A newly introduced global accounting framework is expected to significantly enhance transparency, accountability, and consistency in financial reporting among non-profit organisations.
The International Non‑Profit Accounting Standard (INPAS), launched in October 2025, provides the first comprehensive accounting framework specifically designed for non-profit organisations worldwide.
According to the Institute of Certified Public Accountants of Uganda (ICPAU), the standard addresses longstanding challenges faced by non-profits, which previously relied on a mix of general accounting standards and donor-specific reporting formats.
Experts say these fragmented systems made it difficult to compare financial reports and often failed to adequately capture the unique funding structures of non-profit entities.
Charles Lutimba, Director of Standards and Regulations at ICPAU, said the new framework will strengthen accountability and public trust in the sector.
“As scrutiny for nonprofit entities increases, compliance from all fronts becomes more than relevant. The INPAS provides a framework that ensures accurate financial reporting, accountability, and compliance tailored to the unique needs of the nonprofit sector,” Lutimba said.
The accrual-based framework offers guidance on key areas such as grant income recognition, narrative reporting, and the management of restricted and unrestricted funds.
To guide organisations on adopting the new standard, ICPAU, in partnership with BDO East Africa and AF Mpanga Advocates, will host the 2026 NGO Symposium aimed at strengthening financial reporting and compliance in Uganda’s non-profit sector.
Kenneth Mankanga, Managing Partner at BDO East Africa, described the new accounting standard as a major milestone for NGOs globally.
“The introduction of INPAS marks a defining moment for non-profit organisations globally and in Uganda. We are committed to supporting organisations prepare for the transition through awareness, knowledge sharing and practical guidance,” he said.
The standard was developed by Humentum and the Chartered Institute of Public Finance and Accountancy (CIPFA) under the IFR4NPO project following six years of consultation with stakeholders.
Despite improvements in financial reporting standards, many NGOs in Uganda still face challenges related to legal, regulatory, tax, governance, and data protection compliance—issues the symposium aims to address through expert engagement and guidance.
