{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/720/958/#25-recognition","source":"FASB Accounting Standards Codification, Basic View","usage":"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.","topic":"720","topic_title":"Other Expenses","subtopic":"720-958","subtopic_title":"Not-for-Profit Entities","section":{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":"Contributions Made","paragraphs":[{"citation":"720-958-25-1","para":"25-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">A <a href=\"/glossary/n/#not-for-profit-entity\" class=\"term\" title=\"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.\"><span>not-for-profit entity</span></a> (NFP) shall comply with the applicable guidance in Subtopic <a altsource=\"GUID-EF0C92CE-0625-4026-BBDB-0B09EFA4F8A8.ditamap\" class=\"ditamap\">720-25</a>, as well as the following guidance. <span class=\"sfragment\" id=\"sfr_3C45E3E3-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">For guidance on promises to give, see Subtopic <a altsource=\"GUID-35F6541B-A9EF-46C4-AEEA-053887DA943D.ditamap\" class=\"ditamap\">958-405</a> on not-for-profit entities—liabilities.</span></span></div></div>","snippet":"A not-for-profit entity (NFP) shall comply with the applicable guidance in Subtopic 720-25, as well as the following guidance. For guidance on promises to give, see Subtopic 958-405 on not-for-profit entities—liabilities…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1c51ef3ce0d6eb2f205dd4c6fa9c754557c97008572439aa0808f6dadbce85ab","downloaded_from":"2026-09-10T01:13:10.551Z","last_downloaded_at":"2026-09-10T01:13:10.551Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478518","source_sha256":"945cf1287168c56022eb8ab10bacd237aa44b7237be1b7d60c1b55ece09f0981"}},{"citation":"720-958-25-2","para":"25-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><a href=\"/updates/asu-2018-08/\" class=\"xref\">Paragraph superseded by Accounting Standards Update No. 2018-08</a>.</div></div>","snippet":"Paragraph superseded by Accounting Standards Update No. 2018-08.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:217e4540adace6a6d1b8dd3808a6155afe92b4fc50d243fc575284426089da63","downloaded_from":"2026-09-10T01:13:10.551Z","last_downloaded_at":"2026-09-10T01:13:10.551Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478518","source_sha256":"945cf1287168c56022eb8ab10bacd237aa44b7237be1b7d60c1b55ece09f0981"}},{"citation":"720-958-25-3","para":"25-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_3C45E539-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If an NFP makes <a href=\"/glossary/c/#contribution\" class=\"term\" title=\"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.\"><span>contributions</span></a> or awards grants to other NFPs upon specific requests of others, the NFP may be acting as an <a href=\"/glossary/a/#agent\" class=\"term\" title=\"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.\"><span>agent</span></a>, <a href=\"/glossary/t/#trustee\" class=\"term\" title=\"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.\"><span>trustee</span></a>, or <a href=\"/glossary/i/#intermediary\" class=\"term\" title=\"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.\"><span>intermediary</span></a> in a transfer between the donor and the beneficiary specified by the donor (<a href=\"/glossary/a/#agency-transaction\" class=\"term\" title=\"A type of exchange transaction in which the reporting entity acts as an agent, trustee, or intermediary for another party that may be a donor or donee.\"><span>agency transaction</span></a>) (see paragraph <a href=\"/asc/605/958/#605-958-25-24\" class=\"xref\">958-605-25-24</a>). </span></span></div></div>","snippet":"If an NFP makes contributions or awards grants to other NFPs upon specific requests of others, the NFP may be acting as an agent, trustee, or intermediary in a transfer between the donor and the beneficiary specified by …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:faa73d8097e2b1dc12e28981e7da927326d01cb48863d24dcfa7d17f66c0e5ce","downloaded_from":"2026-09-10T01:13:10.551Z","last_downloaded_at":"2026-09-10T01:13:10.551Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478518","source_sha256":"945cf1287168c56022eb8ab10bacd237aa44b7237be1b7d60c1b55ece09f0981"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:028f152b5ff90ef73e94648e05d2735d3f4f6c0a95ed33ecd6223c3654d7f8e9","downloaded_from":"2026-09-10T01:13:10.551Z","last_downloaded_at":"2026-09-10T01:13:10.551Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478518","source_sha256":"945cf1287168c56022eb8ab10bacd237aa44b7237be1b7d60c1b55ece09f0981"}},{"block":null,"heading":"Fundraising Costs","paragraphs":[{"citation":"720-958-25-4","para":"25-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_3C45E65B-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Costs of <a href=\"/glossary/f/#fundraising-activities\" class=\"term\" title=\"Activities undertaken to induce potential donors to contribute money, securities, services, materials, facilities, other assets, or time.