# ASC 720-25: Other Expenses — Contributions Made Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/720/25/) 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): 2026-09-10T01:07:47.863Z to 2026-09-10T01:08:09.526Z Record version: sha256:2a644c504815f3eff63d1f9843bac8c79bac511433f83388333d260c73ffc90d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-25: Other Expenses — Contributions Made ### Machine-generated study aids ```json { "summary": "ASC 720-25 governs how a resource provider (any entity) accounts for contributions it makes, including unconditional promises to give. Contributions made are recognized as expenses in the period made, with a corresponding decrease in assets or increase in liabilities, and are measured at the fair value of the assets given (or of the donee liabilities cancelled). Conditional promises are not recognized until the barrier is overcome, using the same conditionality analysis as the contributions received guidance in 958-605.", "key_points": [ "Contributions made are recognized as expenses in the period made and as decreases of assets or increases of liabilities depending on the form of the benefit given; unconditional promises to give cash are recorded as payables and contribution expense (720-25-25-1).", "Whether a contribution or promise to give is conditional is determined under the Contributions Received Subsection of Section 958-605-25, and the same guidance applies to resource providers (720-25-25-1; 720-25-55-2).", "If the fair value of a transferred asset differs from its carrying amount, a gain or loss is recognized on disposition of the asset (720-25-25-2; see 845-10-30-1 through 30-2).", "Contributions made are measured at the fair value of the assets given, or, when made by settling or cancelling a donee's liabilities, at the fair value of the liabilities cancelled (720-25-30-1).", "Unconditional promises to give expected to be paid in less than one year may be measured at net settlement value as a reasonable estimate of fair value (720-25-30-2).", "The Subtopic applies to all entities; NFPs also look to 958-720, and recipients apply the contributions received guidance in 958-605-15-3 through 15-5A (720-25-15-1; 720-25-15-2).", "No disclosures are required by this Subtopic for makers of promises or indications of intention to give because Topics 450 and 470 supply the relevant disclosure requirements (720-25-50-1)." ], "categories": [ "Recognition", "Initial measurement", "Not-for-profit", "Fair value" ], "audience_level": "intermediate", "student_note": "This is the mirror image of contributions received: the donor expenses the gift when made, but only if the promise is unconditional. The common mistake is accruing an expense for a conditional promise (or a mere intention to give) and forgetting to record a gain or loss when donated property's fair value differs from its carrying amount.", "related_topics": [ "958-720", "958-605", "845-10", "450", "470" ], "key_concepts": [ "contributions made", "unconditional promise to give", "conditional contribution", "barrier", "fair value measurement", "net settlement value", "donated inventory", "resource provider" ] } ``` Source downloaded (UTC): 2026-09-10T01:07:47.863Z to 2026-09-10T01:07:47.863Z Record version: sha256:e34e5ddd312be0adf70940c8b63c67faed308ecfffa1da7a0e70056b4c9356e4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-25-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/720/25/#00-status) SEC content: no ##### [720-25-00-1](https://asc.understandingaccounting.org/asc/720/25/#720-25-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:07:47.863Z to 2026-09-10T01:07:47.863Z Record version: sha256:692d97e8c0999f9d3754eca8a17b76a62d89ddb3733bd53c064af08297398681 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Conditional ContributionAddedAccounting Standards Update No. 2018-0806/21/2018
ContributionAmendedAccounting Standards Update No. 2018-0806/21/2018
ContributionAmendedAccounting Standards Update No. 2010-0701/28/2010
Donor-Imposed ConditionAddedAccounting Standards Update No. 2018-0806/21/2018
Not-for-Profit EntityAddedAccounting Standards Update No. 2018-0806/21/2018
720-25-15-1 through 15-3
AmendedAccounting Standards Update No. 2018-0806/21/2018
720-25-15-2AmendedAccounting Standards Update No. 2014-0905/28/2014
720-25-25-1AmendedAccounting Standards Update No. 2018-0806/21/2018
720-25-50-1AmendedAccounting Standards Update No. 2018-0806/21/2018
720-25-55-1AddedAccounting Standards Update No. 2018-0806/21/2018
720-25-55-2AddedAccounting Standards Update No. 2018-0806/21/2018
