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ASU 2020-07: New In-Kind Disclosure Requirements

16 Oct 2020 9:35 AM | Anonymous

In September 2020, the Financial Accounting Standards Board (FASB) issued ASU 2020-07, Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets, to provide additional guidance to nonprofit organizations on how to record and disclose in-kind contributions. The overall purpose of the update is to provide more transparency into how organizations are receiving and valuing in-kind contributions. The ASU is effective for annual periods beginning after June 30, 2021.

The ASU now requires nonprofit organizations to present in-kind contributions as a separate line item in the Statement of Activities and to provide additional disclosures in the footnotes covering the following areas:  

  • A description of the organization’s policy for monetizing rather than utilizing in-kind contributions;
  • A listing of in-kind contributions categorized by type with a description about whether each type was monetized or utilized during the reporting period;
  • For in-kind contributions that were utilized during the reporting period, the nonprofit must include a description of the programs or activities in which those contributions were used; and
  • A description of the valuation process utilized by the organization to determine the fair value of the in-kind contributions.


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