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Glossary/Government, nonprofit and ERISA

Contributed nonfinancial assets

Contributed nonfinancial assets, also called gifts in kind, are donated items such as supplies, equipment, property, and services that a nonprofit reports on a separate line of the statement of activities and discloses by category.

CORAA TeamUpdated November 5, 2026

Definition

Contributed nonfinancial assets are gifts other than cash or financial instruments, including food, medical supplies, use of facilities, securities of closely held entities, and qualifying services. ASU 2020-07 requires a not-for-profit to present them as a separate line item in the statement of activities, apart from contributions of cash and other financial assets. It does not change when they are recognized or how they are measured; they are generally recorded at fair value when received.

Why it matters in an audit or review

The notes must disaggregate the amount by category and describe, for each category, whether the assets were monetized or used in programs, any donor restrictions, and the valuation techniques and inputs, including the principal market for assets that are sold. Auditors trace receipts to donor documentation, test fair value support, and check that the line item and the notes agree.

Example

Illustrative: a food bank receives donated groceries with a supporting fair value of $120,000 and donated pharmacy supplies valued at $30,000. The statement of activities shows $150,000 on the contributed nonfinancial assets line, and the notes show the two categories separately.

Common mistakes

  • Valuing donated goods at donor-supplied retail price without checking the principal market.
  • Missing the policy disclosure on monetization.

Sources

  • FASB ASU 2020-07, Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets (effective for annual periods beginning after June 15, 2021): https://storage.fasb.org/ASU_2020-07.pdf
  • FASB ASC 958-605, Not-for-Profit Entities, Revenue Recognition

Definitions paraphrase AICPA and FASB guidance; read the standard itself before relying on a requirement. Example figures are illustrative. This page is guidance, not professional advice. Report an error

Standards

ASC 958-605

Related terms

  • Donated services
    Donated services are recognized as contributions by a nonprofit only if they create or enhance a nonfinancial asset, or require specialized skills, are provided by people with those skills, and would otherwise be purchased.
  • Donor restrictions (net assets with donor restrictions)
    Donor restrictions are limits a donor places on how or when a nonprofit may use a gift, and they determine whether assets are reported as net assets with or without donor restrictions under ASC 958.
  • Fair value hierarchy
    The fair value hierarchy ranks inputs as Level 1 (quoted prices in active markets), Level 2 (other observable inputs) or Level 3 (unobservable inputs); a measurement takes the level of its lowest significant input.

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