Source downloaded (UTC): 2026-09-10T01:07:50.162Z to 2026-09-10T01:07:50.162Z Record version: sha256:b8a9dbd798670dce9a3730e7359213e1761e9d870a982257b6a209a494300e93 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-25-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/720/25/#05-overview-and-background) SEC content: no ##### [720-25-05-1](https://asc.understandingaccounting.org/asc/720/25/#720-25-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:07:50.162Z to 2026-09-10T01:07:50.162Z Record version: sha256:5b59162c14fef89083060ee91c060af86af9aeea37dd4b8c7565cac638638e0f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on 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.") made, including [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."). Source downloaded (UTC): 2026-09-10T01:07:53.263Z to 2026-09-10T01:07:53.263Z Record version: sha256:9329aff1304a0d3d8ccc77a4fbdcfa7d869498145f214786d6687748190ceced Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-25-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/720/25/#15-scope-and-scope-exceptions) SEC content: no #### Entities ##### [720-25-15-1](https://asc.understandingaccounting.org/asc/720/25/#720-25-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:07:53.263Z to 2026-09-10T01:07:53.263Z Record version: sha256:332916c3756f86199cce5e1b886bfcda0aabc9eb70adb191ae8602d075714811 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to all entities. Not-for-profit entities (NFP) should see Subtopic 958-720 on other expenses for additional guidance on contributions made. #### Transactions ##### [720-25-15-2](https://asc.understandingaccounting.org/asc/720/25/#720-25-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:07:53.263Z to 2026-09-10T01:07:53.263Z Record version: sha256:38ac0d20ba99a59fb3d50147aef2c0242dd64054d7b227aa9768d37823263dea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic applies to [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.") 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.") made by resource providers. For all entities that receive contributions, see the contributions received guidance in paragraphs [958-605-15-3 through 15-5A](https://asc.understandingaccounting.org/asc/605/958/#605-958-15-3). ##### [720-25-15-3](https://asc.understandingaccounting.org/asc/720/25/#720-25-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:07:53.263Z to 2026-09-10T01:07:53.263Z Record version: sha256:ddc2a12ca31258e4d38b01becdc69ca377d983e8c4d8d6c52a72af8fc1bc0c3f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic does not apply to the transactions and activities specified in paragraph [958-605-15-6](https://asc.understandingaccounting.org/asc/605/958/#605-958-15-6), which is in the Contributions Received Subsection of that Subtopic. 1. a [Subparagraph superseded by Accounting Standards Update No. 2018-08](https://asc.understandingaccounting.org/updates/asu-2018-08/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2018-08](https://asc.understandingaccounting.org/updates/asu-2018-08/). 3. c [Subparagraph superseded by Accounting Standards Update No. 2018-08](https://asc.understandingaccounting.org/updates/asu-2018-08/). 4. d [Subparagraph superseded by Accounting Standards Update No. 2018-08](https://asc.understandingaccounting.org/updates/asu-2018-08/). Source downloaded (UTC): 2026-09-10T01:07:58.617Z to 2026-09-10T01:07:58.617Z Record version: sha256:9b347169b73523afc9ecc83a1a108b31dcf2982de90714315480924e6a1807c1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-25-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/720/25/#25-recognition) SEC content: no ##### [720-25-25-1](https://asc.understandingaccounting.org/asc/720/25/#720-25-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:07:58.617Z to 2026-09-10T01:07:58.617Z Record version: sha256:c548e664c9928d4f3f7d782f6289a6556764d4b1c4b17ba23376096ba5cb8d51 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [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.") made shall be recognized as expenses in the period made and as decreases of assets or increases of liabilities depending on the form of the benefits given. For example, gifts of items from inventory held for sale are recognized as decreases of inventory and contribution expenses, 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.") cash are recognized as payables and contribution expenses. For guidance on determining whether a contribution, including promises to give, is conditional, see the Contributions Received Subsection of Section 958-605-25. ##### [720-25-25-2](https://asc.understandingaccounting.org/asc/720/25/#720-25-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:07:58.617Z to 2026-09-10T01:07:58.617Z Record version: