# ASC 720-958-55: Other Expenses — Not-for-Profit Entities — 55 Implementation Guidance and Illustrations Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/720/958/#55-implementation-guidance-and-illustrations) 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): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:cbaf34fc9399d64f461d46ca724dd5b4227d0f71baf15cb0305c36e677fe037d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-958-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/720/958/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [720-958-55-1A](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-1A) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:192903867e24a9c85b12d475c7e8ced89b37699a1073b8f5a2d9b7a9ec8af083 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following diagram illustrates the process for determining whether a transfer of assets to a recipient is 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.") or an exchange transaction and how to determine whether a contribution is conditional. Further guidance on what is an exchange transaction or a contribution as well as guidance on what is a [conditional contribution](https://asc.understandingaccounting.org/glossary/c/#conditional-contribution "A contribution that contains a donor-imposed condition.") can be found in Subtopic 958-605 on not-for-profit entities—revenue recognition. - ![](https://asc.understandingaccounting.org/asc-img/GUID-3831DC44-E925-4BD3-BF7E-BB0243B8A31F-low.gif) Is the transaction one in which each party directly receives commensurate value? It is an exchange transaction. Apply Topic 720 on other expenses or other applicable Topics. It is a nonreciprocal transaction. Not-for-profit entities should apply this Subtopic. All other entities should apply Subtopic 720-25 on contribution expenses. Is there a donor-imposed condition or conditions present (a barrier and a right of return/right of release must exist)? It is conditional. Recognize expense when the condition or conditions are met. Meeting of Condition. It is unconditional. Recognize expense. See paragraph 958-605-55-6 for guidance about transactions that are in part an exchange and in part a contribution. ### Accounting for Costs of Activities That Include Fundraising ##### [720-958-55-1](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:bc7e2685fa4032979de1bb6045709af614ae275a99d8431582bd845732dbc294 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/). #### Implementation Guidance ##### [720-958-55-1B](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-1B) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:60c380467c22b8d3336255aa9fdb91953686831ec95bbf56dd54b10f2f6631c0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subsection, which is an integral part of the requirements of the Accounting for Costs of Activities That Include Fundraising Subsections of this Subtopic, provides general guidance to be used in the classification and allocation of costs incurred in [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.") that include fundraising. ##### [720-958-55-2](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:f062ca2110d58610829ce331684eb188fb37bf275e138872670219d5e8ce6620 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following flowchart summarizes the guidance in paragraphs [958-720-45-29 through 45-53](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-29) and is not intended as a substitute for the guidance therein. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-F156DE18-EB50-4B2B-B9DA-139083AB72D0-low.gif) ##### [720-958-55-3](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:591a0c388e760009adf5e14f286dec101768d6b734f054c638643725d3864f2b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following provides implementation guidance related to paragraph [958-720-45-35](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-35). ##### [720-958-55-4](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:76952f51a92a5c66da8308b8e7a443409267d3d16081c262d619ec29d18fec3d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following are examples of activities that call for specific action by the audience that will help accomplish the [not-for-profit entity's](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's) mission: 1. a An NFP's mission includes improving individuals' physical health. For that NFP, motivating the audience to take specific action that will improve their physical health is a call for specific action by the audience that will help accomplish the NFP's mission. An example of an activity that motivates the audience to take specific action that will improve their physical health is sending the audience a brochure that urges them to stop smoking and suggests specific methods, instructions, references, and resources that may be used to stop smoking. 2. b An NFP's mission includes educating individuals in areas other than the [causes](https://asc.understandingaccounting.org/glossary/c/#causes "The causes, conditions, needs, or concerns that a not-for-profit entity's (NFP's) programs are designed to address."), conditions, needs, or concerns that the NFP's programs are designed to address (referred to as causes). For that NFP, educating the audience in areas other than causes or motivating the audience to otherwise engage in specific activities that will educate them in areas other than causes is a call for specific action by the audience that will help accomplish the NFP's mission. Examples of NFPs whose mission includes educating individuals in areas other than causes are universities and possibly other NFPs. An example of an activity motivating individuals to engage in education in areas other than causes is a university inviting individuals to attend a lecture or class in which the individuals will learn about the solar system. 3. c Some educational activities that might otherwise be considered as educating the audience about causes may implicitly call for specific action by the audience that will help accomplish the NFP's mission. For example, activities that educate the audience about environmental problems caused by not recycling implicitly call for that audience to increase recycling. If the need for and benefits of the specific action are clearly evident from the educational message, the message is considered to include an implicit call for specific action by the audience that will help accomplish the NFP's mission. ##### [720-958-55-5](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:7df17ab75102508dd62c94471f946c59530d765f1b67146dd08f87c4663f15c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following are examples of activities that fail to call for a specific action by the audience that will help accomplish the NFP's mission: 1. a Educating the audience about causes or motivating the audience to otherwise engage in specific activities that will educate them about causes is not a call for specific action by the audience that will help accomplish the NFP's mission. Such activities are considered in support of fundraising. 2. b Asking the audience to make [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.") is not a call for specific action by the audience that will help accomplish the NFP's mission. ##### [720-958-55-6](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:d051d9a803a1c147ac93f7ea26f50666b8d3e0455a717f170bf9b5cd7ad827c7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following provides implementation guidance related to paragraph [958-720-45-47](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-47). ##### [720-958-55-7](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:9700849bfa6d5c5ea41c84f0d7dbad4b5de7ea02b6aafbbc41b51e472068c883 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following are examples of indicators that provide evidence that the purpose criterion may be met: 1. a Measuring program results and accomplishments of the activity. The facts may indicate that the purpose criterion is met if the NFP measures program results and accomplishments of the activity (other than measuring the extent to which the public was educated about causes). 2. b [Medium](https://asc.understandingaccounting.org/glossary/m/#medium "A means of mass communication, such as direct mail, direct response advertising, or television."). The facts may indicate that the purpose criterion is met if the program component of the [joint activity](https://asc.understandingaccounting.org/glossary/j/#joint-activity "An activity that is part of the fundraising function and has elements of one or more other functions, such as program, management and general, membership development, or any other functional category used by the entity.") calls for specific action by the recipient that will help accomplish the NFP's mission and if the NFP conducts the program component without a significant fundraising component in a different medium. Also, the facts may indicate that the purpose criterion is met if the NFP conducts the management and general component of the joint activity without a significant fundraising component in a different medium. ##### [720-958-55-8](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:eaf3f15163027bb2e2847115b8616232822f76e8277eaeb808dc934f16cd9be7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following are examples of indicators that provide evidence that the purpose criterion may not be met: 1. a Evaluation. The facts may indicate that the purpose criterion is not met if the evaluation of any party's performance of any component of the discrete joint activity varies based on contributions raised for that discrete joint activity. 2. b [Compensation](https://asc.understandingaccounting.org/glossary/c/#compensation "Reciprocal transfers of cash or other assets in exchange for services performed."). The facts may indicate that the purpose criterion is not met if some, but less than a majority, of compensation or [fees](https://asc.understandingaccounting.org/glossary/f/#fees "See Compensation.") for any party's performance of any component of the discrete joint activity varies based on contributions raised for that discrete joint activity. ##### [720-958-55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:b2c291503c48fb7f04384a8284cfc00f34e3e16d9c828ed80d5e3e9e49b4b426 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following are examples of indicators that provide evidence that the purpose criterion may be either met or not met: 1. a Evaluation of measured results of the activity. The NFP may have a process to evaluate measured program results and accomplishments of the activity (other than measuring the extent to which the public was educated about causes). If the NFP has such a process, in evaluating the effectiveness of the joint activity, the NFP may place significantly greater weight on the activity's effectiveness in accomplishing program goals or may place significantly greater weight on the activity's effectiveness in raising contributions. The former may indicate that the purpose criterion is met. The latter may indicate that the purpose criterion is not met. 2. b Qualifications. The following qualifications and duties of those performing the joint activity should be considered: 1. 1 If a third party, such as a consultant or contractor, performs part or all of the joint activity, such as producing brochures or making telephone calls, the third party's experience and the range of services provided to the NFP should be considered in determining whether the third party is performing fundraising, program (other than educating the public about causes), or [management and general activities](https://asc.understandingaccounting.org/glossary/m/#management-and-general-activities "Supporting activities that are not directly identifiable with one or more program, fundraising, or membership-development activities.") on behalf of the NFP. 2. 2 If the NFP's employees perform part or all of the joint activity, the full range of their job duties should be considered in determining whether those employees are performing fundraising, program (other than educating the public about causes), or management and general activities on behalf of the NFP. For example, employees who are not members of the fundraising department and employees who are members of the fundraising department but who perform non-[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.") are more likely to perform activities that include program or management and general functions than are employees who otherwise devote significant time to fundraising. 3. c Tangible evidence of intent. Tangible evidence indicating the intended purpose of the joint activity should be considered. Examples of such tangible evidence include the following: 1. 1 The NFP's written mission statement, as stated in its fundraising activities, bylaws, or annual report 2. 2 Minutes of board of directors, committee, or other meetings 3. 3 Restrictions imposed by donors (who are not related parties) on gifts intended to fund the joint activity 4. 4 Long-range plans or operating policies 5. 5 Written instructions to other entities, such as script writers, consultants, or list brokers, concerning the purpose of the joint activity, audience to be targeted, or method of conducting the joint activity 6. 6 Internal management memoranda. ##### [720-958-55-10](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-10) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:bc3a361f5beb545e0f3d510d0c506d9636adde9382dffd98af8916a7d3ed0e78 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following provides implementation guidance related to paragraphs [958-720-45-48 through 45-49](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-48) . ##### [720-958-55-11](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-11) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:6e41e925a1c78981d25e86db7c47d27cb96b70cfbd0f901059e1de5d413efbb3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some NFPs conduct joint activities that are special events, such as symposia, dinners, dances, and theater parties, in which the attendee receives a direct benefit (for example, a meal or theater ticket) and for which the admission price includes a contribution. For example, it may cost $500 to attend a dinner with a [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") of $50. In that case, the audience is required to make a $450 contribution in order to attend. ##### [720-958-55-12](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-12) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:cf81a083d6551e489bf77bf329c1651dfcd45a80f579daedf48d0d8bb8d45cbd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In circumstances in which the audience is required to make a contribution to participate in a joint activity, such as attending a special event, the audience's ability or likelihood to contribute is a significant factor in its selection. Therefore, in circumstances in which the audience is required to make a contribution to participate in a joint activity, the extent to which the audience is selected for the program or management and general reasons in paragraph [958-720-45-49](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-49) must be overwhelmingly significant in order to rebut the presumption that the audience criterion is not met. ##### [720-958-55-13](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-13) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:3396f61a6fb0fe56c76aaa80a06a32ade271b4a7b21cac4b08635e3a739c0f35 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The source of the names and the characteristics of the audience should be considered in determining the reason for selecting the audience. Some NFPs use lists compiled by others to reach new audiences. The source of such lists may indicate the purpose or purposes for which they were selected. For example, lists acquired from entities with similar or related programs are more likely to meet the audience criterion than are lists acquired from entities with dissimilar or unrelated programs. Also, the characteristics of those on the lists may indicate the purpose or purposes for which they were selected. For example, a list based on a consumer profile of those who buy environmentally friendly products may be useful to an NFP whose mission addresses environmental concerns and could therefore indicate that the audience was selected for its ability to take action to assist the NFP in meeting program goals. However, a list based on net worth would indicate that the audience was selected based on its ability or likelihood to contribute, unless there was a correlation between net worth and the program or management and general components of the activity. ##### [720-958-55-14](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-14) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:09f3dfa72ee0cceae28d96611d8bba064b696f6c3ec9599c4cc05e2a26f713e0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some