# ASC 605-958-15: Revenue Recognition — Not-for-Profit Entities — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/605/958/#15-scope-and-scope-exceptions) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T00:51:26.262Z to 2026-09-10T00:51:26.262Z Record version: sha256:14d8256a7c74b62a1f719de2377ea0540047dba6a0e3b1574b747074795921d6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-958-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/605/958/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [605-958-15-1](https://asc.understandingaccounting.org/asc/605/958/#605-958-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:26.262Z to 2026-09-10T00:51:26.262Z Record version: sha256:69e123daca0c6044a8e473c78eb6f80b9de971b60e32a46ddf87cfc1214a780a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 958-10-15. ##### [605-958-15-2](https://asc.understandingaccounting.org/asc/605/958/#605-958-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:26.262Z to 2026-09-10T00:51:26.262Z Record version: sha256:3353230d4f016bda12c3f63101f1eafc1f830e9074ff13ca9df3f95d06305349 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The General Subsection of this Section establishes the pervasive scope for this Subtopic, with specific exceptions noted in the other Subsections of this Section. ##### [605-958-15-2A](https://asc.understandingaccounting.org/asc/605/958/#605-958-15-2A) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:26.262Z to 2026-09-10T00:51:26.262Z Record version: sha256:fd6129ad830e8afe557f45dd006948940b50c1ab9b07a750b821b7edc217111d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A business entity shall consider the guidance in this Subtopic when determining whether a transaction is a [contribution](https://asc.understandingaccounting.org/glossary/c/#contribution "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.") within the scope of this Subtopic. Additionally, paragraphs [958-605-55-4 through 55-7](https://asc.understandingaccounting.org/asc/605/958/#605-958-55-4) and [958-605-55-13A through 55-14I](https://asc.understandingaccounting.org/asc/605/958/#605-958-55-13A) apply to all resource providers, including business entities that act as resource providers. ### Contributions Received ##### [605-958-15-3](https://asc.understandingaccounting.org/asc/605/958/#605-958-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:26.262Z to 2026-09-10T00:51:26.262Z Record version: sha256:8fc194dcb345971ad8eafc7570ab2100ee746d2270db268b6925234601941c56 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Contributions Received Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Subtopic, see paragraph [958-605-15-1](https://asc.understandingaccounting.org/asc/605/958/#605-958-15-1), with specific exceptions noted below. #### Entities ##### [605-958-15-4](https://asc.understandingaccounting.org/asc/605/958/#605-958-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:26.262Z to 2026-09-10T00:51:26.262Z Record version: sha256:a4b3f3c451e58d779e80423a03832e7bffe6f197058f4391d270c3e6ee6aa4b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Accounting for [contributions](https://asc.understandingaccounting.org/glossary/c/#contribution "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.") is an issue primarily for [not-for-profit entities](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "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.") (NFPs) because contributions received are a significant source of revenues for many of those entities. However, except for Section 958-605-45, the guidance in the Contributions Received Subsections applies to all entities (NFPs and business entities) that receive contributions unless otherwise indicated. #### Transactions ##### [605-958-15-5](https://asc.understandingaccounting.org/asc/605/958/#605-958-15-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:26.262Z to 2026-09-10T00:51:26.262Z Record version: sha256:d9af8a8c03a06c0bc3683a0d52837e5d6ad80806022e7ffd56c017e330525f2a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Contributions Received Subsections applies to the following transactions and activities: 1. a Contributions of cash and other assets, including [promises to give](https://asc.understandingaccounting.org/glossary/p/#promise-to-give "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."), or a reduction, settlement, or cancellation of liabilities. ##### [605-958-15-5A](https://asc.understandingaccounting.org/asc/605/958/#605-958-15-5A) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:26.262Z to 2026-09-10T00:51:26.262Z Record version: sha256:4631b1cdbe9ecf4ef6ee9aaa1e6c36574bf1a8372a02021e3424788f024f7a29 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In determining whether a transfer of assets is an exchange transaction in which a resource provider (for example, a government agency, a foundation, a corporation, or other entity) receives commensurate value in return for the resources transferred or a contribution, the type of resource provider shall not factor into the determination and an entity shall evaluate the terms of an agreement and consider the following (additional clarification is provided in paragraphs [958-605-55-4 through 55-7](https://asc.understandingaccounting.org/asc/605/958/#605-958-55-4) and [958-605-55-13A through 55-14I](https://asc.understandingaccounting.org/asc/605/958/#605-958-55-13A)): 1. a The resource provider (including a foundation, a government agency, a corporation, or other entity) is not synonymous with the general public. A benefit received by the public as a result of the assets transferred is not equivalent to commensurate value received by the resource provider. Therefore, if the resource provider receives indirect value in exchange for the assets transferred or if the value received by the resource provider is incidental to the potential public benefit from using the assets transferred, the transaction shall not be considered commensurate value received in return. 