INPAS Overview — What Nonprofits Need to Know

At Galasso Learning Solutions, we know how important it is for nonprofit organizations to maintain financial transparency, credibility, and comparability across the globe. This week, we’re excited to share a high-level overview of something that promises to make a big difference: the International Nonprofit Accounting Standard (INPAS). Whether you work directly in the nonprofit sector or advise organizations that do, INPAS is a topic you’ll want to have on your radar.

What Exactly Is INPAS?

INPAS, launched in October 2025, stands for the International Nonprofit Accounting Standard. It’s a groundbreaking achievement, developed as a primary output from the International Financial Reporting for Nonprofit Organizations (IFR4NPO), which began back in 2019. The core goal? To bring much-needed consistency, transparency, and reliability to the nonprofit financial reporting world.

The standard offers accrual-based guidance and a solid framework specifically tailored to nonprofit organizations. Think of it as the nonprofit version of international accounting standards, providing a structure for recognition, measurement, presentation, and necessary disclosures, all while reflecting the unique realities of nonprofit work.

Who Will Be Using INPAS?

Implementation of INPAS is being considered country by country. In some places, nonprofits may be required to adopt it; in others, organizations might voluntarily choose to implement its guidance if allowed. Either way, INPAS is here to raise the quality and comparability of financial reporting in the nonprofit sector.

Key Objectives of INPAS

At its heart, INPAS aims to:

• Improve the quality and credibility of nonprofit financial reports.

• Enable transparency so stakeholders can accurately compare different nonprofit organizations.

• Support the creation of financial statements useful for decision-making and accountability.

• Address nonprofit-specific issues such as presenting funds with use restrictions or accounting for grants, donations, and other contributions.

Before INPAS, there wasn’t an internationally recognized, nonprofit-specific accounting framework. Now, organizations can ensure their reporting is relevant, reliable, and consistent, no matter where they’re based.

What Does INPAS Cover?

INPAS organizes its guidance into several key areas:

• What is a nonprofit organization? Defining what qualifies.

• Who are the users of nonprofit financial statements? Ensuring financial reports are understandable, not just by number-savvy board members, but by a broader audience.

• Accounting for grants and donations. Handling the lifeblood of nonprofit funding.

• Presenting funds with use restrictions. Effectively showcasing resources “with” or “without” donor restrictions.

• Disclosure of expenses and narrative reporting. Helping users see the full picture.

When Does INPAS Take Effect?

INPAS became effective immediately upon launch in October 2025. This means organizations interested in early adoption can implement the guidance right away, provided their jurisdiction allows it.

What’s Next?

This blog just scratches the surface. If you’re looking for a detailed, section-by-section dive into INPAS and its practical application for your organization, stay tuned! We’re developing a comprehensive new course at Galasso Learning Solutions that breaks down everything you need to know, differences from previous accounting practices, deep dives into each area, and real-world examples to bring the guidance to life.

Plus, if your team is ready to take their audit skills to the next level, don’t miss our Audit Staff Level Training program, designed for everyone from new hires to experienced seniors, offered throughout the year.

Thanks for joining us for this overview of the International Nonprofit Accounting Standard. We look forward to helping you and your nonprofit organization achieve transparency, accountability, and excellence in your financial reporting!