# ASC 720-958-25: Other Expenses — Not-for-Profit Entities — 25 Recognition Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/720/958/#25-recognition) 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): 2026-09-10T01:13:10.551Z to 2026-09-10T01:13:10.551Z Record version: sha256:8457f605a1c36127d084a8fc79924adf44946cb2d80afe5aa7c4b99a636a5bb1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-958-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/720/958/#25-recognition) SEC content: no #### Contributions Made ##### [720-958-25-1](https://asc.understandingaccounting.org/asc/720/958/#720-958-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:10.551Z to 2026-09-10T01:13:10.551Z Record version: sha256:1c51ef3ce0d6eb2f205dd4c6fa9c754557c97008572439aa0808f6dadbce85ab 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 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. ##### [720-958-25-2](https://asc.understandingaccounting.org/asc/720/958/#720-958-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:10.551Z to 2026-09-10T01:13:10.551Z Record version: sha256:217e4540adace6a6d1b8dd3808a6155afe92b4fc50d243fc575284426089da63 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2018-08](https://asc.understandingaccounting.org/updates/asu-2018-08/). ##### [720-958-25-3](https://asc.understandingaccounting.org/asc/720/958/#720-958-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:10.551Z to 2026-09-10T01:13:10.551Z Record version: sha256:faa73d8097e2b1dc12e28981e7da927326d01cb48863d24dcfa7d17f66c0e5ce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an NFP makes [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.") or awards grants to other NFPs upon specific requests of others, the NFP may be acting as 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.") in a transfer between the donor and the beneficiary specified by the donor ([agency transaction](https://asc.understandingaccounting.org/glossary/a/#agency-transaction "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.")) (see paragraph [958-605-25-24](https://asc.understandingaccounting.org/asc/605/958/#605-958-25-24)). #### Fundraising Costs ##### [720-958-25-4](https://asc.understandingaccounting.org/asc/720/958/#720-958-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:10.551Z to 2026-09-10T01:13:10.551Z Record version: sha256:33b2a437df17f53452df7065acd97b6b25bc71207f56aa9967e89954852acdd0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs of [fundraising activities](https://asc.understandingaccounting.org/glossary/f/#fundraising-activities "Activities undertaken to induce potential donors to contribute money, securities, services, materials, facilities, other assets, or time."), 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, 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. #### Advertising Costs ##### [720-958-25-5](https://asc.understandingaccounting.org/asc/720/958/#720-958-25-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:10.551Z to 2026-09-10T01:13:10.551Z Record version: sha256:0b731d5c8ca48ff76149824ce6a8d72d8776cff7c1e5b619035fc24165950d57 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An NFP shall comply with the guidance in Subtopic 720-35 applicable to its advertising [activities](https://asc.understandingaccounting.org/glossary/a/#activities "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."). Fundraising by NFPs is not considered advertising and is not within the scope of that Subtopic. ##### [720-958-25-6](https://asc.understandingaccounting.org/asc/720/958/#720-958-25-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:10.551Z to 2026-09-10T01:13:10.551Z Record version: sha256:63128fb2f7dd68d00cdbe10e7d32014b82b2b2e2178c36ba0205837bd00c8275 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/). #### Reductions in Amounts Charged for Goods or Services ##### [720-958-25-7](https://asc.understandingaccounting.org/asc/720/958/#720-958-25-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:10.551Z to 2026-09-10T01:13:10.551Z Record version: sha256:174ba85bb1b14871d69796d7e2a2bf6c2be79d974a3ce740c486be6410f5f878 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/c/#compensation "Reciprocal transfers of cash or other assets in exchange for services performed.") package. ##### [720-958-25-8](https://asc.understandingaccounting.org/asc/720/958/#720-958-25-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:10.551Z to 2026-09-10T01:13:10.551Z Record version: sha256:b1b6b4ffd3c32619d157b7cc1369f7d7a1c42e36dab910a3f5481be167bb1a38 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/). ### Services Received from Personnel of an Affiliate ##### [720-958-25-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-25-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:10.551Z to 2026-09-10T01:13:10.551Z Record version: sha256:6fbc1e6ddaa36c2480f692ae7aef5e776331fb211ad89263ca9e331605a18513 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 recognize all services received from personnel of an [affiliate](https://asc.understandingaccounting.org/glossary/a/#affiliate "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.") 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.