Wiley Not-for-Profit GAAP 2017

9Contributions, Pledges, Noncash Contributions, and Exchange Transactions

1. Perspective and Issues
2. Concepts, Rules, and Examples
   1. Expendable Current Support
   2. Gifts-in-Kind
   3. Support Not Currently Expendable
   4. Exchange Transactions
   5. Costs to Obtain or Fulfil a Contract with a Customer
   6. Troubled Debt Restructurings—Creditors
3. Appendix A Checklist
4. Appendix B Checklist
5. Appendix C Checklist
6. Appendix D Checklist
7. Appendix E Checklist
8. Appendix F Checklist
9. Appendix G Checklist
10. Disclosure Requirements

Perspective and Issues

This chapter addresses the problems of recording and reporting the principal resource many 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 some future date; the main accounting questions are whether such pledges should be recorded as assets prior to their collection, and when they should be recognized as income. Also, an organization can receive a variety of noncash contributions ranging from marketable securities, ...