{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/205/958/#50-disclosure","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"205","topic_title":"Presentation of Financial Statements","subtopic":"205-958","subtopic_title":"Not-for-Profit Entities","section":{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":"Nature of the Not-for-Profit Entity's Activities","paragraphs":[{"citation":"205-958-50-1","para":"50-1","html":"
The financial statements shall provide a description of the nature of the not-for-profit entity's (NFP's) activities, including a description of each of its major classes of programs. If not provided in the notes to financial statements, the description can be presented on the statement of activities (for example, using column headings).
","snippet":"The financial statements shall provide a description of the nature of the not-for-profit entity's (NFP's) activities, including a description of each of its major classes of programs. If not provided in the notes to fina…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cac10f2e3b300ffbfb005b51e9d30267c9b7e1f76c4485c4f4967aabb0593751","downloaded_from":"2026-09-09T22:56:03.410Z","last_downloaded_at":"2026-09-09T22:56:03.410Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477884","source_sha256":"8aaf53856bfe14928020d4b341f779b2d797f278c071b051e2b479a4e2d01f45"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:64f6543c3089891664c6aa1e4f76177c04fc6c53330ca267374f62f051bca2ab","downloaded_from":"2026-09-09T22:56:03.410Z","last_downloaded_at":"2026-09-09T22:56:03.410Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477884","source_sha256":"8aaf53856bfe14928020d4b341f779b2d797f278c071b051e2b479a4e2d01f45"}},{"block":null,"heading":"Reporting Endowment Funds","paragraphs":[{"citation":"205-958-50-1A","para":"50-1A","html":"
An NFP shall disclose information to enable users of financial statements to understand all of the following about its endowment funds (both donor restricted and board designated):
  1. a
    Net asset classification (for example, net assets with donor restrictions or net assets without donor restrictions)
  2. b
    Net asset composition (for example, board-designated endowment funds or donor-restricted endowment funds)
  3. c
    Changes in net asset composition
  4. d
    Spending policies
  5. e
    Related investment policies.
","snippet":"An NFP shall disclose information to enable users of financial statements to understand all of the following about its endowment funds (both donor restricted and board designated):\n(a) Net asset classification (for examp…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b259c3f14b4884d68a26607fabd648f9bee69e27e688e4d55a29ef768e98871e","downloaded_from":"2026-09-09T22:56:03.410Z","last_downloaded_at":"2026-09-09T22:56:03.410Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477884","source_sha256":"8aaf53856bfe14928020d4b341f779b2d797f278c071b051e2b479a4e2d01f45"}},{"citation":"205-958-50-1B","para":"50-1B","html":"
At a minimum, an NFP shall disclose all of the following information for each period for which it presents financial statements:
  1. a
    A description of the governing board's interpretation of the law or laws that underlie the NFP's net asset classification of donor-restricted endowment funds, including its interpretation of the ability to spend from underwater endowment funds.
  2. b
    A description of the NFP's policy or policies for the appropriation of endowment assets for expenditure (its endowment spending policy or policies), including its policy, and any actions taken during the period, concerning appropriation from underwater endowment funds.
  3. c
    A description of the NFP's endowment investment policies, including all of the following:
    1. 1
      Return objectives and risk parameters
    2. 2
      How return objectives relate to the NFP's endowment spending policy or policies
    3. 3
      The strategies employed for achieving return objectives.
  4. d
    The composition of the NFP's endowment by net asset class at the end of the period, in total and by type of endowment fund, showing donor-restricted endowment funds separately from board-designated endowment funds.
  5. e
    A reconciliation of the beginning and ending balance of the NFP's endowment, in total and by net asset class, including, at a minimum, all of the following line items that apply:
    1. 1
      Investment return, net
    2. 2
      Contributions
    3. 3
      Amounts appropriated for expenditure
    4. 4
      Subparagraph superseded by Accounting Standards Update No. 2016-14.
    5. 5
      Other changes.
","snippet":"At a minimum, an NFP shall disclose all of the following information for each period for which it presents financial statements:\n(a) A description of the governing board's interpretation of the law or laws that underlie …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f6bc50d1966a2316a2b80b0225153511c39f7ad7ae564aa39fb5f6967ce16d95","downloaded_from":"2026-09-09T22:56:03.410Z","last_downloaded_at":"2026-09-09T22:56:03.410Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477884","source_sha256":"8aaf53856bfe14928020d4b341f779b2d797f278c071b051e2b479a4e2d01f45"}},{"citation":"205-958-50-1C","para":"50-1C","html":"
If an NFP is subject to a donor restriction or applicable laws that its governing board interprets as requiring the maintenance of purchasing power for donor-restricted endowment funds, the NFP shall periodically adjust the disclosed amount that is required to be maintained either by the donor or by law to reflect that interpretation to maintain the purchasing power of the endowment fund in perpetuity. Under those circumstances, unless a donor provides an amount or an index, an NFP shall use the inflation (deflation) index (or indexes) that it deems most relevant for adjusting that amount (for example, the Consumer Price Index or the Higher Education Price Index).
