FASB proposes updated accounting standard covering gifts‐in‐kind

• Published date: 01 April 2020
• DOI: http://doi.org/10.1002/nba.30738
• Date: 01 April 2020

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Vol. 367 April 2020

FASB proposes updated accounting standard

covering gifts-in-kind

A proposed Accounting Standards Update is-

sued by the Financial Accounting Standards Board

would require nonprot organizations to take ad-

ditional steps to report and disclose the value of

contributed nonnancial assets—otherwise known

as gifts-in-kind.

The ASU would revise FASB Subtopic 958-605,

“Not-for-Profit Entities—Revenue Recognition,”

which lays out requirements for the recognition and

initial measurement of contributions to nonprots,

and disclosure requirements for contributed services,

such as pro bono volunteer support. According to a

fact sheet published as part of the ASU, the exist-

ing standard does not include specic presentation

requirements for contributed nonnancial assets

or specic disclosure requirements for contributed

Also in this issue

Conferences and Events: The NAYDO Annual

Conference on YMCA Philanthropy; the ASAE

Marketing, Membership & Communications

Conference; Cause Camp 2020 Anniual Conference;

the GEO 2020 National Conference ...............4

Industry News: Fidelity Charitable reports surge in

DAF grants for 2019 ............................5

Software companies partner with CECP to

streamline donations, volunteer data reporting .......5

Nonprot Research: Study lays out roadblocks to

systemic change efforts ......................... 6

Industry News: Higher education sees record

donations in 2019 ..............................7

Study shows lower returns for educational

endowments ..................................7

Resources: Charityhowto.com webinar focuses on

impact evaluation; Webinar looks at equity and bias

in hiring practices; Candid webinar takes a deep dive

in data management . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Employment Law: Legal cases that impact

nonprots...10

News: Briefs from around the sector. ..............12

Study: Solid growth in giving

expected for 2020–21

Overall charitable giving in the United States

is projected to grow by 4.8% this year and by

5.1% in 2021, according to the latest research

from the Indiana University Lilly Family School

of Philanthropy. The research, presented in The

Philanthropy Outlook 2020 & 2021, bases its esti-

mates on recent economic data and analysis that

takes into account numerous different factors that

will affect charitable giving. The outlook develops

projections for total giving, giving by source and

giving to three types of recipient nonprots and

describes how different economic variables and

other factors will impact giving in 2020 and 2021.

The study’s key ndings include:

• Giving by individuals is projected to have solid

growth of 4.4% in 2020 and 4.7% in 2021, only

slightly below the rate of growth for total giving.

• Giving by foundations is expected to grow

by 6.3% in 2020 and 6.6% in 2021, and giving by

estates is expected to grow by 6.6% in 2020 and

6.5% in 2021.

• Giving by corporations is expected to be at,

at 0.4% in 2020 and 1.4% in 2021.

• Strong growth is estimated for education

(See GIVING on on page 3)

(See FASB on page 2)

nonnancial assets other than contributed services.

This has led to concerns voiced by stakeholders

regarding the reporting of gifts-in-kind, specically

contributed nonnancial assets, which includes items

such as xed assets like land, buildings and equip-

ment; the use of xed assets or utilities; and materials

and supplies, such as food, clothing or pharmaceu-

ticals. According to the FASB, some stakeholders

expressed concerns about the lack of transparency

for contributed nonnancial assets, and especially

the amount and attributed value of nonnancial