audiences may be selected because they have an interest in or affinity to the program. For example, homeowners may have an interest in the homeless because they are sympathetic to the plight of the homeless. Nevertheless, including homeowners in the audience of a program activity to provide services to the homeless would not meet the audience criterion, because they do not have a need or reasonable potential for use of services to the homeless. ##### [720-958-55-15](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-15) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:b4b6ad686edf04238c2ed527603be8db5d35f2633422370883f51ccec4067cf2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [958-720-45-49(c)](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-49) provides that the audience criterion is met if the NFP is required to direct the management and general component of the joint activity to the particular audience or the audience has reasonable potential for use of the management and general component. An example of a joint activity in which the audience is selected because the NFP is required to direct the management and general component of the joint activity to the particular audience is an activity in which the NFP sends a written acknowledgment or other information to comply with requirements of the Internal Revenue Service (IRS) to prior donors and includes a request for contributions. An example of a joint activity in which the audience is selected because the audience has reasonable potential for use of the management and general component is an activity in which the NFP sends its annual report to prior donors and includes a request for contributions. ##### [720-958-55-16](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-16) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:897bbc27b3d1c7703a1a25d3b44f11300a5802a26cf3037d5444cd7f6d5055a2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following provides implementation guidance related to paragraphs [958-720-45-50 through 45-53](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-50) . ##### [720-958-55-17](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-17) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:96103b234ec2adaa35cb3652ca43c55a850ec8632a68e82e1e29313f3aed92eb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [958-720-45-50(a)](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-50) provides that, to meet the content criterion, program activities should call for specific action by the recipient that will help accomplish the NFP's mission. As discussed in paragraph [958-720-45-35](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-35), the action should benefit the recipient or society. Examples of actions that benefit the recipient (such as by improving the recipient's physical, mental, emotional, or spiritual health and well-being) or society (such as by addressing societal problems) include the following: 1. a Actions that benefit the recipient include the following: 1. 1 Stop smoking. Specific methods, instructions, references, and resources should be suggested. 2. 2 Do not use alcohol or drugs. Specific methods, instructions, references, and resources should be suggested. 2. b Actions that benefit society include the following: 1. 1 Write or call. The party to communicate with and the subject matter to be communicated should be specified. 2. 2 Complete and return the enclosed questionnaire. The results of the questionnaire should help the NFP achieve its mission. For example, if the NFP discards the questionnaire, it does not help the NFP achieve its mission. 3. 3 Boycott. The particular product or entity to be boycotted should be specified. ##### [720-958-55-18](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-18) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:4a1d899b29cf65d602e931e3b84619749a23ddcd7a26282e4dcb4eb3c64e22d1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [958-720-45-50(b)](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-50) provides that to meet the content criterion, management and general functions are required to fulfill one or more of the NFP's management and general responsibilities through a component of the joint activity. Some states or other regulatory bodies require that certain disclosures be included when soliciting contributions. Paragraph [958-720-45-53](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-53) provides that for purposes of applying this guidance, communications that include such required disclosures are considered fundraising activities and are not considered management and general activities. Some examples of such disclosures include the following: - Information filed with the attorney general concerning this charitable solicitation may be obtained from the attorney general of \[the state\] by calling 123-4567. Registration with the attorney general does not imply endorsement. - A copy of the registration and financial information may be obtained from the Division of Consumer Services by calling toll-free, within \[the state\], 1-800-123-4567. Registration does not imply endorsement, approval, or recommendation by \[the state\]. - Information about the cost of postage and copying, and other information required to be filed under \[the state\] law, can be obtained by calling 123-4567. - The entity's latest annual report can be obtained by calling 123-4567. ##### [720-958-55-19](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-19) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:ebcc9b0f5816b5de6b185a930457274e887761ca7165385b85cd875bd976a04c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. NFPs that do not use the functional classifications of fundraising, program, and management and general shall apply the guidance in the Accounting for Costs of Activities that Include Fundraising Subsections of this Subtopic, for purposes of accounting for joint activities, using their reporting model. ##### [720-958-55-20](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-20) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:c5b2fcb895660d0180e24c5b431937b4771461f073db20f828c12c2a8a694e83 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some NFPs may conduct [membership development activities](https://asc.understandingaccounting.org/glossary/m/#membership-development-activities "Membership development activities include soliciting for prospective members and membership dues, membership relations, and similar activities. However, if there are no significant benefits or duties connected with membership, the substance of membership development activities may, in fact, be fundraising."). If there are no significant benefits or duties connected with membership, the substance of the membership development activities may, in fact, be fundraising. In such circumstances, the costs of those activities shall be charged to fundraising. To the extent that member benefits are received, membership is an exchange transaction. ##### [720-958-55-21](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-21) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:d8fa60c458d8937a0ee39e12f1d90c4fd911113b69e1466c22142dd3dd39ee92 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In circumstances in which membership development is in part soliciting revenues from exchange transactions and in part soliciting contributions and the purpose, audience, and content of the activity are appropriate for achieving membership development, [joint costs](https://asc.understandingaccounting.org/glossary/j/#joint-costs "The costs of conducting joint activities that are not identifiable with a particular component of the activity. For example, the cost of postage for a letter that includes both fundraising and program components is a joint cost. Joint costs may include the following costs: Salaries Contract labor Consultants Professional fees Paper Printing Postage Event advertising Telephones Airtime Facility rentals.") should be allocated between fundraising and the exchange transaction. ##### [720-958-55-22](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-22) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:d7844e2bfc71baa12e0a0684fa06f41f588b97186d51bf21166025b768322c25 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Most transactions in which a student attends a lecture or class are exchange transactions and are not joint activities. Such transactions are joint activities only if the activity includes fundraising. ##### [720-958-55-23](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-23) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:e6f5120086260c89f6794769ce2580e6de25d03229559d22d230b48988c3ed07 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some NFPs have missions that include educating the public (students) in areas other than causes. Paragraph [958-720-55-4](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-4) provides that, for those entities, educating the audience in areas other than causes or motivating the audience to engage in specific activities, such as attending a lecture or class, that will educate them in areas other than causes is considered a call for specific action by the recipients that will help accomplish the NFP's mission. Educating the audience about causes or motivating the audience to engage in specific activities that will educate them about causes without educating them in other subjects is not considered a call for specific action by the audience that will help accomplish the NFP's mission. ##### [720-958-55-24](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-24) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:64877019061afa80d2b8d4175367beb240c85e1b9bf53ddc636e99253c50caa7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An example of a lecture or class that will educate students in an area other than causes is a lecture on the nesting habits of the bald eagle, given by the Save the Bald Eagle Society, an NFP whose mission is to save the bald eagle from extinction and educate the public about the bald eagle. An example of a lecture or class that will address particular causes is a lecture by the Bald Eagle Society on the potential extinction of bald eagles and the need to raise contributions to prevent their extinction. For purposes of applying this guidance, motivating the audience to attend a lecture on the nesting habits of the bald eagle is a call for specific action that will help accomplish the NFP's mission. If the lecture merely addresses the potential extinction of bald eagles and the need to raise contributions to prevent their extinction, without addressing the nesting habits of the bald eagle, motivating the audience to attend the lecture is not considered a call for specific action by the recipient that will help accomplish the NFP's mission. ##### [720-958-55-25](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-25) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:2ba483ac6f3ea9ed822521123164a8e8655faf958c5b41fa6c381b3a93d62b7a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [958-720-55-26 through 55-31](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-26) provide some commonly used cost allocation methods. ##### [720-958-55-26](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-26) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:9d2bb9d5fc9af778a89ebaafd7ef0d8f5a4f8da8ee38b92f9dd456fa4ab59123 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Joint costs are allocated to materials and activities in proportion to the number of units of output that can be attributed to each of the materials and activities. Examples of units of output are lines, square inches, and physical content measures. This method assumes that the benefits received by the fundraising, program, or management and general component of the materials or activity from the joint costs incurred are directly proportional to the lines, square inches, or other physical output measures attributed to each component of the activity. This method may result in an unreasonable allocation of joint costs if the units of output (for example, line counts) do not reflect the degree to which costs are incurred for the joint activity. Use of the physical units method may also result in an unreasonable allocation if the physical units cannot be clearly ascribed to fundraising, program, or management and general. For example, direct mail and telephone solicitations sometimes include content that is not identifiable with fundraising, program, or management and general; or the physical units of such content are inseparable. ##### [720-958-55-27](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-27) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:9ea4c7918eb13727b628c12825ecc535b0cedf0cec4c8b9e9d14a85143061c82 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, assume a direct mail campaign is used to conduct programs of the NFP and to solicit contributions to support the NFP and its programs. Further, assume that the appeal meets the criteria for allocation of joint costs to more than one function. The letter and reply card include a total of 100 lines; 45 lines pertain to program because they include a call for action by the recipient that will help accomplish the NFP's mission, while 55 lines pertain to the fundraising appeal. Accordingly, 45 percent of the costs are allocated to program and 55 percent to fundraising. ##### [720-958-55-28](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-28) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:051cfaeba9abcbf13c78a4ec82fd8c55d9a6d281bc87f2696cbe4023e45d5fb9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Joint costs are allocated to each of the components on the basis of their respective direct costs. Direct costs are those costs that are incurred in connection with the multipurpose materials or activity and that are specifically identifiable with a function (program, fundraising, or management and general). This method may result in an unreasonable allocation of joint costs if the joint costs of the materials and activity are not incurred in approximately the same proportion and for the same reasons as the direct costs of the materials and activity. For example, if a relatively costly booklet informing the reader about the NFP's mission (including a call for action by the recipient that will help accomplish the NFP's mission) is included with a relatively inexpensive fundraising letter, the allocation of joint costs based on the cost of these pieces may be unreasonable, particularly if the booklet and letter weigh approximately the same and therefore contribute equally to the postage costs. ##### [720-958-55-29](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-29) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:c0cb92ebc611c04b4d60add767ed3874bdf65973d8ce931ddb4dc5b3166af114 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, the costs of a direct mail campaign that can be specifically identified with [program services](https://asc.understandingaccounting.org/glossary/p/#program-services "The activities that result in goods and services being distributed to beneficiaries, customers, or members that fulfill the purposes or mission for which the not-for-profit entity (NFP) exists. Those services are the major purpose for and the major output of the NFP and often relate to several major programs.") are the costs of separate program materials and a postcard that calls for specific action by the recipient that will help accomplish the NFP's mission. They total $20,000. The direct costs of the fundraising component of the direct mail campaign consist of the costs to develop and produce the fundraising letter. They total $80,000. Joint costs associated with the direct mail campaign total $40,000 and would be allocated as follows under the relative direct cost method: 1. a Program services: $20,000/$100,000 x $40,000 = $8,000 2. b Fundraising: $80,000/$100,000 x $40,000 = $32,000. ##### [720-958-55-30](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-30) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:9a64344b7c468f95d95d7ff1e49617a90e7680996b0179dec67dd547850e4b95 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Joint costs are allocated to each component of the activity based on a ratio that uses estimates of costs of items included in joint costs that would have been incurred had the components been conducted independently. The numerator of the ratio is the cost (of items included in joint costs) of conducting a single component independently. The denominator is the cost (of items included in joint costs) of conducting all components independently. This method assumes that efforts for each component in the standalone situation are proportionate to the efforts actually undertaken in the joint cost situation. This method may result in an unreasonable allocation because it ignores the effect of each