{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/450/958/","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.","number":"450-958","topic":"450","title":"Not-for-Profit Entities","area":"Liabilities","paragraphs":7,"summary":"This Subtopic applies the general loss contingency model of Topic 450 to not-for-profit entities. It identifies two NFP-specific triggers — noncompliance with donor-imposed restrictions on contributed assets and problems with (or absence of a determination letter for) tax-exempt status — that may require accrual of a loss contingency under Subtopic 450-20 and disclosure under Section 450-20-50.","concepts":["loss contingency","donor-imposed restrictions","tax-exempt status","determination letter","reasonable possibility","going concern","composition of assets","accrual of liability"],"categories":["Contingencies and guarantees","Not-for-profit","Recognition","Disclosure"],"level":"intermediate","topic_title":"Contingencies","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"450-958-00-1","para":"00-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following table identifies the changes made to this Subtopic.</div><div class=\"norm-text\"><table class=\"asc-table\" id=\"SL6269126-165547\"><tr><td class=\"entry text-align-center\" colspan=\"1\"><strong class=\"ph b\">Paragraph</strong></td><td class=\"entry\"><strong class=\"ph b\">Action</strong></td><td class=\"entry\"><strong class=\"ph b\">Accounting Standards Update</strong></td><td class=\"entry\"><strong class=\"ph b\">Date</strong></td></tr><tr><td class=\"entry\"></td></tr><tr><td class=\"entry\"><a href=\"/glossary/c/#conditional-contribution\" class=\"term\" title=\"A contribution that contains a donor-imposed condition.\"><span>Conditional Contribution</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2018-08/\" class=\"xref\">Accounting Standards Update No. 2018-08</a></td><td class=\"entry\">06/21/2018</td></tr><tr><td class=\"entry\"><a href=\"/glossary/c/#contribution\" class=\"term\" title=\"An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.\"><span>Contribution</span></a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2018-08/\" class=\"xref\">Accounting Standards Update No. 2018-08</a></td><td class=\"entry\">06/21/2018</td></tr><tr><td class=\"entry\"><a href=\"/glossary/c/#contribution\" class=\"term\" title=\"An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.\"><span>Contribution</span></a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2010-07/\" class=\"xref\">Accounting Standards Update No. 2010-07</a></td><td class=\"entry\">01/28/2010</td></tr><tr><td class=\"entry\"><a href=\"/glossary/d/#donor-imposed-condition\" class=\"term\" title=\"A donor stipulation (donors include other types of contributors, including makers of certain grants) that represents a barrier that must be overcome before the recipient is entitled to the assets transferred or promised. Failure to overcome the barrier gives the contributor a right of return of the assets it has transferred or gives the promisor a right of release from its obligation to transfer its assets.\"><span>Donor-Imposed Condition</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2018-08/\" class=\"xref\">Accounting Standards Update No. 2018-08</a></td><td class=\"entry\">06/21/2018</td></tr><tr><td class=\"entry\"><a href=\"/glossary/d/#donor-imposed-restriction\" class=\"term\" title=\"A donor stipulation (donors include other types of contributors, including makers of certain grants) that specifies a use for a contributed asset that is more specific than broad limits resulting from the following: The nature of the not-for-profit entity (NFP) The environment in which it operates The purposes specified in its articles of incorporation or bylaws or comparable documents for an unincorporated association. Some donors impose restrictions that are temporary in nature, for example, stipulating that resources be used after a specified date, for particular programs or services, or to acquire buildings or equipment. Other donors impose restrictions that are perpetual in nature, for example, stipulating that resources be maintained in perpetuity. Laws may extend those limits to investment returns from those resources and to other enhancements (diminishments) of those resources. Thus, those laws extend donor-imposed restrictions.\"><span>Donor-Imposed Restriction</span></a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2016-14/\" class=\"xref\">Accounting Standards Update No. 2016-14</a></td><td class=\"entry\">08/18/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/p/#promise-to-give\" class=\"term\" title=\"A written or oral agreement to contribute cash or other assets to another entity. A promise carries rights and obligations—the recipient of a promise to give has a right to expect that the promised assets will be transferred in the future, and the maker has a social and moral obligation, and generally a legal obligation, to make the promised transfer. A promise to give may be either conditional or unconditional.