International financial reporting standards for Non-Profit Organizations

Humentum and CIPFA, with support from The Ford Foundation and Open Society Foundation, Launch New Effort to Develop International Financial Reporting Standards for Non-Profit Organizations #IFR4NPO

Humentum and CIPFA are excited to announce a joint initiative to develop global financial reporting guidance for Non-Profit Organizations with support from the Ford Foundation and Open Society Foundation.

 

The International Financial Reporting for Non-Profit Organizations #IFR4NPO initiative is a five-year project led jointly by Humentum and CIPFA to develop the first-ever NPO international financial reporting guidance, which can command support from the accounting community and NPOs, funders and regulators.

#IFR4NPO aims to bring clarity and consistency to the NPO sector which must win the trust of its many national and international stakeholders with high-quality reporting, through its general purpose financial statements. The initiative also endeavours to reduce the current burden and duplication of effort for both NPOs and funders in meeting multiple and, at times, conflicting financial reporting requirements. 

The relevance of the product

Set a clear, consistent benchmark of what good financial reporting looks like for NPOs internationally support greater harmonization of funders’ financial reporting requirements to save time and administrative costs for funders and NPOsProvide basis for comparison between NPOs across jurisdictions creating a collaborative and inclusive process involving NPO stakeholders and standard-setters from around the world. Tim Boyes-Watson, Global Director of Alliances & Advocacy at Humentum, said “I am really proud that our Humentum community will play a leading role in developing the first-ever international financial reporting guidance for the nonprofit sector. This will make a major contribution to strengthening transparency, accountability and trust in our sector.”

Ian Carruthers, CIPFA’s Standards Chair, said ‘As a charity itself, CIPFA is delighted to be able to bring its standard-setting experience and contacts across national and international standard setters to create this unique partnership with Humentum. Through the complementary skills and contact networks that two organisations bring, the new guidance will genuinely be created by the sector for the sector.

“For too long, the lack of financial reporting standards has created inefficiencies for both funders and for the non-profit organizations we support,” said John Bernstein, Chief Operating Officer at the Ford Foundation. “The Ford Foundation is proud to support this much-needed tool for the social sector that will help build stronger and more resilient organizations.”