function, which is performed jointly with other functions, on other such functions. For example, the programmatic impact of a direct mail campaign or a telemarketing phone message may be significantly lessened when performed in conjunction with a fundraising appeal. ##### [720-958-55-31](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-31) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:577a43a519c33a1cb27bdab7a30777a9da6b25d9327a866080e6e64b2dfcf8d0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, assume that the joint costs associated with a direct mail campaign including both program and fundraising components are the costs of stationery, postage, and envelopes at a total of $100,000. The costs of stationery, postage, and envelopes to produce and distribute each component separately would have been $90,000 for the program component and $70,000 for the fundraising component. Under the standalone joint cost allocation method, the $100,000 in joint costs would be allocated as follows: 1. a Program services: $90,000/$160,000 x $100,000 = $56,250 2. b Fundraising: $70,000/$160,000 x $100,000 = $43,750. ##### [720-958-55-32](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-32) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:6e0dac23b604b7c6fa62a6f2b5514a4a983242a57d0a800eeb12105f143d2c3d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some costs, such as utilities, rent, and insurance, commonly referred to as indirect costs, may be joint costs. For example, the telephone bill for a department that, among other things, prepares materials that include both fundraising and program components may commonly be referred to as an indirect cost. Such telephone bills may also be joint costs. ##### [720-958-55-33](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-33) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:376d87a4f23bbfb83af1ec3c111fcf1bdbea81c7514d98581b4efb22ecc11d39 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. However, for some NFPs, it is impracticable to measure and allocate the portion of the costs that are joint costs. Considerations about which joint costs should be measured and allocated, such as considerations about materiality and the costs and benefits of developing and providing the information, are the same as considerations about cost allocations in other circumstances. ##### [720-958-55-34](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-34) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:30cbbaf3f28426713f4dd63dbe891353d4c3ba86476609aa2d333d2d9a62a2d5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose for which costs other than joint costs are incurred may be fundraising, program, or management and general, depending on the context in which they are used in the activity undertaken. For example, a program-related pamphlet may be sent to an audience in need of the program. In that context, the pamphlet is used for program purposes. However, in order to demonstrate to potential donors that the NFP's programs are worthwhile, that same pamphlet may be sent to an audience that is likely to contribute, but that has no need or reasonable potential for use of the program. In that context, the pamphlet is used for fundraising. The classification of the cost of the pamphlets depends upon the use of the pamphlets and the application of the criteria in paragraph [958-720-45-29](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-29), as follows: 1. a If some program-related pamphlets are used in program activities that include no fundraising, the cost of the pamphlets used in those separate program activities that include no fundraising should be charged to program. 2. b If some pamphlets are included in a joint activity and the criteria in paragraph [958-720-45-29](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-29) are met, the costs of materials that accomplish program goals and that are unrelated to fundraising, including the costs of the program-related pamphlet, should be charged to program, while joint costs, such as postage, should be allocated between fundraising and program. 3. c If the program-related pamphlet is used in fundraising packets and the criteria in paragraph [958-720-45-29](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-29) are not met, the costs of the pamphlets used in the fundraising packets, as well as the joint costs, should be charged to fundraising. #### Illustrations ##### [720-958-55-35](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-35) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:535c153419c5bd2e5515423fdd27eafd387e2837fe391ef4754fdfee94960e3c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [958-720-45-29](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-29) provides that all [costs of joint activities](https://asc.understandingaccounting.org/glossary/c/#costs-of-joint-activities "Costs incurred for a joint activity. Costs of joint activities may include joint costs and costs other than joint costs. Costs other than joint costs are costs that are identifiable with a particular function, such as fundraising, program, management and general, and cost of sales. For example, some costs incurred for printing, paper, professional fees, and salaries to produce donor cards are not joint costs, although they may be incurred in connection with conducting joint activities."), except for costs of goods or services provided in exchange transactions that are part of joint activities, such as costs of direct donor benefits of a special event (for example, a meal), shall be charged to fundraising if any of the criteria of purpose, audience, or content are not met. Accordingly, if one or more criteria are not met, the other criteria need not be considered. The following Examples provide conclusions about whether each of the criteria would be met in circumstances in which one or more criteria are not met in order to provide further guidance. ##### [720-958-55-36](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-36) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:85bb3cc76a1da278c12017c90b4f454f5adb0826796b00d9fab59b2fa8a181b7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [958-720-45-33 through 45-53](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-33) and [958-720-55-6 through 55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) . ##### [720-958-55-37](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-37) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:d7a2cb1415a96b8589fb619752a3d669c25653cd791975cfe58a5170c84c9540 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-Profit Entity A's (NFP A's) mission is to prevent drug abuse. NFP A's annual report states that one of its objectives in fulfilling that mission is to assist parents in preventing their children from abusing drugs. ##### [720-958-55-38](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-38) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:101f28ed8e86d65bfd828f8b85d9a33ddfbcdeaf522c643e7b2b25e617b8053f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. NFP A mails informational materials to the parents of all junior high school students explaining the prevalence and dangers of drug abuse. The materials encourage parents to counsel children about the dangers of drug abuse and inform them about how to detect drug abuse. The mailing includes a request for contributions. NFP A conducts other activities informing the public about the dangers of drug abuse and encouraging parents to counsel their children about drug abuse that do not include requests for contributions and that are conducted in different media. NFP A's executive director is involved in the development of the informational materials as well as the request for contributions. The executive director's annual compensation includes a significant bonus if total annual contributions exceed a predetermined amount. ##### [720-958-55-39](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-39) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:251624a32e6bcd10648462e5e5d2e0bced8de9b1a56eb0ffaa3b05cdd2b57140 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose, audience, and content criteria are met, and the joint costs should be allocated. ##### [720-958-55-40](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-40) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:e9f5b744e991b8aecad93ea72004a9d2f3c85a58eb503377fa24b1a24f0bf6df Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The activity calls for specific action by the recipient (encouraging parents to counsel children about the dangers of drug abuse and informing them about how to detect drug abuse) that will help accomplish the NFP's mission. Therefore, the guidance in paragraph [958-720-45-38](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-38) should be considered. Neither the factors in paragraphs [958-720-45-40 through 45-44](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-40) nor those in paragraphs [958-720-45-45 through 45-46](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-45) are determinative of whether the purpose criterion is met. (Although NFP A's executive director's annual compensation varies based on annual contributions, the executive director's compensation does not vary based on contributions raised for this discrete joint activity.) Therefore, other evidence, such as the indicators in paragraphs [958-720-55-6 through 55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) , should be considered. ##### [720-958-55-41](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-41) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:e261ea13de580fe8b5da60a5d225b16d74d05e6945f0ac119ef69864b956b9fa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose criterion is met based on the other evidence, because: 1. a The program component of this activity calls for specific action by the recipient (encouraging parents to counsel children about the dangers of drug abuse) that will help accomplish the NFP's mission, and it otherwise conducts the program activity in this Example without a request for contributions. 2. b Performing such programs helps accomplish NFP A's mission. (Note that had NFP A conducted the activity using the same medium on a scale that is similar to or greater than the scale on which it is conducted with the request for contributions, the purpose criterion would have been met under paragraphs [958-720-45-45 through 45-46](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-45) .) ##### [720-958-55-42](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-42) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:e7454ac72a1263804767537e978f5466eec61ac3d48bc652860b46979a924654 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The audience criterion is met because the audience (parents of junior high school students) is selected based on its need to use or reasonable potential for use of the action called for by the program component. ##### [720-958-55-43](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-43) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:bc8a90e1b332242defebb40ee8e3039ac563ea347a113a81104105db1b06ab65 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The content criterion is met because the activity calls for specific action by the recipient (encouraging parents to counsel children about the dangers of drug abuse and informing them about how to detect drug abuse) that will help accomplish the NFP's mission (assisting parents in preventing their children from abusing drugs), and it explains the need for and benefits of the action (the prevalence and dangers of drug abuse). ##### [720-958-55-44](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-44) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:f1d745f5ba178a1611ebcc732b5c0c7c19e92f45f3745c78b1504a73ca4634cf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [958-720-45-33 through 45-53](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-33) and [958-720-55-6 through 55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) . ##### [720-958-55-45](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-45) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:9371ca0ce093491d8f591843b28284e12be5b344d380e15f2100e81c679614d9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-Profit Entity B's (NFP B's) mission is to reduce the incidence of illness from ABC disease, which afflicts a broad segment of the population. One of NFP B's objectives in fulfilling that mission is to inform the public about the effects and early warning signs of the disease and specific action that should be taken to prevent the disease. ##### [720-958-55-46](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-46) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:d06a649531d9d5fb3b1ea364bcd3170206c17fe41aeff0d8a83cf6172fa91565 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. NFP B maintains a list of its prior donors and sends them donor renewal mailings. The mailings include messages about the effects and early warning signs of the disease and specific action that should be taken to prevent it. That information is also sent to a similar-sized audience but without the request for contributions. Also, NFP B believes that recent donors are more likely to contribute than nondonors or donors who have not contributed recently. Prior donors are deleted from the mailing list if they have not contributed to NFP B recently, and new donors are added to the list. There is no evidence of a correlation between recent contributions and participation in the program component of the activity. Also, the prior donors' need to use or reasonable potential for use of the messages about the effects and early warning signs of the disease and specific action that should be taken to prevent it is an insignificant factor in their selection. ##### [720-958-55-47](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-47) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:07e9de59ae2c33407e87482205ef70813e019ef01dfdca4945f78c8550e5733c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose and content criteria are met. The audience criterion is not met. All costs, including those that might otherwise be considered program or management and general costs if they had been incurred in a different activity, should be charged to fundraising. ##### [720-958-55-48](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-48) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:13b167cce346061f90e953ae151ce9a0708646d8856d290fcdb5dc4fb6d1b411 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The activity calls for specific action by the recipient (action that should be taken to prevent ABC disease) that will help accomplish the NFP's mission. Therefore, the guidance in paragraph [958-720-45-38](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-38) should be considered. ##### [720-958-55-49](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-49) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:5acb8481d104923996965c2b924f9ee67d0789816f2993898010179ed9b4ceee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose criterion is met because: 1. a The program component of the activity calls for specific action by the recipient that will help accomplish the NFP's mission (to reduce the incidence of illness from the disease). 