# ASC 605-958-45: Revenue Recognition — Not-for-Profit Entities — 45 Other Presentation Matters Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/605/958/#45-other-presentation-matters) 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): 2026-09-10T00:51:42.182Z to 2026-09-10T00:51:42.182Z Record version: sha256:c22d4f2fd1a71959a465dbb0e3ac9cc37a225b85fd5ba464baf3452bf815e593 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-958-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/605/958/#45-other-presentation-matters) SEC content: no ##### [605-958-45-1](https://asc.understandingaccounting.org/asc/605/958/#605-958-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:42.182Z to 2026-09-10T00:51:42.182Z Record version: sha256:c6a16c65aee81976a79ad3c570d0e3b6f98de0ffe2010ff2ba3f5ec3c92bbf92 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Resources received in exchange transactions shall be classified as revenues in the [net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") class, even in circumstances in which resource providers place limitations on the use of the resources. For example, resources received from governments in exchange transactions in which those governments have placed limitations on the use of the resources shall be reported as revenues in the net assets without donor restrictions class, because those limitations are not [donor-imposed restrictions](https://asc.understandingaccounting.org/glossary/d/#donor-imposed-restriction "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.") on [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."). See paragraph [958-210-50-2](https://asc.understandingaccounting.org/asc/210/958/#210-958-50-2) for additional information about significant contractual limitations. ##### [605-958-45-2](https://asc.understandingaccounting.org/asc/605/958/#605-958-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:42.182Z to 2026-09-10T00:51:42.182Z Record version: sha256:9b3a652319d42b18deed2e1b00079d7777c9be506c5fad5dedb4a1421f7779c0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ### Contributions Received ##### [605-958-45-3](https://asc.understandingaccounting.org/asc/605/958/#605-958-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:42.182Z to 2026-09-10T00:51:42.182Z Record version: sha256:db3401b8f81c612d6e7b3a409052f13388577edc013577d7df56dfe5d7b577e1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [not-for-profit entity](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.") (NFP) shall distinguish between [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 with [donor-imposed restrictions](https://asc.understandingaccounting.org/glossary/d/#donor-imposed-restriction "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.") and those received without donor-imposed restrictions. The former shall be reported as [donor-restricted support](https://asc.understandingaccounting.org/glossary/d/#donor-restricted-support "Donor-restricted revenues or gains from contributions that increase net assets with donor restrictions (donors include other types of contributors, including makers of certain grants).") that increases [net assets with donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-with-donor-restrictions "The part of net assets of a not-for-profit entity that is subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants)."). The latter shall be reported as support that increases [net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants)."). ##### [605-958-45-4](https://asc.understandingaccounting.org/asc/605/958/#605-958-45-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:42.182Z to 2026-09-10T00:51:42.182Z Record version: sha256:1fc2d37bc1dca58adc351427a1030cc92117e11a4e57fa2611d3348a3ed96f3a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A restriction on an NFP's use of the assets contributed results either from a donor's explicit [stipulation](https://asc.understandingaccounting.org/glossary/s/#stipulation "A statement by a donor that creates a condition or restriction on the use of transferred resources.") or from circumstances surrounding the receipt of the contribution that make clear the donor's implicit restriction on use. #### Simultaneous Release Option ##### [605-958-45-4A](https://asc.understandingaccounting.org/asc/605/958/#605-958-45-4A) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:42.182Z to 2026-09-10T00:51:42.182Z Record version: sha256:aa404afe33ed0ec555ea13b7d81d8bd67a3f47c539bd79344300b19eacbd3b26 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An NFP may elect a policy to report donor-restricted contributions whose restrictions are met in the same reporting period as the revenue is recognized as support within net assets without donor restrictions provided that the NFP has a similar policy for reporting investment gains and income (see paragraph [958-220-45-24](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-24)), reports consistently from period to period, and discloses its accounting policy. ##### [605-958-45-4B](https://asc.understandingaccounting.org/asc/605/958/#605-958-45-4B) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:42.182Z to 2026-09-10T00:51:42.182Z Record version: sha256:7250eab44935bf32409820ab1a1d6f447c355c8304363b71f4d8f4be8c7c1d83 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An NFP may elect the policy described in paragraph [958-605-45-4A](https://asc.understandingaccounting.org/asc/605/958/#605-958-45-4A) for donor-restricted contributions that were initially [conditional contributions](https://asc.understandingaccounting.org/glossary/c/#conditional-contribution "A contribution that contains a donor-imposed condition.") (the condition has been met) without also having to elect it for other donor-restricted contributions or investment gains and income provided that the NFP reports consistently from period to period and discloses its accounting policy. ##### [605-958-45-5](https://asc.understandingaccounting.org/asc/605/958/#605-958-45-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:42.182Z to 2026-09-10T00:51:42.182Z Record version: sha256:28d83176da9e0be984cd0c52db91a6232cccd2da6ef2ddcc2ebed26cebaf2dc1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Receipts 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.") with payments due in future periods shall be reported as donor-restricted support unless explicit donor