\"><span>fundraising activities</span></a>, including the cost of special fundraising events, shall be expensed as incurred. </span></span><span class=\"sfragment\" id=\"sfr_3C45E755-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Costs are incurred when the item or service has been received. </span></span><span class=\"sfragment\" id=\"sfr_3C45E8A5-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Fundraising costs incurred in one period, such as those made to obtain bequests, compile a mailing list of prospective contributors, or solicit contributions in a direct-response activity, may result in contributions that will be received in future periods. Those costs also shall be expensed as incurred. </span></span></div></div>","snippet":"Costs of fundraising activities, including the cost of special fundraising events, shall be expensed as incurred. Costs are incurred when the item or service has been received. Fundraising costs incurred in one period, s…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:33b2a437df17f53452df7065acd97b6b25bc71207f56aa9967e89954852acdd0","downloaded_from":"2026-09-10T01:13:10.551Z","last_downloaded_at":"2026-09-10T01:13:10.551Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478518","source_sha256":"945cf1287168c56022eb8ab10bacd237aa44b7237be1b7d60c1b55ece09f0981"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:661066190b5822e4895fdf1e7333d197e6d559b511b79c8268472635d1a1a568","downloaded_from":"2026-09-10T01:13:10.551Z","last_downloaded_at":"2026-09-10T01:13:10.551Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478518","source_sha256":"945cf1287168c56022eb8ab10bacd237aa44b7237be1b7d60c1b55ece09f0981"}},{"block":null,"heading":"Advertising Costs","paragraphs":[{"citation":"720-958-25-5","para":"25-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_3C45E9D1-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An NFP shall comply with the guidance in Subtopic <a altsource=\"GUID-3B284602-01F1-41D9-9E56-2A6F7BDBCF52.ditamap\" class=\"ditamap\">720-35</a> applicable to its advertising <a href=\"/glossary/a/#activities\" class=\"term\" title=\"Activities are efforts to accomplish specific objectives. Some activities include producing and distributing materials. For example, if a not-for-profit entity (NFP) undertakes a mass mailing that includes a letter and a pamphlet, producing and distributing the letter and pamphlet are part of the activity. Other activities may include no materials, such as an annual dinner or a radio commercial.\"><span>activities</span></a>. </span></span><span class=\"sfragment\" id=\"sfr_3C45EACC-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Fundraising by NFPs is not considered advertising and is not within the scope of that Subtopic. </span></span></div></div>","snippet":"An NFP shall comply with the guidance in Subtopic 720-35 applicable to its advertising activities. Fundraising by NFPs is not considered advertising and is not within the scope of that Subtopic.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0b731d5c8ca48ff76149824ce6a8d72d8776cff7c1e5b619035fc24165950d57","downloaded_from":"2026-09-10T01:13:10.551Z","last_downloaded_at":"2026-09-10T01:13:10.551Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478518","source_sha256":"945cf1287168c56022eb8ab10bacd237aa44b7237be1b7d60c1b55ece09f0981"}},{"citation":"720-958-25-6","para":"25-6","html":"<div class=\"asc-body\"><div class=\"norm-text\"><a href=\"/updates/asu-2014-09/\" class=\"xref\">Paragraph superseded by Accounting Standards Update No. 2014-09</a>.</div></div>","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:63128fb2f7dd68d00cdbe10e7d32014b82b2b2e2178c36ba0205837bd00c8275","downloaded_from":"2026-09-10T01:13:10.551Z","last_downloaded_at":"2026-09-10T01:13:10.551Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478518","source_sha256":"945cf1287168c56022eb8ab10bacd237aa44b7237be1b7d60c1b55ece09f0981"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:286f05759aa288c9e406d2968a29eecf11184b55d98348d98d5093f8ba5ddeb3","downloaded_from":"2026-09-10T01:13:10.551Z","last_downloaded_at":"2026-09-10T01:13:10.551Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478518","source_sha256":"945cf1287168c56022eb8ab10bacd237aa44b7237be1b7d60c1b55ece09f0981"}},{"block":null,"heading":"Reductions in Amounts Charged for Goods or Services","paragraphs":[{"citation":"720-958-25-7","para":"25-7","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_3C45EBD9-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Reductions in amounts charged for goods or services provided by an NFP shall be reported as expenses if such reductions are given in exchange for goods or services provided to the NFP, such as part of a <a href=\"/glossary/c/#compensation\" class=\"term\" title=\"Reciprocal transfers of cash or other assets in exchange for services performed.