2. b The program is also conducted using the same medium on a scale that is similar to or greater than the scale on which it is conducted with the request for contributions (a similar mailing is done without the request for contributions, to a similar-sized audience). ##### [720-958-55-50](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-50) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:b8ea25ec0e1c1ce086ea9e58dc8a4df30b77f7c4c7180daf13d83a9bd5086ee7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The audience criterion is not met. The rebuttable presumption that the audience criterion is not met because the audience includes prior donors is not overcome in this Example. Although the audience has a need to use or reasonable potential for use of the program component, that was an insignificant factor in its selection. ##### [720-958-55-51](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-51) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:0f9a5e34d46da05d8466435630e50d2eed2c9322a98615581000b35168f9d1e4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The content criterion is met because the activity calls for specific action by the recipient (actions to prevent ABC disease) that will help accomplish the NFP's mission (to reduce the incidence of ABC disease), and it explains the need for and benefits of the action (to prevent ABC disease). ##### [720-958-55-52](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-52) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:b86be82ba10c39c3049d429d006e3e975679cb1c12a404d4e9d92e9d3ed6b322 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [958-720-45-33 through 45-53](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-33) and [958-720-55-6 through 55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) . ##### [720-958-55-53](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-53) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:6d93a4db9aa95eb1ea7f2d7679c1ce841a1d323616725a498b87f6730d3918aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-Profit Entity C's (NFP C's) mission is to reduce the incidence of illness from ABC disease, which afflicts a broad segment of the population. One of NFP C's objectives in fulfilling that mission is to increase governmental funding for research about ABC disease. ##### [720-958-55-54](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-54) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:2f0155a13d98d9f9ae093f2e71c01e3b2da14e5a2d46197af9d143610c5d4832 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. NFP C maintains a list of its prior donors and its employees call them on the telephone reminding them of the effects of ABC disease, asking for contributions, and encouraging them to contact their elected officials to urge increased governmental funding for research about ABC disease. The callers are educated about ABC, do not otherwise perform fundraising functions, and are not compensated or evaluated based on contributions raised. NFP C's research indicates that recent donors are likely to contact their elected officials about such funding while nonrecent donors are not. Prior donors are deleted from the calling list if they have not contributed to NFP C recently, and new donors are added to the list. ##### [720-958-55-55](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-55) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:f4d4be3078ea900c78db9edfd9a8fc1a85c8c38fbc8387d90efdb85770df215d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose, audience, and content criteria are met, and the joint costs should be allocated. ##### [720-958-55-56](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-56) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:1cb8cc7744f5f0abc93d391d60d9c2df80bb2b03f33defaf320965c357c64cca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The activity calls for specific action by the recipient (contacting elected officials concerning funding for research about ABC disease) that will help accomplish the NFP's mission. Therefore, the guidance in paragraph [958-720-45-38](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-38) should be considered. Neither the factors in paragraphs [958-720-45-40 through 45-44](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-40) nor those in paragraphs [958-720-45-45 through 45-46](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-45) are determinative of whether the purpose criterion is met. Therefore, other evidence, such as the indicators in paragraphs [958-720-55-6 through 55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) , should be considered. ##### [720-958-55-57](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-57) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:0dd40907a8a61aa770aaea701d9b87b458c4b22c42bbee294f26a15f833c0b42 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose criterion is met based on the other evidence, because: 1. a The qualifications and duties of the personnel performing the activity indicate that it is a program activity (the callers are educated about ABC and do not otherwise perform fundraising functions). 2. b The method of compensation for performing the activity does not indicate that it is a fundraising activity (the employees are not compensated or evaluated based on contributions raised). 3. c Performing such programs helps accomplish NFP C's mission. ##### [720-958-55-58](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-58) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:8c1646b4e907b8ba873619128e8e0562830677034ab65217e3d83f13dac2ab80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The audience criterion is met because the audience (recent donors) is selected based on its ability to assist NFP C in meeting the goals of the program component of the activity (recent donors are likely to contact their elected officials about such funding while nonrecent donors are not). ##### [720-958-55-59](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-59) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:82c2f6311ff93a78299da2a14891c952388037b2d2f755e6cf249683df3ba604 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The content criterion is met because the activity calls for specific action by the recipient (contacting elected officials concerning funding for research about ABC disease) that will help accomplish the NFP's mission (to reduce the incidence of ABC disease), and it explains the need for and benefits of the action (to prevent ABC disease). ##### [720-958-55-60](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-60) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:78cf8341c7e045fbc5fbc5dd0de21ed01bda622021e27989f3d0d5eebbf32fbf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Cases illustrate the guidance in paragraphs [958-720-45-33 through 45-53](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-33) and [958-720-55-6 through 55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) : 1. a The purpose criterion is met (Case A). 2. b The purpose criterion is not met (Case B). ##### [720-958-55-61](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-61) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:fb712ce77271c33f99e575b75956ec8be36694d7be50ffd10db3bb3ec4abef36 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cases A and B have the following assumptions. ##### [720-958-55-62](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-62) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:b22da9ee27f7a8479381946af5fc81ec01fe46584530f350e813d71c59502a5d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-Profit Entity D's (NFP D's) mission is to improve the quality of life for senior citizens. One of NFP D's objectives included in that mission is to increase the physical activity of senior citizens. One of NFP D's programs to attain that objective is to send representatives to speak to groups about the importance of exercise and to conduct exercise classes. ##### [720-958-55-63](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-63) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:341c0def5bf051545fd633d77c0909539b5138a3f2e09392c44c5ccdeaa53220 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. NFP D mails a brochure on the importance of exercise that encourages exercise in later years to residents over the age of 65 in 3 ZIP code areas. The last two pages of the four-page brochure include a perforated contribution remittance form on which NFP D explains its program and makes an appeal for contributions. The content of the first two pages of the brochure is primarily educational; it explains how seniors can undertake a self-supervised exercise program and encourages them to undertake such a program. In addition, NFP D includes a second brochure on various exercise techniques that can be used by those undertaking an exercise program. ##### [720-958-55-64](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-64) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:8214495749c267317a04aaf3ab6f0bbdddcf1f0cf0d9f2fe62a2362e2b141d10 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The brochures are distributed to educate people in this age group about the importance of exercising, to help them exercise properly, and to raise contributions for NFP D. These objectives are documented in a letter to the public relations firm that developed the brochures. The audience is selected based on age, without regard to ability to contribute. NFP D believes that most of the recipients would benefit from the information about exercise. ##### [720-958-55-65](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-65) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:b941bd6aa21b4fbf44536f6dfa44298fbfcc1a7c99a38c770d82b4575988181f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose, audience, and content criteria are met, and the joint costs should be allocated. (Note that the costs of the second brochure should be charged to program because all the costs of the brochure are identifiable with the program function.) ##### [720-958-55-66](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-66) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:d433a35be0ffd05b95f16def691188cc3513c85ca1edb21184309d96c69eaf81 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The activity calls for specific action by the recipient (exercising) that will help accomplish the NFP's mission. Therefore, the guidance in paragraph [958-720-45-38](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-38) should be considered. Neither the factors in paragraphs [958-720-45-40 through 45-44](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-40) nor those in paragraphs [958-720-45-45 through 45-46](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-45) are determinative of whether the purpose criterion is met. Therefore, other evidence, such as the indicators in paragraphs [958-720-55-6 through 55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) , should be considered. ##### [720-958-55-67](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-67) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:588815cb27fab83525b4c80e94841f8d6fdd54279dfe6afe61ee36e1b45e1144 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose criterion is met based on the other evidence, because: 1. a Performing such programs helps accomplish Entity D's mission. 2. b The objectives of the program are documented in a letter to the public relations firm that developed the brochure. ##### [720-958-55-68](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-68) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:f8e50c8aa3cbe2d49773d554d9d0630448c6d678769b4807620de0b61c316a0a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The audience criterion is met because the audience (residents over 65 in certain ZIP codes) is selected based on its need to use or reasonable potential for use of the action called for by the program component. ##### [720-958-55-69](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-69) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:02ed446693130a8f3b6572356cd0fe8567d8f5b54a4b253d7dbdc95702646674 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The content criterion is met because the activity calls for specific action by the recipient (exercising) that will help accomplish the NFP's mission (increasing the physical activity of senior citizens), and the need for and benefits of the action are clearly evident (explains the importance of exercising). ##### [720-958-55-70](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-70) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:28aee124d94dd2d2a335503e0ceff8fa28ed73c3abdad670728df81e58552f0e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In this Case, NFP D employs a fundraising consultant to develop the first brochure and pays that consultant 30 percent of contributions raised. ##### [720-958-55-71](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-71) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:cbcdfd61ad14740385c4dff63779cf46e9231e81fd2b582ba6d04cb5b4ed11dc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The content and audience criteria are met. ##### [720-958-55-72](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-72) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:977cbe79d9f1b856ca5609652f218868d59526b7379c3c40ccec1a942b213683 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose criterion is not met, however, because a majority of compensation or fees for the fundraising consultant varies based on contributions raised for this discrete joint activity (the fundraising consultant is paid 30 percent of contributions raised). All costs should be charged to fundraising, including the costs of the second brochure and any other costs that otherwise might be considered program or management and general costs if they had been incurred in a different activity. ##### [720-958-55-73](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-73) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:d5ff973d7f7590f412a34d63d4fb4349c6bca77eeedd64a3a540a084fe343292 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [958-720-45-33 through 45-53](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-33) and [958-720-55-6 through 55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) . ##### [720-958-55-74](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-74) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:9343bce8d9eccf7d2312a60b05213eaf6501a4207ed102768aee840068ed8c22 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-Profit Entity E's (NFP E's) mission is to protect the environment. One of NFP E's objectives included in that mission is to take action that will increase the portion of waste recycled by the public. ##### [720-958-55-75](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-75) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:032f1c2271a53766859f28d080a2a1ff298db60bf4a9a5202777fe39e030c7b6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. NFP E conducts a door-to-door canvass of a community that recycles a low portion of its waste. The purpose of the activity is to help increase recycling by educating the community about environmental problems created by not recycling, and to raise contributions. Based on the information communicated by the canvassers, the need for and benefits of the action are clearly evident. The ability or likelihood of the residents to contribute is not a basis for communities selected, and all neighborhoods in the geographic area are covered if their recycling falls below a predetermined rate. The canvassers are selected from individuals who are well-informed about NFP E's environmental concerns and programs and who previously participated as volunteers in program activities such as answering environmental questions directed to NFP E and developing program activities designed to influence legislators to take actions addressing those concerns. The canvassers have not previously participated in fundraising activities. ##### [720-958-55-76](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-76) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:3220820dfec1bd17c6a2a9ce20842e890b5221f7eeed8a4d6155eb9fefa4e290 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose, audience, and content criteria are met, and the joint costs should be allocated. ##### [720-958-55-77](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-77) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:533d611b71752f90825b50a8832bd18b778a0897d5ead611241ccdd646b12795 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The activity calls for specific action by the recipient (implicitly—to help increase recycling) that will help accomplish the entity's mission. Therefore, the guidance in paragraph [958-720-45-38](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-38) should be considered. Neither the factors in paragraphs [958-720-45-40 through 45-44](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-40) nor those in paragraphs [958-720-45-45 through 45-46](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-45) are determinative of whether the purpose criterion is met. Therefore, other evidence, such as the indicators in paragraphs [958-720-55-6 through 55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) , should be considered. ##### [720-958-55-78](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-78) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:bbfe6cc6fa14f35b801904ce56ba5376eb58d9b9db76791cb337998177080941 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose criterion is met based on the other evidence, because: 1. a The qualifications and duties of the personnel performing the activity indicate that it is a program activity (the canvassers are selected from individuals who are well-informed about NFP E's environmental concerns and programs and who previously participated as volunteers in program activities such as answering environmental questions directed to NFP E and developing program activities designed to influence legislators to take actions addressing those concerns). 