\"><span>Promise to Give</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2018-08/\" class=\"xref\">Accounting Standards Update No. 2018-08</a></td><td class=\"entry\">06/21/2018</td></tr></table></div></div>","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n|\nConditional Contribution | Added | Accounting Standards Update No. 2018-08 | 06/21/2018 |\nCont…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3a98b4fbf2d2e678c3bc722d8dc8b9dfbdd00374946af3ff0f1a2e50002b721c","downloaded_from":"2026-09-10T00:28:58.769Z","last_downloaded_at":"2026-09-10T00:28:58.769Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478674","source_sha256":"057c2ab60f4d1d6d6c0944094a30b9ed8fb9c4304aa0ad8b5b800d54314ec7cc"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:81178911058d234fdc620996d9afa436bfe44b601896bff033ad85ea06c12e05","downloaded_from":"2026-09-10T00:28:58.769Z","last_downloaded_at":"2026-09-10T00:28:58.769Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478674","source_sha256":"057c2ab60f4d1d6d6c0944094a30b9ed8fb9c4304aa0ad8b5b800d54314ec7cc"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0c7d616ece20ea78915803b44a37b558f298852d65d1af020e5ed06f3ac9040d","downloaded_from":"2026-09-10T00:28:58.769Z","last_downloaded_at":"2026-09-10T00:28:58.769Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478674","source_sha256":"057c2ab60f4d1d6d6c0944094a30b9ed8fb9c4304aa0ad8b5b800d54314ec7cc"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"450-958-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic provides guidance on contingencies for <a href=\"/glossary/n/#not-for-profit-entity\" class=\"term\" title=\"An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.\"><span>not-for-profit entities</span></a> (NFPs). NFPs also shall comply with the applicable standards in Topic <a altsource=\"GUID-1271E23D-73B8-4EFD-8F2E-276D1D0ECC8F.ditamap\" class=\"ditamap\">450</a>.</div></div>","snippet":"This Subtopic provides guidance on contingencies for not-for-profit entities (NFPs). NFPs also shall comply with the applicable standards in Topic 450.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:05a609256c5d8faf174049a8b2e4f78d443057393b5d06c65f156a125f36077a","downloaded_from":"2026-09-10T00:29:01.058Z","last_downloaded_at":"2026-09-10T00:29:01.058Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478477","source_sha256":"2b82585dc4a677c8c58739c08b858995804d630637e7ba6a4fae66f82d004fac"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f8cfa2d22a9f3048a0f0c917f038eb02cdca2923d92373fe997433d337199d47","downloaded_from":"2026-09-10T00:29:01.058Z","last_downloaded_at":"2026-09-10T00:29:01.058Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478477","source_sha256":"2b82585dc4a677c8c58739c08b858995804d630637e7ba6a4fae66f82d004fac"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:10038204553444074fd6278fadd2edd5e0987378b3b23f0a333d38078ab310fc","downloaded_from":"2026-09-10T00:29:01.058Z","last_downloaded_at":"2026-09-10T00:29:01.058Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478477","source_sha256":"2b82585dc4a677c8c58739c08b858995804d630637e7ba6a4fae66f82d004fac"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"450-958-15-1","para":"15-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section <a altsource=\"GUID-0DD748A2-DAEB-4A20-B494-CB4C774CFCAE.ditamap\" class=\"ditamap\">958-10-15</a>.</div></div>","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 958-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4ef4f2f61690d72e1c156aca1b9fd588ff496fae19becbeedd1d012ca68fd581","downloaded_from":"2026-09-10T00:29:02.739Z","last_downloaded_at":"2026-09-10T00:29:02.739Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477374","source_sha256":"d7dd313b986fa9acdcbc2146eb5c676222b78a27ee08ea5d78f2e0920863047a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:be9d74ea76f218168fac6ff9e42354c6c119292033ee8449b18e99a429efadb0","downloaded_from":"2026-09-10T00:29:02.739Z","last_downloaded_at":"2026-09-10T00:29:02.739Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477374","source_sha256":"d7dd313b986fa9acdcbc2146eb5c676222b78a27ee08ea5d78f2e0920863047a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ccc9cce4d83b8e480ba411e624f535f402567066ee1b408d2ccdab4fa35dcb4c","downloaded_from":"2026-09-10T00:29:02.739Z","last_downloaded_at":"2026-09-10T00:29:02.739Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477374","source_sha256":"d7dd313b986fa9acdcbc2146eb5c676222b78a27ee08ea5d78f2e0920863047a"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"450-958-25-1","para":"25-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_37A55B0D-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In conformity with Subtopic <a altsource=\"GUID-E13146CA-1337-48D7-BF5C-574604DA8631.ditamap\" class=\"ditamap\">450-20</a>, a liability may have to be accrued for <a href=\"/glossary/l/#loss-contingency\" class=\"term\" title=\"An existing condition, situation, or set of circumstances involving uncertainty as to possible loss to an entity that will ultimately be resolved when one or more future events occur or fail to occur. The term loss is used for convenience to include many charges against income that are commonly referred to as expenses and others that are commonly referred to as losses.