On Monday, February 10, 2020, the Financial Accounting Standards Board (FASB) issued a Proposed Accounting Standards Update (ASU) – “Not-for-Profit Entities (Topic 958).” The update aims to improve transparency of contributed nonfinancial assets — or more commonly referred to as in-kind donations — for not-for-profits by enhancing presentation and disclosure.

a box wrapped in pink paper with a gold ribbon tied into a bow, sprinkled with heart-shaped gold confetti; image used for blog post about proposed amendments for NFP nonfinancial assets from FASB

According to the draft of

Not-for-profit organizations receive more than simple cash donations. Your support also likely comes in the form of gifts in kind and donated services. But even when such gifts are welcome, it can be challenging to determine how to recognize and assign a value to them for financial reporting purposes.

Recording gifts in kind

Gifts in