2. b Performing such programs helps accomplish NFP E's mission (to protect the environment). ##### [720-958-55-79](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-79) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:3cc12bd26a0b139ad0b2eb65e7a080e6d67d4f996df58a80215fd1bee4d38a66 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The audience criterion is met because the audience (neighborhoods whose recycling falls below a predetermined rate) is selected based on its need to use or reasonable potential for use of the action called for by the program component. ##### [720-958-55-80](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-80) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:958cfa2c65a388a7f22b728739bd894f1e2cb2ad05ce9c31bc691de83eb524d2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The content criterion is met because the activity calls for specific action by the recipient (implicitly—to help increase recycling) that will help accomplish the NFP's mission (to protect the environment), and the need for and benefits of the action are clearly evident (increased recycling will help alleviate environmental problems). ##### [720-958-55-81](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-81) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:7632ea83ddde83ddc842000986720da8e98ed9af8d3f3146a958fedfef5c93ab Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [958-720-45-33 through 45-53](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-33) and [958-720-55-6 through 55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) . ##### [720-958-55-82](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-82) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:bac882583e59439c052de9eb5370aac4cb9113c7c011d7ea90b0ec4e03ca3c38 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-Profit Entity F's (NFP F's) mission is to provide summer camps for economically disadvantaged youths. Educating the families of ineligible youths about the camps is not one of the program objectives included in that mission. ##### [720-958-55-83](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-83) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:d551b30c96db0d7fe2695cf25a4fe43d1b6a6fc3b074d9e02247bd5b0532b084 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. NFP F conducts a door-to-door solicitation campaign for its camp programs. In the campaign, volunteers with canisters visit homes in middle-class neighborhoods to collect contributions. NFP F believes that people in those neighborhoods would not need the camp's programs but may contribute. The volunteers explain the camp's programs, including why the disadvantaged children benefit from the program, and distribute leaflets to the residents regardless of whether they contribute to the camp. The leaflets describe the camp, its activities, who can attend, and the benefits to attendees. Requests for contributions are not included in the leaflets. ##### [720-958-55-84](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-84) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:37522b87564e86210d22416a6f00524f7b2981735194f73584f85ae6270c09da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose, audience, and content criteria are not met. All costs should be charged to fundraising. ##### [720-958-55-85](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-85) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:85a18ad2718e7ab1314bf7cef76e78f032aba5ac2422e4d969846cd03ebfe1fc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The activity does not include a call for specific action because it only educates the audience about causes (describing the camp, its activities, who can attend, and the benefits to attendees). Therefore, the purpose criterion is not met. ##### [720-958-55-86](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-86) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:0ed29fc77080cc267d3480543f64d46196e659c3eaaee8ed3a46f1f309572940 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The audience criterion is not met, because the audience is selected based on its ability or likelihood to contribute, rather than based on its need to use or reasonable potential for use of the action called for by the program component, or its ability to take action to assist the NFP in meeting the goals of the program component of the activity. (NFP F believes that people in those neighborhoods would not need the camp's programs but may contribute.) ##### [720-958-55-87](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-87) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:17afb4818fd0ebeb2f880ce118f1997c76ee295cef6e2c1769be76ee43936b0a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The content criterion is not met because the activity does not call for specific action by the recipient. (The content educates the audience about causes that the program is designed to address without calling for specific action.) ##### [720-958-55-88](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-88) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:03a9009ff722f38ac64a49c0058c9662ec56602d2b5b0abfe4cf2accee4b3b34 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [958-720-45-33 through 45-53](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-33) and [958-720-55-6 through 55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) . ##### [720-958-55-89](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-89) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:7ebe5edce815d28dc01059a0e6b4d6ca5ea37c779fd0a4e57516fd7f28bc0f0a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-Profit Entity G's (NFP G's) mission is to educate the public about lifesaving techniques in order to increase the number of lives saved. One of NFP G's objectives in fulfilling that mission, as stated in the minutes of the board's meetings, is to produce and show television broadcasts including information about lifesaving techniques. ##### [720-958-55-90](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-90) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:c65ab471cac21e8cf59ee454296dc4c062914b1564631fb0e24219b9c306bbcf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. NFP G conducts an annual national telethon to raise contributions and to reach the American public with lifesaving educational messages, such as summary instructions concerning dealing with certain life-threatening situations. Based on the information communicated by the messages, the need for and benefits of the action are clearly evident. The broadcast includes segments describing NFP G's services. NFP G broadcasts the telethon to the entire country, not merely to areas selected on the basis of giving potential or prior fundraising results. Also, NFP G uses national television broadcasts devoted entirely to lifesaving educational messages to conduct program activities without fundraising. ##### [720-958-55-91](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-91) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:ae6f67d5ec1b9222578d685cc5690f0f004ad3c7465b53b4fbb4f7ea150c9303 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose, audience, and content criteria are met, and the joint costs should be allocated. ##### [720-958-55-92](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-92) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:3429e168090aadc8d182f84dd739224df40825ee67cc93abdba3a4af6ab4bf7c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The activity calls for specific action by the recipient (implicitly—to save lives) that will help accomplish the NFP's mission. Therefore, the guidance in paragraph [958-720-45-38](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-38) should be considered. ##### [720-958-55-93](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-93) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:3acc2d36cdd4094aea0a2a4d31bfb4b9ef0c24ceadf9c68c3cf465e66f5eee9e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose criterion is met because: 1. a The program component of the activity calls for specific action by the recipient that will help accomplish NFP G's mission (to save lives by educating the public). 2. b A similar program activity is conducted without the fundraising using the same medium and on a scale that is similar to or greater than the scale on which it is conducted with the appeal (NFP G uses national television broadcasts devoted entirely to lifesaving educational messages to conduct program activities without fundraising). ##### [720-958-55-94](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-94) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:daed504a2eac557b1b3ea8af4b2f4bdfae29c04a33b859fe036e7f892b6f2820 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The audience criterion is met because the audience (a broad segment of the population) is selected based on its need to use or reasonable potential for use of the action called for by the program activity. ##### [720-958-55-95](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-95) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:0ab10a14f0121b99f772960db487e463bf702bfaec6a807bbbb64f8a309acf9a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The content criterion is met because the activity calls for specific action by the recipient (implicitly—to save lives) that will help accomplish the NFP's mission (to save lives by educating the public), and the need for and benefits of the action are clearly evident (saving lives is desirable). ##### [720-958-55-96](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-96) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:3b4e75fb4d694d731c7593e54ae85d323110a0cc824780236ad8b2571181f10b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [958-720-45-33 through 45-53](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-33) and [958-720-55-6 through 55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) . ##### [720-958-55-97](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-97) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:0f45e49d9c5a4ebb1c0fc553d92dcd0b8e7988bd4c575a9b91e7e936999be316 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-Profit Entity H's (NFP H's) mission is to provide food, clothing, and medical care to children in developing countries. ##### [720-958-55-98](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-98) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:4ebce416724f7ea344e6b4e0ee87964212dfc1bafb93d0089cd8b9d22bbed7e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. NFP H conducts television broadcasts in the United States that describe its programs, show the needy children, and end with appeals for contributions. NFP H's operating policies and internal management memoranda state that these programs are designed to educate the public about the needs of children in developing countries and to raise contributions. The employees producing the programs are trained in audiovisual production and are familiar with NFP H's programs. Also, the executive producer is paid $25,000 for this activity, with a $5,000 bonus if the activity raises over $1,000,000. ##### [720-958-55-99](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-99) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:56a2da40d72e9e91e2148f00d2cb8d43095b280b5443fd84f87058c533ce5fc6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose, audience, and content criteria are not met. All costs should be charged to fundraising. ##### [720-958-55-100](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-100) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:d5b1883cf6d2340e81da88f51969e2e29a42fd13f57d3901563886fb9771458a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The activity does not include a call for specific action because it only educates the audience about causes (describing its programs and showing the needy children). Therefore, the purpose criterion is not met. Also, note that if the factors in paragraphs [958-720-45-40 through 45-44](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-40) were considered, it would not be determinative of whether the purpose criterion is met. Although the executive producer will be paid $5,000 if the activity raises over $1,000,000, that amount would not be a majority of the executive producer's total compensation for this activity, because $5,000 would not be a majority of the executive producer's total compensation of $30,000 for this activity. Also, note that if other evidence, such as the indicators in paragraphs [958-720-55-6 through 55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) , were considered, the purpose criterion would not be met based on the other evidence. Although the qualifications and duties of the personnel performing the activity indicate that the employees producing the program are familiar with NFP H's programs, the facts that some, but less than a majority, of the executive producer's compensation varies based on contributions raised, and that the operating policies and internal management memoranda state that these programs are designed to educate the public about the needs of children in developing countries (with no call for specific action by recipients) and to raise contributions, indicate that the purpose is fundraising. ##### [720-958-55-101](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-101) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:2691e1e9fd1b9fe4feaaab96b0f71beaa2a8fcfbd64710959bf21f50d9c5f1dc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The audience criterion is not met because the audience is selected based on its ability or likelihood to contribute, rather than based on its need to use or reasonable potential for use of the action called for by the program component, or its ability to take action to assist the NFP in meeting the goals of the program component of the activity. (The audience is a broad segment of the population of a country that is not in need of or has no reasonable potential for use of the program activity.) ##### [720-958-55-102](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-102) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:723143a360dd924f5781a4eed1d9a9f4e63e455e065ac84dedcdf7fa44113706 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The content criterion is not met because the activity does not call for specific action by the recipient that will help accomplish the NFP's mission. (The content educates the audience about the causes without calling for specific action.) ##### [720-958-55-103](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-103) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:1b091fc1e5e7a25033dee9e0076bb70df4b2094795d9c5ece15ef70c2e35a8c4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [958-720-45-33 through 45-53](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-33) and [958-720-55-6 through 55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) . ##### [720-958-55-104](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-104) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:c68254f77a8d64ff73112bc8330bbf4304899e81f68836f04322caf491541e6e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-Profit Entity I (NFP I) is a university that distributes its annual report, which includes reports on mission accomplishments, to those who have made significant contributions over the previous year, its board of trustees, and its employees. The annual report is primarily prepared by management and general personnel, such as the accounting department and executive staff. The activity is coordinated by the public relations department. Internal management memoranda indicate that the purpose of the annual report is to report on how management discharged its stewardship responsibilities, including the university's overall performance, goals, financial position, cash flows, and results of operations. Included in the package containing the annual report are requests for contributions and donor reply cards. ##### [720-958-55-105](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-105) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:5f2a5d29237fbc69a8b0f08443a20b42b99cad72ca5ce2a2a1b22c83a72cb76a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose, audience, and content criteria are met, and the joint costs should be allocated. ##### [720-958-55-106](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-106) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:666aab4ed881f49f573fe716e4f3dc81da643cbf59120b050ffa404a09e4dbd2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The activity has elements of management and general functions. Therefore, no call for specific action is required. Neither the factors in paragraphs [958-720-45-40 through 45-44](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-40) nor those in paragraphs [958-720-45-45 through 45-46](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-45) are determinative of whether the purpose criterion is met. Therefore, other evidence, such as the indicators in paragraphs [958-720-55-6 through 55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) , should be considered. ##### [720-958-55-107](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-107) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:57c757842f1a798190bce95e26be273f2e00905de2b2f7c48293c437084cffc3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose criterion is met based on the other evidence, because: 1. a The employees performing the activity are not members of the fundraising department and perform other nonfundraising activities. 