Author
The International Non-Profit Accounting Standard (INPAS) is a groundbreaking and transformative accounting standard, introduced to revolutionize financial reporting across the global nonprofit sector.
Developed under the IFR4NPO Project by CIPFA and Humentum and released in October 2025, INPAS is meticulously tailor-made for Non-Profit Organizations (NPOs) to address longstanding challenges such as fragmented reporting, persistent transparency deficiencies, and operational inefficiencies.
Comprehensive and Tailored Framework: INPAS delivers an accrual-based financial reporting framework tailored specifically to the unique needs of nonprofits. It provides guidance on recognizing grants and donations, distinction between restricted and unrestricted funds, and encourages integrated whole-of-entity narrative reporting, among other best practices. The framework significantly bolsters efficiency, transparency, and accountability, enabling donors, regulators, and beneficiaries to obtain an accurate and transparent picture of resource utilization.
Strengthening Trust and Credibility: The standard not only builds trust through dependable and verifiable financial information but also enhances credibility and operational efficiency. INPAS increases the precision and reliability of financial statements and at the same time alleviates the reporting burden for organizations funded by multiple donors and those operating across multiple jurisdictions while promoting comparability in reporting.
Development and Accessibility: INPAS leverages the established international standard, the International Financial Reporting Standards (IFRS) for Small and Medium Enterprises (SMEs), and additionally draws on guidance from the International Public Sector Accounting Standards (IPSAS) with specific customized adaptations that address the distinct characteristics of nonprofits – making implementation practical for organizations familiar with these frameworks. While the adoption of INPAS is voluntary where allowed by national laws, its promise of enhanced financial integrity and efficiency positions it as a catalyst for transformation within the global nonprofit sector.
Donor’s Support in INPAS Adoption: Donors can be key drivers in advancing INPAS adoption by requiring or accepting the INPAS Practice Guide 1 (Harmonised Grant Reporting), thereby reducing fragmented reporting and encouraging nonprofits to align with INPAS broadly. They can also promote whole-of-entity reporting utilizing INPAS, integrate INPAS principles into due diligence and monitoring processes to strengthen transparency and comparability, and invest in vital capacity-building initiatives including comprehensive training, system modernization, and targeted technical assistance. These actions help streamline accountability, enhance auditability, and create strong incentives for nonprofits to adopt and implement the standard effectively.
INPAS in the Tanzanian context
Tanzania mandates NGOs and Associations to prepare general-purpose financial statements in accordance with IPSAS, as stipulated by the National Board of Accountants and Auditors (NBAA) Technical Pronouncement No. 3 of 2020, effective from 1 July 2021.
However, IPSAS was originally designed for public sector entities and therefore does not fully accommodate the grant-funded, donor-driven, and mission-centric financial characteristics unique to NPOs. INPAS fills this gap by offering principles and guidance designed specifically for NPOs, including harmonized grant reporting that reduces multiple reporting formats demanded by donors.
For Tanzania, adopting INPAS would provide a consistent, globally accepted framework that strengthens donor confidence and improves compliance while preserving the global comparability offered by IPSAS.
Tanzanian NPOs can begin using INPAS Practice Guide 1 for internal or donor-required reporting. Full adoption of INPAS would progress through NBAA, supported by stakeholder consultation, donor advocacy, and early voluntary adoption by NPOs.
Across East Africa, countries are already moving forward with INPAS adoption:
- Kenya: The Institute of Certified Public Accountants of Kenya (ICPAK) has issued a Technical Advisory formally endorsing INPAS and supporting its use.
- Ethiopia: The Accounting and Auditing Board of Ethiopia (AABE), in close collaboration with the Authority for Civil Society Organizations (ACSO), has launched a national roadmap and action plan for phased INPAS adoption.
Conclusion
INPAS is globally recognized as the solution to fragmented and inefficient nonprofit reporting, ensuring nonprofit resources are managed and reported with the highest degree of transparency and stakeholder confidence.
For Tanzania, adopting INPAS – either fully or partially – offers an opportunity to enhance transparency, strengthen donor trust and confidence, and improve financial governance across the sector. This initiative aligns with NBAA’s mandate to ensure robust and high-quality reporting.
With coordinated regulatory leadership, donor alignment, and NGO capacity building, Tanzania can implement a phased INPAS adoption strategy fostering a unified, donor-aligned and trustworthy financial reporting ultimately attracting increased funding and contributing to greater sustainability of its nonprofit organizations.
