Perspective and Issues

Concepts, Rules, and Examples

Expendable Current Support

Unrestricted contributions

Current restricted contributions

Investment securities


Fixed assets (land, buildings, and equipment), and supplies

Museum collections

Fundraising and informational materials or advertising

Contributed services of volunteers

Use of facilities

Services provided by other organizations

Support Not Currently Expendable

Endowment gifts

Pledges (promises to give)


Exchange Transactions

Troubled Debt Restructurings—Creditors

Appendix A Checklist

Appendix B Checklist

Appendix C Checklist

Appendix D Checklist

Appendix E Checklist

Appendix F Checklist

Appendix G Checklist

Disclosure Requirements


This chapter addresses the problems of recording and reporting the principal resource most not-for-profit organizations depend on—contributions. An organization can receive contributions with a wide range of restrictions attached. First these contributions must be recorded in the proper net asset classification; then they must be reported in such a way that the financial statement reader is fully aware of their receipt and any restrictions on them. In addition there has been, and continues to be, considerable controversy surrounding the timing of the recording of different types of gifts as income.

Some contributions are made in the form of pledges that will be paid off over a period of time or at ...

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