# ASC 605-958-30: Revenue Recognition — Not-for-Profit Entities — 30 Initial Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/605/958/#30-initial-measurement) 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): 2026-09-10T00:51:35.495Z to 2026-09-10T00:51:35.495Z Record version: sha256:82fe80803b0f9202a98c1591da2bada5b397deeb27214a718629d5dc5733032b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-958-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/605/958/#30-initial-measurement) SEC content: no ### Contributions Received ##### [605-958-30-1](https://asc.understandingaccounting.org/asc/605/958/#605-958-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:35.495Z to 2026-09-10T00:51:35.495Z Record version: sha256:82f9347cf4d23191ea8ba7c60caddc2764e17ece1fea9e2e788c6b93734819df Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subsection provides initial measurement guidance 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.") received, including the following types of contributions: 1. a Unconditional promises to give 2. b Inventory items 3. c Contributed services 4. d Gifts in kind. ##### [605-958-30-2](https://asc.understandingaccounting.org/asc/605/958/#605-958-30-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:35.495Z to 2026-09-10T00:51:35.495Z Record version: sha256:1b3e31f5176bf768678028b153abcd537ae58a0fb3c661e681b2e383ddede385 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Contributions received shall be measured at their fair values. Topic 820 establishes a framework for measuring [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date."). See the Fair Value Option Subsections of Subtopic 825-10 for guidance about electing at initial recognition to subsequently measure financial instruments and certain other contracts at fair value. ##### [605-958-30-3](https://asc.understandingaccounting.org/asc/605/958/#605-958-30-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:35.495Z to 2026-09-10T00:51:35.495Z Record version: sha256:10fa3f0ba6e61908dcf6acd4580df96f6e1d82bde036d7efac605c2e5a40fa5d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [820-10-35-2B](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-2B) states that a fair value measurement takes into account the effect of a restriction on the sale or use of an asset if market participants would take into account the effect of the restriction when pricing the asset. Example 6 (see paragraph [820-10-55-51](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-51)) illustrates that restrictions that are a characteristic of an asset, and, therefore, would transfer to a market participant, are the only restrictions reflected in fair value. Donor restrictions that are specific to the donee are reflected in the classification of net assets, not in the measurement of fair value. #### Unconditional Promises to Give ##### [605-958-30-4](https://asc.understandingaccounting.org/asc/605/958/#605-958-30-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:35.495Z to 2026-09-10T00:51:35.495Z Record version: sha256:9e0709eb6a4c21d26f2fffbaca60854e093b72074bdf776bb0a649966f19ec1e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If present value techniques are used to measure the fair value of [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."), the entity shall determine the amount and timing of the future cash flows of unconditional [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.") cash (or, for promises to give noncash assets, the quantity and nature of assets expected to be received). In making that determination, the entity shall consider all the elements in paragraph [820-10-55-5](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-5), including the following: 1. a When the receivable is expected to be collected 2. b The creditworthiness of the other parties 3. c The entity's past collection experience 4. d The entity's policies concerning the enforcement of promises to give 5. e Expectations about possible variations in the amount or timing of the cash flows (that is, the uncertainty inherent in the cash flows) 6. f Other factors concerning the receivable's collectibility. ##### [605-958-30-5](https://asc.understandingaccounting.org/asc/605/958/#605-958-30-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:35.495Z to 2026-09-10T00:51:35.495Z Record version: sha256:783fb3777217ef14b63eeb5485354eab770b5d4b7bd901f6cfaa9f16a55b5e98 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If present value techniques are used to measure fair value, the present value of unconditional promises to give should be measured using a discount rate that is consistent with the general principles for present value measurement discussed in paragraphs [820-10-55-5 through 55-9](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-5) . In conformity with paragraph [835-30-25-11](https://asc.understandingaccounting.org/asc/835/30/#835-30-25-11), the discount rate shall be determined at the time the unconditional promise to give