stipulations or circumstances surrounding the receipt of a promise make clear that the donor intended it to be used to support activities of the current period. It is reasonable to assume that by specifying future payment dates, donors indicate that their gifts are to support activities in each period in which a payment is scheduled. For example, receipts of unconditional promises to give cash in future years generally increase net assets with donor restrictions. ##### [605-958-45-6](https://asc.understandingaccounting.org/asc/605/958/#605-958-45-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:42.182Z to 2026-09-10T00:51:42.182Z Record version: sha256:760077f4da6b643073e2ae8b586cc9f3edae2c1cbda6e45132e521db1415f378 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") when the asset is acquired and placed in service in accordance with paragraph [958-360-45-1A](https://asc.understandingaccounting.org/asc/360/958/#360-958-45-1A), 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](https://asc.understandingaccounting.org/asc/205/958/#205-958-45-12), all NFPs are not permitted to imply a time restriction that expires over the useful life of a long-lived asset.) ##### [605-958-45-7](https://asc.understandingaccounting.org/asc/605/958/#605-958-45-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:42.182Z to 2026-09-10T00:51:42.182Z Record version: sha256:e6a6c1cb9ba4c8fabff640722f8f877407d23ba554beab63605ba0f1d302f6c3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Pursuant to paragraph [958-220-45-3](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-3), [reclassifications of net assets](https://asc.understandingaccounting.org/glossary/r/#reclassification-of-net-assets "Simultaneous increase of one class of net assets and decrease of another. A reclassification of net assets usually results from a donor-imposed restriction (donors include other types of contributors, including makers of certain grants) being satisfied or otherwise lapsing.") for expirations of donor-imposed restrictions are reported separately from other transactions. #### Contributed Nonfinancial Assets ##### [605-958-45-7A](https://asc.understandingaccounting.org/asc/605/958/#605-958-45-7A) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:42.182Z to 2026-09-10T00:51:42.182Z Record version: sha256:d21346fb258644070af11087653ec50412971cf3ae7a9ed1dd8eb08217f869ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An NFP shall present contributed nonfinancial assets as a separate line item in the statement of activities, apart from contributions of cash and other financial assets. See paragraph [958-605-50-1A](https://asc.understandingaccounting.org/asc/605/958/#605-958-50-1A) for disclosure requirements for contributed nonfinancial assets. ### Transfers of Assets to a Not-for-Profit Entity or Charitable Trust That Raises or Holds Contributions for Others #### Interest in a Perpetual Trust ##### [605-958-45-8](https://asc.understandingaccounting.org/asc/605/958/#605-958-45-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:42.182Z to 2026-09-10T00:51:42.182Z Record version: sha256:8cd9e6b7f96af4209dfdbe396c719f23b471e70834928d830cbff05d2fb54365 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A specified beneficiary shall classify the [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.") of a perpetual interest in a trust held by a third party as [donor-restricted support](https://asc.understandingaccounting.org/glossary/d/#donor-restricted-support "Donor-restricted revenues or gains from contributions that increase net assets with donor restrictions (donors include other types of contributors, including makers of certain grants).") that is perpetual in nature, because the trust is similar to a donor-restricted endowment that is perpetual in nature that the [not-for-profit entity](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.") (NFP) does not control, rather than a multiyear [promise 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."). Any distributions from the trust that are free of purpose or time restrictions shall be reported as [net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants)."). Any distributions from the trust that are restricted for a particular time or purpose shall be reported as [net assets with donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-with-donor-restrictions "The part of net assets of a not-for-profit entity that is subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") and released from restrictions when the time has elapsed or the purpose has been met by the NFP. #### Reporting Results of Fundraising Efforts in the Financial Statements ##### [605-958-45-9](https://asc.understandingaccounting.org/asc/605/958/#605-958-45-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:42.182Z to 2026-09-10T00:51:42.182Z Record version: sha256:038f371b94ee04e040a6f9e60bb37f2b853d32c832949a42dd1d2044833143a3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [605-958-45-10](https://asc.understandingaccounting.org/asc/605/958/#605-958-45-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:51:42.182Z to 2026-09-10T00:51:42.182Z Record version: sha256:ac729b90a74e3b5845b3b0e0fb6e43d2e2e201fd8f20be759eab3bd86c2ed28f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/a/#agent "An entity that acts for and on behalf of another. Although the term agency has a legal definition, the term is used broadly to encompass not only legal agency, but also the relationships described in Topic 958. A recipient entity acts as an agent for and on behalf of a donor if it receives 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 a specified beneficiary. A recipient entity acts as an agent for and on behalf of a beneficiary if it agrees to solicit assets from potential donors specifically for the beneficiary's use and to distribute those assets to the beneficiary. A recipient entity also acts as an agent if a beneficiary can compel the recipient entity to make distributions to it or on its behalf."), [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."), 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.") capacity are not shown as revenues. See Example 3 (paragraph [958-220-55-8](https://asc.understandingaccounting.org/asc/220/958/#220-958-55-8)) for an illustration of three possible methods of displaying fundraising efforts in the revenue section of a statement of activities.