\"><span>loss contingencies</span></a>. </span></span><span class=\"sfragment\" id=\"sfr_37A55C70-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"> Examples of circumstances that may result in such contingencies include the following: </span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_37A55DBD-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Noncompliance with <a href=\"/glossary/d/#donor-imposed-restriction\" class=\"term\" title=\"A donor stipulation (donors include other types of contributors, including makers of certain grants) that specifies a use for a contributed asset that is more specific than broad limits resulting from the following: The nature of the not-for-profit entity (NFP) The environment in which it operates The purposes specified in its articles of incorporation or bylaws or comparable documents for an unincorporated association. Some donors impose restrictions that are temporary in nature, for example, stipulating that resources be used after a specified date, for particular programs or services, or to acquire buildings or equipment. Other donors impose restrictions that are perpetual in nature, for example, stipulating that resources be maintained in perpetuity. Laws may extend those limits to investment returns from those resources and to other enhancements (diminishments) of those resources. Thus, those laws extend donor-imposed restrictions.\"><span>donor-imposed restrictions</span></a> on contributed assets, </span></span><span class=\"sfragment\" id=\"sfr_37A55F08-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">which, although rare, does occur, sometimes as a result of events occurring subsequent to receiving a <a href=\"/glossary/c/#contribution\" class=\"term\" title=\"An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.\"><span>contribution</span></a> </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_37A56040-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A problem with the <a href=\"/glossary/n/#not-for-profit-entity\" class=\"term\" title=\"An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.\"><span>not-for-profit entity's</span></a> (NFP's) tax-exempt status, or that a determination letter regarding that status has not been received. </span></span></div></li></ol><span class=\"sfragment\" id=\"sfr_37A56126-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Section <a altsource=\"GUID-6542BDA9-F133-4EFC-9114-CE7EC1619A82.ditamap\" class=\"ditamap\">450-20-25</a> applies if one of these circumstances raises the possibility that an NFP may have incurred a loss. </span></span>Additionally, see Subtopic <a altsource=\"GUID-F515E730-63B5-4638-AFD8-A6EE535FF646.ditamap\" class=\"ditamap\">740-20</a> about tax positions taken when classifying an entity as tax-exempt if there is a problem with an NFP's tax-exempt status or if a determination letter has not been received.</div></div>","snippet":"In conformity with Subtopic 450-20, a liability may have to be accrued for loss contingencies. Examples of circumstances that may result in such contingencies include the following:\n(a) Noncompliance with donor-imposed r…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b3add84f19443ee85bc11063354da1f454ce4dea97b177cb4cd1a32d3f4f0509","downloaded_from":"2026-09-10T00:29:10.116Z","last_downloaded_at":"2026-09-10T00:29:10.116Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479004","source_sha256":"14a0e603dbc0c3ef08411d8d5e1b3e5101a7a891bb69cd81ea2a1c1a6921ccbc"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e3c7802de4d59d7852a9e3e7c3ebc5eaa81a6fb2d8361c8270d0441d2b70610e","downloaded_from":"2026-09-10T00:29:10.116Z","last_downloaded_at":"2026-09-10T00:29:10.116Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479004","source_sha256":"14a0e603dbc0c3ef08411d8d5e1b3e5101a7a891bb69cd81ea2a1c1a6921ccbc"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3fc8c5a24b46d61255b6bcd7b2b9c4adfe5ab964a3eeaffe2df0f3b378c32a9e","downloaded_from":"2026-09-10T00:29:10.116Z","last_downloaded_at":"2026-09-10T00:29:10.116Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479004","source_sha256":"14a0e603dbc0c3ef08411d8d5e1b3e5101a7a891bb69cd81ea2a1c1a6921ccbc"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"450-958-50-1","para":"50-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_37AF140A-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In conformity with Section <a altsource=\"GUID-C6FA6504-8DCA-4A60-B7C3-C902B444EF8E.ditamap\" class=\"ditamap\">450-20-50</a>, the notes to financial statements may have to include information about <a href=\"/glossary/l/#loss-contingency\" class=\"term\" title=\"An existing condition, situation, or set of circumstances involving uncertainty as to possible loss to an entity that will ultimately be resolved when one or more future events occur or fail to occur. The term loss is used for convenience to include many charges against income that are commonly referred to as expenses and others that are commonly referred to as losses.\"><span>loss contingencies</span></a>. </span></span></div></div>","snippet":"In conformity with Section 450-20-50, the notes to financial statements may have to include information about loss contingencies.