Institutional Accounting is the accounting for which entities?

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Institutional accounting focuses on organizations that serve a mission rather than earn profits, emphasizing accountability to donors, grantors, and regulators rather than to shareholders. These entities—non-profit groups and NGOs—rely on contributions and restricted funding, so their finances are tracked using fund accounting to reflect the source and purpose of resources. Net assets are classified by donor restrictions (rather than equity), and financial reporting centers on changes in those net assets and the use of funds, rather than on profit or loss. That fit makes non-profit entities including NGOs the best answer. For-profit corporations aim to maximize earnings for owners, government agencies follow public/public-sector accounting rules, and individual households handle personal finances, not institutional accounting.