2. b Execution of the resource provider's mission or the positive sentiment from acting as a donor shall not constitute commensurate value received by the resource provider for purposes of determining whether the transfer of assets is a contribution or an exchange. 3. c If the expressed intent asserted by both the recipient and the resource provider is to exchange resources for goods or services that are of commensurate value, the transaction shall be indicative of an exchange transaction. The transaction shall be indicative of a contribution if the recipient solicits assets from the resource provider without the intent of exchanging goods or services of commensurate value. 4. d If the resource provider has full discretion in determining the amount of the transferred assets, the transaction shall be indicative of a contribution. If both the recipient and the resource provider agree on the amount of assets transferred in exchange for goods and services that are of commensurate value, the transaction shall be indicative of an exchange transaction. 5. e If the penalties assessed on the recipient for failure to comply with the terms of the agreement are limited to the delivery of assets or services already provided and the return of the unspent amount, the transaction is generally indicative of a contribution. The existence of contractual provisions for economic forfeiture beyond the amount of assets transferred by the resource provider to penalize the recipient for nonperformance generally indicates that the transaction is an exchange of commensurate value. ##### [605-958-15-6](https://asc.understandingaccounting.org/asc/605/958/#605-958-15-6) Pending content: yes Source downloaded (UTC): 2026-09-10T00:51:26.262Z to 2026-09-10T00:51:26.262Z Record version: sha256:3181ad368936eb2309a7bc4dc84ee223e65b5e1b8b3aef6ca9515f419b0fe416 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Contributions Received Subsections does not apply to the following transactions and activities: 1. a Transfers of assets that are in substance purchases of goods or services—exchange transactions in which each party receives and sacrifices commensurate value (in accordance with the guidance in paragraph [958-605-15-5A](https://asc.understandingaccounting.org/asc/605/958/#605-958-15-5A)). However, if an entity voluntarily transfers assets to another or performs services for another in exchange for assets of substantially lower value and no unstated rights or privileges are involved, the contribution received that is inherent in that transaction is within the scope of the Contributions Received Subsections. 2. b Transfers of assets in which the reporting entity acts as an [agent](https://asc.understandingaccounting.org/glossary/a/#agent "A party that acts for and on behalf of another party. For example, a third-party intermediary is an agent of the transferor if it acts on behalf of the transferor."), [trustee](https://asc.understandingaccounting.org/glossary/t/#trustee "A person appointed by the Bankruptcy Court in certain situations based on the facts of the case, not related to the size of the entity or the amount of unsecured debt outstanding, at the request of a party in interest after a notice and hearing."), or [intermediary](https://asc.understandingaccounting.org/glossary/i/#intermediary "Although in general usage the term intermediary encompasses a broad range of situations in which an entity acts between two or more other parties, in this usage, it refers to situations in which a recipient entity acts as a facilitator for the transfer of assets between a potential donor and a potential beneficiary (donee) but is neither an agent or trustee nor a donee and donor."), rather than as a donor or donee (see the Transfers of Assets to a Not-for-Profit Entity or Charitable Trust That Raises or Holds Contributions for Others Subsections of this Subtopic). 3. c Tax exemptions, tax incentives, or tax abatements. 4. d Transfers of assets from government entities to business entities. 5. e Transfers of assets (typically from a government entity) that are part of an existing exchange transaction between a recipient and an identified [customer](https://asc.understandingaccounting.org/glossary/c/#customer "A party that has contracted with an entity to obtain goods or services that are an output of the entity's ordinary activities in exchange for consideration."). Some examples include payments under Medicare and Medicaid programs, provisions of health care or education services by a government for its employees, and Pell Grants or similar state or local government tuition assistance programs. In those instances, an entity shall apply the applicable guidance (for example, Topic 606 on [revenue](https://asc.understandingaccounting.org/glossary/r/#revenue "Inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations.") from [contracts](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations.") with customers) to the underlying transaction with the customer, and the payments from the third parties would be payments on behalf of those customers. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [818-10-65-1](https://asc.understandingaccounting.org/asc/818/10/#818-10-65-1)The guidance in the Contributions Received Subsections does not apply to the following transactions and activities: 1. a Transfers of assets that are in substance purchases of goods or services—exchange transactions in which each party receives and sacrifices commensurate value (in accordance with the guidance in paragraph [958-605-15-5A](https://asc.understandingaccounting.org/asc/605/958/#605-958-15-5A)). However, if an entity voluntarily transfers assets to another or performs services for another in exchange for assets of substantially lower value and no unstated rights or privileges are involved, the contribution received that is inherent in that transaction is within the scope of the Contributions Received Subsections. 2. b Transfers of assets in which the reporting entity acts as an [agent](https://asc.understandingaccounting.org/glossary/a/#agent "A party that acts for and on behalf of another party. For example, a third-party intermediary is an agent of the transferor if it acts on behalf of the transferor."), [trustee](https://asc.understandingaccounting.org/glossary/t/#trustee "A person appointed by the Bankruptcy Court in certain situations based on the facts of the case, not related to the size of the entity or the amount of unsecured debt outstanding, at the request of a party in interest after a notice and hearing."), or [intermediary](https://asc.understandingaccounting.org/glossary/i/#intermediary "Although in general usage the term intermediary encompasses a broad range of situations in which an entity acts between two or more other parties, in this usage, it refers to situations in which a recipient entity acts as a facilitator for the transfer of assets between a potential donor and a potential beneficiary (donee) but is neither an agent or trustee nor a donee and donor."), rather than as a donor or donee (see the Transfers of Assets to a Not-for-Profit Entity or Charitable Trust That Raises or Holds Contributions for Others Subsections of this Subtopic). 3. c Tax exemptions, tax incentives, or tax abatements. 4. d Transfers of assets from government entities to business entities. 5. e Transfers of assets (typically from a government entity) that are part of an existing exchange transaction between a recipient and an identified [customer](https://asc.understandingaccounting.org/glossary/c/#customer "A party that has contracted with an entity to obtain goods or services that are an output of the entity's ordinary activities in exchange for consideration."). Some examples include payments under Medicare and Medicaid programs, provisions of health care or education services by a government for its employees, and Pell Grants or similar state or local government tuition assistance programs. In those instances, an entity shall apply the applicable guidance (for example, Topic 606 on [revenue](https://asc.understandingaccounting.org/glossary/r/#revenue "Inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations.") from [contracts](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations.") with customers) to the underlying transaction with the customer, and the payments from the third parties would be payments on behalf of those customers. 6. f Transfers of [environmental credits](https://asc.understandingaccounting.org/glossary/e/#environmental-credit "(P) December 16, 2027; (N) December 16, 2028818-10-65-1An enforceable right that is acquired, internally generated, granted by a regulatory agency or its designee(s), or received in a nonreciprocal transfer that is not a grant from a regulator or its designee(s) that meets all of the following criteria:Lacks physical substance and is not a financial asset.Is represented to prevent, control, reduce, or remove emissions or other pollution.Is, or previously was, separately transferable in an exchange transaction. If an item is no longer separately transferable in an exchange transaction, an entity must be able to use that item to satisfy an environmental credit obligation to meet this criterion.Is not an income tax credit that may be used to settle an entity’s income tax liability, regardless of whether the entity has a tax liability or intends to use the credit for that purpose.An environmental credit that meets the above criteria may exist in a variety of forms, including (but not limited to) credits, certificates, allowances, and offsets.") received from a regulator or its designee(s). Subtopic 818-20 provides accounting guidance for environmental credits. Transition date:(P) December 16, 2028; (N) December 16, 2029Transition guidance: [832-10-65-2](https://asc.understandingaccounting.org/asc/832/10/#832-10-65-2)The guidance in the Contributions Received Subsections does not apply to the following transactions and activities: 1. a Transfers of assets that are in substance purchases of goods or services—exchange transactions in which each party receives and sacrifices commensurate value (in accordance with the guidance in paragraph [958-605-15-5A](https://asc.understandingaccounting.org/asc/605/958/#605-958-15-5A)). However, if an entity voluntarily transfers assets to another or performs services for another in exchange for assets of substantially lower value and no unstated rights or privileges are involved, the contribution received that is inherent in that transaction is within the scope of the Contributions Received Subsections. 