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a31007a05910d0bd4f2aa3ed8bab191660cc2e344168babadf94ee1764903149","downloaded_from":"2026-09-10T00:29:12.159Z","last_downloaded_at":"2026-09-10T00:29:12.159Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478757","source_sha256":"e8d4d6ac32fa26a7833884a1337ed69448aa2a6d16e441102b69813403e53aca"}},{"citation":"450-958-50-2","para":"50-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_37AF15AB-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">For example, noncompliance with <a href=\"/glossary/d/#donor-imposed-restriction\" class=\"term\" title=\"A donor stipulation (donors include other types of contributors, including makers of certain grants) that specifies a use for a contributed asset that is more specific than broad limits resulting from the following: The nature of the not-for-profit entity (NFP) The environment in which it operates The purposes specified in its articles of incorporation or bylaws or comparable documents for an unincorporated association. Some donors impose restrictions that are temporary in nature, for example, stipulating that resources be used after a specified date, for particular programs or services, or to acquire buildings or equipment. Other donors impose restrictions that are perpetual in nature, for example, stipulating that resources be maintained in perpetuity. Laws may extend those limits to investment returns from those resources and to other enhancements (diminishments) of those resources. Thus, those laws extend donor-imposed restrictions.\"><span>donor-imposed restrictions</span></a> shall be disclosed if either of the following is true: </span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_37AF1727-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">There is a reasonable possibility that a material contingent liability has been incurred at the date of the financial statements. </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_37AF186E-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">There is at least a reasonable possibility that the noncompliance could lead to a material loss of revenue or could cause an entity to be unable to continue as a going concern. </span></span></div></li></ol></div></div>","snippet":"For example, noncompliance with donor-imposed restrictions shall be disclosed if either of the following is true:\n(a) There is a reasonable possibility that a material contingent liability has been incurred at the date o…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cc795468870de421cb5aaca00761ccf65a6adee170c29198c2ee0f4f82b97ded","downloaded_from":"2026-09-10T00:29:12.159Z","last_downloaded_at":"2026-09-10T00:29:12.159Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478757","source_sha256":"e8d4d6ac32fa26a7833884a1337ed69448aa2a6d16e441102b69813403e53aca"}},{"citation":"450-958-50-3","para":"50-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_37AF19C5-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If the noncompliance results from a <a href=\"/glossary/n/#not-for-profit-entity\" class=\"term\" title=\"An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.\"><span>not-for-profit entity's</span></a> (NFP's) failure to maintain an appropriate composition of assets in amounts needed to comply with all donor restrictions, the amounts and circumstances shall be disclosed. </span></span></div></div>","snippet":"If the noncompliance results from a not-for-profit entity's (NFP's) failure to maintain an appropriate composition of assets in amounts needed to comply with all donor restrictions, the amounts and circumstances shall be…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2fd580a359cfeacd7b0cdeaaf0b6936d4ef5739c0c5f41a762450654a685ed07","downloaded_from":"2026-09-10T00:29:12.159Z","last_downloaded_at":"2026-09-10T00:29:12.159Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478757","source_sha256":"e8d4d6ac32fa26a7833884a1337ed69448aa2a6d16e441102b69813403e53aca"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:40db3a4e7aa16b891f539d69b12146a4f7c4881bb55dfbf665f8ccfc5cc06aa8","downloaded_from":"2026-09-10T00:29:12.159Z","last_downloaded_at":"2026-09-10T00:29:12.159Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478757","source_sha256":"e8d4d6ac32fa26a7833884a1337ed69448aa2a6d16e441102b69813403e53aca"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ad721dfcba2589d96fc0406255cc0feebfc4c87e28e20fcb13f91203aa9fa333","downloaded_from":"2026-09-10T00:29:12.159Z","last_downloaded_at":"2026-09-10T00:29:12.159Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478757","source_sha256":"e8d4d6ac32fa26a7833884a1337ed69448aa2a6d16e441102b69813403e53aca"}}],"enrichment":{"summary":"This Subtopic applies the general loss contingency model of Topic 450 to not-for-profit entities. It identifies two NFP-specific triggers — noncompliance with donor-imposed restrictions on contributed assets and problems with (or absence of a determination letter for) tax-exempt status — that may require accrual of a loss contingency under Subtopic 450-20 and disclosure under Section 450-20-50.","key_points":["NFPs must comply with the general