# ASC 958-30-45: Not-for-Profit Entities — Split-Interest Agreements — 45 Other Presentation Matters Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/958/30/#45-other-presentation-matters) 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): 2026-09-10T02:22:18.202Z to 2026-09-10T02:22:18.202Z Record version: sha256:50f569b7471f5a7c59b9992f5b661fb53d8468cd28f00880e1e7b07968c78161 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 958-30-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/958/30/#45-other-presentation-matters) SEC content: no #### Classification of Net Assets ##### [958-30-45-1](https://asc.understandingaccounting.org/asc/958/30/#958-30-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:18.202Z to 2026-09-10T02:22:18.202Z Record version: sha256:8dace40fc4b36588e4e77761bd1b4195151ce9c09e51c971b8d34b05fd071bb8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [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.") revenues recognized under [split-interest agreements](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.") shall be classified as increases in [net assets with donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-with-donor-restrictions "The part of net assets of a not-for-profit entity that is subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") unlessthe donor gives the [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) the immediate right to use, without restrictions, the assets it receives, in which case the contribution shall be classified as an increase in [net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants)."). 1. a [Subparagraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2016-14](https://asc.understandingaccounting.org/updates/asu-2016-14/). ##### [958-30-45-2](https://asc.understandingaccounting.org/asc/958/30/#958-30-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:18.202Z to 2026-09-10T02:22:18.202Z Record version: sha256:367af4bc8c5c49fd5cc1ab5aefb74e95f5b672faeb4cd699d5bc7d87b53a452d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Under many [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.") agreements, the assets received from the donor are held by the NFP as part of its general assets and are available for its general use. The contribution portion of a charitable gift annuity agreement shall be recognized as revenue without donor restrictions if both of the following criteria are met: 1. a The donor does not restrict the use of the assets contributed to the NFP. 2. b Neither the agreement nor laws and regulations require the assets received by the NFP to be invested until the income beneficiary's death. Additional annuity reserves required by state laws, as described in paragraph [958-30-50-2](https://asc.understandingaccounting.org/asc/958/30/#958-30-50-2), do not create donor restrictions. If either of those criteria is not met, the contribution shall be classified as [donor-restricted support](https://asc.understandingaccounting.org/glossary/d/#donor-restricted-support "Donor-restricted revenues or gains from contributions that increase net assets with donor restrictions (donors include other types of contributors, including makers of certain grants).") that increases net assets with donor restrictions and shall be reclassified as net assets without donor restrictions when [donor-imposed restrictions](https://asc.understandingaccounting.org/glossary/d/#donor-imposed-restriction "A donor stipulation (donors include other types of contributors, including makers of certain grants) that specifies a use for a contributed asset that is more specific than broad limits resulting from the following: The nature of the not-for-profit entity (NFP) The environment in which it operates The purposes specified in its articles of incorporation or bylaws or comparable documents for an unincorporated association. Some donors impose restrictions that are temporary in nature, for example, stipulating that resources be used after a specified date, for particular programs or services, or to acquire buildings or equipment. Other donors impose restrictions that are perpetual in nature, for example, stipulating that resources be maintained in perpetuity. Laws may extend those limits to investment returns from those resources and to other enhancements (diminishments) of those resources. Thus, those laws extend donor-imposed restrictions.") or legal requirements are satisfied. ##### [958-30-45-3](https://asc.understandingaccounting.org/asc/958/30/#958-30-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:18.202Z to 2026-09-10T02:22:18.202Z Record version: sha256:f9c3aa0cde3283d1059e6909e26928622d75a4e2e24cbf53753cc7623a2b9f5f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. During the term of the agreement, transactions and events that are recognized as changes in the value of split-interest agreements in a statement of activities shall be classified as [net assets with donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-with-donor-restrictions "The part of net assets of a not-for-profit entity that is subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants).") or [net assets without donor restrictions](https://asc.understandingaccounting.org/glossary/n/#net-assets-without-donor-restrictions "The part of net assets of a not-for-profit entity that is not subject to donor-imposed restrictions (donors include other types of contributors, including makers of certain grants)."), depending on the classification used when 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 was recognized initially. ##### [958-30-45-4](https://asc.understandingaccounting.org/asc/958/30/#958-30-45-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:18.202Z to 2026-09-10T02:22:18.202Z Record version: sha256:c685df5d0b2ffe39e5d770766ce1ed72df9bd8cd1224ccf4a65cf95d5f38b718 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Amounts shall be reclassified from net assets with donor restrictions to net assets without donor restrictions as distributions are received by the NFP under the terms of the [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.") unless those assets are otherwise further restricted by the donor. In that case, they shall be reclassified to net assets without donor restrictions when the restrictions expire. ##### [958-30-45-5](https://asc.understandingaccounting.org/asc/958/30/#958-30-45-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:18.202Z to 2026-09-10T02:22:18.202Z Record version: sha256:bd88c0296b9a12ed1dfe6c9e771fd1f3e564d92a4b8d4711ac44d27320dbb16e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If assets previously distributed to the NFP become available for its general use upon termination of the split-interest agreement, a [reclassification of net assets](https://asc.understandingaccounting.org/glossary/r/#reclassification-of-net-assets "Simultaneous increase of one class of net assets and decrease of another. A reclassification of net assets usually results from a donor-imposed restriction (donors include other types of contributors, including makers of certain grants) being satisfied or otherwise lapsing.") shall be made from net assets with donor restrictions to net assets without donor restrictions. #### Presentation in the Statement of Financial Position ##### [958-30-45-6](https://asc.understandingaccounting.org/asc/958/30/#958-30-45-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:18.202Z to 2026-09-10T02:22:18.202Z Record version: sha256:fd835c82e9d7d8310e639337a12cd06762a846a7bfcebdd58b79af9dcaa8cc6b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Assets and liabilities recognized under split-interest agreements shall be reported separately from other assets and liabilities in a statement of financial position if not disclosed in the related notes (see paragraph [958-30-50-1(b)](https://asc.understandingaccounting.org/asc/958/30/#958-30-50-1)). #### Presentation in the Statement of Activities ##### [958-30-45-7](https://asc.understandingaccounting.org/asc/958/30/#958-30-45-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:18.202Z to 2026-09-10T02:22:18.202Z Record version: sha256:407225acb699aca89258710265644a601cdb8801ccd3cd66bfe05af666d9282a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [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 changes in the value of split-interest agreements recognized under such agreements shall be reported as separate line items in a statement of activities if not disclosed in the related notes (see paragraph [958-30-50-1(e)](https://asc.understandingaccounting.org/asc/958/30/#958-30-50-1)). Paragraph [958-220-45-6](https://asc.understandingaccounting.org/asc/220/958/#220-958-45-6) states that the classification of contributions received as revenues or gains depends on whether the transactions are part of the NFP's ongoing major or central activities (revenues) or are peripheral or incidental to the NFP (gains).