2. b Transfers of assets in which the reporting entity acts as an [agent](https://asc.understandingaccounting.org/glossary/a/#agent "A party that acts for and on behalf of another party. For example, a third-party intermediary is an agent of the transferor if it acts on behalf of the transferor."), [trustee](https://asc.understandingaccounting.org/glossary/t/#trustee "A person appointed by the Bankruptcy Court in certain situations based on the facts of the case, not related to the size of the entity or the amount of unsecured debt outstanding, at the request of a party in interest after a notice and hearing."), or [intermediary](https://asc.understandingaccounting.org/glossary/i/#intermediary "Although in general usage the term intermediary encompasses a broad range of situations in which an entity acts between two or more other parties, in this usage, it refers to situations in which a recipient entity acts as a facilitator for the transfer of assets between a potential donor and a potential beneficiary (donee) but is neither an agent or trustee nor a donee and donor."), rather than as a donor or donee (see the Transfers of Assets to a Not-for-Profit Entity or Charitable Trust That Raises or Holds Contributions for Others Subsections of this Subtopic). 3. c Tax exemptions, tax incentives, or tax abatements. 4. d Transfers of assets from government entities to business entities. Topic 832 provides accounting guidance for [government grants](https://asc.understandingaccounting.org/glossary/g/#government-grant "(P) December 16, 2028; (N) December 16, 2029832-10-65-2A transfer of a monetary asset or a tangible nonmonetary asset, other than in an exchange transaction (including an exchange transaction that may be at a significant discount to fair value), from a government to an entity except for a not-for-profit entity and an employee benefit plan within the scope of Topics 960, 962, and 965 on plan accounting.") received by business entities. 5. e Transfers of assets (typically from a government entity) that are part of an existing exchange transaction between a recipient and an identified [customer](https://asc.understandingaccounting.org/glossary/c/#customer "A party that has contracted with an entity to obtain goods or services that are an output of the entity's ordinary activities in exchange for consideration."). Some examples include payments under Medicare and Medicaid programs, provisions of health care or education services by a government for its employees, and Pell Grants or similar state or local government tuition assistance programs. In those instances, an entity shall apply the applicable guidance (for example, Topic 606 on [revenue](https://asc.understandingaccounting.org/glossary/r/#revenue "Inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations.") from [contracts](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations.") with customers) to the underlying transaction with the customer, and the payments from the third parties would be payments on behalf of those customers. ##### [605-958-15-7](https://asc.understandingaccounting.org/asc/605/958/#605-958-15-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:26.262Z to 2026-09-10T00:51:26.262Z Record version: sha256:34016a543fdbd855beae895b704ed078b1cf7122d312499f052f6e91d0f54639 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Contributions Received Subsections also use terms such as gift and donation to refer to a contribution; however, they generally avoid terms such as awards, grants, sponsorships, and appropriations that often are more broadly used to refer not only to contributions but also to assets transferred in exchange transactions in which the grantor, sponsor, or appropriator expects to receive commensurate value. ##### [605-958-15-7A](https://asc.understandingaccounting.org/asc/605/958/#605-958-15-7A) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:26.262Z to 2026-09-10T00:51:26.262Z Record version: sha256:4fb41317c20f91128e85b1d662eae06fea3d759311d1ec2730f1f0339d53588f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Contribution revenue within the scope of this Subtopic can be presented in the financial statements of an entity using different terms (for example, gift, grant, donation, or other terms). While some of those terms are generally not used in this guidance, the term used in the presentation of financial statements to label revenue that is accounted for within the scope of this Subtopic is not a factor in determining whether an agreement is within the scope of this Subtopic. ### Transfers of Assets to a Not-for-Profit Entity or Charitable Trust That Raises or Holds Contributions for Others #### Overall Guidance ##### [605-958-15-8](https://asc.understandingaccounting.org/asc/605/958/#605-958-15-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:26.262Z to 2026-09-10T00:51:26.262Z Record version: sha256:c2b074fd1fd587b7fa7c482338a64e53e01a7d7bb66a11c380510c372ab50e01 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Transfers of Assets to a Not-for-Profit Entity or Charitable Trust that Raises or Holds Contributions for Others Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Subtopic, see paragraph [958-605-15-1](https://asc.understandingaccounting.org/asc/605/958/#605-958-15-1), with