Uganda’s Non-Profit sector set for new era as global accounting standard is unveiled

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Accountants and managers in Uganda’s non-profit sector are set to benefit from a new global accounting framework aimed at improving transparency, accountability, and consistency in financial reporting. 

The International Non-Profit Accounting Standard (INPAS) will be formally unveiled on Wednesday during the 2026 NGO Symposium at the Mestil Hotel, bringing together regulators, auditors, legal experts, and leaders from non-governmental organisations to discuss how the standard will transform financial reporting in the sector.

The symposium is being organised by the Institute of Certified Public Accountants of Uganda (ICPAU) in partnership with BDO East Africa and AF Mpanga Advocates. 

For decades, non-profit organisations (NPOs) across the world have operated without a dedicated accounting framework. Instead, they relied on a mix of Generally Accepted Accounting Principles (GAAP), donor-specific reporting formats, and other fragmented standards. While these systems helped strengthen financial oversight, their diversity often made it difficult to compare reports across organisations and jurisdictions.

According to CPA Charles Lutimba, ICPAU’s Director of Standards and Regulations, the introduction of INPAS marks a major milestone for the sector both globally and in Uganda.

“As the scrutiny for nonprofit entities increases, compliance from all fronts becomes more than relevant,” Lutimba said, adding that the INPAS provides a framework that ensures accurate financial reporting, accountability, and compliance tailored to the unique needs of the nonprofit sector, for transparency, donor trust, and stewardship of funds — both restricted and unrestricted funds.

He noted that the absence of a universal accounting framework has long posed challenges for NGOs trying to present clear and comparable financial information to donors, regulators, and beneficiaries.

“Previously, NPOs lacked a universal accounting standard, and they relied on a myriad of separate standards and donor-driven formats,” Lutimba explained. “While these frameworks were important, their fragmented nature created inconsistencies in reporting and made comparability difficult. INPAS addresses this gap by providing a complete and independent accounting framework specifically designed for nonprofit organisations.”

The new standard introduces an accrual-based reporting system that reflects the unique funding structures and operational realities of nonprofit organisations. It includes detailed guidance on narrative reporting, recognition of grant income, and presentation of both restricted and unrestricted funds.

Lutimba emphasised that this approach will strengthen the credibility of financial reports produced by NGOs and enhance trust among development partners.

“The INPAS provides clarity on how nonprofit organisations should report grant funding and other sources of income,” he said. “This improves consistency, comparability, and reliability in financial reporting, which is essential for organisations that depend heavily on donor support.”

He added that the framework will also help organisations better demonstrate accountability in the management of funds entrusted to them.

“For Uganda’s nonprofit sector, adopting INPAS means improving financial discipline and strengthening governance structures,” Lutimba said. “It gives stakeholders confidence that resources are being managed responsibly and reported in a transparent manner.”

The new standard was developed through a collaboration between Humentum and the Chartered Institute of Public Finance and Accountancy (CIPFA) under the IFR4NPO Project, following six years of consultations with stakeholders worldwide. The standard was officially launched in October 2025.

Lutimba said ICPAU played a key role in the development process and is now focused on supporting organisations in Uganda to adopt the new framework.

“Implementation is just as important as the development of the standard,” he said. “Through forums like the NGO Symposium, we are providing practical guidance to help organisations understand the requirements of INPAS and prepare for a smooth transition.”

The symposium will also address other critical compliance challenges faced by NGOs, including legal, regulatory, tax, governance, and data protection obligations.

Speakers at the event will include Lutimba, Samantha Musoke, the INPAS Adoption and Engagement Director, Stephen Okello, Executive Director of the National Bureau for NGOs, Kenneth Mankanga, Managing Partner at BDO East Africa, and Ernest Wiltshire, Managing Partner at AF Mpanga Advocates.

By bringing together regulators, professional accountants, legal experts, and development organisations, the forum is expected to provide a coordinated platform for strengthening accountability and financial management within Uganda’s vibrant nonprofit sector.