Accountants and leaders in the nonprofit sector are welcoming the introduction of the International NonProfit Accounting Standard (INPAS), the first comprehensive global accounting framework specifically designed for nonprofit organisations.
For many years, nonprofit organisations (NPOs) have operated without a universal accounting standard, relying instead on a mixture of Generally Accepted Accounting Principles, donor-specific reporting formats, and other financial reporting frameworks. While these approaches helped improve transparency, their fragmented nature often resulted in inconsistencies in reporting and made it difficult to compare financial statements across organisations.
INPAS addresses this long-standing gap by providing a standalone, accrual-based framework tailored to the unique funding models and reporting requirements of the nonprofit sector. The standard provides guidance on narrative reporting, recognition of grant income and donations, and the presentation of restricted and unrestricted funds. It also includes a Practice Guide for Harmonised Grant Reporting aimed at simplifying donor reporting requirements.
According to CPA Charles Lutimba, Director of Standards and Regulations at the Institute of Certified Public Accountants of Uganda (ICPAU), the introduction of the new framework comes at a critical time when scrutiny of nonprofit organisations continues to increase.
“As the 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, for transparency, donor trust, and stewardship of funds—both restricted and unrestricted” Lutimba said.
To unpack the new standard and guide organisations on its implementation, BDO East Africa, in partnership with ICPAU and AF Mpanga Advocates, convened the inaugural 2026 NGO Symposium in Kampala under the theme “Advancing Transparency & Compliance.”
The symposium brought together nonprofit leaders, accountants, regulators, and legal practitioners to discuss the adoption of INPAS and other emerging compliance requirements affecting the sector.
Speaking at the symposium, CPA Kenneth Makanga, Managing Partner at BDO East Africa, described the introduction of the new standard as a major milestone for the sector globally and in Uganda.
“The introduction of the International NonProfit Accounting Standard marks a defining moment for nonprofit organisations globally and in Uganda. At BDO, we are happy to support organisations prepare for the transition to adopt INPAS through creating awareness, sharing knowledge and providing practical guidance and tools” Makanga said.
INPAS was developed through a collaborative effort led by Humentum and the Chartered Institute of Public Finance and Accountancy (CIPFA) under the IFR4NPO project, which began in 2019. The development process involved six years of consultations and engagement with stakeholders across the global nonprofit sector, including contributions from ICPAU. The standard was officially launched in October 2025.
Despite improvements in financial reporting standards, many NGOs in Uganda continue to face challenges related to accounting, governance, taxation, legal compliance, and data protection. Organisers said the symposium was designed to provide a coordinated platform for addressing these challenges through expert insights and practical guidance.
Speakers at the event included CPA Samantha Musoke, INPAS Adoption and Engagement Director; Stephen Okello, Executive Director of the National Bureau for NGOs; CPA Charles Lutimba from ICPAU; CPA Kenneth Makanga of BDO East Africa; and Ernest Kalibbala Wiltshire, Managing Partner at AF Mpanga Advocates.
Stakeholders expressed optimism that the introduction of INPAS, combined with increased dialogue between regulators, accountants, and legal practitioners, will significantly improve transparency, accountability, and credibility in financial reporting within the nonprofit sector.
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