Dear Stakeholders,

Welcome to the latest IFR4NPO Newsletter! Exposure Draft 3 is just about a month away. It addresses topics that may NPOs and donors are most concerned with, so don’t miss out. Check out the resources we have curated to get us warmed up on the topics and issues. Meet our new Country Champions for Nigeria and Togo. And find out more about recent engagements in East Africa. Join us as we shape the future of non-profit financial reporting!

Final part of INPAG will be the real game-changer

We are preparing for the launch of International Non-Profit Accounting Guidance, Exposure Draft 3, which will be open for public comment from 28 May until 16 September 2024. This marks the summit of the public consultation that began in 2022. The third and final part of the exposure draft will focus on topics that will have the greatest impact on the usefulness of financial information and influence the design and setup of accounting systems such as fund accounting, classification of expenses (including support costs and fundraising cost), and donor reporting formats (referred to as ‘Supplementary statements’). Please set aside some time in your diary and visit for more information.

Resources deep dive

To get ourselves warmed up for the topics in ED3, we have curated a selection of relevant blogs and resources that we think you will find interesting and insightful!

• Donor reportingDilemma: should new international financial reporting guidance be driven by donor rules or accounting principles? Sam Musoke, 2021

• Cost classification in donor reportsMoney-Where-It-Counts A protocol for harmonised cost classification and financial budgeting and reporting. (This work from 2015 was the starting point for the work on INPAG Practice Guide 1.)

• Fundraising costsNeither true nor fair: A critique of the True and Fair Foundation’s Review of Charitable Spending by UK CharitiesPesh Framjee, 2015

Preparing for INPAG ED3

We are glad to introduce recently appointed volunteers serving as Country Champions to support engagement with a diverse range of stakeholders in their countries. We welcome both Oluseyi Oyebisi for Nigeria and Nicodeme Adzra for Togo.


East African Congress of Accountants

Sam Musoke had the honour of presenting about INPAG at EACOA in Kigali on 18 April, together with panelists Khalid Hamid – International Director at CIPFA and Chris Twagirimana, former member of the Technical Advisory Group who was  nominated by the East African Accounting Institutes.

The reaction to the planned publishing of donor reporting guidance (Exposure Draft 3 will include ‘INPAG Practice Guide 1: Supplementary statements’) was very positive, with members who work in public financial management (PFM) wondering whether the format might even be used by governments reporting on donor grants. There were many insightful questions and comments, including one about accounting system requirements necessary for fund accounting, and an enthusiastic contribution from Joseph Owolabi, Past President ACCA Global.

Meeting NGOs in Uganda

Humentum’s CEO, Christine Sow travelled from USA to Uganda to join Sam Musoke in a meeting with about 50 members of Uganda National NGO Forum (UNNGOF). When asked about the one thing they would change about the external ecosystem – the list was long! NGOs called on funders to increase institutional funding, unrestricted and flexible funding, provide more realistic funding for support costs, and simplify reporting and compliance requirements. When thinking about their own internal capacity, one thing (of many) that came up was their ability to better understand their own cost structures and financial health.

The sharing of information about INPAG and subsequent discussion was well-received, as members shared their struggles with different interpretations of IFRS by auditors, lack of transparency about fund balances in their own books, and the constant headache of changing their systems to accommodate the expenditure headings for each new donor that comes on board.

It was fabulous to be able to make the announcement in person that UNNGOF’s CEO, Moses Isooba will be appointed as Country Champion (alongside Institute of Certified Public Accountants Uganda). Members were encouraged to share their voices and opinions so that the guidance can be appropriate for their needs.

Read more about the meeting here.


Focus Group - Narrative Reporting

We held a focus group on the topic of Narrative Reporting on 24 April, considering the responses to Exposure Draft 1. During the focus group we looked at the exemption from sharing ‘sensitive information’ if it might result in harm. The contentious issue is the requirement to disclose the fact that information has been omitted – which could have the effect of drawing attention to it! We also explored the issue of sustainability reporting, which is optional in INPAG. One interesting point was that too little guidance might result in ‘green washing’ and too much could be too onerous.

There were some great suggestions for proportionate requirements. Thanks to those who participated!


Thanks for taking the time to read our newsletter – I’d love to hear your comments or reactions. Please follow us on LinkedInX and YouTube to stay connected.

– Samantha Musoke, IFR4NPO Project Director, Humentum