Humentum and CIPFA Develop International Financial Reporting Standards for Non-Profit Organizations

Press Release

July 15, 2019

Humentum and CIPFA Develop International Financial Reporting Standards for Non-Profit Organizations

WASHINGTON –Humentum and CIPFA, with support from The Ford Foundation and Open Society Foundation, Launch New Effort to Develop International Financial Reporting Standards for Non-Profit Organizations #IFR4NPO.

Humentum and CIPFA are excited to announce a joint initiative to develop global financial reporting guidance for Non-Profit Organizations with support from the Ford Foundation and Open Society Foundation.

The International Financial Reporting for Non-Profit Organizations #IFR4NPO initiative 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 which must win the trust of its many national and international stakeholders with high quality reporting, through its general purpose financial statements. The initiative also endeavors to reduce the current burden and duplication of effort for both NPOs and funders in meeting multiple and, at times, conflicting financial reporting requirements.

 

Initiative Objectives:

  1. Set a clear, consistent benchmark of what good financial reporting looks like for NPOs internationally
  2. Support greater harmonization of funders’ financial reporting requirements to save time and administrative costs for funders and NPOs
  3. Provide basis for comparison between NPOs across jurisdictions
  4. Creating 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.”

We believe this initiative offers the opportunity of a generation to making a lasting contribution to improve the quality and consistency of financial reporting in NPOs internationally, thereby increasing accountability and transparency while reducing inefficiency in the current system. #IFR4NPO welcomes input from any interested parties. Contact sam.musoke@humentum.org with inquires and input.

To learn more, please visit Humentum’s website at https://humentum.org/IFR4NPO

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Humentum is a global membership association providing training, convening, and support. We work towards social good: managing compliance and risk, juggling finances, designing programs and helping people perform at their best. Humentum was created in July 2017 from the merger of three well-established organizations: Mango, a UK-registered charity and social enterprise that specializes in financial management; InsideNGO, a Washington, DC-based member association of international NGOs; and LINGOs, a virtual not-for-profit capacity building organization specializing in eLearning. Humentum serves development, humanitarian, civil society, and other international social sector organizations with a focus on supporting operational excellence for its members.

CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. CIPFA shows the way in public finance globally, standing up for sound public financial management and good governance in the public services and non-profit sectors around the world. It does this through its roles as a national standard setter, membership of international standard setting boards, and as the leading commentator on managing and accounting for public money.

Media Contact

Name: Caitlin Holland
Email: caitlin.holland@humentum.org
Phone: (202) 370-7438