sha256:ac778811f0f3788018b5218c3d04d7aac8b143486b7e8ceb30732bc3552e2bf0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the fair value of an asset transferred differs from its carrying amount, a gain or loss shall be recognized on the disposition of the asset (see paragraphs [845-10-30-1 through 30-2](https://asc.understandingaccounting.org/asc/845/10/#845-10-30-1) ). Source downloaded (UTC): 2026-09-10T01:08:01.722Z to 2026-09-10T01:08:01.722Z Record version: sha256:7a1374d4f147709ffa1e9a8e946eecd610eb547c75dc5bdee46019082ffb5112 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-25-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/720/25/#30-initial-measurement) SEC content: no ##### [720-25-30-1](https://asc.understandingaccounting.org/asc/720/25/#720-25-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:08:01.722Z to 2026-09-10T01:08:01.722Z Record version: sha256:e9747b9e92e1f0193b2dce20236e4b5bb749e0d1d0c883328de8ab85210b911f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [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.") made shall be measured at the fair values of the assets given or, if made in the form of a settlement or cancellation of a donee's liabilities, at the fair value of the liabilities cancelled. ##### [720-25-30-2](https://asc.understandingaccounting.org/asc/720/25/#720-25-30-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:08:01.722Z to 2026-09-10T01:08:01.722Z Record version: sha256:ce33a1e33686ef78aaf2682ac3d5940756710af00f3849158a69c306fb82f739 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [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.") that are expected to be paid in less than one year may be measured at net settlement value because that amount, although not equivalent to the present value of estimated future cash flows, results in a reasonable estimate of fair value. Source downloaded (UTC): 2026-09-10T01:08:05.531Z to 2026-09-10T01:08:05.531Z Record version: sha256:5e03751fc6701ebf1ec1d9a5eef366acd95b16591e4e52c0f719e0615912352f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-25-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/720/25/#50-disclosure) SEC content: no ##### [720-25-50-1](https://asc.understandingaccounting.org/asc/720/25/#720-25-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:08:05.531Z to 2026-09-10T01:08:05.531Z Record version: sha256:104310354456a1ba51858476a6f37223ad66e157abb178d057d80aa364325e88 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic does not require disclosures for makers of promises and indications of intentions to give because Topics 450 and 470 provide the relevant disclosure requirements. Source downloaded (UTC): 2026-09-10T01:08:09.526Z to 2026-09-10T01:08:09.526Z Record version: sha256:64c10b516a4f473d4f49ec097393157c61da8f144ece73eef049bc22e1527bd9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-25-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/720/25/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [720-25-55-1](https://asc.understandingaccounting.org/asc/720/25/#720-25-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:08:09.526Z to 2026-09-10T01:08:09.526Z Record version: sha256:fb07cbfb36c24fd2edf6f5b4440b21ac1fc3ec4deb77584de734963ee381b5ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [958-720-55-1A](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-1A) for a diagram that depicts the process for determining whether 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.") is conditional in addition to distinguishing contributions from exchange transactions. Paragraphs [958-605-55-4 through 55-6](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) provide additional guidance and illustrations on what is a [conditional contribution](https://asc.understandingaccounting.org/glossary/c/#conditional-contribution "A contribution that contains a donor-imposed condition."). ##### [720-25-55-2](https://asc.understandingaccounting.org/asc/720/25/#720-25-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:08:09.526Z to 2026-09-10T01:08:09.526Z Record version: sha256:9e48e38fa1a8841f73b60f609f988deff602fe0572976863a1d8777cac6fbc2f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [958-605-55-17A through 55-17F](https://asc.understandingaccounting.org/asc/605/958/#605-958-55-17A) and [958-605-55-70A through 55-70T](https://asc.understandingaccounting.org/asc/605/958/#605-958-55-70A) for implementation guidance and illustrations on determining whether a contribution is conditional. That guidance applies to contributions made by a resource provider (for example, a corporate foundation, a corporation, or 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.") \[NFP\]) as well as contributions received by a recipient.