NPOs often struggle to meet the diverse reporting requirements of multiple donors, which diverts time and resources away from their core missions. This challenge is particularly acute for smaller NPOs with limited capacity. The upcoming International Non-Profit Accounting Guidance (INPAG), set to launch in 2025, aims to address this issue by providing a global standard for financial reporting tailored to the non-profit sector. INPAG will simplify reporting, reduce inconsistencies, and allow for better donor assessments of NPO financial health. It will also enable the development of affordable accounting software for smaller organizations, improving their ability to manage donations and reserves. Donors can support INPAG by joining the Donor Reference Group, endorsing the initiative, and preparing for its roll-out. By adopting INPAG, the sector can move towards a more equitable and efficient system, allowing NPOs to focus on their missions and fostering stronger partnerships between donors and grantees. Read more here.
Source: Philea