Unit4 Enterprise Resource Planning (ERP)Nonprofit
Author: Unit4 Communications July 18, 2025 3 min read

The INPAS standard explained: Transforming nonprofit financial reporting with Unit4 FP&A

The nonprofit sector has long faced significant challenges to financial reporting. From fragmented regulations to donor-specific complexities, these issues have resulted in inefficiencies, a lack of transparency, and impacts on donor, beneficiary or public trust. 

The International Non-Profit Accounting Standard (INPAS) will be introduced to create a globally recognized framework designed specifically for nonprofits. 

This new standard is set to bring cohesion, consistency, and transparency to nonprofit accounting worldwide. 

The International Non-Profit Accounting Standard (INPAS) is set to be published in the second half of 2025. Designed to be stand-alone guidance, it ensures that preparers and auditors can easily access the financial reporting framework they need for nonprofits.

However, navigating this new compliance landscape can be resource-intensive and challenging, affecting accountability, compliance, and funding management – especially for those still relying on legacy tools.

This blog explores the goals, benefits, and challenges of INPAS and highlights the vital role it will play in transforming nonprofit financial management globally. We also discuss how Unit4’s ERP Financial Management and Financial Planning & Analysis (FP&A) tools can help you manage effectively.

Keep reading:

More mission, less admin? See how!

Get quick insights with bite-sized demos focused on the challenges and goals of Nonprofit teams.

Get started

Current challenges for Nonprofit Financial Reporting

Nonprofits operate in one of the most complex reporting landscapes globally. Here are the main issues nonprofits face in financial reporting today, and the challenges that INPAS seeks to solve:

  • Fragmented Accounting Standards: The absence of a universal global accounting framework leads to inconsistencies across countries, reducing comparability and transparency for donors and stakeholders.

  • Donor-Specific Reporting Complexities: Varied and often contradictory donor-imposed requirements result in challenges and significant resource allocation to meet specific grant conditions.

  • Inefficient Processes: Outdated systems and inconsistent guidelines create operational bottlenecks, draining time and resources that could be better spent on mission-driven work.

  • Complex Reporting Requirements: Diverse stakeholder expectations and differing standards make data consolidation difficult, increasing the risk of errors and undermining transparency and accountability.

What is the International Nonprofit Accounting Standard (INPAS)? 

The International Non-Profit Accounting Standard (INPAS) is the first globally recognized accounting standard specifically designed for nonprofits. It provides a unified framework to prepare annual audited accounts and grant reports across the nonprofit sector. 

The development of INPAS was initiated by Humentum and the Chartered Institute of Public Finance and Accountancy (CIPFA), 'by the sector for the sector'.  This was in response to the growing need for a single, consistent international accounting standard for nonprofits. 

Originally known as the International Non-Profit Accounting Guidance (INPAG), the standard was developed through extensive consultations involving nonprofits, regulators, donors, and accounting professionals. 

The goal was to create a framework that could be used by all types of nonprofit organizations, regardless of their size or geographical location. The standard incorporates insights from stakeholders across more than 160 countries, ensuring its relevance and practicality on a global scale. 

Benefits of INPAS 

The goals of INPAS are to enhance transparency in nonprofit financial reporting to build donor trust, ensure consistency to simplify cross-border operations and financial audits, and streamline donor reporting by creating efficiencies and reducing redundancies in compliance processes.

For nonprofits 

  • Streamlined processes reduce the administrative burden, enabling nonprofits to focus more on their missions.
  • Enhanced credibility through consistent and transparent reporting. 

For donors 

  • Greater trust with more accurate and comparable reporting.
  • Improved confidence in funding decisions. 

For regulators 

  • Easier adoption of global frameworks, fostering harmonization of best practices across regions. 

Click to read Optimize Your Funding Allocation with ERP 2 - Gated

Why will legacy systems struggle to meet the INPAS standard?

Outdated technologies and rigid processes fail to meet the demands of modern standards, which ultimately mean that those nonprofits relying on legacy systems will not be able to reap the benefits.

  • Struggle to adapt: Legacy systems are inflexible and unable to accommodate new data models or support real-time reporting, making it difficult for nonprofits to adapt to INPAS’s modernized, standardized frameworks or its benefits.

  • International and system complexity: Nonprofits often operate across multiple countries with fragmented systems, and legacy systems struggle to merge data from different sources, which causes delays and inaccuracies when attempting to meet INPAS’s harmonized reporting standards.

  • Lack of visibility or reporting capabilities: INPAS demands detailed fund tracking and comprehensive financial disclosures, yet legacy systems are not equipped to handle this kind of drill drown, leading to higher risks of errors, weakened trust from donors, and the potential for costly audits.

  • Inefficient processes: Legacy systems rely heavily on manual processes, forcing staff to spend excessive time managing outdated workflows which will be hugely worsened by the introduction of INPAS

Leveraging technology for INPAS adoption — how Unit4 can help 

For nonprofits preparing to adopt INPAS, leveraging modern technology can make a significant difference in achieving compliance, improving efficiency, and building donor trust. Unit4's solutions are specifically designed to simplify nonprofit operations and help them meet their goals effectively.

These tools are tailored to align seamlessly with INPAS guidelines, ensuring compliance while offering insightful financial planning capabilities. Unit4's nonprofit model can provide out-of-the-box compliance frameworks specifically designed for nonprofits to solve these challenges.

Unit4's Cloud ERP system takes financial management to the next level by integrating various essential functions such as funding management, grant management, and financial compliance into a single, unified platform. 

This integration empowers nonprofits to streamline their operations and reduce administrative burdens, to focus more on their mission:

  • For instance, organizations like Heifer International and the Norwegian Refugee Council have experienced significant improvements in transparency and operational efficiency through the adoption of Unit4's ERP solutions.

Unit4 FP&A's advanced reporting capabilities provide nonprofits with precise and detailed financial insights. This level of accuracy builds trust with donors and stakeholders, as it demonstrates a commitment to accountability and transparency. By offering clear and reliable financial information, nonprofits can strengthen their credibility and foster better reputation.

Unit4's technology solutions offer a powerful way for nonprofits to navigate the challenges of adopting INPAS while enhancing their financial management practices and building trust with their communities.

To learn more about our nonprofit specific capabilities, visit our website, watch a tailored demo, or talk to sales, today!

Further reading & resources

Sign up to see more like this

Popular blogs

Subscribe to our blog

Don't miss the latest Unit4 blogs

Sign up for industry insights & exclusive content