
While INPAS is not intended for the smallest NPOs such as micro entities or for the very largest NPOs, INPAS can also be useful for:
- Larger NPOs that have public accountability as defined in IFRS accounting standards because INPAS has relevant sector-specific guidance.
- Smaller NPOs that are exploring the adoption of accrual accounting as part of their organisational growth strategy.
Challenge of no global standard for NPOs
The 10M+ organisations in the global development sector manage billions of dollars annually. Non-Profit Organisations (NPOs) face unique financial reporting challenges, including reliance on donor funding and mission-driven operations. Despite its size and scope, the sector is held back by:
Absence of standardised non-profit financial reporting in more than 90% of countries
Inconsistent practices across countries and organisations
Lack of trust, transparency and comparability
The result?
Without a globally recognised standard, NPOs waste time, money and miss opportunities for global impact.
The solution: INPAS
Accrual-based financial reporting is widely accepted as the foundation of high-quality financial information.
INPAS enables NPOs to:
Enhance credibility
By improving financial report quality and assurance
Increase funding
By supporting fundraising and grant making due diligence
Improve transparency
By enabling clear reporting on unrestricted fund and support costs
Streamline operations
By eliminating redundant reporting formats
INPAS provides a holistic approach to reporting.
A holistic approach to financial reporting means that financial and non-financial information is integrated. This provides greater insight into both financial sustainability and mission achievement.
Income and expenses
Comprehensive information about the resources that have been provided or generated by an NPO, how it uses those resources and restrictions on the use of resources
Assets and liabilities
Comprehensive information about the assets that an NPO owns or controls and liabilities it needs to settle in the future
Narrative reporting
Presented alongside financial statements, information about an NPO’s mission and objectives, strategies and risks and performance and impact
INPAS is part of the global system of financial reporting standards
In today’s interconnected world, the demand for reliable, comparable NPO financial information has never been greater.
Global standards help ensure that financial reports:
Promote transparency in collaborative work across private, public and non-profit sectors
Are credible and trusted by donors, regulators and partners
Are comparable across borders and sectors
Strengthen financial resilience by tracking available funds and reserves
The objectives of INPAS
INPAS addresses long-standing challenges in non-profit financial reporting by pursuing the following objectives:
- Establish a globally recognised foundation for transparent and credible NPO financial reports
- Provide decision-useful financial and non-financial information to strengthen accountability and support informed decision-making
- Promote comparability and consistency across jurisdictions by responding to NPO-specific reporting needs
As a result, NPOs can streamline operations, enhance credibility, support fundraising efforts, and improve transparency in reporting.
