The world of non-profit accounting has reached a major milestone with the launch of the International Non-Profit Accounting Standard (INPAS) – the first global accounting standard designed specifically for not-for-profit organisations.
What is INPAS?
INPAS provides a consistent, accrual-based financial reporting framework tailored to the needs of non-profit entities. It addresses issues that traditional standards often overlook, such as the recognition of grants and donations, the distinction between restricted and unrestricted funds, and the importance of narrative reporting.
The standard was developed through the IFR4NPO Project, led by the Chartered Institute of Public Finance and Accountancy (CIPFA) and Humentum, following an extensive six-year consultation with stakeholders in more than 40 countries. Responsibility for maintaining and promoting the standard now sits with the newly established International Non-Profit Reporting Foundation (INPRF).
Key facts and next steps:
- After more than six years of development and global consultation, INPAS was formally launched in October 2025.
- The standard is freely available and intended to serve organisations globally, with ambitions for adoption in at least ten countries by 2030.
- INPRF will oversee the ongoing development and stewardship of the standard.
Why does this matter to UK accountants?
Until now, there has been no single, globally accepted approach to non-profit accounting. Organisations operating in multiple countries have often had to navigate a patchwork of national rules and donor-specific reporting requirements. INPAS aims to bring greater consistency and transparency to the sector. It will help:
- Improve comparability between organisations across borders.
- Simplify reporting for entities working with multiple funders or partners.
- Strengthen accountability through clearer treatment of grant income and fund restrictions.
For UK accountants advising charities and international NGOs, INPAS offers a useful new tool for financial reporting and donor engagement.
Can UK charities adopt INPAS?
At present, UK charities must still prepare their statutory financial statements in accordance with the Charities SORP (FRS 102), as required by the Charity Commission and Companies House. INPAS does not replace the SORP, however, many UK charities already prepare extra reports for overseas funders, donors, or partners. INPAS provides a consistent global framework that can be used for such supplementary reporting.
Find out more
To help you stay ahead of this development, we invite you to join a special webinar on 18 November. Chaired by ICAEW Charity Committee Chair Daniel Chan MBE, we will explore INPAS in more detail, look at its relevance to UK non-profits, and discuss practical implications for your role as an accountant.
INPAS marks a significant step forward for the non-profit sector’s reporting landscape. For UK accountants, it offers a new reference point for advising charities, especially those with cross-border operations. Whether your organisation adopts the standard directly or uses it as a tool for supplementary reporting, awareness and preparation will be key.