\"><span>compensation</span></a> package. </span></span></div></div>","snippet":"Reductions in amounts charged for goods or services provided by an NFP shall be reported as expenses if such reductions are given in exchange for goods or services provided to the NFP, such as part of a compensation pack…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:174ba85bb1b14871d69796d7e2a2bf6c2be79d974a3ce740c486be6410f5f878","downloaded_from":"2026-09-10T01:13:10.551Z","last_downloaded_at":"2026-09-10T01:13:10.551Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478518","source_sha256":"945cf1287168c56022eb8ab10bacd237aa44b7237be1b7d60c1b55ece09f0981"}},{"citation":"720-958-25-8","para":"25-8","html":"<div class=\"asc-body\"><div class=\"norm-text\"><a href=\"/updates/asu-2014-09/\" class=\"xref\">Paragraph superseded by Accounting Standards Update No. 2014-09</a>.</div></div>","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b1b6b4ffd3c32619d157b7cc1369f7d7a1c42e36dab910a3f5481be167bb1a38","downloaded_from":"2026-09-10T01:13:10.551Z","last_downloaded_at":"2026-09-10T01:13:10.551Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478518","source_sha256":"945cf1287168c56022eb8ab10bacd237aa44b7237be1b7d60c1b55ece09f0981"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:08d8aec4042bb3320aa815cd05026b82fe4ea5ee885a4c60d612253c28982101","downloaded_from":"2026-09-10T01:13:10.551Z","last_downloaded_at":"2026-09-10T01:13:10.551Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478518","source_sha256":"945cf1287168c56022eb8ab10bacd237aa44b7237be1b7d60c1b55ece09f0981"}},{"block":"Services Received from Personnel of an Affiliate","heading":null,"paragraphs":[{"citation":"720-958-25-9","para":"25-9","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_3C52F9D9-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A <a href=\"/glossary/n/#not-for-profit-entity\" class=\"term\" title=\"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.\"><span>not-for-profit entity</span></a> (NFP) shall recognize all services received from personnel of an <a href=\"/glossary/a/#affiliate\" class=\"term\" title=\"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.\"><span>affiliate</span></a> that directly benefit the recipient NFP (that is, are similar to personnel directly engaged by the recipient NFP). For example, that would include services performed by personnel of an affiliate for and under the direction of the recipient NFP and shared services. Shared services generally refers to services provided by a centralized function of one or more individuals within the affiliate group that the recipient NFP would otherwise typically need to purchase or have donated, if not provided by those personnel. </span></span></div></div>","snippet":"A not-for-profit entity (NFP) shall recognize all services received from personnel of an affiliate that directly benefit the recipient NFP (that is, are similar to personnel directly engaged by the recipient NFP). For ex…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6fbc1e6ddaa36c2480f692ae7aef5e776331fb211ad89263ca9e331605a18513","downloaded_from":"2026-09-10T01:13:10.551Z","last_downloaded_at":"2026-09-10T01:13:10.551Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478518","source_sha256":"945cf1287168c56022eb8ab10bacd237aa44b7237be1b7d60c1b55ece09f0981"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:076116c1d57c0901f6c8f0c47a6c06c5915d0e53a6b948cc87165a13d01496a1","downloaded_from":"2026-09-10T01:13:10.551Z","last_downloaded_at":"2026-09-10T01:13:10.551Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478518","source_sha256":"945cf1287168c56022eb8ab10bacd237aa44b7237be1b7d60c1b55ece09f0981"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8457f605a1c36127d084a8fc79924adf44946cb2d80afe5aa7c4b99a636a5bb1","downloaded_from":"2026-09-10T01:13:10.551Z","last_downloaded_at":"2026-09-10T01:13:10.551Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478518","source_sha256":"945cf1287168c56022eb8ab10bacd237aa44b7237be1b7d60c1b55ece09f0981"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8457f605a1c36127d084a8fc79924adf44946cb2d80afe5aa7c4b99a636a5bb1","downloaded_from":"2026-09-10T01:13:10.551Z","last_downloaded_at":"2026-09-10T01:13:10.551Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478518","source_sha256":"945cf1287168c56022eb8ab10bacd237aa44b7237be1b7d60c1b55ece09f0981"}}