Gifts of long-lived assets received without stipulations about how long the donated asset must be used shall be reported as revenue without donor restrictions.Gifts of cash or other assets restricted to acquire long-lived assets shall initially be reported as donor-restricted support and shall be released from restrictions by reclassifying net assets with donor restrictions to net assets without donor restrictions when the asset is acquired and placed in service in accordance with paragraph 958-360-45-1A, unless the donor also has placed a time restriction on the use of the long-lived asset, in which case the release occurs over the life of the time restriction. (Pursuant to paragraph
958-205-45-12, all NFPs are not permitted to imply a time restriction that expires over the useful life of a long-lived asset.)
Recipient entities that solicit and collect cash, products, or services and distribute those assets for charitable purposes to beneficiaries specified by the donor may desire to report the results of total campaign efforts to the users of financial statements. Although the receipt of the transferred assets is an inflow of assets from activities that constitute the entity's ongoing major or central operations, that inflow is accompanied by an offsetting liability to the specified beneficiary. Consequently, the receipt of the transferred assets is not revenue.
To the extent that an NFP's activities include raising and distributing cash, the total amounts raised and distributed may be evident from a statement of cash flows prepared using the direct method for reporting operating cash flows. In addition, generally accepted accounting principles (GAAP) do not preclude entities from providing supplementary information or additional disclosures. An NFP may provide a schedule reflecting fundraising efforts or campaign accomplishments or may disclose total amounts raised on the statement of activities, provided that amounts raised in an agent, trustee, or intermediary capacity are not shown as revenues. See Example 3 (paragraph
958-220-55-8) for an illustration of three possible methods of displaying fundraising efforts in the revenue section of a statement of activities.