2. b Internal management memoranda indicate that the purpose of the annual report is to fulfill one of the university's management and general responsibilities. ##### [720-958-55-108](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-108) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:73fd3057e09cdd19d7a9628d81461d3ef1ad04937fb29e5733081e6df1f0b6bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The audience criterion is met because the audience is selected based on its reasonable potential for use of the management and general component. Although the activity is directed primarily at those who have previously made significant contributions, the audience was selected based on its presumed interest in NFP I's annual report (prior donors who have made significant contributions are likely to have an interest in matters discussed in the annual report). ##### [720-958-55-109](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-109) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:6ffad01ca62e7f443a4964c512afa0abe9b24e5745f4658bd4535aff43208c13 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The content criterion is met because the activity (distributing annual reports) fulfills one of the NFP's management and general responsibilities (reporting concerning management's fulfillment of its stewardship function). ##### [720-958-55-110](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-110) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:ffe60c22300e59867c6fdba563fd39f91bda2afb08b5ec7d2df2ee93021ac171 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [958-720-45-33 through 45-53](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-33) and [958-720-55-6 through 55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) . ##### [720-958-55-111](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-111) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:267f36c9fc170488e29b67fbd245359a163f34650186493b247ebabaaa4d0578 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In accordance with internal management memoranda documenting its policies requiring it to comply with IRS regulations, Not-for-Profit Entity J (NFP J) mails prior donors the contribution substantiation documentation required by the IRS. The documentation is included on a perforated piece of paper. The information above the perforation line pertains to the documentation required by the IRS. The information below the perforation line includes a request for contributions and may be used as a donor reply card. ##### [720-958-55-112](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-112) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:f7886525a8474d25f8f26a06aba9ee27fc733b38bdcd902b93698e398c0d4037 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose, audience, and content criteria are met, and the joint costs should be allocated. (Note that the costs of the information below the perforation line are identifiable with fundraising and therefore should be charged to fundraising.) ##### [720-958-55-113](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-113) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:7269c5e75fcb99476e4b39b97a96638fa2a9382f7e083b815795f32b75ceb1c4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The activity has elements of management and general functions. Therefore, no call for specific action is required. Neither the factors in paragraphs [958-720-45-40 through 45-44](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-40) nor those in paragraphs [958-720-45-45 through 45-46](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-45) are determinative of whether the purpose criterion is met. Therefore, other evidence, such as the indicators in paragraphs [958-720-55-6 through 55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) , should be considered. ##### [720-958-55-114](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-114) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:126eb6fa61e01e67fcdb5d2953266a023ff0b1af06304c2b7c493cb8343862fc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose criterion is met based on the other evidence, because internal management memoranda indicate that the purpose of the activity is to fulfill one of NFP J's management and general responsibilities. ##### [720-958-55-115](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-115) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:98d23109ec3c441339ba5e41a6dbb6ec3342a3f2a05f5cb571e38dc427652436 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The audience criterion is met because the NFP is required to direct the management and general component of the activity to the particular audience. Although the activity is directed at those who have previously contributed, the audience was selected based on its need for the documentation. ##### [720-958-55-116](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-116) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:ffe01be868f1a49477c44f6609e7d42c1cfe4e4c6dcdfc0a611b3bf73847341d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The content criterion is met because the activity (sending documentation required by the IRS) fulfills one of the NFP's management and general responsibilities (complying with IRS regulations). ##### [720-958-55-117](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-117) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:e63aba35bffc759ffa2af0e7ae07b577f1f771b36e188a607bd7c94e6f142f27 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [958-720-45-33 through 45-53](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-33) and [958-720-55-6 through 55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) . ##### [720-958-55-118](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-118) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:3a8017a81773abfd54af9ed935fc79a68cf998ac8bcc16ea4b92e0da33a4a433 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-Profit Entity K is an animal rights organization. It mails a package of material to individuals included in lists rented from various environmental and other NFPs that support causes that NFP K believes are congruent with its own. In addition to donor response cards and return envelopes, the package includes materials urging recipients to contact their legislators and urge the legislators to support legislation to protect those rights, and postcards addressed to legislators urging support for legislation restricting the use of animal testing for cosmetic products. The mail campaign is part of an overall strategy that includes magazine advertisements and the distribution of similar materials at various community events, some of which are undertaken without fundraising appeals. The advertising and community events reach audiences similar in size and demographics to the audience reached by the mailing. ##### [720-958-55-119](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-119) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:042419a4056d6c15f3b653cab8ba26717e480cf2a3c2c21a17d81a8b9d744681 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose, audience, and content criteria are met, and the joint costs should be allocated. ##### [720-958-55-120](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-120) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:9097429c478c6d05da9c7e08d346104cb5685373b6d79d4ae46c7d6a8cc067a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The activity calls for specific action by the recipient (mailing postcards to legislators urging support for legislation restricting the use of animal testing for cosmetic products) that will help accomplish the NFP's mission. Therefore, the guidance in paragraph [958-720-45-38](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-38) should be considered. Neither the factors in paragraphs [958-720-45-40 through 45-44](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-40) nor those in paragraphs [958-720-45-45 through 45-46](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-45) are determinative of whether the purpose criterion is met. Therefore, other evidence, such as the indicators in paragraphs [958-720-55-6 through 55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) should be considered. ##### [720-958-55-121](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-121) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:9c52c13edc0cbb125025bec0a6e2845fa30753a3d7f3931a982f1b90507da388 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose criterion is met based on the other evidence, because: 1. a The program component of this activity calls for specific action by the recipient that will help accomplish the NFP's mission, and it otherwise conducts the program activity in this Example without a request for contributions. 2. b Performing such programs helps accomplish NFP K's mission. ##### [720-958-55-122](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-122) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:e11c0f86d0fafbbdfd181bf3344e70838dc29b443647c99b9049643522ef8d17 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The audience criterion is met because the audience (individuals included in lists rented from various environmental and other NFPs that support causes that NFP K believes are congruent with its own) is selected based on its ability to take action to assist the NFP in meeting the goals of the program component of the activity. ##### [720-958-55-123](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-123) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:cb79e4092b8ae1b2d43aa7131b94c8015e12c534e13e1abbce61ff897530cefa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The content criterion is met because the activity calls for specific action by the recipient (mailing postcards to legislators urging support for legislation restricting the use of animal testing for cosmetic products) that will help accomplish the NFP's mission (to protect animal rights), and the need for and benefits of the action are clearly evident (to protect animal rights). ##### [720-958-55-124](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-124) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:12ba87cc0a265c2521a9dedef341ec01de3548f44d3caab72b78e66d957fac45 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [958-720-45-33 through 45-53](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-33) and [958-720-55-6 through 55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) . ##### [720-958-55-125](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-125) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:598f11b15aa66d48ce2797d4ee886a7b1ad95419905dd6c335e12eaf1a4d598c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-Profit Entity L is a performing arts organization whose mission is to make the arts available to residents in its area. NFP L charges a fee for attending performances and sends advertisements, including subscription forms, for the performances to residents in its area. These advertisements include a return envelope with a request for contributions. NFP L evaluates the effectiveness of the advertising based on the number of subscriptions sold as well as contributions received. In performing that evaluation, NFP L places more weight on the number of subscriptions sold than on the contributions received. Also, NFP L advertises the performances on local television and radio without a request for contributions but on a smaller scale than the mail advertising. ##### [720-958-55-126](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-126) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:cfd7c7cc49d52cdcfe9248960ca8a33947234f5ea8840b90173bce8cb75f0b35 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose, audience, and content criteria are met, and the joint costs should be allocated. ##### [720-958-55-127](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-127) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:cc5892189b4d5a23c69b0c930e202532cb4503c5561122a8918487daf2ef50e3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The activity calls for specific action by the recipient (attending the performances) that will help accomplish the NFP's mission. Therefore, the guidance in paragraph [958-720-45-38](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-38) should be considered. Neither the factors in paragraphs [958-720-45-40 through 45-44](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-40) nor those in paragraphs [958-720-45-45 through 45-46](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-45) are determinative of whether the purpose criterion is met. Therefore, other evidence, such as the indicators in paragraphs [958-720-55-6 through 55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) , should be considered. ##### [720-958-55-128](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-128) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:2e49b0489cb49b7a9b909600ec443df34cf4d806f2e5ead9ceba0bda5e8447b3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose criterion is met based on the other evidence, because: 1. a NFP L measures program results and accomplishments of the joint activity and in evaluating the effectiveness of the activity, the NFP places significantly greater weight on the activity's effectiveness in accomplishing program goals than on the activity's effectiveness in raising contributions (NFP L evaluates the effectiveness of the advertising based on the number of subscriptions sold as well as contributions received and places more weight on the number of subscriptions sold than on the contributions received). 2. b It otherwise conducts the program activity without a request for contributions. 3. c Performing such programs helps accomplish NFP L's mission (to make the arts available to residents in its area). ##### [720-958-55-129](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-129) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:cab0b493c12b7db1976fe67e9ea6cddcc86286fcf1f2eff984aaaf64c2d3e788 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The audience criterion is met because the audience (a broad segment of the population in NFP L's area) is selected based on its need to use or reasonable potential for use of the action called for by the program component. ##### [720-958-55-130](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-130) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:ec23ec11c7e76426f091f0ab3c594d936a546112825258cb0f6d42a20d670a95 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The content criterion is met because the activity calls for specific action by the recipient (attending the performances) that will help accomplish the NFP's mission (making the arts available to area residents), and the need for and benefits of the action are clearly evident (attending the performance is a positive cultural experience). (Note that the purchase of subscriptions is an exchange transaction and, therefore, is not a contribution.) ##### [720-958-55-131](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-131) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:e84ac5d3719c62b480e0c931095951dfe0442e7e27ff19597deb457e2ef1ac41 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [958-720-45-33 through 45-53](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-33) and [958-720-55-6 through 55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) . ##### [720-958-55-132](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-132) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:bfc989a75e31946ff61567e3160040fbcaf11937efbf6c7b0d31accfc4ce2645 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-Profit Entity M (NFP M) is a university whose mission is to educate the public (students) in various academic pursuits. NFP M's political science department holds a special lecture series in which prominent world leaders speak about current events. The speakers command relatively high fees and, in order to cover costs and make a modest profit, the university sets a relatively expensive fee to attend. However, the tickets are priced at the fair value of the lecture and no portion of the ticket purchase price is a contribution. NFP M advertises the lectures by sending invitations to prior attendees and to prior donors who have contributed significant amounts, and by placing advertisements in local newspapers read by the general public. At some of the lectures, including the lecture being considered in this Example, deans and other faculty members of NFP M solicit significant contributions from attendees. Other lectures in the series are conducted on a scale similar to the scale of the lecture in this Example without requesting contributions. NFP M's records