contingency standards in Topic 450 in addition to this Subtopic (450-958-05-1).","A liability may have to be accrued for loss contingencies arising from noncompliance with donor-imposed restrictions on contributed assets or from a problem with the NFP's tax-exempt status or a missing determination letter (450-958-25-1).","Section 450-20-25 governs whether an NFP has incurred a loss when one of these circumstances arises (450-958-25-1).","Tax positions taken in classifying an entity as tax-exempt are addressed in Subtopic 740-20 when there is a tax-exempt status problem or no determination letter (450-958-25-1).","Noncompliance with donor-imposed restrictions must be disclosed if there is a reasonable possibility a material contingent liability was incurred at the financial statement date, or at least a reasonable possibility the noncompliance could cause a material loss of revenue or inability to continue as a going concern (450-958-50-2).","If the noncompliance results from failure to maintain an appropriate composition of assets in amounts needed to comply with all donor restrictions, the amounts and circumstances must be disclosed (450-958-50-3)."],"categories":["Contingencies and guarantees","Not-for-profit","Recognition","Disclosure"],"audience_level":"intermediate","student_note":"Remember that this Subtopic adds nothing to the probable/reasonably possible/remote framework — it just names the NFP-specific fact patterns that trigger it. A common misunderstanding is thinking donor-restriction noncompliance is only a disclosure matter; it can require accrual of a liability, and separate disclosure is required when the NFP failed to keep assets composed in amounts needed to satisfy donor restrictions.","related_topics":["450-20","958-10","740-20","958-605","958-210","205-40"],"key_concepts":["loss contingency","donor-imposed restrictions","tax-exempt status","determination letter","reasonable possibility","going concern","composition of assets","accrual of liability"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d4fa1ba09d9937659c04dfdcb29816f3a06615f562f9e616c2dc1fd4116826ca","downloaded_from":"2026-09-10T00:28:58.769Z","last_downloaded_at":"2026-09-10T00:29:12.159Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"405-958","title":"Not-for-Profit Entities","topic_title":"Liabilities","score":0.7962,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:41062f9d4d8f9d0854c32c4e988457fc02a86fda63e47f1849498125d719e341","downloaded_from":"2026-09-10T00:19:40.959Z","last_downloaded_at":"2026-09-10T00:20:08.319Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"470-958","title":"Not-for-Profit Entities","topic_title":"Debt","score":0.7725,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4335516ac98d916affaea008e34d81833a1e408924a96dfb20f103c8871ea707","downloaded_from":"2026-09-10T00:34:51.743Z","last_downloaded_at":"2026-09-10T00:34:59.299Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"450-10","title":"Overall","topic_title":"Contingencies","score":0.7615,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:92e0976bcb1c04aba4e2c9d19150ab3e5a8e35994e81f108b10ae709f111a321","downloaded_from":"2026-09-10T00:26:49.502Z","last_downloaded_at":"2026-09-10T00:26:58.831Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"450-20","title":"Loss Contingencies","topic_title":"Contingencies","score":0.7487,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a44266d79e73f2fc0260e8013be138b4d3ba5fae2b0ad5de0888f9c9366e2305","downloaded_from":"2026-09-10T00:27:01.778Z","last_downloaded_at":"2026-09-10T00:27:44.704Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"958-10","title":"Overall","topic_title":"Not-for-Profit Entities","score":0.7365,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:201c8e00df308f13f7a2a16a3337e83b3859b4c4b27aa966ad1d5acef98c0029","downloaded_from":"2026-09-10T02:21:08.558Z","last_downloaded_at":"2026-09-10T02:21:26.859Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"450-30","title":"Gain Contingencies","topic_title":"Contingencies","score":0.7258,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c855aa9404e446f98036fafd4f8c320e54537a2bf1c57b0cba83d6776a89b04c","downloaded_from":"2026-09-10T00:27:48.583Z","last_downloaded_at":"2026-09-10T00:28:10.377Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"450-954","title":"Health Care Entities","topic_title":"Contingencies","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9f94417382ca035dd8c3cdf61955523cc36ac0eb650a03390ecab3c31522b8c7","downloaded_from":"2026-09-10T00:28:27.303Z","last_downloaded_at":"2026-09-10T00:28:57.040Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"450-980","title":"Regulated Operations","topic_title":"Contingencies","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9253687ead5878cc37b42e065c9b2a34ce6fdb1aef5e5b16bf725833ee6875d1","downloaded_from":"2026-09-10T00:29:15.540Z","last_downloaded_at":"2026-09-10T00:29:23.763Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a37c925f139e0d91e9c4dd1da53695837ffe29bb002a25a3f16fc978aac2643d","downloaded_from":"2026-09-10T00:28:58.769Z","last_downloaded_at":"2026-09-10T00:29:12.159Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}