12 SPLIT-INTEREST AGREEMENTS
PERSPECTIVE AND ISSUES
Split-interest agreements are a special type of contribution that result from sharing of legal rights to certain assets by the not-for-profit organization and other beneficiaries. Some donors find it beneficial to enter into trust or other arrangements under which the not-for-profit organization receives benefits that are shared with other beneficiaries. Chapter 6 of the AICPA Audit & Accounting Guide Not-for-Profit Entities (the AICPA Guide) provides significant guidance and background on split-interest agreements that is incorporated in this chapter. Applicable GAAP requirements have been incorporated into the FASB Codification primarily at FASB ASC 958-325.
NOTE: In October 2011, the AICPA issued a whitepaper, “Measurement of Fair Value for Certain Transactions of Not-for-Profit Entities,” designed ...