# ASC 958-30-30: Not-for-Profit Entities — Split-Interest Agreements — 30 Initial Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/958/30/#30-initial-measurement) 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): 2026-09-10T02:22:11.482Z to 2026-09-10T02:22:11.482Z Record version: sha256:5fcc72c8c42b3e81db26a71aadd179dddb5c335c53cebcd7de636290269a9e0e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 958-30-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/958/30/#30-initial-measurement) SEC content: no #### Fair Value Measurement ##### [958-30-30-1](https://asc.understandingaccounting.org/asc/958/30/#958-30-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:11.482Z to 2026-09-10T02:22:11.482Z Record version: sha256:11691d47ff914dab8ca5c64274106b019f813ff67d0a78dcbb4370c11ad63314 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Topic 820 establishes a framework for measuring [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."). This Subtopic uses present value techniques as one possible technique to measure the [contribution](https://asc.understandingaccounting.org/glossary/c/#contribution "An unconditional transfer of cash or other assets, as well as unconditional promises to give, to an entity or a reduction, settlement, or cancellation of its liabilities in a voluntary nonreciprocal transfer by another entity acting other than as an owner. Those characteristics distinguish contributions from:Exchange transactions, which are reciprocal transfers in which each party receives and sacrifices approximately commensurate valueInvestments by owners and distributions to owners, which are nonreciprocal transfers between an entity and its ownersOther nonreciprocal transfers, such as impositions of taxes or legal judgments, fines, and thefts, which are not voluntary transfers. In a contribution transaction, the resource provider often receives value indirectly by providing a societal benefit although that benefit is not considered to be of commensurate value. In an exchange transaction, the potential public benefits are secondary to the potential direct benefits to the resource provider. The term contribution revenue is used to apply to transactions that are part of the entity's ongoing major or central activities (revenues), or are peripheral or incidental to the entity (gains). See also Inherent Contribution and Conditional Contribution.") revenue and obligation to other beneficiaries of a [split-interest agreement](https://asc.understandingaccounting.org/glossary/s/#split-interest-agreement "An agreement in which a donor enters into a trust or other arrangement under which a not-for-profit entity (NFP) receives benefits that are shared with other beneficiaries. A typical split-interest agreement has the following two components: A lead interest A remainder interest."). See paragraphs [820-10-55-4 through 55-20](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-4) for implementation guidance for using present value techniques if the measurement objective is fair value. Other valuation techniques are also available, as discussed in Section 820-10-35. ##### [958-30-30-2](https://asc.understandingaccounting.org/asc/958/30/#958-30-30-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:11.482Z to 2026-09-10T02:22:11.482Z Record version: sha256:6ff959d7206be8a1e9da6087600df00f88e7e0de63de6d1c689a623133319778 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Section provides initial measurement guidance for the two types of split-interest agreements: 1. a Revocable agreements 2. b Irrevocable agreements. #### Revocable Agreements ##### [958-30-30-3](https://asc.understandingaccounting.org/asc/958/30/#958-30-30-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:11.482Z to 2026-09-10T02:22:11.482Z Record version: sha256:4d17a45184be12412090fec45fa05dba1eee9aa215c1ab1f152aa7ec5430bab8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Assets received by a [not-for-profit entity](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") (NFP) acting as a [trustee](https://asc.understandingaccounting.org/glossary/t/#trustee "An entity that has a duty to hold and manage assets for the benefit of a specified beneficiary in accordance with a charitable trust agreement. In some states, not-for-profit entities (NFPs) are organized under trust law rather than as corporations. Those NFPs are not trustees as defined because, under those statutes, they hold assets in trust for the community or some other broadly described group, rather than for a specific beneficiary.") under a revocable split-interest agreement shall be recognized at fair value. #### Irrevocable Agreements ##### [958-30-30-4](https://asc.understandingaccounting.org/asc/958/30/#958-30-30-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:11.482Z to 2026-09-10T02:22:11.482Z Record version: sha256:72b10e0fb01cb5791183aa775e7c7a1aa3e9b78ac62a0ac514f990b31fdfda07 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the NFP serves as trustee or if the assets contributed by the donor are otherwise under the control of the