","snippet":"If an NFP is subject to a donor restriction or applicable laws that its governing board interprets as requiring the maintenance of purchasing power for donor-restricted endowment funds, the NFP shall periodically adjust …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e6a64193f7126cf2aba97f05a98b62ec1154058264661a7949ef7b47dc8019d1","downloaded_from":"2026-09-09T22:56:03.410Z","last_downloaded_at":"2026-09-09T22:56:03.410Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477884","source_sha256":"8aaf53856bfe14928020d4b341f779b2d797f278c071b051e2b479a4e2d01f45"}},{"citation":"205-958-50-2","para":"50-2","html":"
For each period for which a statement of financial position is presented, an NFP shall disclose each of the following, in the aggregate, for all underwater endowment funds:
  1. a
    The fair value of the underwater endowment funds
  2. b
    The original endowment gift amount or level required to be maintained by donor stipulations or by law that extends donor restrictions
  3. c
    The amount of the deficiencies of the underwater endowment funds ((a) less (b)).
","snippet":"For each period for which a statement of financial position is presented, an NFP shall disclose each of the following, in the aggregate, for all underwater endowment funds:\n(a) The fair value of the underwater endowment …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:759d9e407af77ae59c03f14193a557769827022201650f3e9d2e5c28e1d38689","downloaded_from":"2026-09-09T22:56:03.410Z","last_downloaded_at":"2026-09-09T22:56:03.410Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477884","source_sha256":"8aaf53856bfe14928020d4b341f779b2d797f278c071b051e2b479a4e2d01f45"}},{"citation":"205-958-50-2A","para":"50-2A","html":"
Example 3 (see paragraphs
958-205-55-31 through 55-52
) illustrates the application of the disclosure requirements in paragraphs
958-205-50-1A through 50-2
.
","snippet":"Example 3 (see paragraphs 958-205-55-31 through 55-52) illustrates the application of the disclosure requirements in paragraphs 958-205-50-1A through 50-2.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f5443ecacacb62ba74db502eeddcb890f547b4f05f9d0afc4256901fd89d9c33","downloaded_from":"2026-09-09T22:56:03.410Z","last_downloaded_at":"2026-09-09T22:56:03.410Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477884","source_sha256":"8aaf53856bfe14928020d4b341f779b2d797f278c071b051e2b479a4e2d01f45"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cb1f868657b21b36a47921c0bc249b99da3fe19160ae168442f3da61c7e5a1a9","downloaded_from":"2026-09-09T22:56:03.410Z","last_downloaded_at":"2026-09-09T22:56:03.410Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477884","source_sha256":"8aaf53856bfe14928020d4b341f779b2d797f278c071b051e2b479a4e2d01f45"}},{"block":null,"heading":"Ratio of Fundraising Expenses to Amounts Raised","paragraphs":[{"citation":"205-958-50-3","para":"50-3","html":"
If an NFP discloses in its financial statements a ratio of fundraising expenses to amounts raised, it also shall disclose how it computes that ratio.
","snippet":"If an NFP discloses in its financial statements a ratio of fundraising expenses to amounts raised, it also shall disclose how it computes that ratio.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3cec2204fdc5693ecfa4129002a6decda927574bfc08e9d920178e065ac5c31d","downloaded_from":"2026-09-09T22:56:03.410Z","last_downloaded_at":"2026-09-09T22:56:03.410Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477884","source_sha256":"8aaf53856bfe14928020d4b341f779b2d797f278c071b051e2b479a4e2d01f45"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:23732bba6f38c7ef2ea9718216a36195b033903cea4674b1e34641d524788a51","downloaded_from":"2026-09-09T22:56:03.410Z","last_downloaded_at":"2026-09-09T22:56:03.410Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477884","source_sha256":"8aaf53856bfe14928020d4b341f779b2d797f278c071b051e2b479a4e2d01f45"}},{"block":null,"heading":"Comparative Financial Statements","paragraphs":[{"citation":"205-958-50-4","para":"50-4","html":"
If the prior year's financial information is summarized and does not include the minimum information required by the Not-for-Profit Entities Topic (for example, if the statement of activities does not present revenues, expenses, gains, and losses by net asset class), the nature of the prior-year information shall be described by the use of appropriate titles on the face of the financial statements and in a note to financial statements (see paragraph 958-205-45-8).
","snippet":"If the prior year's financial information is summarized and does not include the minimum information required by the Not-for-Profit Entities Topic (for example, if the statement of activities does not present revenues, e…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7653ebb546e57a0be792b1d2dbf84e78721301eb0673bcf0f16559f8469e5094","downloaded_from":"2026-09-09T22:56:03.410Z","last_downloaded_at":"2026-09-09T22:56:03.410Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477884","source_sha256":"8aaf53856bfe14928020d4b341f779b2d797f278c071b051e2b479a4e2d01f45"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ef3f2e2739fb3d7ec6ad611516fe50d725b3c27888549e395c59a0aca76e293d","downloaded_from":"2026-09-09T22:56:03.410Z","last_downloaded_at":"2026-09-09T22:56:03.410Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477884","source_sha256":"8aaf53856bfe14928020d4b341f779b2d797f278c071b051e2b479a4e2d01f45"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d36e2cd3ca5cae60e0f07674866e5c06828c0993f39a5599b1cae162e234d2bb","downloaded_from":"2026-09-09T22:56:03.410Z","last_downloaded_at":"2026-09-09T22:56:03.410Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477884","source_sha256":"8aaf53856bfe14928020d4b341f779b2d797f278c071b051e2b479a4e2d01f45"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d36e2cd3ca5cae60e0f07674866e5c06828c0993f39a5599b1cae162e234d2bb","downloaded_from":"2026-09-09T22:56:03.410Z","last_downloaded_at":"2026-09-09T22:56:03.410Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477884","source_sha256":"8aaf53856bfe14928020d4b341f779b2d797f278c071b051e2b479a4e2d01f45"}}