specific exceptions noted below. #### Entities ##### [605-958-15-9](https://asc.understandingaccounting.org/asc/605/958/#605-958-15-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:26.262Z to 2026-09-10T00:51:26.262Z Record version: sha256:e4e8ef36b294050184fcc5badb4325118d35981def4d29fda0a96536d7f37f1f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Transfer of Assets to a Not-for-Profit Entity or Charitable Trust that Raises or Holds Contributions for Others Subsections does not apply to the following entities: 1. a A [trustee](https://asc.understandingaccounting.org/glossary/t/#trustee "An entity that has a duty to hold and manage assets for the benefit of a specified beneficiary in accordance with a charitable trust agreement. In some states, not-for-profit entities (NFPs) are organized under trust law rather than as corporations. Those NFPs are not trustees as defined because, under those statutes, they hold assets in trust for the community or some other broadly described group, rather than for a specific beneficiary.") holding assets on behalf of a specified beneficiary (but paragraphs [958-605-25-29](https://asc.understandingaccounting.org/asc/605/958/#605-958-25-29) and [958-605-25-31](https://asc.understandingaccounting.org/asc/605/958/#605-958-25-31) establish standards for the beneficiary's reporting of its rights to trust assets—its beneficial interest in the charitable trust). #### Transactions ##### [605-958-15-10](https://asc.understandingaccounting.org/asc/605/958/#605-958-15-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:26.262Z to 2026-09-10T00:51:26.262Z Record version: sha256:57fb123666cf64b419af49a2df49da260a33952cfcfff80bbf577661db72d6f4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Transfers of Assets to a Not-for-Profit Entity or Charitable Trust that Raises or Holds Contributions for Others Subsections applies to the following transactions and activities: 1. a Transactions in which an entity—the donor—makes a [contribution](https://asc.understandingaccounting.org/glossary/c/#contribution "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.") by transferring assets to an NFP or charitable trust—the [recipient entity](https://asc.understandingaccounting.org/glossary/r/#recipient-entity "A not-for-profit entity (NFP) or charitable trust that accepts assets from a donor or other resource provider and agrees to use those assets on behalf of or transfer those assets, the return on investment of those assets, or both to a beneficiary that is specified by the donor or resource provider.")—that accepts the assets from the donor and agrees to use those assets on behalf of or transfer those assets, the return on investment of those assets, or both to an unaffiliated entity—the beneficiary—that is specified by the donor. (An unaffiliated beneficiary is a beneficiary other than the donor or its [affiliate](https://asc.understandingaccounting.org/glossary/a/#affiliate "A party that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with an entity. See Control.").) 2. b Transactions that take place in a similar manner to (a) but are not contributions for either of the following reasons: 1. 1 The entity that transfers the assets to the recipient entity—the resource provider—is related to the beneficiary in a way that causes the transfer to be reciprocal. 2. 2 Conditions imposed by the resource provider or the relationships between the parties make the transfer of assets to the recipient entity revocable or repayable. ##### [605-958-15-11](https://asc.understandingaccounting.org/asc/605/958/#605-958-15-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:26.262Z to 2026-09-10T00:51:26.262Z Record version: sha256:365fad093710653778fd2f6cdcea2b1858b54339c0384772a1c2c096973b6422 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The types of transferred assets addressed by the preceding paragraph are cash and other assets, including securities, land, buildings, use of facilities or utilities, materials and supplies, intangible assets, services, and [unconditional promises to give](https://asc.understandingaccounting.org/glossary/u/#unconditional-promise-to-give "A promise to give that depends only on passage of time or demand by the promisee for performance.") those items in the future. ##### [605-958-15-12](https://asc.understandingaccounting.org/asc/605/958/#605-958-15-12) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:26.262Z to 2026-09-10T00:51:26.262Z Record version: sha256:269aeea99687594fcd5f287c3d47eeb7e858602818f6bcb06412e6ba45920c28 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the transfer of assets is not a contribution or not yet a contribution, the Transfers of Assets to a Not-for-Profit Entity or Charitable Trust that Raises or Holds Contributions for Others Subsections use the term resource provider rather than the term donor to refer to the entity that transfers the assets to the recipient entity. ##### [605-958-15-13](https://asc.understandingaccounting.org/asc/605/958/#605-958-15-13) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:26.262Z to 2026-09-10T00:51:26.262Z Record version: sha256:c8881ffff05eeceea993038fd4008ef93b7af1e8381bc82b0b7f684b06686145 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [958-605-05-4](https://asc.understandingaccounting.org/asc/605/958/#605-958-05-4) applies to transfers to affiliates only if the affiliate recipient entity is not the beneficiary of the transferred assets.