NFP, cash and other assets received under split-interest agreements shall be recognized at fair value at the date of initial recognition. Further, in accordance with paragraph [958-605-30-2](https://asc.understandingaccounting.org/asc/605/958/#605-958-30-2), contributions shall be measured at fair value at the date of initial recognition of a split-interest agreement. ##### [958-30-30-5](https://asc.understandingaccounting.org/asc/958/30/#958-30-30-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:11.482Z to 2026-09-10T02:22:11.482Z Record version: sha256:9cb5e42b7a2e01de970836fcc9d7f917cd0fa9e9a7e72dc07b9935ec24e3ba46 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the split-interest agreement is other than a [pooled income fund](https://asc.understandingaccounting.org/glossary/p/#pooled-income-fund "A trust in which donors are assigned a specific number of units based on the proportion of the fair value of their contributions to the total fair value of the pooled income fund on the date of the donor's entry to the pooled fund. Until a donor's death, the donor (or the donor's designated beneficiary or beneficiaries) is paid the actual income (as defined under the arrangement) earned on the donor's assigned units. Upon the donor's death, the value of these assigned units reverts to the NFP.") or net income unitrust (for example, a [charitable gift annuity](https://asc.understandingaccounting.org/glossary/c/#charitable-gift-annuity "A transfer of assets to a not-for-profit entity (NFP) in connection with a split-interest agreement that is in part a contribution and in part an exchange transaction. The NFP accepts the contribution and is obligated to make periodic stipulated payments to the donor or a third-party beneficiary for a specified period of time, usually either a specified number of years or until the death of the donor or third-party beneficiary."), a [charitable lead trust](https://asc.understandingaccounting.org/glossary/c/#charitable-lead-trust "A trust established in connection with a split-interest agreement, in which a not-for-profit entity (NFP) receives distributions during the agreement's term. Upon termination of the trust, the remainder of the trust assets is paid to the donor or to third-party beneficiaries designated by the donor."), or a [charitable remainder trust](https://asc.understandingaccounting.org/glossary/c/#charitable-remainder-trust "A trust established in connection with a split-interest agreement, in which the donor or a third-party beneficiary receives specified distributions during the agreement's term. Upon termination of the trust, a not-for-profit entity (NFP) receives the assets remaining in the trust.")), the transferred assets, or a portion of those assets, are being held for the benefit of others, such as the donor or third parties designated by the donor. That liability shall be measured at fair value at the date of initial recognition. If present value techniques are used to measure fair value, the liability is measured at the present value of the future payments to be made to the other beneficiaries. ##### [958-30-30-6](https://asc.understandingaccounting.org/asc/958/30/#958-30-30-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:11.482Z to 2026-09-10T02:22:11.482Z Record version: sha256:3f87c04cf749c2f06b35bd6b52b5ff1b7f7f5f284613fbdcf2f660eab41b6af0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Any present value technique for measuring the fair value of the contribution or payments to be made to other beneficiaries shall consider the elements described in paragraph [820-10-55-5](https://asc.understandingaccounting.org/asc/820/10/#820-10-55-5), including the following: 1. a The estimated return on the invested assets during the expected term of the agreement 2. b The contractual payment obligations under the agreement 3. c A discount rate commensurate with the risks involved. ##### [958-30-30-7](https://asc.understandingaccounting.org/asc/958/30/#958-30-30-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:11.482Z to 2026-09-10T02:22:11.482Z Record version: sha256:5a23443ac0316659c71e1d66f1cba6ebf37cebb8d3454ddea0fdcb9224959407 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Under a [lead interest](https://asc.understandingaccounting.org/glossary/l/#lead-interest "The right to the benefits (cash flows or use) of assets during the term of a split-interest agreement, which generally starts upon the signing of the agreement and terminates at either of the following times: After a specified number of years (period-certain) Upon the occurrence of a certain event, commonly either the death of the donor or the death of the lead interest beneficiary (life-contingent).") agreement, the fair value of the contribution can be estimated directly based on the present value of the future distributions to be received by the NFP as a beneficiary. Under lead interest agreements, the future payments to be made to other beneficiaries will be made by the NFP only after the NFP receives its benefits. In those situations, the present value of the