is initially recognized and shall not be revised subsequently unless the entity has elected to measure the promise to give at fair value in conformity with the Fair Value Option Subsections of Subtopic 825-10. ##### [605-958-30-6](https://asc.understandingaccounting.org/asc/605/958/#605-958-30-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:35.495Z to 2026-09-10T00:51:35.495Z Record version: sha256:d107f20fdc4febebc92cfeaec1e5ddb65e9e83048b68a4d8649a816befd4bdcd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Unconditional promises to give that are expected to be collected in less than one year may be measured at net realizable value because that amount results in a reasonable estimate of fair value. ##### [605-958-30-7](https://asc.understandingaccounting.org/asc/605/958/#605-958-30-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:35.495Z to 2026-09-10T00:51:35.495Z Record version: sha256:d7b17db4b50697d781d13422a404dcee516936e086dda5b913d22b67e78f3a4a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a promise to give has not previously been recognized as contribution revenue because it was conditional, fair value shall be measured when the conditions are met. ##### [605-958-30-8](https://asc.understandingaccounting.org/asc/605/958/#605-958-30-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:35.495Z to 2026-09-10T00:51:35.495Z Record version: sha256:221fbce6e028393933be6cef1c3ed1eeadb19e6c2d918e7dc221d0091a76ce53 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A present value technique is one valuation technique for measuring the fair value of an unconditional promise to give noncash assets; other valuation techniques also are available, as described in Topic 820. If present value techniques are used, the fair value of contributions arising from unconditional promises to give noncash assets might be determined based on the present value of the projected fair value of the underlying noncash assets at the date that those assets are expected to be received (that projected fair value is referred to in this Section as the _future fair value_) and in the quantities that those assets are expected to be received, if the date is one year or more after the financial statement date. Both the likelihood of the promise being fulfilled and the future fair value of those underlying assets, such as the future fair value per share of a promised [equity security](https://asc.understandingaccounting.org/glossary/e/#equity-security "Any security representing an ownership interest in an entity (for example, common, preferred, or other capital stock) or the right to acquire (for example, warrants, rights, forward purchase contracts, and call options) or dispose of (for example, put options and forward sale contracts) an ownership interest in an entity at fixed or determinable prices. The term equity security does not include any of the following: Written equity options (because they represent obligations of the writer, not investments) Cash-settled options on equity securities or options on equity-based indexes (because those instruments do not represent ownership interests in an entity) Convertible debt or preferred stock that by its terms either must be redeemed by the issuing entity or is redeemable at the option of the investor."), should be considered in determining the future amount to be discounted. The quantity, nature, and timing of assets expected to be received, such as the number of shares of a promised equity security, the entity in which those shares represent an equity interest, and when those shares will be received should be considered in determining the likelihood of the promise being fulfilled. In cases in which the future fair value of the underlying asset is difficult to determine, the fair value of an unconditional promise to give noncash assets may be based on the fair value of the underlying asset at the date of initial recognition. No discount for the time value of money shall be reported if an asset's fair value at the date of initial recognition is used to measure the fair value of the contribution. #### Inventory Items ##### [605-958-30-9](https://asc.understandingaccounting.org/asc/605/958/#605-958-30-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:35.495Z to 2026-09-10T00:51:35.495Z Record version: sha256:a6c11eff06e8d9f342900c095e836b939805da6dd0d62a836dc175f357906643 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Inputs for measuring fair value of contributed inventory items may be obtained from published catalogs, vendors, independent appraisals, and other sources. If methods such as estimates, averages, or computational approximations, such as average value per pound or subsequent sales, can reduce the cost of measuring the fair value of inventory, use of those methods is appropriate, provided the methods are applied consistently, and the results of applying those methods are reasonably expected not to be materially different from the results of a detailed measurement of