Humentum and CIPFA have unveiled a joint initiative to develop global financial reporting guidance for non-profit organizations (NPOs) with support from the Ford Foundation and Open Society Foundation. This 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 and 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.
- 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 NPOs
- Provide a basis for comparison between NPOs across jurisdictions
- Create 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.”