indicate that historically 75 percent of the attendees have attended prior lectures. Of the 75 percent who have attended prior lectures, 15 percent have made prior contributions to NFP M. Of the 15 percent who have made prior contributions to NFP M, 5 percent have made contributions in response to solicitations made at the events. (Therefore, one-half of 1 percent of attendees make contributions in response to solicitations made at the events. However, those contributions are significant.) Overall, the audience's ability or likelihood to contribute is an insignificant factor in its selection. NFP M evaluates the effectiveness of the activity based on the number of tickets sold, as well as contributions received. In performing that evaluation, NFP M places more weight on the number of tickets sold than on the contributions received. ##### [720-958-55-133](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-133) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:f580887fd4cc27e41f7adbe0720a0da67a550e73dc487b4ea73d8b3b51d550d1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose, audience, and content criteria are met, and the joint costs should be allocated. The purchase of the tickets is an exchange transaction and, therefore, is not a contribution. As discussed in paragraph [958-720-45-29](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-29), costs of goods or services provided in exchange transactions that are part of joint activities, such as costs of direct donor benefits of a special event, should not be reported as fundraising. Paragraph [958-220-45-19](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-19) provides guidance concerning reporting special events. ##### [720-958-55-134](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-134) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:3fda79f2edef5fc223d989f54ce7abbe0feddcc1e54bfce4d23afa5db02e0a27 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The activity calls for specific action by the recipient (attending the lecture) that will help accomplish the NFP's mission. Therefore, the guidance in paragraph [958-720-45-38](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-38) should be considered. ##### [720-958-55-135](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-135) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:baf25e5fe1714bd5303777f300477acccc59eb9ab294ece9e3e16d36792f8c0f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose criterion is met because: 1. a The program component of the activity calls for specific action by the recipient that will help accomplish the NFP's mission (educating the public \[students\] in various academic pursuits). 2. b The program is also conducted using the same medium on a scale that is similar to or greater than the scale on which it is conducted with the request for contributions (other lectures in the series are conducted on a scale similar to the scale of the lecture in this Example without requesting contributions). ##### [720-958-55-136](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-136) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:099bf2057c0c8b2fdaa3103833a0d9750a83264dba6077ba8389a9455a8608f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The audience criterion is met. The rebuttable presumption that the audience criterion is not met because the audience includes prior donors is overcome in this Example because the audience (those who have shown prior interest in the lecture series, prior donors, a broad segment of the population in NFP M's area, and those attending the lecture) is also selected for its reasonable potential for use of the program component (attending the lecture). Although the audience may make significant contributions, that was an insignificant factor in its selection. ##### [720-958-55-137](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-137) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:f9b91803f76c6f684ef43a069d1294bb0227a35b79f931346c70401e59dba5e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The content criterion is met because the activity calls for specific action by the recipient (attending the lecture) that will help accomplish the NFP's mission (educating the public \[students\] in various academic pursuits), and the need for and benefits of the action are clearly evident (attending the lecture is a positive educational experience). ##### [720-958-55-138](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-138) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:73bccde555dadee5f5bed9aa5e32e239d1ba04d438f9fbd76b928e99572446bb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [958-720-45-33 through 45-53](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-33) and [958-720-55-6 through 55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) . ##### [720-958-55-139](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-139) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:6df8e6bb0022df63a50acaddeaacab5cda47c25ade642e97fa8de547e6fd1da3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-Profit Entity N (NFP N) is a university whose mission is to educate the public (students) in various academic pursuits. NFP N's political science department holds a special lecture series in which prominent world leaders speak about current events. Admission is priced at $250, which is above the $50 fair value of the lecture and, therefore, $200 of the admission price is a contribution. Therefore, the audience's likelihood to contribute to the NFP is a significant factor in its selection. NFP N advertises the lectures by sending invitations to prior attendees and to prior donors who have contributed significant amounts, and by placing advertisements in local newspapers read by the general public. NFP N presents similar lectures that are priced at the fair value of those lectures. ##### [720-958-55-140](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-140) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:242dbac8fa08086f21ffc133dc9bf4bf42d5a9a6ee42b501e917d35a6845d7a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose and content criteria are met. The audience criterion is not met. All costs, including those that might otherwise be considered program or management and general costs if they had been incurred in a different activity, except for the costs of the direct donor benefit (the lecture), should be charged to fundraising. The purchase of the tickets is an exchange transaction and, therefore, is not a contribution. As discussed in paragraph [958-720-45-29](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-29), costs of goods or services provided in exchange transactions that are part of joint activities, such as costs of direct donor benefits of a special event, shall not be reported as fundraising. Paragraph [958-720-45-17](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-17) provides guidance concerning reporting special events. ##### [720-958-55-141](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-141) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:40743064044b5bc54bc60d60ae8c993b260f1015a3541c61a969fdbbbf5d888d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The activity calls for specific action by the recipient (attending the lecture) that will help accomplish the NFP's mission. Therefore, the guidance in paragraph [958-720-45-38](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-38) should be considered. ##### [720-958-55-142](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-142) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:bbc280388858c701f55470321ea184474f6905d3b34ddc49485825d2f17cd462 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose criterion is met because: 1. a The program component of the activity calls for specific action by the recipient that will help accomplish the NFP's mission (educating the public \[students\] in various academic pursuits). 2. b The program is also conducted using the same medium on a scale that is similar to or greater than the scale on which it is conducted with the request for contributions (other lectures in the series are conducted on a scale similar to the scale of the lecture in this Example without including a contribution in the admission price). ##### [720-958-55-143](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-143) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:cab2856eb485979cc09a38f68096cb09a7e4c68ca7ebe4c45005777704cae707 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The audience criterion is not met. The rebuttable presumption that the audience criterion is not met because the audience is selected based on its likelihood to contribute to the NFP is not overcome in this Example. The fact that the $250 admission price includes a $200 contribution leads to the conclusion that the audience's ability or likelihood to contribute is an overwhelmingly significant factor in its selection, whereas there is no evidence that the extent to which the audience is selected for its need to use or reasonable potential for use of the action called for by the program component (attending the lecture) is overwhelmingly significant. ##### [720-958-55-144](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-144) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:e105135365bb20e97e7686b9a93bb4d8018eafb65083dc6f77eb997b920e36c0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The content criterion is met because the activity calls for specific action by the recipient (attending the lecture) that will help accomplish the NFP's mission (educating the public \[students\] in various academic pursuits), and the need for and benefits of the action are clearly evident (attending the lecture is a positive educational experience). ##### [720-958-55-145](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-145) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:5020b6e8172f338d2945c0c333d60b50b221d1947bd87028433f53903467955f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [958-720-45-33 through 45-53](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-33) and [958-720-55-6 through 55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) . ##### [720-958-55-146](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-146) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:e72322337d5f88ce2857f07720782b5359b46f0ee677bc040a866184fc212d19 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-Profit Entity O's (NFP O's) mission is to reduce the incidence of illness from ABC disease, which primarily afflicts people over 65 years of age. One of NFP O's objectives in fulfilling that mission is to have all persons over 65 screened for ABC disease. ##### [720-958-55-147](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-147) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:10e152c91414b245332c37def96618e96951da06c7ac0bf71eb55e9659faf89c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. NFP O rents space at events attended primarily by people over 65 years of age and conducts free screening for ABC disease. NFP O's employees, who are educated about ABC disease and screening procedures and do not otherwise perform fundraising functions, educate interested parties about the effects of ABC disease and the ease and benefits of screening for it. NFP O also solicits contributions at the events. The effectiveness of the activity is evaluated primarily based on how many screening tests are performed, and only minimally based on contributions raised. The employees are not compensated or evaluated based on contributions raised. ##### [720-958-55-148](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-148) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:297fef89b341ad93a27044877979a9a09798c8d699796aade2ac3fb34cdf7b06 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose, audience, and content criteria are met, and the joint costs should be allocated. ##### [720-958-55-149](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-149) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:1c18faa34fd16ef284793895afe20e1b47f0139041940d471a31e4318170100d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The activity calls for specific action by the recipient (being screened for ABC disease) that will help accomplish the NFP's mission. Therefore, the guidance in paragraph [958-720-45-38](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-38) should be considered. Neither of the factors in paragraphs [958-720-45-40 through 45-44](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-40) nor those in paragraphs [958-720-45-45 through 45-46](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-45) are determinative of whether the purpose criterion is met. Therefore, other evidence, such as the indicators in paragraphs [958-720-55-6 through 55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) , should be considered. ##### [720-958-55-150](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-150) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:102cea7a0b36feeea143bf4c8c1fffcd70b3a5d831119e54204711cf33d2d080 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose criterion is met based on the other evidence, because: 1. a A process exists to evaluate measured program results and accomplishments and in evaluating the effectiveness of the joint activity, the NFP places significantly greater weight on the activity's effectiveness in accomplishing program goals than on the activity's effectiveness in raising contributions (NFP O evaluates the effectiveness of the activity based on the number of screening tests conducted as well as contributions received and places more weight on the number of tests conducted than on the contributions received). 2. b The qualifications and duties of the personnel performing the activity indicate that it is a program activity (the employees are educated about ABC disease and the testing procedures and do not otherwise perform fundraising functions). 3. c The method of compensation for performing the activity does not indicate that it is a fundraising activity (the employees are not compensated or evaluated based on contributions raised). 4. d Performing such programs helps accomplish NFP O's mission (to prevent ABC disease). ##### [720-958-55-151](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-151) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:1f2b470c31df1d6d671247167c793a9595bb946a75d74ca923cbfa000182bb87 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The audience criterion is met because the audience (people over 65 years of age) is selected based on its need to use or reasonable potential for use of the action called for by the program component. ##### [720-958-55-152](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-152) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:461ef986036fafb005803c086ceccfacf7a0e25ba50f3cc0f41914f6af84f03b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The content criterion is met because the activity calls for specific action by the recipient (being screened for ABC disease) that will help accomplish the NFP's mission (to reduce the incidence of ABC disease), and it explains the need for and benefits of the action (to prevent ABC disease). ##### [720-958-55-153](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-153) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:1caa55b789dbfe67911ffcc08decf143cf0ac78f660ffb5023574d7cff9573c1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [958-720-45-33 through 45-53](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-33) and [958-720-55-6 through 55-9](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-6) . ##### [720-958-55-154](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-154) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:d55af1ab3e681a9a2c76c30d128f04d64b13eeaf4eb8a9ddde4ff153325cd532 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-Profit Entity P's (NFP P's) mission is to provide cultural and educational television programming to residents in its area. NFP P owns a public television station and holds a membership drive in which it solicits new members. The drive is conducted by station employees and consists of solicitations that are shown during long breaks between the station's regularly scheduled programs. NFP P's internal management memoranda state that these drives are designed to raise contributions. NFP P evaluates the effectiveness of the activity based on the amount of contributions received. NFP P shows the programs on a similar scale, without the request for contributions. The audience is members of the general public who watch the programs shown during the drive. Station member benefits are given to those who contribute and consist of tokens of appreciation with a nominal value. ##### [720-958-55-155](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-155) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:14f125642d8714a90c5bb659fb10209632965e39ca449f74b3c719e1b2cad235 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose, audience, and content criteria are met, and the joint costs should be allocated. (Note that there would be few, if any, joint costs. Costs associated with the fundraising activities, such as costs of airtime, would be separately identifiable from costs of the program activities, such as licensing costs for a particular television program. Also, note that because no significant benefits or duties are associated with membership, member dues are contributions. Therefore, the substance of the membership-development activities is, in fact, fundraising.) ##### [720-958-55-156](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-156) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:791febfe3ffbe16113f7067dfde1d5966f85829ce371895e8f4905db064bc573 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The activity calls for specific action by the recipient (watching the television program) that will help accomplish the NFP's mission. Therefore, the guidance in paragraph [958-720-45-38](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-38) should be considered. ##### [720-958-55-157](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-157) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:47d3becc12ebb0733f08882540487ebf80da4a1df08794a1d3c775148ddd84dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The purpose criterion is met because: 1. a The program component of the activity calls for specific action by the recipient that will help accomplish the NFP's mission. 