Not-for-Profit Gifts In Kind Proposed ASU

On February 10, 2020 the Financial Accounting Standards Board (FASB) issued a Proposed Accounting Standard Update (PASU), Not-for-Profit Entities (Topic 958): Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets.

Objective: Provide information about the valuation and presentation of contributed nonfinancial assets.

The PASU would require not-for-profit (NFP) organizations that receive nonfinancial contributed assets or the use of nonfinancial contributed assets land, building, and equipment; supplies and materials, such as food, clothing or pharmaceuticals; intangible assets) and/or contributed services that meet the criteria for recording be presented in the statement of activities separately from contributions of cash and other financial assets.

Additionally, the PASU would require NFP organizations to provide the following disclosures of nonfinancial contributed assets:

  1. Contributed nonfinancial assets disaggregated by category;
  2. Qualitative information, by disaggregated category, about whether the contributed nonfinancial assets were or are intended to be either monetized or utilized during the reporting period and future periods. If utilized, a description of the programs or other activities in which those assets were or are intended to be used;
  3. The existence of donor restrictions, by disaggregated category; and
  4. The valuation techniques and inputs used to arrive at a fair value measure, by disaggregated category, in accordance with the requirements of the Fair Value Measurement guidance.

FASB is accepting comments on this PASU through April 10, 2020. For information on how to submit comments visit

Andrea Wright
Andrea Wright | Partner