future payments to be made to other beneficiaries may be estimated by the fair value of the assets contributed by the donor under the agreement less the fair value of the benefits to be received by the NFP. If present value techniques are used, the fair value of the benefits to be received by the NFP shall be measured at the present value of the benefits to be received over the expected term of the agreement. ##### [958-30-30-8](https://asc.understandingaccounting.org/asc/958/30/#958-30-30-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:11.482Z to 2026-09-10T02:22:11.482Z Record version: sha256:13f31624b62833a3eab9bf035927ee7918282523a927037aa2fe13530c019d8a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Under [remainder interest](https://asc.understandingaccounting.org/glossary/r/#remainder-interest "The right to receive all or a portion of the assets of a split-interest agreement remaining at the end of the agreement's term.") agreements, the present value of the future payments to be made to other beneficiaries can be estimated directly based on the terms of the agreement. Future distributions will be received by the NFP only after obligations to other beneficiaries are satisfied. In those cases, the fair value of the contribution may be estimated based on the fair value of the assets contributed by the donor less the fair value of the payments to be made to other beneficiaries. ##### [958-30-30-9](https://asc.understandingaccounting.org/asc/958/30/#958-30-30-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:11.482Z to 2026-09-10T02:22:11.482Z Record version: sha256:7133019a1387e42e7b772b59e220b37329a255baf0d0c0c98879e964d3165595 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Pursuant to Section 815-15-30, an embedded derivative in an obligation for future payments to be made to other beneficiaries shall be measured at fair value. Alternatively, an NFP that serves as a trustee or fiscal [agent](https://asc.understandingaccounting.org/glossary/a/#agent "An entity that acts for and on behalf of another. Although the term agency has a legal definition, the term is used broadly to encompass not only legal agency, but also the relationships described in Topic 958. A recipient entity acts as an agent for and on behalf of a donor if it receives assets from the donor and agrees to use those assets on behalf of or transfer those assets, the return on investment of those assets, or both to a specified beneficiary. A recipient entity acts as an agent for and on behalf of a beneficiary if it agrees to solicit assets from potential donors specifically for the beneficiary's use and to distribute those assets to the beneficiary. A recipient entity also acts as an agent if a beneficiary can compel the recipient entity to make distributions to it or on its behalf.") can irrevocably elect to measure the entire obligation at fair value pursuant to Section 815-15-25 or the Fair Value Option Subsections of Subtopic 825-10. ##### [958-30-30-10](https://asc.understandingaccounting.org/asc/958/30/#958-30-30-10) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:11.482Z to 2026-09-10T02:22:11.482Z Record version: sha256:838de5fec053ed6fb5fe87867df2eb64877dba3df067f7f44d3b05b401043ca5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The contributed assets received from the donor under a pooled income fund agreement or a [net income unitrust](https://asc.understandingaccounting.org/glossary/n/#net-income-unitrust "A trust established in connection with a split-interest agreement, in which the donor or a third-party beneficiary receives distributions during the agreement's term of the lesser of the net income earned by the trust or a fixed percentage of the fair value of the trust's assets, with or without recovery and distribution of the shortfall in a subsequent year. Upon termination of the trust, a not-for-profit entity (NFP) receives the assets remaining in the trust.") shall be recognized at fair value. The contribution shall be measured at fair value. Present value techniques are one valuation technique for measuring the fair value of the contribution; other valuation techniques are also available, as described in Topic 820. If present value techniques are used, the contribution may be measured at the fair value of the assets to be received, discounted for the estimated time period until the donor's death. ##### [958-30-30-11](https://asc.understandingaccounting.org/asc/958/30/#958-30-30-11) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:11.482Z to 2026-09-10T02:22:11.482Z Record version: sha256:72dafb0ca5ef642afadce816edefbb90360bccdd5fe43b11dab9411bdea7879d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Pursuant to paragraph [958-605-30-14](https://asc.understandingaccounting.org/asc/605/958/#605-958-30-14), if an NFP is the beneficiary of a split-interest agreement held by a third party and has an unconditional right to receive all or a portion of the specified cash flows from the assets held pursuant to that agreement, the NFP shall measure its beneficial interest at fair value.