There are no international standards guiding NPOs how to prepare their annual audited accounts. While a few countries have their own standards for NPOs, these differ from each other. International standards that exist for businesses do not address all the needs of NPOs’ stakeholders, like accounting for grants.
The IFR4NPO initiative represents a once in a generation opportunity to transform the financial reporting landscape and create a much more solid foundation for the non-profit sector to demonstrate its accountability and secure the trust of its many stakeholders.
How is IFR4NPO relevant in the midst of the current crisis? NPOs have been hit hard by COVID-19. But as the sector recovers, there is an opportunity to build back better, with improved resilience, more efficient grant making processes, fairer resource allocation, and stronger accountability mechanisms.