2. b The program is also conducted using the same medium on a scale that is similar to or greater than the scale on which it is conducted with the request for contributions (NFP P shows the television programs on a similar scale, without the request for contributions). ##### [720-958-55-158](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-158) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:430e3486c5439ba5cb1b2a1b17dfb36f2e63f4aa4d62f588026f045323407ba0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The audience criterion is met. The rebuttable presumption that the audience criterion is not met because the audience is selected based on its likelihood to contribute is overcome in this Example because the audience (members of the general public who watch the television programs shown during the drive) is also selected for its reasonable potential for use of the program component (watching the television programs). Although the audience may make contributions, that was an insignificant factor in its selection. ##### [720-958-55-159](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-159) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:d2965f0859c5429cfa68872902b40bfe74639bd89f61631a4122a91d349301f6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The content criterion is met because the activity calls for specific action by the recipient (watching the television programs) that will help accomplish the NFP's mission (providing cultural and educational television programming to residents in its area), and the need for and benefits of the action are clearly evident (watching the programs is a positive cultural and educational experience). ##### [720-958-55-160](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-160) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:c3e852d346d06e29d091f0d3d194e4f226a7e4edc7aeec98996535adfec1300f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example provides an illustration of incidental activities covered in paragraph [958-720-45-55](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-55). ##### [720-958-55-161](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-161) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:39b58bfab52ab1819092b465cac3d78c6eb98084946c87c31e427797f4bca4a9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-Profit Entity Q (NFP Q) conducts a fundraising activity by including a generic message, "Contributions to NFP Q may be sent to \[address\]" on a small area of a message that would otherwise be considered a program or management and general activity based on its purpose, audience, and content. That fundraising activity likely would be considered incidental to the program or management and general activity being conducted. ##### [720-958-55-162](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-162) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:75ec6d3bb9177934b2d266a35c144b7da4044698758c33f518156b1880c20168 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example provides an illustration of incidental activities covered in paragraph [958-720-45-55](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-55). ##### [720-958-55-163](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-163) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:5c465e828acad2333e78eeb31a673ac33d1080daebc70751126874b653e3a732 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-Profit Entity R conducts a program activity by including a generic program message such as "Continue to pray for \[a particular cause\]" on a small area of a message that would otherwise be considered fundraising based on its purpose, audience, and content. That program activity would likely be considered incidental to the fundraising activity being conducted. ##### [720-958-55-164](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-164) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:e93ae89529d3b36c972ff657e465d919fba885b48663b2d783839621fc13fac6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example provides an illustration of incidental activities covered in paragraph [958-720-45-55](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-55). ##### [720-958-55-165](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-165) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:7a7a617ca1892a6ef822dd6f07879be3c55259be3de66dd0d50a2b900d3c2418 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-Profit Entity S conducts a management and general activity by including a brief management and general message—"We recently changed our phone number. Our new number is 123-4567"—on a small area of a message that would otherwise be considered a program or fundraising activity based on its purpose, audience, and content. That management and general activity would likely be considered incidental to the program or fundraising activity being conducted. ##### [720-958-55-166](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-166) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:232ff6f8b530e9bd9fe2fb6cb5d05fc9813e5184a5cdc520fc45b9c078b0e17b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosures discussed in paragraph [958-720-50-2](https://asc.understandingaccounting.org/asc/720/958/#720-958-50-2) are illustrated in the following Cases: 1. a Narrative format (Case A) 2. b Tabular format (Case B). ##### [720-958-55-167](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-167) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:7e001ba0832778f005b6deb0b21446ab07014056137a09e4f18f0bdfd3b4fa29 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following shows the required and encouraged information in narrative format. - Note X. Allocation of Joint Costs - In 19XX, Not-for-Profit Entity T conducted activities that included requests for contributions, as well as program and management and general components. Those activities included direct mail campaigns, special events, and a telethon. The costs of conducting those activities included a total of $310,000 of joint costs, which are not specifically attributable to particular components of the activities (joint costs). \[Joint costs for each kind of activity were $50,000, $150,000, and $110,000 respectively.\] These joint costs were allocated as follows. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-148FD632-72CF-4352-A3B3-7E982F911AE1-low.gif) Fund raising " $180,000 " Program A " 80,000 " Program B " 40,000 " Management and general " 10,000 " Total " $310,000 " ##### [720-958-55-168](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-168) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:9f7b28be278fe700ad8370377ae0839e964aa0faa1210475cf4415077ac718f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Note that the bracketed sentence is a disclosure that is encouraged but not required. ##### [720-958-55-169](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-169) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:3d0c6f9b2a7e10096e0c945a9042f90a49bda9aa6060394a7553160be767e3ce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following reports that information in tabular format, as well as information concerning joint costs incurred for each kind of activity by [functional expense classification](https://asc.understandingaccounting.org/glossary/f/#functional-expense-classification "A method of grouping expenses according to the purpose for which costs are incurred. The primary functional classifications of a not-for-profit entity are program services and supporting activities."), which is neither required nor encouraged, but which is not prohibited. - Note X. Allocation of Joint Costs - In 19XX, Not-for-Profit Entity T conducted activities that included appeals for contributions and incurred joint costs of $310,000. These activities included direct mail campaigns, special events, and a telethon. Joint costs were allocated as follows. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-C1FE169F-24FC-4E1B-A341-4C184FF0C84C-low.gif) Direct Mail Special Events Telethon Total Fund raising " $40,000 " " $50,000 " " $90,000 " " $180,000 " Program A " 10,000 " " 65,000 " " 5,000 " " 80,000 " Program B " 25,000 " " 15,000 " " 40,000 " Management and general " 10,000 " " 10,000 " Total " $50,000 " " $150,000 " " $110,000 " " $310,000 " ##### [720-958-55-170](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-170) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:78f2b403a3b4afd2b0948e8ad5527b60024a24a924b99f7382c1cffcc3318fec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Note that shading is used to highlight information that is neither required nor encouraged, but which is not prohibited. However, NFPs may prefer to disclose it. Disclosing the total joint costs for each kind of activity ($50,000, $150,000, and $110,000) is encouraged but not required. ##### [720-958-55-171](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-171) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:b52eb6a79f56e8850d87e2796cda2fc048280d73e940cdc7e8c4f6cfeca656f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Cases represent certain activities to illustrate direct conduct and direct supervision of program or support activities and, therefore, should be allocated to the program or support function or functions that receive a benefit in accordance with paragraph [958-720-45-7(k)](https://asc.understandingaccounting.org/asc/720/958/#720-958-45-7). ##### [720-958-55-172](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-172) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:b76e86bfcb25ef92dd88ad7fc4e6cddd8a40d23bdf3a9b2ffe3346bec42fedb3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The broad responsibilities of a chief executive officer generally include administrative and programmatic oversight. At Not-for-Profit Entity A (NFP A), the chief executive officer spends a portion of time directly overseeing the research program. Additionally, a portion of time is spent with current and potential donors on fundraising cultivation activities. A portion of the chief executive officer's compensation and benefits and other expenses would be allocated to the research program and to the fundraising function representing the portion of time spent on those activities because they reflect direct conduct or direct supervision. If the remainder of the chief executive officer's time is spent indirectly supervising the other areas of NFP A, including the administrative areas, those activities would not constitute direct conduct or direct supervision, and the ratable portion of compensation and benefit amounts would remain in management and general activities. ##### [720-958-55-173](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-173) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:33c8f1402584ffef53ea389221148c815b7f4a7fcc23daa0676dff8680ede62a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The chief financial officer at Not-for-Profit Entity B (NFP B) has primary responsibility for (a) accounting and reporting, (b) short-term budgeting and long-term financial planning, (c) cash management, and (d) direct oversight of NFP B's endowment. A portion of the chief financial officer's compensation and benefits and other expenses would be allocated to management and general activities for the accounting and reporting, the short-term budgeting and long-term financial planning, and cash management functions because they benefit the overall organization. A portion also would be allocated to investment expenses for management of the investment strategy of the endowment and would be netted against investment return. However, any portion of time spent supervising the accounting for investments or other fiduciary oversight would not be allocated to investment expenses because that time is related to an accounting and general management activity that benefits the overall organization and should be allocated to management and general activities. ##### [720-958-55-174](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-174) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:91bb69017b977e75344fff2568ce5c416a0191650069fa6237fe74dc168aa56a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The human resources department at Not-for-Profit Entity C (NFP C) generally is involved in the benefits administration for all personnel of NFP C. The human resources department's related costs would not be allocated to any specific program. Rather, those costs would remain a component of management and general activities because benefits administration is a supporting activity for the entire entity. ##### [720-958-55-175](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-175) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:faf97231b824624c9c5b9d9f61b1cc2e05f9343d9f24c424e16c1c19e6c45ebb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not-for-Profit Entity D (NFP D) receives federal grants and employs an accountant who is responsible for grant accounting and reporting. In some cases, under the terms of the grant agreement, a fiscal report is required to be filed that details expenses incurred and charged against the grant. The fiscal report is not part of the direct conduct or direct supervision of the grant but rather is an accounting function. Therefore, the grant accountant's compensation and benefits would not be allocated to the programmatic area. However, a scientific report prepared by a principal investigator who is responsible for the research activity would be indicative of direct conduct and/or direct supervision of the grant activity, and the principal investigator's compensation and benefits would be allocated to the grant. ##### [720-958-55-176](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-176) Pending content: no Source downloaded (UTC): 2026-09-10T01:13:22.378Z to 2026-09-10T01:13:22.378Z Record version: sha256:27584110e0feb3c8771d3a685d9981949d2960e47811516a7a6527a9c68714ac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In accordance with the Cases presented in paragraphs [958-720-55-172 through 55-175](https://asc.understandingaccounting.org/asc/720/958/#720-958-55-172) , an NFP would be required to assess which activities constitute direct conduct or direct supervision of a program or support function and, therefore, would require allocation of costs. The information required to be disclosed by paragraph [958-720-50-1(d)](https://asc.understandingaccounting.org/asc/720/958/#720-958-50-1) would be the cost allocation method used to allocate costs of activities identifiable with one or more program, fundraising, or membership-development activities, an example of which is illustrated as follows. - Note X. Methods Used for Allocation of Expenses from Management and General Activities - The financial statements report certain categories of expenses that are attributable to one or more program or supporting functions of the Organization. Those expenses include depreciation and amortization, the president's office, communications department, and information technology department. Depreciation is allocated based on square footage, the president's office is allocated based on estimates of time and effort, certain costs of the communications department are allocated based on estimates of time and effort, and the information technology department is allocated based on estimates of time and costs of specific technology utilized.