the fair value of contributed inventory. #### Contributed Services ##### [605-958-30-10](https://asc.understandingaccounting.org/asc/605/958/#605-958-30-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:35.495Z to 2026-09-10T00:51:35.495Z Record version: sha256:c491ee9831f487d5b09d049df767c1dfc6e57a50f3b0b2fdc0495b6235f96070 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Contributions of services that create or enhance [nonfinancial assets](https://asc.understandingaccounting.org/glossary/n/#nonfinancial-asset "An asset that is not a financial asset. Nonfinancial assets include land, buildings, use of facilities or utilities, materials and supplies, intangible assets, or services.") may be measured by referring to either the fair value of the services received or the fair value of the asset or of the asset enhancement resulting from the services. Fair value should be used for the measure regardless of whether the NFP could afford to purchase the services at their fair value. #### Gifts in Kind ##### [605-958-30-11](https://asc.understandingaccounting.org/asc/605/958/#605-958-30-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:35.495Z to 2026-09-10T00:51:35.495Z Record version: sha256:aea08fc04c7e72d07dac12e4675f915bbb1f8a206095bc53472bb51e28f5872d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Gifts in kind that can be used or sold shall be measured at fair value. In determining fair value, entities should consider the quality and quantity of the gifts, as well as any applicable discounts that would have been received by the entity, including discounts based on that quantity if the assets had been acquired in exchange transactions. Fair value would generally not increase when a gift in kind is passed from one entity to another. However, fair value could increase if an entity adds value to the gift, such as by cleaning and packaging the gift. Any increases should be evaluated to determine whether the entity did, in fact, add to the fair value of the assets. ### Transfers of Assets to a Not-for-Profit Entity or Charitable Trust That Raises or Holds Contributions for Others #### Intermediary ##### [605-958-30-12](https://asc.understandingaccounting.org/asc/605/958/#605-958-30-12) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:35.495Z to 2026-09-10T00:51:35.495Z Record version: sha256:99153abfd228312cd48c6b6b7bebfa2ae8ed8416fb79d9ae42e36e1800604f4a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Both the liability and the assets shall be measured at the [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") of the assets received from the donor. #### Agent ##### [605-958-30-13](https://asc.understandingaccounting.org/asc/605/958/#605-958-30-13) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:35.495Z to 2026-09-10T00:51:35.495Z Record version: sha256:2672ec76da294043958f98f205096a8b514891eb7fa561e50f8c22041ff442a2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Both the liability and the assets shall be measured at the fair value of the assets received from the donor. #### Specified Beneficiary ##### [605-958-30-14](https://asc.understandingaccounting.org/asc/605/958/#605-958-30-14) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:35.495Z to 2026-09-10T00:51:35.495Z Record version: sha256:23848994781b6d4e76064e7385b9084c88c5adca2f2c26f88c4dc11d7741403a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the beneficiary has an unconditional right to receive all or a portion of the specified cash flows from a charitable trust or other identifiable pool of assets, the beneficiary shall measure that beneficial interest at fair value. The fair value of a [perpetual trust held by a third party](https://asc.understandingaccounting.org/glossary/p/#perpetual-trust-held-by-a-third-party "An arrangement in which a donor establishes and funds a perpetual trust administered by an individual or entity other than the not-for-profit entity (NFP) that is the beneficiary. Under the terms of the trust, the NFP has the irrevocable right to receive the income earned on the trust assets in perpetuity, but never receives the assets held in trust. Distributions received by the NFP may be restricted by the donor.") generally can be measured using the fair value of the assets contributed to the trust, unless facts and circumstances indicate that the fair value of the beneficial interest differs from the fair value of the assets contributed to the trust. If the beneficiary recognizes a receivable pursuant to paragraph [958-605-25-30](https://asc.understandingaccounting.org/asc/605/958/#605-958-25-30), the beneficiary shall measure its rights to the assets held by a [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.") at fair value in accordance with paragraph [958-605-30-2](https://asc.understandingaccounting.org/asc/605/958/#605-958-30-2) and paragraphs [958-605-30-4 through 30-7](https://asc.understandingaccounting.org/asc/605/958/#605-958-30-4) for [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.").